IDP Education announces $50M share buyback

• IDP Education has announced an on-market share buyback programme of up to $50 million and updated its financial outlook.
• The company's stock closed down at $2.37 following recent market activity and the updated corporate announcements.
• The changes are being driven by an accelerated transformation programme aimed at reducing costs and simplifying the balance sheet.

IDP Education (ASX:IEL) announced an on-market share buy-back programme of up to $50 million and updated its financial expectations.

This follows an updated $30 million net cost reduction expectation, exceeding the previous $25 million target.

The company stated that its expected adjusted earnings before interest and tax will be approximately $122 million.

Working capital discipline has also resulted in an expected net leverage ratio of around 1.0x at June 30.

Following the announcement, the IDP Education share price was down at $2.37.

These initiatives are part of a multi-year transformation programme to build a simpler, technology-enabled business.

Further details regarding this strategy will be provided at the annual results announcement on Aug. 20.