STADIO Holdings, a private higher education group, has seen its share price rise by over 5% on the JSE after reporting a strong 22% increase in core headline earnings. The group’s CEO, Chris Vorster, expressed excitement about the growth, especially in a weak economy where consumer disposable incomes are under pressure.
A notable trend observed by the group is that students are no longer abandoning their studies due to fee payment issues. Instead, they are choosing to pause their studies until they can pay the outstanding fees, and then resume. This trend suggests that students are committed to their education and are finding ways to navigate financial challenges.
Strong Financial Performance
STADIO’s revenue for the year increased by 14% to R1.8 billion, while earnings before interest, taxation, depreciation, and amortisation (EBITDA) rose by 21% to R553 million. The group’s core headline earnings per share grew by 22% to 38.5 cents per share. An annual dividend of 18.4 cents per share was declared, representing a 22% increase from the previous year’s 15.1 cents per share.
The group’s student numbers also showed significant growth, with a 9% increase in the first semester to 51,197 students, and a 7% increase in the second semester to 53,303 students. The development and accreditation of new qualifications continued, with the group now offering over 100 qualifications. Distance learning remains the primary mode of delivery, accounting for 87% of group enrolments, exceeding the long-term target of 80% distance learning to 20% contact learning.
Expansion and Growth Plans
STADIO is working towards widening access to quality higher education for more students. The group has completed the first phase of its new Durbanville campus, which welcomed 1,300 students this year, exceeding the initial target of 1,000. The second phase of the campus is expected to be completed in August, increasing the student capacity to 5,000 from 1,800. The group is also shifting its focus to key steps to reach more than 100,000 students in the future.
For more information on higher education in South Africa, visit the Department of Public Service and Administration website. STADIO’s commitment to providing quality education is evident in its continued growth and expansion plans.
Some of the key highlights of STADIO’s performance include:
- 22% increase in core headline earnings
- 14% increase in revenue to R1.8 billion
- 21% increase in EBITDA to R553 million
- 9% increase in student numbers in the first semester
- 7% increase in student numbers in the second semester
As the group continues to grow and expand, it is likely to have a positive impact on the higher education sector in South Africa. With its focus on distance learning and commitment to providing quality education, STADIO is well-positioned to meet the changing needs of students in the country.
