Growth in student numbers, new campuses boost Stadio’s earnings

Private higher education group Stadio Holdings has reported a solid first-half performance after it exceeded its pre-listing milestone of 56,000 students and benefited from the opening of two new campuses.

The group on Friday reported a 13% rise in revenue to R1.08bn for the six months to end-June, driven by a 10% growth in student numbers.

Earnings before interest, tax, depreciation, and amortisation (ebitda) increased 14% to R333m, while HEPS was up 16% to 24.0c. No interim dividend was paid in line with the group’s policy to pay dividends on an annual basis.

Profit after taxation rose to R209m from R183m a year ago, primarily due to organic growth in the underlying institutions, and offset by higher operating and employee costs, which combined grew by 12%.

Student numbers in the first semester increased 10% to 56,171. By the end of August, student numbers had risen to 59,191, it said in a statement.

The group said it continues to see good momentum in contact learning, with total students in Stadio Higher Education increasing by 33% and new contact learning students increasing by 43%.

The growth in the number of contact learning students was supported by the opening of the group’s Durbanville and Afda Hatfield campuses.

The Durbanville facility opened with more than 1,250 students, exceeding its opening targets.

Distance learning student numbers reflected overall growth of 9% and contact learning student numbers reflected overall growth of 15%.

The group launched its first qualifications in engineering during the period through the School of Engineering and Architecture.

“The Stadio Group deliberately invested in people, processes, systems and infrastructure to support its 2030 growth ambition of 80,000 students and achieve university status, once the regulations allow,” it said.

A total of R147m was invested in capital expenditure, which included R79m for further construction of the Durbanville campus and R18m for the acquisition of additional capacity at its Waterfall campus. It also invested R12m in new curriculum and software development.

The group said it is encouraged by continued growth in contact and distance learning enrolments, reflecting sustained demand for its high-quality and accessible higher education offerings.

While the macroeconomic environment remains challenging for consumers, Stadio said it continues to manage affordability and credit risk responsibly, while remaining firmly committed to widening access to quality higher education.