STADIO Holdings, the JSE-listed owner of higher education institutions, increased its student numbers by 10% to 47 024 students in the six months to June 30; 87% of them make use of distance or online learning; and 13% through contact learning.
As at August, 2024 the company had 50 435 students enrolled, with second semester enrolments still in progress, and this was in line with its 2017 pre-listing statement to investors that forecast the company to have 56 000 was envisaged by 2026, said CEO Chris Vorster.
He said in an interview that the growth was strong, and reflected their positioning of the distance-learning courses to be affordable, the provision of the necessary technical and support services for the growth in student numbers, and the rapid growth in the contact-learning operations.
Vorster said their decision to enter the contact-learning market during Covid, and provide students with the same campus life as available on a public university campus, seemed counter-intuitive at the time.
There was no growth in this market in 2021 or 2022, and only limited growth in 2023. Their Centurion campus however had seen a 50% increase in student numbers since it opened in 2022. The group hoped to begin construction of its second contact-learning university in Durbanville next month.
Driven by a strong demand for professional qualifications, distance-learning student numbers grew by 10% to 40 702, while contact-learning student numbers followed suit with growth of 9% to 6 322.
Registrations of new contact-learning students in STADIO higher education increased by 14%. This was in line with a strategy to accredit new programmes and expand the offering of qualifications to different sites of delivery.
Vorster said the positive growth in new students in their contact-learning mode of delivery had supplemented the growth opportunities evident in the distance- learning mode, and supported the decision to construct their new comprehensive campus in Durbanville.
“While we experienced valuable growth, we do recognise that consumers remain under pressure given the tough economic climate and the impact this has on students’ ability to afford higher education offerings.
“There nevertheless continues to be a high demand for our offerings as students invest in themselves to create more prosperous opportunities.
During the six months revenue grew 16% to R826 million, with earnings before interest tax depreciation and amortisation up by 12% to R236m. The Ebitda margin was steady at 29%.
Core headline earnings grew 19% to 16.2 cents per share. Core headline earnings reflect headline earnings adjusted for certain items that, in the board’s view, may distort the financial results from year to year, giving shareholders a more consistent reflection of the underlying financial performance of the group.
Vorster said cash generated increased by 20% to R307m, while R49m was invested into capital expenditure for the development of curriculum intangibles, solar projects, and the Durbanville campus construction.
The group had R98m in cash and no external debt. It further has access to a revolving credit facility of R100m, with an option to increase the facility by a further R100m.
“Higher education requires patience, we have invested now for future growth and expect to see the organisation scale without losing quality or our student focus in doing so,” Vorster said.
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