STADIO Holdings: 16% Revenue Surge, 9% Enrollment Growth

  • Strong Growth: STADIO Holdings reports impressive 16% revenue increase, reaching R714 million for the first half of 2023.
  • Enrollment Surge: Student numbers grow by 9%, with 46,254 students as of August 2023, reflecting 11% year-on-year growth.
  • Financial Success: Earnings per share surge by 21%, while core headline earnings increase by 20%, showcasing sustainable growth.
Stadio Annual General Meeting Results

STADIO Holdings Limited has unveiled its impressive financial results for the first half of 2023, signalling robust growth and reaffirming its commitment to delivering quality education. The company’s unwavering dedication to student success and innovative learning approaches have translated into remarkable gains across various key performance indicators.

A Glimpse of the Numbers

In a bold demonstration of its financial prowess, STADIO Holdings reported a remarkable surge in revenue for the six months ending 30 June 2023. The figures soared from R618 million to R714 million, showcasing an astonishing 16% increase in revenue. This achievement, amidst a dynamic educational landscape, underscores the company’s ability to adapt and thrive.

The surge in revenue is complemented by an equally impressive growth in student numbers. Enrollment numbers for the first semester of 2023 spiked by 9%, reaching 41,865 students. This upswing in numbers reveals the growing demand for STADIO’s diverse range of programs, which cater to both traditional and distance learning students.

As of August 2023, the upward trend in student enrollment persisted, with the company boasting 46,254 students, reflecting an impressive 11% increase compared to the previous year. Notably, enrollment for Semester 2 was still ongoing, suggesting that the numbers could continue to climb.

The financial prowess of STADIO Holdings is further underscored by the increase in earnings before interest, taxation, depreciation, and amortization (EBITDA). This essential metric registered growth from R192 million to R210 million, marking a commendable 10% upsurge. Such growth in EBITDA is indicative of the company’s efficient operational management and solid financial position.

Earnings Per Share Soar

The financial success story of STADIO Holdings is articulated through its earnings per share (EPS), which witnessed a substantial surge. EPS climbed from 11.2 cents per share (cps) to an impressive 13.6 cps, translating to a remarkable growth rate of 21%. This growth reflects the company’s ability to convert its operational success into tangible benefits for its shareholders.

The upward trajectory continues with the headline earnings per share (HEPS), which mirrors the company’s strong performance. HEPS surged from 11.1 cps to 13.5 cps, signifying an impressive 22% increase. This figure is a testament to the holistic success of the company’s strategic endeavors and operational efficiency.

Core Headline Earnings and Net Asset Value

The company’s commitment to measuring and benchmarking its underlying performance is highlighted through core headline earnings (Core HEPS). Core HEPS serves as an essential indicator of the business’s fundamental growth. In this domain, STADIO Holdings reported an inspiring increase from R96 million to R116 million, marking a noteworthy 20% growth. This emphasizes the company’s focus on sustainable growth and consistent value creation.

Another key indicator of STADIO Holdings’ financial health is the net asset value per share, which showcased steady growth. This figure increased from 201 cps to 212 cps, reflecting a 5% rise. This uptick reinforces the company’s stability and growth, further contributing to its overall positive financial narrative.

Behind the Numbers

Commenting on the impressive results, the STADIO Holdings’ board of directors conveyed their satisfaction and highlighted the key drivers of this success. The company’s ability to achieve a 10% growth in EBITDA was attributed to the organic expansion within its institutions. The growth was further facilitated by reduced growth in depreciation, an increase in net interest income, and a controlled rise in loss allowance expenses.

Furthermore, the company’s commitment to diverse learning experiences was evident in the growth of distance learning programs. These programs saw an impressive increase of 10%, reaching 36,058 students at the end of June 2023. This growth underscores STADIO’s adaptability in catering to the evolving preferences of modern learners.

The positive trend extended to contact learning student numbers as well, demonstrating a reassuring 3% growth to 5,807 students. This achievement is especially noteworthy as it follows a decline of 4% in student numbers during the previous year. The company’s ability to reverse this trend signifies its agility and responsiveness to changing market dynamics.

Dividend Policy and Future Outlook

While the financial success story of STADIO Holdings is compelling, the company’s approach to dividends reveals a strategic focus on sustainable growth. In alignment with its policy, STADIO Holdings did not declare an interim dividend for the six months ending 30 June 2023. This decision underscores the company’s commitment to allocating resources for future growth projects, working capital requirements, and capital expenditure.

The company’s commitment to responsible financial management, alongside its robust operational performance, paints a promising future for STADIO Holdings. The steady growth in student enrollment, revenue, and key financial metrics positions the company as a prominent player in the South African education sector.

Virtual Presentation for Investors

To provide greater insights into the company’s financial performance and growth trajectory, STADIO Holdings will host a virtual presentation on 30 August 2023 at 10:00. Investors are invited to participate and gain a deeper understanding of the company’s financial journey.

The presentation will offer participants the opportunity to download key financial documents and engage with the company’s management team through a dedicated portal. Questions can be submitted during and after the presentation, allowing stakeholders to interact directly with the company’s leadership.

Investors and stakeholders interested in attending the presentation are encouraged to register ahead of time by following this link: https://attendee.gotowebinar.com/register/5543714970498452821. Additional questions can be directed to the investor relations team at investorrelations@stadio.co.za.

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