STADIO Holdings Limited recently released its audited results for the year ended 31 December 2023. The company, known for its presence in the education sector, demonstrated impressive growth and strategic initiatives despite economic challenges. In this article, we delve into the financial performance, the construction of the Durbanville campus, and the dividend declaration by STADIO Holdings.
Financial Performance Overview
STADIO Holdings showcased robust financial performance in 2023, marked by significant growth across key metrics. Revenue surged by 16% from R1,214 million in 2022 to R1,414 million in 2023. This increase reflects the company’s effective strategies in student enrollment and revenue generation.
Student Enrollment Growth
A notable achievement for STADIO Holdings was the increase in student numbers across semesters. Semester 1 witnessed a 9% growth in student numbers, rising from 39,167 in June 2022 to 42,874 in June 2023. Similarly, Semester 2 saw a 10% increase, climbing from 42,463 in December 2022 to 46,508 in December 2023. These figures underscore the company’s appeal and success in attracting students.
Earnings and Dividends
The company’s core headline earnings (CHE) experienced a substantial uptick, rising by 19% from R176 million in 2022 to R209 million in 2023. This growth translated into an increase in basic core headline earnings per share (CHEPS) by 19% from 20.7 cps to 24.6 cps. Additionally, earnings before interest, taxation, depreciation, and amortization (EBITDA) grew by 11% to R391 million.
Impact of Strategic Initiatives
STADIO Holdings’ positive financial trajectory can be attributed to strategic initiatives, including effective cost controls and operational efficiencies. The implementation of these strategies contributed significantly to the growth in earnings and overall financial performance.
Durbanville Campus Construction
One of the exciting developments announced by STADIO Holdings is the approval of the construction of the STADIO Durbanville campus. This campus will be built in phases, with the first phase scheduled to commence in 2024 pending final municipal approval. The construction will be funded 50% through cash and 50% through long-term debt, showcasing the company’s strategic approach to expansion.
Dividend Declaration and Policy
The Board of STADIO Holdings declared a gross final dividend of 10.0 cents per ordinary share, reflecting a 12% increase from the previous year. This dividend, totalling R85 million, is drawn from income reserves and represents 41% of CHEPS. The company follows a dividend policy based on excess free-cash flow, ensuring sustainable returns to shareholders.
Table: STADIO Holdings Financial Highlights (2022 vs. 2023)
| Financial Metric | 2022 | 2023 | Growth (%) |
|---|---|---|---|
| Revenue | R1,214 million | R1,414 million | 16% |
| Semester 1 Student Numbers | 39,167 | 42,874 | 9% |
| Semester 2 Student Numbers | 42,463 | 46,508 | 10% |
| Core Headline Earnings (CHE) | R176 million | R209 million | 19% |
| Basic Core Headline Earnings per Share | 20.7 cps | 24.6 cps | 19% |
| EBITDA | R351 million | R391 million | 11% |
| Profit After Tax | R186 million | R236 million | 27% |
| Earnings per Share (EPS) | 19.5 cps | 24.5 cps | 26% |
| Basic Headline Earnings per Share (HEPS) | 20.0 cps | 24.5 cps | 23% |
| Net Asset Value per Share | 209 cps | 212 cps | 1% |
| Gross Final Dividend per Share | 8.9 cps | 10.0 cps | 12% |
Conclusion
STADIO Holdings has demonstrated resilience and growth in its financial performance for the year 2023. The company’s focus on student enrollment, strategic initiatives, and prudent financial management has resulted in significant increases across key financial metrics. The construction of the Durbanville campus and the dividend declaration further underscore STADIO Holdings’ commitment to sustainable growth and value creation for its shareholders. Investors and stakeholders can look forward to continued success and opportunities with STADIO Holdings in the future.
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