Stadio HY HEPS swell 22%

Stadio, a JSE-listed higher education group, has shown impressive financial results despite a challenging economic environment in South Africa. The company's revenue saw a 16% increase, while headline earnings surged by 22% for the six months ending on June 30, 2023. In an exclusive interview with CNBC Africa, Chris Vorster, the CEO of Stadio, shared insights into the company's success and growth strategy. Vorster credited the significant growth in learner numbers as a key driver of revenue and profitability. He highlighted that student enrollment had risen by 9% to 10% in the distance learning sector and 3% in the contact learning sector. Looking ahead to the second half of the year, Vorster projected an even greater growth rate of around 12%. The CEO attributed Stadio's success to its comprehensive offerings and competitive pricing, emphasizing the importance of delivering quality education at an affordable cost to enhance access for more South Africans. Vorster also noted that the majority of the new students joining Stadio are adult learners seeking to improve their qualifications and employability, positioning the institution as a first-choice education provider. While discussing the financial aspects, Vorster acknowledged the impact of inflation and additional costs, including fuel expenses and staff training. However, he expressed confidence in managing these challenges effectively, particularly focusing on addressing bad debt allowances with new strategies in place. Despite these hurdles, Vorster remained optimistic about the growth prospects, highlighting the booming demand in Stadio's distance learning segment. He attributed this success to the quality offerings and support provided to students, along with innovative technology integration. Looking towards the future, Stadio plans to enhance its infrastructure by constructing a new comprehensive campus in the Western Cape, aiming to cater to the growing demand in the region. Overall, Vorster's strategic vision and focus on quality education at an accessible price point position Stadio for continued success and growth in the competitive higher education landscape.