Stadio Holdings posts double-digit full-year growth

Stadio Holdings, a prominent private higher education provider, has recently unveiled its impressive financial results for the year ended December 31, 2024. The company reported a substantial increase in revenue of 14 per cent to R1.6 billion, while core headline earnings soared by 28 per cent to R267 million. These exceptional numbers were primarily fueled by robust student growth and enhanced operational efficiency. The Group's solid cash generation also facilitated a significant 51 per cent hike in the final dividend, underscoring its commitment to rewarding shareholders. To delve deeper into the details of this stellar performance, Chris Voster, the CEO of Stadio, sat down with CNBC Africa to discuss the key drivers behind the company's success. Voster commenced the conversation by highlighting the solid student growth numbers achieved by Stadio in 2024. The company witnessed an 8 per cent increase in student numbers, surpassing the milestone of 50,000 students. This growth was attributed to both contact and distance learning programs, with a notable surge in comprehensive contact learning campuses, showcasing double-digit growth. This trend signifies a growing preference among students for on-campus learning experiences, reflecting a positive trajectory for Stadio. Furthermore, Voster shed light on Stadio's ambitious target of reaching 80,000 students by 2030, signaling a strategic focus on expanding its academic offerings. The company's growth strategy revolves around accrediting new in-demand programs for both contact and distance learning students. With a clear emphasis on distance learning, Stadio aims to service 80 per cent of its student base through online education, while investing in infrastructure to support the remaining 20 per cent in contact learning. The construction of the new Durbanville campus in the Western Cape exemplifies Stadio's commitment to enhancing its contact learning capabilities and accommodating the evolving needs of students. Moreover, Voster elaborated on the significance of the Durbanville campus as a strategic move to establish a comprehensive footprint in the Southern region of South Africa. The campus aligns with Stadio's vision of showcasing its brand presence in key locations across the country, ensuring accessibility and visibility for prospective students. Additionally, the acquisition of additional shares in Mill Park education reflects Stadio's focus on expanding its online education offerings and capitalizing on the growing demand for virtual learning solutions. Discussing the financial aspects of Stadio's operations, Voster addressed the issue of bad debt recovery and highlighted the company's proactive measures to assist students facing financial challenges. By implementing flexible payment arrangements and pausing fees for students in need, Stadio aims to support its student community and foster a conducive learning environment. Moreover, with a prudent dividend policy tied to excess cash, Stadio aims to strike a balance between rewarding shareholders and funding future growth initiatives. In conclusion, Voster expressed optimism regarding the enrollment figures for the 2025 academic year, emphasizing the positive growth trends observed, particularly at the Centurion comprehensive campus. The CEO reiterated Stadio's commitment to providing a holistic student experience and adapting to the evolving preferences of learners. As Stadio navigates its growth trajectory and explores new market opportunities, the company remains poised for further success in the competitive landscape of higher education.