Stadio Holdings remains on course despite lower contact learning students

Distance learning students grew 15 percent to 28 573 students, but contact learning students declined by 6 percent to 5 921 students (June 2020: 6 269), particularly in Durban. Picture: Carlos Osorio, AP.

Distance learning students grew 15 percent to 28 573 students, but contact learning students declined by 6 percent to 5 921 students (June 2020: 6 269), particularly in Durban. Picture: Carlos Osorio, AP.

Published Sep 1, 2021

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STADIO Holdings’ private higher education investments’ operations and business strategy gained further traction in the six months to June 30, with core headline earnings up 44 percent, while student numbers grew by 11 percent.

The holding company has investments in private higher education institutions — Stadio Higher Education, AFDA and Milpark — which offer undergraduate and postgraduate programmes using contact, distance and blended learning modes of delivery.

Distance learning students grew 15 percent to 28 573 students, but contact learning students declined by 6 percent to 5 921 students (June 2020: 6 269), particularly in Durban.

Chief executive Chris Vorster said in an interview the feedback from students was that they wanted to get back to contact learning to be able to interact in class and also with other students, be able to ask questions and have a campus life.

As at August, the group had 38 101 students (August 2020: 33 586 students) enrolled, with second-semester enrolments still in progress.

Online professional qualifications showed significant growth in enrolments.

The decline in contact students was mainly because of students delaying or deferring studies given the impact and uncertainties of Covid-19, but Vorster said he expected this should recover once normalcy and stability returned to campuses.

“Due to the economic impact of Covid-19, many students are under financial pressure with their studies. For this reason, Stadio is excited to have partnered with Capitec to provide affordable loans to students.”

Core headlines earnings increased to R82 million from R57m. Core headline earnings per share increased to 9.7 cents from 6.9c. Revenue increased by 17 percent to R548m.

Growth in core headline earnings a share was because of organic growth in earnings before interest, taxation, depreciation and amortisation (Ebitda), as well as additional cost savings because of the protracted lockdowns during the period.

Ebitda rose more than 100 percent to R161m from R46m.

“This large increase was primarily due to organic growth in the first six months and significant once-off adjustments in the prior year that related to a fair value adjustment of R74m concerning the CA Connect acquisition and a R60m once-off, non-cash accounting impairment of trademarks of the underlying brands (excluding Milpark) following the migration of the various brands to Stadio Higher Education.”

Vorster said the results were a major achievement given the extreme economic conditions and disruptions since the outbreak of Covid-19.

“The focus would be to consolidate entities and lay a solid foundation for a new structure and manage the change. These results pave the way for a shift in focus to growth in 2022. Some 47 new academic programmes were in the pipeline that would also enhance the potential for growth,” he said.

Stadio’s first mega-campus — capable of accommodating more than 5 000 students on the blended learning model — would open for new students early next year in Centurion, and was also part of the drive for growth.

Phase one was completed in June. Stadio’s smaller Gauteng campuses would migrate to Stadio Centurion over time, which would unlock more efficiencies, he said. Early applications for the new campus were encouraging, he said.

Vorster said the 11 percent growth in student enrolments to 34 494 students (June 2020: 31 053) was good in the challenging economic environment.

The group’s cash position remained strong, with a balance of R111m at June 30, and the target was still firmly set at 56 000 students by 2026, Vorster said.

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BUSINESS REPORT ONLINE

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