DURBAN - Stadio Holdings share price gained more than 13 percent on the JSE today after the investment holding company weathered the Covid-19 storm by reporting a double-digit growth in earnings for the six months to end June.
Stadio, with investments in higher education institutions, reported that its core headline earnings increased by 22 percent to R56.8 million, up from R46.4m and its core headline earnings per share increased by 21 percent to 6.9 cents a share, up from 5.7c compared to last year.
The group said its core headline earnings reflects headline earnings adjusted for certain items that may distort the financial results from year-to-year and this gives shareholders a more consistent reflection of the underlying financial performance of the group.
The share price rose to R1.58 a share, up from Tuesday’s closing price of R1.39.
Its revenue increased by 15 percent to R468.2m, up from R408.9m, boosted by a 10 percent increase in student numbers to 31 053 learners. By the end of August, the group had 33 586 students in its portfolio.
The group said students enrolled on distance learning programmes accounted for 80 percent of the student body and reflected year-on-year growth of 12 percent to 24 784 students while its on-campus students grew by 3 percent year-on-year for a total of 6 269 students.
“The Covid-19 pandemic has created a shift in the perception and attractiveness of distance learning. Coupled with the attractive price point of the distance learning offerings, it provides an opportunity for Stadio to actively pursue further growth opportunities,” the group said.
Stadio offered 97 accredited qualifications with 37 programmes being in the development pipeline at the end of the reporting period.
Chief executive Chris Vorster said the results are very pleasing given the extreme operational and business conditions during the period under review.
“Having said that, the Covid-19 pandemic and its full impact on the broader economy remains uncertain and might present further challenges in future. We nonetheless plan to continue managing the impact of the pandemic by focusing on and prioritising the health and safety of all staff and students, ensuring the continuation of the academic programme and maintaining the financial health of the business,” Vorster said.
The group has decided to delay the construction and opening of the new multi-faculty Stadio Centurion campus from 2021 to 2022 as a result of the pandemic.
The group said it has made substantial progress towards consolidating its programmes under a one Stadio brand.
“In May, the Higher Education Quality Committee (HEQC) approved the business transfer process, enabling the businesses of LISOF, Prestige Academy and Southern Business School to be transferred to Stadio, formerly Embury Institute for Higher Education, during 2020. This excludes Milpark, while the transfer of SA School of Motion Picture Medium and Live Performance (AFDA) will be done over a period of two years,” the group said.
BUSINESS REPORT ONLINE