Stadio Holdings, a JSE-listed higher education provider, has unveiled plans for the construction of a comprehensive campus in Durbanville, marking a significant milestone in expanding access to quality education in the region.
The announcement was made alongside the release of audited results for the year ended December 31, 2023, showcasing the company's strong financial performance and strategic vision for growth.
Financial Highlights:
Revenue surged from R1.214 billion in 2022 to R1.414 billion in 2023, marking a 16% increase.
• Semester 1 student numbers increased from 39 167 in June 2022 to 42 874 in June 2023 (9%)
• Semester 2 student numbers increased from 42 463 in December 2022 to 46 508 in December 2023 (10%)
• Earnings before interest, taxation, depreciation and amortisation increased from
R351 million in 2022 to R391 million (11%)
• Profit after tax increased from R186 million in 2022 to R236 million (27%)
• Basic headline earnings per share (“HEPS”) increased from 20.0 cps in 2022 to 24.5 cps (23%)
• Net asset value per share increased from 209 cps in 2022 to 212 cps (1%)
• Gross final dividend per share increased from 8.9 cps in 2022 to 10.0 cps (12%)
Construction of Durbanville Campus
The Board of Stadio Holdings has approved the construction of the Stadio Durbanville campus, set to commence in phases in 2024, pending final municipal approval.
The first phase of construction is estimated to cost R220 million and will be financed through a combination of cash resources and long-term debt.
The campus has been in planning for some time. In February 2021, the group took transfer of land earmarked for this development, with an initial anticipated opening date of January 2024.
The group completed its R223 million campus in Centurion in 2021.
The Durbanville campus will provide a comprehensive educational experience, offering a wide range of programmes to meet diverse student needs.
With plans to open with approximately 1,000 students, the campus aims to cater to a growing demand for quality higher education in the region, Stadio said.
Stadio Holdings highlighted its strategic approach to expansion, focusing on select locations to maximize impact and efficiency.
The Durbanville campus represents a strategic investment in building a strong presence in the region while aligning with the company's goal of achieving 20,000 students for its contact learning business.
"We do not want a campus in every city and Durbanville campus will allow us to achieve 20 000 students for our contact learning business (20%) whilst continuing to scale our distance learning busines," it said.
Shares in the group are flat over the past year, but down some 11% in the year-to-date period.
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