Two prominent South African higher education institutions, STADIO and ADvTECH, have reported impressive financial results for the year ending December 31, 2024, with both groups investing heavily in new campus facilities as part of their strategic growth plans.
ADvTECH, the parent company of Crawford Schools, Pinnacle Colleges, and Abbotts College, has set its sights on becoming a fully-fledged university.
Meanwhile, STADIO, a leading private higher education group, is in the process of constructing a new university campus in Durbanville, Cape Town, slated to open in 2025.
STADIO on Monday reported a 17% increase in profit for the year ending December 2024, along with a 28% jump in headline earnings per share.
The company’s strong financial performance was underpinned by substantial growth in student enrolments. STADIO’s student base grew by 10% in the first semester, reaching 47,024 students, and by another 8% in the second semester, pushing total enrolments to 50,039.
This growth comes amid increasing demand for quality private higher education in South Africa, as more students seek alternative pathways to higher learning.
Key Financial Highlights:
-Revenue: Up 14%, from R1.4 billion to R1.6 billion.
-EBITDA: Increased by 17%, from R391 million to R458 million.
-Profit After Tax: Rose 17%, from R236 million to R276 million.
-Core Headline Earnings: Jumped by 28%, from R209 million to R267 million.
The company also made strategic acquisitions, including increasing its stake in Milpark Education by 15.4%, which positively impacted its bottom line.
STADIO’s expansion strategy includes a R32 million investment in a new university campus in Durbanville, Cape Town, set to open in 2025.
This new facility will play a pivotal role in helping the group achieve its goal of enrolling 56,000 students by 2026, with a longer-term target of 80,000 students by 2030.
The board declared a final gross dividend of 15.1 cents per ordinary share, a 51% increase from the previous year, reflecting the company’s strong cash flow and commitment to rewarding shareholders.
ADvTECH, meanwhile, also reported a strong performance for 2024, with double-digit growth in both its schools and tertiary divisions. The group’s total student enrolment surpassed the 100,000 mark for the first time, a major milestone in its expansion strategy.
Geoff Whyte, CEO of ADvTECH, expressed pride in the company’s success, noting that healthy enrolment growth, moderate fee increases, and operational efficiencies contributed to the group’s impressive results.
Key Financial Highlights:
-Revenue: Increased by 8%, from R7.86 billion to R8.52 billion.
-Operating Profit: Rose 14%, from R1.58 billion to R1.79 billion.
-Normalised Earnings Per Share: Increased by 16%, to 202.5 cents.
ADvTECH’s capital expenditure for the year amounted to R982 million, focusing on increasing capacity, developing new sites, and investing in technology to enhance teaching and learning.
The board declared a final gross dividend of 63.0 cents per share, bringing the full year dividend to 101.0 cents, up from 87.0 cents in 2023.
ADvTECH’s schools division saw solid growth, with revenue increasing by 11% to R3.12 billion. All of the division’s brands, including Crawford Schools and Pinnacle Colleges, reported enrolment growth, reflecting the rising demand for private education in South Africa.
Pinnacle College Raslouw, one of the group’s key schools, saw strong enrolment growth, prompting an accelerated build-out of the school. A new Pinnacle College campus opened in Ridgeview, Roodepoort, in January 2025 to cater to growing demand.
ADvTECH’s tertiary division also experienced strong growth, with revenue increasing by 14% to R3.4 billion. Operating profit rose by 15%, with an improved operating margin of 26.6%.
The division’s expansion efforts are evident with new campus developments at Rosebank College in Braamfontein and Polokwane, as well as the acquisition of a 47,000m² property in Sandton for a new Varsity College and Vega campus.
The new Sandton campus, expected to accommodate up to 9,000 students, is part of ADvTECH’s strategic plan to transform into a fully-fledged university. The move aligns with the company’s long-term goal of further consolidating its position in the higher education market.
