Stadio CEO on why he believes contact learning will still show growth going forward

Stadio, a prominent player in the education sector in South Africa, has managed to navigate through the turbulent times brought on by the pandemic. In a recent interview with CNBC Africa, Stadio CEO, Chris Vorster, shed light on the company's impressive revenue growth of 17% in the first half of the year, contrasting with a mere 1% increase by a competitor. Vorster attributed this growth to a significant uptick in student numbers, which surged by 11%. Despite concerns about tuition fee hikes, Vorster clarified that the company had only raised fees moderately, ranging from 3% to 6% across different programs. Additionally, the successful introduction of short learning programs helped bolster revenue. The surge in student enrollment was largely driven by new students opting for distance learning programs over traditional contact learning, a trend Vorster linked to the ongoing uncertainties surrounding COVID-19. However, he emphasized that contact learning still holds promise for growth post-pandemic, with an 80-20 ratio envisaged for online and on-campus learning. Stadio's strategic focus on expanding its distance learning offerings, with 47 new programs awaiting accreditation, is positioned as a key driver of future growth. The consolidation of legacy brands under the Stadio banner, aimed at offering a wide array of faculties and programs, is also expected to fuel growth in the higher education segment. Capital allocation primarily aims at enhancing the distance learning experience and the development of a new mega campus in Centurion, capable of accommodating 5,000 students. Despite the prevailing challenges, Stadio remains optimistic about the prospects for contact learning and expects continued growth in the education space.