Stadio declares maiden dividend

Stadio Holdings, a prominent education group, has announced a significant increase in student enrollment by almost 10% for the year, leading to the company's declaration of its very first dividend of 4.7 cents per share. The headline earnings per share also showed remarkable growth, accelerating by an impressive 100% for the fiscal year ending on December 31, 2021. The CEO of Stadio Holdings, Chris Forster, joined CNBC Africa to discuss the company's latest achievements and future prospects. Chris Forster expressed his excitement at being able to declare their maiden dividend, highlighting the strong balance sheet that Stadio currently possesses. With minimal debt and ample capital to support their growth initiatives in 2022, the company felt confident in rewarding its shareholders with the announcement of the dividend. Forster emphasized the efficiency gains achieved through the consolidation of four acquired institutions into one unified entity, leading to improved operational performance and cost savings. The shift towards distance learning, especially during the COVID-19 pandemic, played a significant role in reducing operating expenses for Stadio. Moving examinations online and embracing digital tools not only enhanced the student experience but also contributed to financial savings for the institution. Forster noted that while online learning witnessed a surge in popularity during the pandemic, there is a gradual return towards contact learning as normalcy returns, indicating a potential growth trajectory for campus-based education. One innovative initiative introduced by Stadio is the Calissa student share scheme, designed to incentivize postgraduate students with shares in the company. This scheme aims to foster a strong bond between the institution and its alumni, encouraging lifelong learning partnerships. By offering students opportunities to enhance their personal and generational wealth through share ownership, Stadio is paving the way for a more engaged and prosperous student community. Looking ahead, Stadio remains optimistic about the future of higher education, anticipating a resurgence in campus-based learning alongside continued growth in online education. With a focus on innovation, efficiency, and student-centric initiatives like the Calissa scheme, the company is poised to build on its recent success and shape the future of education in South Africa.