Stadio H1 HEPS up 18%

Listed education group Stadio is celebrating a successful first half of the year with improved enrolment numbers and profitability. The CEO, Chris Vorster, recently joined CNBC Africa to discuss the company's performance and future growth prospects. Stadio reported a notable increase in student numbers, with enrolment up by over 10% in the six months ending June. The growth was primarily driven by a 14% increase in distance learning students, while contact learning experienced a slight decline due to a business transitioning to an online model. The company's revenue also saw a boost corresponding to the rise in student numbers. Profitability was another highlight for Stadio, with headline earnings per share up by almost 20%. Vorster attributed this success to the company's efforts in streamlining operations and improving efficiencies following a period of consolidation. Investments in infrastructure, new systems, and program development have all contributed to the positive financial results. When discussing the trends between distance learning and contact learning, Vorster noted that while some students are eager to return to physical campuses, there is a growing preference for distance learning among working professionals and senior students. Affordability and flexibility were cited as key factors driving the popularity of distance learning in the current economic climate. Looking ahead, Stadio is gearing up for a growth phase, with plans to introduce 31 new qualifications in high-demand fields. The company collaborates closely with industry partners to identify relevant programs and ensure there is a market for graduates with these qualifications. Despite not declaring a dividend in the current period, Vorster assured that the company still intends to distribute dividends annually, with a decision pending on the year-end results. Stadio remains optimistic about its financial outlook and is well-prepared to navigate challenges such as load shedding, with campuses equipped with backup power sources. Overall, Stadio's strong performance in the first half of the year underscores its resilience and adaptability in a rapidly evolving education landscape. With a focus on innovation, industry collaboration, and student-centric programs, the company is well-positioned for continued growth and success.