Curro H1 HEPS up 26%

Private schooling group Curro Holdings has reported a strong performance in the first half of the financial year, with earnings before interest, taxation, depreciation, and amortisation (EBITDA) increasing by 21 percent to R566 million, from R467 million in the prior corresponding period. The company's CEO, Cobus Loubser, attributes this growth to various factors, including learner growth of about 3% and a 16% increase in revenue. Loubser notes that while the challenging economic environment presented some obstacles, Curro was able to navigate them effectively and achieve positive results. He highlights the impact of rising interest rates, inflation, and other external pressures on consumers, which led to the termination of accounts for learners with outstanding debt. Despite this, Curro managed to grow its learner numbers and increase revenue through a combination of tuition fee income, ancillary revenue streams, and acquisitions of new schools. Looking ahead, Loubser is optimistic about the company's future prospects, noting that Curro is generating more cash from its operations than it requires in capital expenditures, which will enable it to enhance returns for shareholders. While the company has decided not to give a dividend for the current period, Loubser indicates that they may consider increasing dividends in the future. Additionally, Curro has initiated a share repurchase program to return excess cash to shareholders. The company's diverse offering, which includes assisted learning, digital, and online education, preschools, and high schools, has been instrumental in driving growth. Loubser emphasizes Curro's commitment to personalizing the learner journey and providing high-quality education with a focus on technology and digital innovation. While Curro currently operates in South Africa, Namibia, and Botswana, Loubser suggests that the company is focused on optimizing its existing operations before expanding further into other African markets. Overall, Curro Holdings' strong financial performance and strategic initiatives position it well for future growth and success in the education sector.