Stadio Holdings (SDO) investor relations material

Executive summary

• Achieved strong growth in a challenging economic environment, with student numbers up 9% in S1 and 7% in S2, reaching 53,303 by year-end.

• Revenue increased 14% to ZAR 1.841 billion and profit after tax rose 24% to ZAR 341 million, with EBITDA margin improving to 30% from 28.4% in 2024.

• Opened new Durbanville and Hatfield campuses, expanded offerings, and launched a new School of Engineering.

• Significant investments in campus infrastructure, curriculum, and technology, including completion of Durbanville campus phase 1.

• Continued expansion of qualifications offered, now exceeding 100 in 2026.

Financial highlights

• Revenue grew 14% year-over-year to ZAR 1.841 billion, with contact learning up 15% and distance learning up 14%.

• EBITDA increased to ZAR 553 million, with margin rising to 30%.

• Profit after tax rose 24% to ZAR 341 million; earnings per share up 25% to ZAR 0.386.

• Core headline earnings per share up 22%; cash generated from operations up 16% to ZAR 540 million.

• Dividend per share increased 22% to ZAR 0.184; return on equity up 16%.

Outlook and guidance

• Targeting 80,000 students by 2030, requiring 8% annual growth.

• Project 100 launched to drive future growth, aiming for 100,000+ students and university status.

• Planned capital expenditure of ZAR 294 million in 2026 for curriculum, campus expansions, and recurring investments.

• Double-digit growth in distance learning expected to continue in 2026.

• Focus on expanding distance learning, aiming for an 80/20 split between distance and contact learning.