Stadio Holdings (SDO) H1 2024 earnings summary

Executive summary

• Achieved 10% growth in student numbers to 47,024 for the six months ended 30 June 2024, with revenue up 16% to R826 million and profit after tax up 14% to R144 million.

• Earnings per share increased 20% to 16.3 cents, and core headline earnings per share rose 19% to 16.2 cents.

• Cash generated from operations grew 20% to R307 million, with return on equity improving to 16%.

• Continued investment in new programs, technology, and campus infrastructure, including the Durbanville campus.

• Strategic focus on widening access to quality higher education and maintaining affordability.

Financial highlights

• Revenue increased 16% year-over-year to R826 million, driven by 10% student growth.

• EBITDA margin remained steady at 29%, with EBITDA at R236 million.

• Profit after tax rose 14% to R144 million; earnings per share up 20% to 16.3 cents.

• Core headline earnings per share up 19% to 16.2 cents; headline earnings per share up 20%.

• Cash generated from operations up 20% to R307 million; free cash flow after recurring CapEx at R228 million.

Outlook and guidance

• Confident in reaching 56,000 students by 2026, with a long-term target of 100,000.

• Durbanville campus construction to commence September 2024, with phase 1 opening in January 2026, expected to start with 1,000 students and 20 programs.

• Ongoing investment in new programs, technology, and staff to support growth and quality.

• EBITDA margin target of 30%-33% in the short term, with a long-term goal of 35%.

• Revenue and EBITDA in the second half may not align with the first half due to enrolment cycles.