Stadio Holdings (SDO) H2 2024 earnings summary

Executive summary

• Achieved strong financial results for 2024, with revenue up 14% to ZAR 1.6 billion and student enrolments surpassing 50,000, reflecting robust growth strategies and operational efficiencies.

• EBITDA margin improved to 28.4%, up from 27.6% in 2023, and profit after tax rose 17% to ZAR 276 million.

• Core headline earnings per share increased 28% to ZAR 0.315, and a dividend of ZAR 0.151 per share was declared, up 51%.

• Significant investments made in new programmes, campus infrastructure, and technology, including the commencement of the Durbanville campus.

• Leadership strengthened with new CEO appointments at AFDA, EFTA, and STADIO Higher Education.

Financial highlights

• Revenue grew 14% year-over-year to ZAR 1.6 billion, driven by 12% growth in contact learning and 16% in distance learning.

• EBITDA increased to ZAR 458 million, with margin at 28.4%.

• Profit after tax up 17% to ZAR 276 million.

• Earnings per share up 26% to ZAR 0.309; core headline EPS up 28% to ZAR 0.315.

• Cash generated from operations rose 29% to ZAR 465 million.

Outlook and guidance

• Targeting 56,000 students by 2026 and 80,000 by 2030, requiring 8% annual growth.

• Durbanville campus construction on track for January 2026 opening, expected to launch with at least 1,000 students.

• Continued investment in curriculum, technology, and new program accreditations, with focus on international partnerships.

• Targeting EBITDA margin of 30% and return on equity of 18-20% in the medium term.