Private higher education provider Stadio Holdings has reported strong financial results for the year ended 31 December 2024, highlighting significant revenue growth and robust cash generation.
The group, which owns three private higher education institutions – Stadio Higher Education, Milpark Education, and Afda – has demonstrated impressive performance across key metrics.
Revenue and student growth
Stadio’s revenue increased by 14%, rising from R1.4 billion in 2023 to R1.6 billion in 2024. This growth was driven by an 8% increase in student numbers, with total student enrollment for Semester 2 reaching 50,039 (up from 46,508 in 2023).
Notably, Stadio Higher Education saw a 14% increase in new contact learning students, reflecting the growing demand for its offerings.
Profitability
The profit attributable to Stadio’s shareholders grew by 26%, from R208 million in 2023 to R262 million in 2024. This increase was partly due to the acquisition of an additional 15.4% shareholding in Milpark Education, which reduced non-controlling interest in Milpark from 31.5% to 16.14%.
Core headline earnings, a key performance metric for Stadio, rose by 28%, from R209 million to R267 million.
Cash generation and investments
Stadio generated R465 million in cash from operations, a 29% increase from the previous year. The group maintains a strong financial position with no external debt (other than lease liabilities) and a cash balance of R132 million.
Shareholders’ equity also grew to R1.96 billion (up from R1.80 billion in 2023).
The company invested R106 million in capital expenditure, including R32 million for the new Durbanville campus, R16 million for solar installations, and R29 million for curriculum and software development.
Additionally, Stadio settled R117.5 million for shares acquired from a non-controlling shareholder and paid R5.9 million for an additional 0.76% stake in Milpark Education.
Dividends and future outlook
Stadio declared a dividend of 15.1 cents per share, a 51% increase from the prior year. The group’s return on equity also improved to 13.6%, up from 16% in 2023.
Looking ahead, Stadio is on track to achieve its pre-listing forecast of 56,000 students by 2026 and aims to reach 80,000 students by 2030.
Stadio is making significant revenue and profits from its private universities, with R1.6 billion in revenue and R262 million in profit for 2024. The group’s strong financial performance, coupled with its strategic investments and growing student numbers, positions it well for future expansion and sustained growth in the private higher education sector.
