Stadio Holdings Pty Ltd. · JSE:SDO
Stadio Holdings Pty — H1 2025 Earnings Presentation
36 slides from Stadio Holdings Pty's earnings presentation, Aug 28, 2025
Slide 1: Interim Results Presentation for the Six Months Ended 30 June 2025
INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 30 JUNE 2025 28 August 2025 1
Slide 2: We're a New Vision in Higher Education
WE’RE A NEW VISION IN HIGHER EDUCATION 2
Slide 3: Presentation Overview
PRESENTATION OVERVIEW WE'RE IN 2025 INTERIM QUESTIONS A STRONG FINANCIAL RESULTS & ANSWERS POSITION UNPACKED 33
Slide 4: We're in a Strong Position
WE'RE IN A STRONG POSITION CHRIS VORSTER CHIEF EXECUTIVE OFFICER 4
Slide 5: Reflecting on a Solid Six Months
REFLECTING ON A SOLID SIX MONTHS • 2025 has started well for the Group • Earlier investment into systems, processes, programmes, staff, etc is starting to show returns through enhanced operating efficiencies and improved margins • We continue to make a big impact on the country with our student enro
Slide 6: 2025 Interim Financial Results
51 197 R957m 30.6% R183m Semester 1 Revenue Profit STRONG EBITDA student up Margin after tax numbers up up up 9% 16% 27% 2025 INTERIM JUN 2024: 47 024 JUN 2024: R826m JUN 2024: 28.5% JUN 2024: R144m FINANCIAL 20.8cps 20.7cps R368m 15.4% RESULTS Earnings per share up Core headline earnings per share
Slide 7: Our Purpose Is to Empower the Nation by Widening Access to Quality Higher Education
THE NEED FOR QUALITY HIGHER EDUCATION IN SOUTH AFRICA CONTINUES TO RISE OUR PURPOSE IS TO EMPOWER THE NATION BY WIDENING ACCESS TO QUALITY HIGHER OUR 3 PRIVATE HIGHER EDUCATION INSTITUTIONS ARE PLAYING A BIG ROLE EDUCATION IN SUPPORTING GOVERNMENT TO GIVE MORE QUALIFYING INDIVIDUALS 1. The opportuni
Slide 8: Strength Through Our Distinct Offerings
WE HAVE STRENGTH THROUGH OUR 3 DISTINCT OFFERINGS Becoming the South African A comprehensive leader in Online Distance Number-one film school institution Learning in Accounting and In South Africa Financial Services OPERATIONAL PRODUCT EXCELLENCE LEADERSHIP • STADIO Higher Education offers a wide ra
Slide 9: Technology Driven Institutions
TECHNOLOGY DRIVEN INSTITUTIONS • Technology is critical for our success and enabling scalability whilst retaining quality • Merwe Roux appointed as new Group CIO to drive efficiencies and synergies across the Group • Technology will require continued investment to remain up to date and relevant • AI
Slide 10: Durbanville Campus
DURBANVILLE CAMPUS • Construction is progressing well • On track to open for new students in January 2026 with at least 1 000 students • Will construct Phase 2 earlier (estimated completion in August 2026) • Total construction cost for Phase 1 & Phase 2 will be R325 million • Student capacity will i
Slide 11: We Continue to Execute Our Growth Strategy
EXPLORING OTHER WE CONTINUE TO EXECUTE OUR OPPORTUNITIES THROUGH EXCITING INTERNATIONAL GROWTH STRATEGY - REACHING MORE AND LOCAL PARTNERSHIPS STUDENTS AND CREATING VALUE FOR ALL OUR STAKEHOLDERS EXPLORING NEW OPENING NEW OPPORTUNITIES COMPREHENSIVE & MARKETS OPENING CAMPUS & NEW OPTIMISING TAKING F
Slide 12: 56,000 Students in 2026 Is in Reach
8% annual 56 000 STUDENTS IN 2026 growth required IS IN REACH BUT WE WANT TO ENROL MORE 100 000 + 12 976 STUDENTS TARGET: 80 000 56 000 ** 840 80% DISTANCE LEARNING STUDENTS 20% CONTACT LEARNING 54 487 * 50 039 12 976 840 Jan Oct Dec Aug 2026 2017 2024 2025* 2030 2017 * Second semester registrations
Slide 13: Consistently Good Growth
CONSISTENTLY GOOD GROWTH S1 STUDENT REVENUE CORE HEADLINE NUMBERS (R millions) EARNINGS (R millions) 55 000 1000 200 957 51 197 176 900 180 50 000 826 47 024 160 800 45 000 42 874 140 137 714 700 40 000 39 167 120 116 617 600 35 040 548 100 96 35 000 up 63% up 104% up 209% since 2020 500 468 since 2
Slide 14: Change Is the Heartbeat of Growth
THE GROUP, AND STADIO HIGHER EDUCATION SPECIFICALLY, ARE ENTERING A NEW CHAPTER, ONE WHICH I AM EXTREMELY EXCITED FOR . . . “CHANGE IS THE HEARTBEAT OF GROWTH” THE FUTURE IS BRIGHT! 14
Slide 15: 2025 Interim Financial Results
2025 INTERIM FINANCIAL RESULTS ISHAK KULA CHIEF FINANCIAL OFFICER 15
Slide 16: Summary 2025
SUMMARY 2025 • We produced solid results, with revenue growth of 16% to R957 million, driven by good overall student growth of 9% • EBITDA margins improved to 30.6% (2024: 28.5%) - efficiencies coming through • Financial performance supported by good cash generation, with cash generated by operation
Slide 17: Summary 2025 Continued
SUMMARY 2025 CONTINUED • The STADIO Randburg campus is still classified as a non-current asset held for sale – R18.9m • Shares issued and repurchased • Issued 3.3 million (R24.4 million) shares, towards the settlement of the Group’s share incentive scheme • Purchased and cancelled 1.1 million (R9.4
Slide 18: Total Student Numbers Growth
TOTAL STUDENT NUMBERS SEMESTER 1: 30 JUNE EXCLUDING 9% 11% CYCLICAL B2B 60000 14% NEW STUDENT GROWTH 51 197 50000 47 024 GROWTH 42 874 39 167 40000 35 040 31 414 30000 26 334 28 280 10% 20000 CAGR JUN 25 10000 JUN 24 0 to JUN 18 JUN 19 JUN 20 JUN 21 JUN 22 JUN 23 JUN 24 JUN 25 JUN 25 JUN 18 18
Slide 19: Student Numbers Growth: Contact Learning
STUDENT NUMBERS 11% CONTACT LEARNING - SEMESTER 1 4% CAGR GROWTH JUN 25 • Contact learning growth driven by: o Site extensions and growth in new qualifications coming through and contributing to growth Poor enrolments in prior years starting to work its way out of the system JUN 24 JUN 18 o to JUN 2
Slide 20: Student Numbers Growth: Distance Learning
STUDENT NUMBERS 9% DISTANCE LEARNING – SEMESTER 1 11% CAGR GROWTH JUN 25 • Distance learning impacted by: o 11% growth excluding legacy business-to-business (B2B) Milpark Education business offerings Growth in new qualifications coming through and contributing to growth JUN 24 JUN 18 o to JUN 25 500
Slide 21: Revenue Growth
REVENUE Key elements of the 16% revenue • 16% growth are - (R millions) o 15% growth on contact learning to R301 million 1200 o 16% growth on distance 1000 957 learning to R650 million GROWTH 826 800 √ 714 617 600 548 468 409 18% CAGR 400 JUN 25 297 200 JUN 24 to 0 JUN 25 JUN 18 JUN 18 JUN 19 JUN 20
Slide 22: EBITDA and Adjusted EBITDA
EBITDA AND ADJUSTED EBITDA (R millions) (R millions) 30.6% 30.6% Adjusted EBITDA margin 350 28.5% 29.4% 300 31.1% 293 293 29.4% 250 236 236 25.6% 210 210 200 192 192 25.6% 161 161 • No significant difference between 150 20.2% EBITDA and adjusted EBITDA for the 120 103 105 period 100 • Adjusted EBITD
Slide 23: Margin Analysis
MARGIN ANALYSIS • Employee cost margin improved despite continued investment • Loss allowance margin increased from the prior period but in line with • Operating expense margin improved to 22.9% but influenced by strategic Dec’24 full year investments in: • Marketing and advertising • Software licen
Slide 24: Trade Receivable & Loss Allowance
TRADE RECEIVABLE & LOSS ALLOWANCE • New collection processes are being embedded and refined. Starting to yield benefits, which can be seen in recoveries. • The loss allowance margin of 8.7% (Jun 2024: 8.3%) is slightly up from prior year, mainly due to adjustment made to loss allowance margin based
Slide 25: Trade Receivable & Loss Allowance
TRADE RECEIVABLE & LOSS ALLOWANCE • Total receivables grew by 18% compared to revenue growth of 16% • Current period receivables growing by 15% and in line with revenue growth • Prior period receivables growing by 22%, and remains well covered at 86% (highest risk category) % GROWTH % GROWTH TRADE D
Slide 26: Profit for the Period Growth
PROFIT/(LOSS) FOR THE PERIOD (R millions) • Strong 27% growth in Profit after tax (R millions) 27% impacted by: 200 183 o Organic growth in EBITDA 144 o Continued investment for future 150 127 growth (increases in marketing 105 GROWTH 100 85 and advertising costs, and 52 computer/license costs) 50 3
Slide 27: Earnings per Share and Headline Earnings per Share
28% 28% EARNINGS PER SHARE (EPS) AND HEADLINE EARNINGS GROWTH GROWTH 29% CAGR JUN 25 PER SHARE (HEPS) HEPS JUN 24 JUN 24 to to JUN 25 JUN 25 JUN 18 25 25 20,8 20,7 20 20 16,3 16,2 15 13,6 11,1 15 13,5 9,6 11,1 10 9,4 5,1 10 5 3,6 5,1 5 3,5 0 0 -5 (1,5) -10 -5 (8,7) -15 -10 JUN 18 JUN 19 JUN 20 JUN 2
Slide 28: Core Headline Earnings
28% 28% CORE HEADLINE GROWTH GROWTH 26% CAGR JUN 25 EARNINGS Core HEPS JUN 24 JUN 24 to to JUN 25 JUN 25 JUN 18 300 176 35 250 30 20,7 137 25 200 116 16,2 96 20 13,6 150 82 15 11,3 9,7 100 57 10 6,9 46 5,7 32 4,0 50 5 0 0 JUN 18 JUN 19 JUN 20 JUN 21 JUN 22 JUN 23 JUN 24 JUN 25 JUN 18 JUN 19 JUN 20 J
Slide 29: Core Headline Earnings Movement
CORE HEADLINE EARNINGS MOVEMENT (R millions) 36% (13%) 2% 3% 28% 300 (R millions) % change 250 • Core headline earnings 200 growth of 28%, made up as 50 3 4 176 follows: ( 18) • Organic growth due to 150 137 underlying institutional growth of 25% 100 • Prior year included RCF finance costs to acquir
Slide 30: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION DEC 24 JUN 24 JUN 25 SUMMARISED STATEMENT OF FINANCIAL POSITION R millions R millions R millions Total assets 2 389 2 400 2 703 Property, plant and equipment 889 891 978 • Invested R120m on capital expenditure Right-of-use assets 62 67 92 including: Intangibles (incl
Slide 31: Cash Flow from Operations
CASH FLOW FROM OPERATIONS (R millions) CASH FLOW FROM OPERATIONS (R millions) JUN 20 JUN 21 JUN 22 JUN 23 JUN 24 JUN 25 Net cash flow from operations (before working capital) 124 168 198 217 231 287 Working capital changes 89 51 52 38 76 81 Net cash generated from operations 213 219 250 255 307 368
Slide 32: Capital Invested
CAPITAL INVESTED (R millions) CAPITAL INVESTED (R millions) DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 JUN 25 Acquisitions - 10 - 15 123* - Infrastructure development and capital assets 98 181 87 44 86 110 Programme development 7 - 7 15 20 10 Total 105 191 94 74 229 120 Cumulative investment 1 882 2 073 2 1
Slide 33: Cash Utilisation
CASH UTILISATION 500 (R millions) 450 310 400 53 ( 71) 350 ( 16) ( 15) ( 13) ( 19) 300 250 ( 129) 215 ( 11) ( 6) 200 150 132 100 50 - JAN 25 OPERATING CAPEX: CAPEX: CAPEX: CAPEX: NET LEASE DIVIDENDS DIVIDENDS NET SHARE JUN 25 ACTIVITIES DURBANVILLE OTHER CURRICULUM RECURRING BORROWING LIABILITY PAID
Slide 34: 2025 Capital Expenditure: Capital Projects
2025 CAPITAL EXPENDITURE: CAPITAL PROJECTS ESTIMATED TOTAL ESTIMATED 2025 CAPITAL EXPENDITURE (R millions) SPEND- S1 SPEND-S2 SPEND 2025 Curriculum and intangible development 13 29 42 Durbanville property* 71 142 213 Other capital assets 36 34 70 Total Capital Projects 120 205 325 * Excluding borrow
Slide 35: 7 Year Financial Overview
7 YEAR FINANCIAL OVERVIEW (R millions) JUN 19 JUN 20 JUN 21 JUN 22 JUN 23 JUN 24 JUN 25 Student numbers 28 280 31 414 35 040 39 167 42 874 47 024 51 197 Revenue (R millions) 409 468 548 617 714 826 957 EBITDA (R millions) 103 46 161 192 210 236 293 EBITDA (R millions)- normalised 105 120 161 192 210
Slide 36: Questions & Answers
———QUESTIONS———————_ & ANSWERS STADIO 36 se