Stadio Holdings Pty Ltd. · JSE:SDO
Stadio Holdings Pty — FY2024 Earnings Presentation
46 slides from Stadio Holdings Pty's earnings presentation, Mar 24, 2025
Slide 1: Annual Results Presentation for Year Ended 31 December 2024
ANNUAL RESULTS PRESENTATION FOR YEAR ENDED 31 DECEMBER 2024 24 March 2025 1
Slide 2: We're a New Vision in Higher Education
WE’REA NEW VISION IN HIGHER EDUCATION ney ; a SO hah ile hah ll dah ll STADIO HOLDINGS.
Slide 3: Presentation Overview
PRESENTATION OVERVIEW REFLECTING ON A 2024 YEAR-END POSITIONED FOR QUESTIONS SOLID YEAR FINANCIAL RESULTS GROWTH & ANSWERS 33
Slide 4: Our Purpose Is to Empower the Nation by Widening Access to Quality Higher Education
OUR PURPOSE IS TO EMPOWER THE NATION BY WIDENING ACCESS TO QUALITY HIGHER EDUCATION THROUGH OUR 3 DISTINCT PRIVATE HIGHER EDUCATION INSTITUTIONS WE’RE IN THE TOP LARGEST HIGHER EDUCATION PROVIDERS IN SOUTH AFRICA WITH OVER 50 000 STUDENTS 4
Slide 5: Reflecting on a Solid Year
REFLECTING ON A SOLID YEAR • Strong results despite continuing tough economic times • Student enrolments exceeded 50 000 – student growth strategy is working • Good progress made in debtors’ processes and collections • Operating efficiencies starting to show • Exciting new programmes accredited • Co
Slide 6: Our Success Is Dependant on Our People
OUR SUCCESS IS DEPENDANT ON OUR PEOPLE 6
Slide 7: Strong 2024 Financial Results
STRONG 2024 FINANCIAL RESULTS Higher 47 024 50 039 R1 612m 28.4% R276m DEC 2023: R1 414m Education DEC 2023: 46 508 JUN 2023: 42 874 DEC 2023: R236m 27.6% 2023:27.6% Semester 1 Semester 2 Revenue takes EBITDA Profit student student up after tax patience DEC 2023: Margin numbers up numbers up up 10%
Slide 8: 2024 Year-End Financial Results
2024 YEAR-END FINANCIAL RESULTS ISHAK KULA CHIEF FINANCIAL OFFICER 8
Slide 9: Summary 2024
SUMMARY 2024 • We produced solid results, with revenue growth of 14% to R1 612 million, underpinned by good overall student growth of 8% • EBITDA margins improved to 28.4% (2023: 27.6%) • Financial performance supported by good cash generation, with cash generated by operations up 29% to R465 millio
Slide 10: Summary 2024 Continued
SUMMARY 2024 CONTINUED • Transactions with Milpark Education non-controlling interest • Acquired an additional 0.76% effective interest for R5.9 million • Paid for the R117.5 million equity interest acquired from Brimstone Investment Corporation in December 2023 Milpark Education minority interest i
Slide 11: Total Student Numbers Semester 1: June
TOTAL STUDENT NUMBERS SEMESTER 1: 30 JUNE 17 EXCLUDING 10% % CYCLICAL B2B NEW 50000 47 024 14 CONTACT LEARNING 42 874 % STUDENT NUMBER 39 167 GROWTH 40000 35 040 GROWTH 31 414 30000 28 280 √ 26 334 20000 10% CAGR 10000 JUN 24 JUN 23 0 to JUN 18 JUN 19 JUN 20 JUN 21 JUN 22 JUN 23 JUN 24 JUN 24 JUN 18
Slide 12: Total Student Numbers Semester 2: December
TOTAL STUDENT NUMBERS SEMESTER 2: 31 DECEMBER 13 EXCLUDING 8% % CYCLICAL B2B NEW 60000 14% CONTACT LEARNING 50 039 STUDENT NUMBER 50000 46 508 GROWTH 42 463 GROWTH 40000 38 527 35 271 32 053 √ 29 885 30000 20000 9% CAGR 10000 DEC 24 DEC 23 0 to DEC 18 DEC 19 DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 DEC 24
Slide 13: Student Numbers Contact Learning - Semester 1
9% STUDENT NUMBERS CONTACT LEARNING - SEMESTER 1 3% CAGR GROWTH JUN 24 • Contact learning growth driven by: o Site extensions and growth in new qualifications coming through and contributing to growth o Poor enrolments in prior years starting to work its way out of the system JUN 23 JUN 18 to JUN 24
Slide 14: Student Numbers Contact Learning - Semester 2
8% STUDENT NUMBERS CONTACT LEARNING - SEMESTER 2 2% CAGR GROWTH DEC 24 • Contact learning growth driven by: o Site extensions and growth in new qualifications coming through and contributing to growth DEC 23 DEC 18 o Poor enrolments in prior years starting to work its way out of the system to DEC 24
Slide 15: Student Numbers Distance Learning - Semester 1
10% STUDENT NUMBERS 12% DISTANCE LEARNING – SEMESTER 1 GROWTH CAGR JUN 24 • Distance learning impacted by: o 17% growth excluding legacy business-to-business (B2B) Milpark Education business offerings o Growth in new qualifications coming through and contributing to growth JUN 23 JUN 18 to JUN 24 45
Slide 16: Student Numbers Distance Learning - Semester 2
8% STUDENT NUMBERS DISTANCE LEARNING – SEMESTER 2 11% CAGR GROWTH DEC 24 • Distance learning growth impacted by: o 13% growth excluding legacy business-to-business (B2B) Milpark Education business offerings o Growth in new qualifications coming through and contributing to growth DEC 23 DEC 18 to DEC
Slide 17: Revenue
REVENUE • 14% revenue growth made up as 14% follows - (R millions) o 12% growth on contact learning to R511 million 1800 1 612 o 16% growth on distance 1600 1 414 learning to R1.1 billion 1400 GROWTH 1 214 1200 1 098 933 √ 1000 815 800 633 600 17% CAGR DEC 24 400 200 DEC 23 0 to DEC 18 DEC 19 DEC 20
Slide 18: EBITDA and Adjusted EBITDA
EBITDA AND ADJUSTED EBITDA (R millions) (R millions) 28% 27% 28% Adjusted EBITDA margin 500 29% 458 458 450 400 391 387 28% 351 357 350 27% 309 310 300 24% 253 250 • No significant difference between 200 20% 180 196 EBITDA and adjusted EBITDA for the year 150 129 129 • Adjusted EBITDA margins increa
Slide 19: Margin Analysis
MARGIN ANALYSIS • Employee cost margin in line with prior year despite continued • Loss allowance margin decreased from the prior year investment for future growth • Operating expense margin improved to 22.5% but influenced by strategic investments in: • Marketing and advertising • Software licensin
Slide 20: Trade Receivable & Loss Allowance
TRADE RECEIVABLE & LOSS ALLOWANCE • New collection processes introduced starting to yield benefits. • Operational changes introduced in Semester 2 prevented students from registering if their account balances were not up to date • The loss allowance margin of 8.7% (Dec 2023: 9.0%) is better than the
Slide 21: Trade Receivable & Loss Allowance
TRADE RECEIVABLE & LOSS ALLOWANCE • Good collections on current period debtors resulted in debtors for the current period only growing by 15% when compared to the comparative year growth of 27% • Coverage on debtors relating to the prior year at 97% % GROWTH % GROWTH TRADE DEBTORS (R millions) DEC 2
Slide 22: Profit/(Loss) for the Period
PROFIT/(LOSS) FOR THE PERIOD (R millions) (R millions) 17% • Strong 17% growth in Profit after tax impacted by: 300 276 o Organic growth in EBITDA 250 236 o Reduced depreciation and 200 186 amortization 137 GROWTH 150 o Impairment recognised in respect of 100 77 84 the Ranburg campus 50 o Continued
Slide 23: Earnings per Share and Headline Earnings per Share
26% 28% EARNINGS PER SHARE (EPS) GROWTH GROWTH 26% CAGR AND HEADLINE EARNINGS DEC 24 PER SHARE (HEPS) HEPS DEC 23 DEC 23 to to DEC 24 DEC 24 DEC 18 35 30.9 35 31.4 30 30 24.5 25 24.5 19.5 25 20 20.0 14.9 20 15 17.0 10 7.8 8.5 15 5 10 7.8 8.5 0 5 -5 0 -10 -15 -5 (14.5) -20 -10 (8.5) DEC 18 DEC 19 DEC
Slide 24: Core Headline Earnings
28% 28% CORE HEADLINE EARNINGS 26% GROWTH GROWTH CAGR DEC 24 Core HEPS DEC 23 DEC 23 to to DEC 24 DEC 24 DEC 18 300 267 35 z 31.5 250 30 209 200 176 25 24.6 149 20 20.7 150 17.6 117 15 14.2 100 88 10.8 70 10 8.6 50 5 0 0 DEC 18 DEC 19 DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 DEC 18 DEC 19 DEC 20 DEC 21 DE
Slide 25: Core Headline Earnings Movement
CORE HEADLINE EARNINGS MOVEMENT (R millions) 27% (4%) 6% (1)% 28% 300 (R millions) % change 57 13 267 ( 3) 250 ( 9) • Core headline earnings 209 200 growth of 28%, made up as follows: 150 • Organic growth due to underlying institutional Net impact of additional Milpark 100 Organic growth on prior ye
Slide 26: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION DEC 23 DEC 24 SUMMARISED STATEMENT OF FINANCIAL POSITION R millions R millions Total assets 2 316 2 389 Property, plant and equipment 872 889 • Invested R106m on capital expenditure Right-of-use assets 65 62 including: Intangibles (incl Goodwill) 903 923 • solar proje
Slide 27: Cash Flow from Operations
CASH FLOW FROM OPERATIONS (R millions) CASH FLOW FROM OPERATIONS (R millions) DEC 19 DEC 20 DEC 21* DEC 22* DEC 23 DEC 24 Net cash flow from operations (before working capital) 202 263 323 361 404 470 Working capital changes (12) 11 (9) (20) (44) (5) Net cash generated from operations 190 274 314 34
Slide 28: Capital Invested
CAPITAL INVESTED (R millions) CAPITAL INVESTED (R millions) DEC 19 DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 Acquisitions 156 - 10 - 15 123* Infrastructure development and capital assets 168 98 181 87 44 86 Programme development 10 7 - 7 15 20 Total 334 105 191 94 74 229 Cumulative investment 1 777 1 882 2
Slide 29: Cash Utilisation
CASH UTILISATION 600 (R millions) 500 355 102 ( 32) 400 ( 29) ( 16) ( 28) ( 28) ( 102) 300 ( 85) ( 11) ( 12) 200 130 132 100 0 -100 12 ( 123) -200 29
Slide 30: 2025 Capital Expenditure: Capital Projects
2025 CAPITAL EXPENDITURE: CAPITAL PROJECTS 2025 CAPITAL EXPENDITURE (R millions) 2025 Curriculum and intangible development 46 Durbanville property 203 Existing campuses 48 Total Capital Projects 297 30
Slide 31: 7 Year Financial Overview
7 YEAR FINANCIAL OVERVIEW (R millions) DEC 18 DEC 19 DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 Student numbers 29 885 32 053 35 271 38 527 42 463 46 508 50 039 Revenue (R millions) 633 815 933 1 098 1 214 1 414 1 612 EBITDA (R millions) 129 180 46 309 351 391 458 EBITDA (R millions)- normalised 129 196 253
Slide 32: Positioned for Growth
POSITIONED FOR GROWTH CHRIS VORSTER CHIEF EXECUTIVE OFFICER 32
Slide 33: We've Laid the Foundations
WE'VE LAID THE FOUNDATIONS • Started with 840 students • Launch of STADIO Higher • Optimisation of campuses & staff • 80 000 students in 2030 Education (4 brands into 1) (incl consolidation of smaller • Listed on the JSE • Recognised as first-choice • New Milpark strategy campuses) • Acquired qualit
Slide 34: Our Breadth of Qualifications
OUR BREADTH OF QUALIFICATIONS °96 Accredited qualifications *34 Qualifications submitted for accreditation / in process of registration or certification ACCESS QUALIFICATIONS (HIGHER CERTIFICATES) TO DOCTORATES STADIO SCHOOLS OF ACCOUNTING, COMMERCE, ADMINISTRATION & MANAGEMENT AND FINANCIAL SEVICES
Slide 35: Our Footprint
ONGWEDIVA (NAMIBIA) Distance Learning Support Centre OUR FOOTPRINT POLOKWANE Distance Learning Support Centre WINDHOEK (NAMIBIA) Distance Learning Support Centre AFDA HATFIELD (COMING) KRUGERSDORP (JHB) CENTURION (PTA) WATERFALL (MIDRAND) Distance Learning STADIO HIGHER EDUCATION AFDA (JHB) Campus A
Slide 36: We've Invested in Our Campuses - Offering a Holistic Student Experience
WE'VE INVESTED IN OUR CAMPUSES - OFFERING A HOLISITIC STUDENT EXPERIENCE 36
Slide 37: Quality Remains Our Focus and Will Be Our Differentiator
ACHIEVING UNIVERSITY STATUS WHEN REGULATIONS ALLOW INVITE INDUSTRY INTO OUR ATTRACTING TOP-ACADEMIC INSTITUTIONS AND INTO THE INDIVIDUALS STADIO COMMUNITY QUALITY REMAINS OUR FOCUS AND WILL BE OUR DIFFERENTIATOR CREATING CAMPUSES THAT ARE CONDUCIVE TO HIGHER EDUCATION IN A NEW WORLD INTERNATIONALISA
Slide 38: The Need for Quality Higher Education in South Africa Is Increasing
THE NEED FOR QUALITY A HIGHER EDUCATION Pea IN SOUTH AFRICA IS INCREASING STADIO
Slide 39: The STADIO Group Is Making a Big Impact
THE STADIO GROUP IS MAKING A BIG IMPACT . . . ON THE LIVES OF OVER 50 000 INDIVIDUALS AND ON THE FUTURE OF OUR COUNTRY AS A WHOLE Official Unemployment rate STATS SA Q4: 2024 LABOUR SURVEY Less than matric 38.2% Matric 33.8% Other tertiary 19.8% SA Official Unemployment rate 31.9% Graduates 8.7% 0%
Slide 40: The Higher Education Landscape
THE HIGHER EDUCATION LANDSCAPE Do not access 557 000 1 335 983 public universities Total students Total students 33% Accepted into 551 289 1st year at Grade 12s publics qualified for university in 2022 139% 67% 2000 356 575 eligible GRADE 12s could NOT access THERE ARE CURRENTLY 2022 public universi
Slide 41: We're Set for Growth
EXPLORING OTHER OPPORTUNITIES THROUGH EXCITING INTERNATIONAL AND LOCAL PARTNERSHIPS WE'RE SET FOR GROWTH EXPLORING NEW OPPORTUNITIES OPENING NEW & MARKETS COMPREHENSIVE CAMPUS & OPENING OPTIMISING NEW EXISTING CAMPUSES FACULTIES TAKING & SCHOOLS PROGRAMMES TO NEW SITES ACCREDITING OF DELIVERY NEW &
Slide 42: Consistently Good Growth - 56 000 Students in Reach
CONSISTENTLY GOOD GROWTH – 56 000 STUDENTS IS IN REACH - 80 000 STUDENTS BY 2030 8% annual growth required 840 STUDENTS 12 976 46 508 50 039 56 000 80 000 100 000 + STUDENTS STUDENTS STUDENTS STUDENTS * STUDENTS * STUDENTS TARGET: Jan Oct Dec Dec 80% DISTANCE LEARNING 2017 2017 2023 2024 2026 2030 2
Slide 43: Durbanville Campus
DURBANVILLE CAMPUS • Construction commenced in October 2024 • On track to open for new students in January 2026 • Comprehensive campus housing 7 Faculties, offering multiple qualifications • Sports facilities will be available, offering a holisitic student experience • Expect to open with at least 1
Slide 44: Structure & Processes
STRUCTURE & PROCESSES • Prof Stan du Plessis appointed as CEO of STADIO Higher Education, effective 1 August 2025 • Stan is currently the COO of Stellenbosch University and his considerable knowledge in economics and research, coupled with his expertise in contact learning will be of great benefit t
Slide 45: We Can Be the Biggest Higher Education Provider in Time
WE CAN BE THE BIGGEST HIGHER EDUCATION PROVIDER IN TIME WE ARE IN A POSITION TO EXPLORE OTHER OPPORTUNITIES LOW GEARING ALLOWING SWIFT ACTION WE ARE IN A POSITION TO SHIFT GEARS 45
Slide 46: Questions & Answers
QUESTIONS & ANSWERS 46