Stadio posted their 6-month results

Stadio is one of my Core holdings, let's look at how they performed.

• Revenue increased from R548 million to
  R617 million (13%)
• Student numbers increased from 34 494  to 38 348
  (11%)
• EBITDA increased from R161 million to R192 million (19%)
• EBITDA margins improved from 29% to 31%.
• Earnings per share increased from 9.6 cents per share (cps) to 11.2 cps (17%)
• Headline earnings per share increased from 9.4 to 11.1 cps (18%)
• Core headline earnings increased from R81.6 million to R96.1 million (18%)
• Core headline earnings per share (CHEPS) increased from 9.7 cps to 11.3 cps (17%)
• Net asset value per share increased from 189 cps to 201 cps (6%)
• The group generated R216 million in cash from operations.
• No interim dividend has been declared for the six months ended 30 June 2022, as Stadio will review dividends with annual results.

Non-financial metrics

• Contact learning decreased 4% YoY (15% of Total students)
• Distance learning increased 14% YoY (85% of total students)

The decline in student numbers is due to the transitioning to Milpark and away from contact learning. Personally, I like this move. Digital education is much more scalable.

There is a fine detail in the report:

These numbers are up to June 2022, in the report they stated that August student numbers are currently at 41544. Representing a 9% YoY growth and an 8,3% growth from June. There is definitely promise in the momentum.

(Enrolments are still in progress)

There are some regulatory delays with accreditation of courses, but at some point they will be.

Their comments state that they believe that these delays are timing issues and new programme accreditations will continute to future registration cycles.

There is still a lot of investment taking place, such as Centurion campus, Krugersdorp and other aspects of the business.

Overall, I am happy. Long term thesis is still in play. They are entering their growth phase and due to the nature of distance learning, margins are likely to increase as they scale.

I am long.

(Disclaimer: My opinions are my own. Do not take it as financial advice. Always do your own due diligence with investing.)