Stadio – Filling the Gap

Stadio’s 2025 results painted the picture of a higher-education group that continues to grow steadily while carving out a distinct position in South Africa’s increasingly competitive tertiary education landscape. The company reported more than 53,000 students enrolled in the second semester, representing a 7% increase on the prior year. This translated into a strong financial performance, with revenue for the year rising 14% to R1.8 billion and profit after tax increasing by an even faster 24% to R341 million. A key feature of the business is its distance learning model, which accounts for 87% of total enrolments. This model allows Stadio to reach students nationally.

Stadio has also identified the need for contact-based learning and have continued to invest heavily in its physical footprint where it sees strategic value. Total capital expenditure for the year amounted to R303 million, with the majority directed toward the new Durbanville campus. This campus is set to become Stadio’s first to offer an accredited engineering degree, marking an important step in broadening the group’s academic offering. Other campuses are also delivering tangible outcomes, most notably Milpark, which has established a strong reputation in commerce and accounting and now produces around 20% of South Africa’s successful Chartered Accountant (SAICA) graduates.

A key near-term uncertainty for the business is regulatory. Stadio is still awaiting clarity on its application for full “university” status, something management believes could materially increase demand by enhancing brand perception and expanding the range of qualifications it can offer. At the same time, the company has acknowledged rising credit risk from students, with its loss allowance increasing to 8.8% of revenue. This has largely been driven by higher-priced programmes, where affordability pressures can be more acute.

From an investment perspective, the company’s operational strengths are tempered by practical considerations. Stadio’s market capitalisation remains under R10 billion, and its shares trade with relatively limited liquidity. This makes it difficult for funds to build or exit meaningful positions without influencing the share price. Strategically, however, the group continues to explore opportunities to expand into trade and technical education, echoing the role once played by Technikons. Stadio is poised to benefit from strong demand for accessible, affordable higher education, especially if its regulatory goals are achieved.