STADIO HOLDINGS: STADIO Invests in Future of the Nation

“Education is the most powerful weapon which you can use to change the world,” is how the famous Mandela quote goes.

Ramaphosa agrees, saying: “It is through education that we can realise the goal of a non-racial, non-sexist and democratic society,” at a graduation ceremony in Mpumalanga in 2018.

But the South African educational landscape remains challenged. Inequality and disparity are rife among university students. Primary and secondary educational institutions are vastly different in the major metros when compared with their rural counterparts. In a country where the official unemployment figures sit around 33%, a long-term, sustainable approach to education must be adopted. However, this has been the message in South Africa since 1994 and before.

The challenges are deep rooted and require significant change at societal level to bring about a scene where all South Africans have access to high-quality, internationally recognised education that sets them for modern careers in prosperous industry sectors.

Despite having 13 of the best universities in the world, seven of which are among the top 500 globally, enrolling thousands of students ever year, only 7% of South Africans have a tertiary education.  

To alleviate the pressure on higher education institutions, the private sector entered the market to great effect. The provision of a range of courses, with a variety of levels of qualification, often accredited by the Department of Education, regularly taken up by those looking for an alternative to a traditional learning experience, the private sector is a hit. Especially following the events of 2020 and the fallout from the Covid-19 pandemic. As the virus spread, educational institutions at all levels were closed up and moved online. Here, there was a difficult period of transition, but many thrived as their courses were delivered in an efficient way, while reducing overhead costs associated with property management.

A HIGHER PROVISION

STADIO Holdings is a leading provider of higher education services in South Africa, aiming to widen access for all South Africans, further empowering the nation to build a better future.

Today, the STADIO portfolio is made up of three private institutions – STADIO Higher Education, Millpark Education, and The South African School of Motion Picture Medium and Live Performance Proprietary Limited (AFDA).

Previously part of Curro Holdings, STADIO was unbundled in 2017 and listed on the JSE as a separate entity focussed solely on higher education.

Today, Chris Vorster leads the business as CEO and he is optimistic about future prospects in South Africa following a tough period of much change. He believes in education as a tool for change, and believes in the STADIO model, hence authorising the R220 million investment into a new centurion mega campus, completed in 2021, as well as other significant projects.

“Since listing in 2017, the Group has consolidated offerings, optimised processes and is in the process of implementing various systems to create a strong foundation from which to grow. The Board is positive about the many opportunities that exist in higher education and believes that the Group is well positioned to meet the growing demand for higher education in the country,” he says.

BLENDED LEARNING

Importantly, the mix of contact and distance learning has been kept under the spotlight by STADIO. There has been no kneejerk reactions and the organisation was keen to be led by students who sit at the centre of every decision in the business.

“We take a profound interest in what our students want, and what our country and the world of work needs. We offer higher education specially designed to meet industry requirements and to accommodate our students’ diverse lifestyles. The one aspect the STADIO Group remains true to in all instances, is the student. Without our students, we do not have a business and therefore we continue to focus primarily on ensuring our service levels to our students remain best-in-class,” STADIO confirms.

This was demonstrated at the launch of the new campus in Centurion, a 14,000m² site that can host 5000 students. Safe, secure, and reliable, the site is perfectly connected and makes use of technology like few other campus’ can.

An 11% increase in student numbers up until the end of June 22 is testament to the success of the business in uncertain times. Driving the uptake of distance learning, STADIO saw a positive set of results in June.

“The Group grew Revenue by 13% to R617 million (June 2021: R548 million), with EBITDA growing by 19% to R192 million (June 2021: R161 million). The increase is due to organic growth in student numbers for six months coupled with focused cost management and increasing operating efficiencies,” said Vorster.

STADIO Higher Education began a comprehensive expansion of its distance learning operations centre in Krugersdorp recently, and continues to optimise its processes and systems to be able to achieve operational excellence. The site in Mogale will also host a printing facility capable of producing textbooks and other collateral for students on their learning journey with STADIO.

Milpark has been a strong source of change in terms of shifting to distance learning. The business primarily offers programmes specifically for the financial services industry with a focus on the commerce and accounting disciplines. “Milpark is in the process of transitioning away from offering contact learning qualifications to focus on digitally enhanced distance learning offerings. Milpark has invested in various new systems and processes during 2022 to enable the achievement of its strategic objectives,” said Vorster.

However, AFDA’s courses remain majority based on contact learning because of the nature of the industry and courses it provides. “AFDA continues to entrench its position as the leading film and television school in the country. During 2022, AFDA has focused on optimising its offerings and operations and has delivered excellent growth for the period to 30 June 2022,” Vorster highlighted.

The pandemic impacted 87.6% of all enrolled learners around the world, and South Africa was exception. For STADIO, the answer to a tough question was not to sit back and wait for challenges to pass. This is a business that went out and faced difficulty head on, investing in a major new site, planning for further ambitious rollout, and securing assets with updates and upgrades – doing so to ensure students could keep learning, and the future would be protected for shareholders.

“Following the launch of STADIO Higher Education two years ago, we look back at a challenging yet incredibly rewarding process of change management and process consolidation which has seen four Higher Education institutions consolidate into a new united and remarkable entity which has made a significant impact on the Southern African education landscape,” the company says.

OUTLOOK: BUOYANT

The weak outlook for the local economy has caused much concern for many of the JSE’s businesses, but STADIO is taking an optimistic stance. The thinking is that courses held in digital classrooms are more affordable and flexible for students and will provide options for those who may have looked to enter education but are put off by the costs and prospects associated with ‘traditional learning’.

“At STADIO, we believe in the future of our nation and our message has resonated profoundly since our launch. We have made a difference by offering wide ranging and affordable access to private higher education, and equipping our students to become the most empowered version of themselves.

“By investing in our students, lecturers, facilities and academic and support processes, we grow minds and ensure our graduates are ready for the world of work, and that we continue attracting increased student numbers into our eight schools,” the company said.

“At STADIO, we believe in the future of our nation,” STADIO reiterates. “By investing in the human potential all around us, we can grow minds, dreams and employment to ultimately benefit our nation as a whole.”

Importantly, STADIO has been active in its response to the pandemic. engaging with suppliers, communicating with stakeholders, working hand-in-hand with students, and ensuring that lecturers and teachers can deliver has been at the core of a strategy which has ultimately released positive results. The group’s outlook is strong, and its work adds to the prospect for the country.

“We have an opportunity to not just help individuals realise their dreams, but to help a nation grow stronger,” the company says, echoing the statement of its current and former leader, placing education and the student at the heart of everything it does.