Private ‘universities’ making it rain in South Africa

Private higher education giant STADIO has released another set of strong results for its 2025 financial year, as the company continues to benefit from a demand for private education.

The company boasted more than 53,000 students in the second semester of last year, leading to a compound annual growth rate of 9% over the past five years.

STADIO now plans to offer over 100 qualifications, up from 96 currently, ranging from programmes in education, information technology, accounting, law, and engineering.

The company released its results for the year through December 2025 on Tuesday, 17 March 2026.

It reported revenue growth of 14% to R1.84 billion, and a profit of R341.22 million, up 24% from 2024.

STADIO recorded earnings of 38.6 cents per share, up 25% from 2024, and headline earnings of 38.5 cents per share, up 23%.

The company attributed these strong results to its 9% increase in students in semester one and 9% increase in students for semester two.

The group’s financial position also remained strong with a cash balance of R156 million, even though its external debt rose to R120 million, up from nil in 2024.

This increase in debt arose as STADIO used R120 million from its rolling credit facility to make payments towards the construction of its Durbanville campus, which was repaid after year-end and the facility was terminated.

The group has now entered into and activated a new revolving credit facility with Rand Merchant Bank for R325 million.

Looking forward, STADIO said it is optimistic about the business’s future growth, with demand for its offerings on the rise.

“The group is encouraged by continued growth in both contact and distance learning enrolments, reflecting sustained demand for STADIO’s high‑quality and accessible higher education offerings,” it said. 

“While the macroeconomic environment remains challenging for consumers, the group continues to manage affordability and credit risk responsibly, while remaining firmly committed to widening access to quality higher education.” 

“As part of its 2030 strategy, STADIO is deliberately shifting gears by placing dedicated focus on executing targeted growth initiatives, supported by investment in academic programmes, technology and campus infrastructure, including the development of the Durbanville campus.” 

To this end, STADIO invested a total of R303 million in capital expenditure, R205 million of which was allocated to its new Durbanville campus, R65 million to other capital expenditure and a further R33 million to new curriculum and software development.

This brought the group’s total capital spend on its new campus to R233 million. The company said capital expenditure for the completion of phase 2 of the campus’s construction is anticipated to be R110 million for the 2026 financial year. Phase 2 will be completed in August 2026, with phase 3 still to come.

“These investments are aimed at enhancing capacity, improving the student experience and supporting scalable growth,” the company said. 

STADIO has set a target of reaching 80,000 students by 2030, saying it is well-positioned to strengthen its standing as a leading private higher education institution in South Africa.

On the back of these results, STADIO declared a dividend of 18.4 cents per share, reflecting a 22% increase from 2024.

The growth in STADIO’s student numbers, as well as the split between contact and distance learning, can be seen in the table below.