Stadio, which offers private tertiary education and was spun out of private school provider Curro, says its headline earnings in 2021 are expected to increase by between 20% and 35% over the previous year.
Stadio, whose brands include Milpark Business School and Embury, earned higher profits because of a 10% increase in students to 38,262 and robust expense management.
It expects headline earnings, a key measure for SA company profit, will be between 17.1c and 19.2c, from 14.2c previously.
JSE listing rules require companies to alert the market if their profit or earnings will be at least 20% higher or lower than the last matching period.
Stadio saved money through increased online teaching, which grew during the pandemic. As online graduate education grows in popularity in line with remote working trends, it is shutting down its Milpark Business School campus and offering business courses online only.
However, it is impairing R17m related to lease obligations as it shuts the Milpark campus. An online business school will save on rent costs in future.
Stadio is also offering a one-year online chartered accounting graduate qualification, one of the most sought after accounting qualifications.
It is impairing R10m as a result of selling a campus in Montana, north of Pretoria, and moving the students to its larger Centurion campus. It will sell it for R52m after buying it for R62m.
By the JSE’s close Stadio’s share price had gained the most in a week, up 3.06% to R3.70.
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