STADIO Holdings Limited (JSE:SDO) News - Trading Statement

STADIO HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2016/371398/06
Share code: SDO
ISIN: ZAE000248662
LEI: 3789007C8FB26515D966
(“the Company” or “the STADIO Group”)


TRADING STATEMENT


The STADIO Group utilises core headline earnings to measure and benchmark the underlying
performance of the business. Core headline earnings represents headline earnings adjusted
for certain non-recurring or non-cash items that, in the Board’s view, may distort the financial
results from year to year.

At 30 June 2021, the STADIO Group grew semester one (“S1”) student numbers by 11% to
34 494 (June 2020: 31 053). The 11% was bolstered by strong performance in the STADIO
Group’s distance learning offerings, with online professional programme offerings showing
solid growth for the period.

Accordingly, we are pleased to report that a reasonable degree of certainty exists that core
headline earnings per share (“CHEPS”) for the six-month period ended 30 June 2021, will be
between 9.1 cents and 10.3 cents, being between 32% and 49% higher than the 6.9 cents
per share reported for the six-month period ended 30 June 2020.

Shareholders are further advised that, due to the later start to the 2021 academic year
coupled with further COVID-19 lock downs in the first half of the year, the Group managed to
achieve certain operational cost savings. It is anticipated that not all of these cost savings will
carry through to the second half of the year.

Furthermore, in terms of the JSE Limited Listings Requirements, a listed company is required
to publish a trading statement as soon as it becomes reasonably certain that the financial
results for the next period to be reported on will differ by 20% or more from the financial results
for the previous corresponding period.

Accordingly, shareholders are advised that as a result of two abnormal items (excluded from
CHEPS, further explained below and reported in the prior year), a reasonable degree of
certainty exists that, earnings per share (“EPS”) for the six months ended 30 June 2021 will
be between 8.8 cents and 10.4 cents and headline earnings per share (“HEPS”) for the six
months ended 30 June 2021 will be between 9.3 cents and 9.5 cents, both being an increase
of more than 100%, compared to the loss per share (“LPS”) of 8.7 cents and headline loss
per share (“HLPS”) of 1.5 cents reported for the six months ended 30 June 2020.

In the prior year, for the six months ended 30 June 2020, the EPS and HEPS were impacted
by:

 •   a fair value adjustment of R74 million relating to the CA Connect acquisition (impacting
     prior period LPS and HLPS); and
 •   a R60 million once-off, non-cash accounting impairment of trademarks following the
     business transfer of various brands to STADIO Higher Education (impacting prior period
     LPS).

The financial information on which this trading update is based, has not been reviewed or
reported on by the Company´s external auditors.

The results for the interim period ended 30 June 2021 are expected to be published on or
about Tuesday, 31 August 2021. Shareholders are invited to join the virtual interim results
presentation at 10am, on Tuesday, 31 August 2021. To register to attend the presentation,
please click on the following link:
https://attendee.gotowebinar.com/register/8781601873282635532




Durbanville
13 August 2021

Sponsor
PSG Capital




Independent joint sponsor
UBS South Africa

Date: 13-08-2021 01:00:00
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