Curro (COH) H1 2025 earnings summary

Executive summary

• Revenue increased by up to 5% year-over-year to R2,709 million for the six months ended 30 June 2025, despite a 1.4% decrease in average learner numbers to 71,749.

• Cash generated from operating activities rose by 10.3% to R688 million, supporting share repurchases and dividend payments.

• EBITDA and recurring headline earnings per share were stable at R625 million and 40.3 cents, respectively, while EPS dropped 36.1% to 25.7 cents due to a R74.1 million impairment on land.

• The business remains resilient with a strong balance sheet, low debt levels, and a focus on sustainable cash generation.

• An offer was made by Janimatorn Stichting to acquire all shares for R7.2 billion, representing a 60% premium to the last closing price, with consideration in Capitec Bank shares, PSG Financial Services shares, and cash; subject to shareholder and regulatory approval.

Financial highlights

• Total revenue increased by up to 5% year-over-year, driven by annual fee increases and higher ancillary income.

• Fee revenue rose 4.1%, with average fees per learner up 5.1%.

• Ancillary revenue grew 10.8% and has recovered to pre-pandemic levels.

• Operating costs increased by 5.4%, with staff costs up 3.5% and other expenses up 8.8%.

• Net finance costs decreased to R138 million from R157 million year-over-year.

Outlook and guidance

• Capex for 2025 is projected at up to R630 million, with continued investment in capacity expansion and maintenance.

• Fee increases for 2026 will be about 4.5%, with pre-primary and primary fee increases held below 4% and high school fees up about 6%.

• Management remains confident in driving operating margin higher over the medium term, despite a 1% margin reduction this period.

• Focus remains on increasing capacity utilization, recapturing market share in early schooling, and digital optimization.