Low-cost gym operator Planet Fitness has reported a 63.5% rise in revenues to US$224.4 million in the last quarter with store sales increasing by 13.6% (US$151 million) to US$1,019 million, from US$868 million in the prior year period.
Welcoming the results, which covered the quarter to 30th June, Planet Fitness, Inc. Chief Executive, Chris Rondeau stated “our high-quality, affordable fitness experience resonates now more than ever.
“We believe that people will continue to prioritise their health and wellness while being more cost-conscious, and we offer a welcoming environment for people of all fitness levels.
“During the second quarter, our join trend returned to pre-pandemic seasonality with the addition of approximately 300,000 net new members, ending the quarter with more than 16.5 million.”
The quarter also saw franchise segment revenue increasing by US$9.7 million (13.3%) to US$82.5 million from US$72.8 million in the prior year period, primarily due to a US$6.2 million increase in franchise royalty revenue, a US$1.6 million increase in the business’ national advertising fund revenue, and a US$1.7 million increase in placement revenue.
Revenue from corporate-owned sites increased US$60.9 million (150%) to US$101.5 million from US$40.6 million in the prior year period, with US$49.5 million of that income attributed to the group’s acquisition of 114 stores in the Sunshine Acquisition.
Adjusted EBITDA (net income before interest, taxes, depreciation and amortisation), increased US$34.3 million to US$89.9 million from US$55.6 million in previous quarter.
In a statement accompanying the company’s financial results, Rondeau commented on the success of its High School Summer Pass, explaining “we now have more than 3.3 million teens enrolled in our High School Summer Pass, a program that offers teens a chance to work out for free at our gyms over the summer – an extremely important initiative given the ongoing and alarming teen mental health crisis.
“This is more than three times the number of participants than when we last ran the program in 2019.
“Nearly 15% of all high school-aged teens in the USA are either enrolled in the program or are a paying member at Planet Fitness. We're proud to be helping them establish healthy habits that they can build upon into the future."
The company has also announced that Jamie Medeiros, Vice President of National Marketing, has been promoted to Chief Brand Officer, to lead the brand strategy and work collaboratively with agencies and across the organisation to ensure the brand vision comes to life through national and local marketing strategy, creative, brand marketing and social media.
In addition, Plus Fitness President, Dorvin Lively is to retire with his transition to happen through the next couple of months.
Lively joined Planet Fitness in 2013 as the company's Chief Financial Officer and was instrumental in developing its finance organisation, preparing the company to go public and then leading the IPO in 2015, and, more broadly, expanding the brand both domestically and globally.
The Company has begun a search for a new President.
Commenting on Lively’s achievements, Rondeau concluded “we are grateful for Dorvin's leadership, friendship, passion for our member and franchisees, and significant contributions to the brand over the past nine years.
“Personally, I'd like to thank Dorvin for helping me lead Planet Fitness and I am forever grateful for his guidance and support.”
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