Viva Leisure Limited Managing Director and Chief Executive, Harry Konstantinou has hailed the business’ financial results for the 2019/20 financial year as “an outstanding result during an unprecedented period” while pointing to its multiple acquisitions having creating a foundation for further expansion.
The Canberra-based fitness and facilities operator’s financial information reported revenue of $40.89 million in 2019/20 while also advising that in the eight months to the end of February 2020 (immediately before the closure of facilities due to Coronavirus), revenue had been $33.16 million, compared to $20.48 million in the period from July 2018 to February 2019.
Released to the market, the report cited the impact of Coronavirus closures on the group’s income, noting “the main driver of performance is membership revenue which was severely impacted with the mandatory closure of all facilities on 23rd March 2020 for a period of 10+ weeks.
“This resulted in revenue falling short from previous guidance by approximately $18 million (which was withdrawn shortly after our clubs were mandatorily shut down due to COVID-19). For the eight months prior to COVID-19, EBITDA was tracking at 73.1% above the previous corresponding period.”
With Viva Leisure having taken on the ownership of Fit n Fast clubs, the report noted “this only included 15 days of Fit n Fast ownership.”
With Viva Leisure’s number of operating locations increased from 40 to 79 during FY2020, membership numbers grew from 54,039 as of 30th June 2019 to 94,196 at 30th June 2020, driven, in part, four acquisitions, totalling 26 new locations in the 2019/20 financial year.
The report advised that monthly member visitations peaked at 450,000 visits in February 2020 (excluding Fit n Fast) and had recovered to 500,000 (including Fit n Fast) as of July 2020.
Commenting on the results, Konstantinou advised “COVID-19 has affected the health club industry significantly after mandatory shutdown of facilities occurred on 23rd March 2020, effectively reducing Viva Leisure’s income to zero. Since then, my Team and I have worked diligently to return the business to pre-COVID levels.
“The FY2020 full year result is an outstanding result during an unprecedented period. The business is in an excellent position to continue development from here.”
Advising of current trading, Viva Leisure noted that is has seen strong recovery and performance from all business brands in the first two months of the current financial year.
In addition, it settled the acquisition of Australian Fitness Management, the master franchisor of Plus Fitness as of 21st August.
It went on to advise that this acquisition “will provide additional opportunities to grow the business into new markets (with) our strong balance sheet and return to positive cashflow (allowing) the company to take advantage of any future opportunities.”
Images: Viva Leisure brand hiit republic (top), the company's Coronavirus timeline (middle) and Viva Leisure's newly acquired Plus Fitness (below).
14th August 2020 - ISPO identifies health orientation as key fitness trend in post Coronavirus-world
13th August 2020 - Fitness Australia counters ‘misinformation’ that suggests gyms are a hotspot for COVID-19
13th August 2020 - Les Mills plans to activate fitness industry’s COVID-19 recovery with global campaign
11th August 2020 - Fitness facilities at the crossroads and demanding new approaches
23rd July 2020 - Plus Fitness co-founder reflects on ‘incredible journey’ as Viva Leisure acquires master franchisor
22nd July 2020 - Viva Leisure acquires Plus Fitness’ master franchisor for $20 million
19th July 2020 - Without JobKeeper 60% of Australian fitness businesses will close in less than a month
15th June 2020 - New Queensland retail centre to feature Viva Leisure brands
25th May 2020 - Viva Leisure prepares for gym reopenings
7th April 2020 - Two-thirds of the world’s fitness clubs are currently closed
26th March 2020 - Viva Leisure sheds more than 1,000 staff in 48 hours
19th March 2020 - Gyms emphasise hygiene practices but look for business support
13th March 2020 - Gyms focus on hygiene measures to reassure members through Coronavirus crisis
2nd March 2020 - Viva Leisure reports ongoing growth and reveals new boutique brand
14th February 2020 - Viva Leisure opens new sites and completes Fit n Fast Health Clubs acquisition
2nd December 2019 - Viva Leisure looks to raise new capital as it announces acquisition of 13 Fit n Fast clubs
9th September 2019 - Plus Fitness growth continues with Australian and international openings
28th August 2019 - Viva Leisure 2018/19 financial results exceed prospectus forecasts
22nd July 2019 - Viva Leisure follows ASX listing with acquisition of Fitness 24/7 clubs
23rd January 2019 - Viva Leisure looks to continue fitness club expansion through 2019
Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?
The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.
However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.
Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.
Subscriptions cost just $90 a year.
Click here to subscribe.