Viva Leisure financial results show income for last half year exceeding previous guidance

August 18, 2022

Nigel Benton

Finance / Fitness / Recreation / Wellness /

Financial results for the 2021/22 financial year released today by leading fitness club owner and operator Viva Leisure shows that its facilities have rebounded strongly as gyms opened again after COVID lockdowns, with revenue of $56.8 million for the last half year exceeding its previous guidance of $54 to $56 million.

Overall, the ASX-listed company recorded revenue of $90.8 million for the full year, up 8.5% from the 2020/21 year income of $83.7 million.

The company also reported a record monthly Revenue Run Rate (MRRR) of $10.2 million in June

With the group continuing to expand, the Viva Leisure network of wholly-owned and franchised clubs, including the Club Lime, Plus Fitness and hiit republic brands, increased to 334 locations as of 30th June 2022 with its own club locations increasing to 151 at the end of the financial year.

Memberships across the network saw a significant rise of 7.3% to reach 320,161 with corporate membership numbers standing at 159,546 as of 30th June 2022, up 26.6%.

The report also noted the strategic acquisition of Rebalance Pilates and Yoga studios - completed in December 2021 - and Viva Leisure entering the Western Australia market with seven corporate owned Plus Fitness locations, and one additional location completed in August 2022

In a statement on the results, Viva Leisure advised “Viva capitalises on this trend to use its industry-leading propriety technology platform to provide in-depth data-analytics into the use of all gym locations, which enables Viva to continually assess each location across many assessment criteria, make necessary changes to deliver exceptional member experience.”

Speaking this morning in an address to investors, Viva Leisure Chief Executive and Managing Director, Harry Konstantinou advised “fitness and health is a lifestyle for our members. It is part of their daily routine and from the data we are seeing is not affected by inflationary pressures. This observation is also matched by our listed peers in the UK and the USA who are seeing the same data and increases in membership enrolment.

“Fitness for the community is no longer about waistlines and being beach body ready. It is about what happens inside our bodies. It is about mental health, about keeping your heart healthy, about feeling better with a clear mind and helping with stress. It is also about socialising and getting out. While previously it may have been common to visit the pub after work, what we are seeing is that our members would rather visit the gym after work to socialise and get a work-out.

“The energy and feeling you get after each and every workout is what our members chase and enjoy, and this is what makes it a lifestyle spend and not a discretionary spend.

We need to also understand that a weekly gym membership is extremely affordable when compared to other costs in people’s budgets. At an average $15-20 per week for a gym membership, this is less than most people spend on lunch each day.”

Image: One of Viva Leisure's hiit republic locations.

Article amended 3.45pm 18th August 2022 to include comment from Viva Leisure Chief Executive and Managing Director, Harry Konstantinou.

About the author

Nigel Benton

Co-founder/Publisher, Australasian Leisure Management

Born in the English county of Dorset, Nigel Benton is the co-founder and Publisher of Australasian Leisure Management, Australia, New Zealand and the Asia-Pacific’s only magazine for professionals in all areas of the leisure industry and the www.ausleisure.com.au website - the go to news resource for industry leaders and professionals.

With a long-term commitment to communicating all that is best about the leisure industry (aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues) his career has been defined by an ability to develop and implement industry communications.

Starting his career working in heritage visitor attractions and then adventure travel in Africa and the Middle East, an interest in writing about his experiences led to his change of career into magazine journalism and publishing.

In addition to publishing, Nigel speaks on marketing communications at a range of industry events.

He was made a Life Member of the World Leisure and Recreation Association in 2006 and is a Fellow of the Royal Geographical Society (London).

In 2020, he launched the new Asian Leisure Business website.

As of October 2024, he was inducted into the Australian Fitness Awards Roll of Honour at the 2024 AUSactive National Awards.

Among a range of published works and features, his comments on a Blog (blogspot) from 2007 to 2011, when this website went live in its current form, may be interesting to reflect back on.

His philosophy on life is to be kind to all and to indulge those that you love.

His passions include family, Newcastle United and motorcycles (especially British ones) as well, until February 2025 when she left us, caring a little pug named Stella.

Click here to connect with him via LinkedIn.