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Viva Leisure reports 25% revenue rise and surging memberships through last half year

Viva Leisure reports 25% revenue rise and surging memberships through last half year
February 14, 2025

ASX-listed health club and facility operator Viva Leisure has that the international expansion of its Plus Fitness subsidiary - along with a rise in membership numbers - have helped it achieve record earning rise through the first six months of the financial year.

The group, which currently operates 476 locations worldwide with its Plus Fitness, Club Lime, Hiit Republic, Rebalance and Groundup brands, has reported net profit after tax of $5.5 million for the six months to the end of December, up 15.2% compared with a year earlier.

The result was supported by a 25.2% increase in revenue to $99 million, although the impact of the company’s most recent acquisitions - a 34% stake in Boutique Fitness Studios and the 25% interest in World Gym Australia - have yet to be fully felt on its net profit.

The growth in underlying earnings has beaten the pace of the company’s revenue increase with EBITDA up 26.2% to $21 million.

The company says a 20-basis-point increase in EBITDA margin to 21.2% has been led by improved operational efficiencies, with Viva Leisure adding that this shows the scalability of the business model is able to withstand higher operating costs.

Describes the first half of FY25 as a “phenomenal period” for the company with the record result reflecting “the strength of our diversified strategy and the resilience of our business model”, Viva Leisure Chief Executive, Harry Konstantinou (pictured below) stated “our expanding corporate and franchise network, combined with our high-margin technology and payments division, continues to drive sustainable and profitable growth

“With strong membership momentum, strategic investments, and continued innovation, we remain well-positioned with levers for expansion.”

Viva Leisure also reaffirmed that its fourth-quarter forecast for FY25 will see quarterly revenue exceed $56 million and EBITDA rise above $12.5 million.

Konstantinou noted “as we have created significant scale across our network - with a membership base exceeding 600,000 - we will over the next 12 months shift our focus towards optimising and leveraging this network.

“This strategic pivot will prioritise free cash flow generation and maximise returns from our significant portfolio of established locations and importantly, our unique Viva technology providing the bedrock to this strategy.”

Membership numbers across the Viva Leisure portfolio rose 71.9% to more than 593,000 in the year to the end of December, with corporate membership exceeding 238,565.

In an update on those figures, the company says corporate members now total above 250,000 while corporate and franchise members have exceeded 600,000.

Viva Leisure’s portfolio expansion has also led to a scaling of its Viva Pay division, which is now processing over $300 million in total transaction volume annually.

Revenue from the technology division, which includes Viva Pay and its proprietary gym access and payment system known as The Hub, surged 124% to $6.4 million.

Viva Leisure says despite the acquisitions of Boutique Fitness Studios (BFS) and World Gym Australia only being completed late in the half-year, progress has been made for Viva Pay to be deployed through the BFS network, and The Hub to be implemented at WGA’s franchise locations. The company says this opens up further revenue and technology opportunities.

The group’s current footprint of 476 locations globally will grow closer to 600 once 118 new sites currently secured are opened.

A statement from the company added “over the next 12 months, our focus will shift towards optimising the value of our existing network while moderating the pace of new greenfield site openings.

"This strategic pivot is designed to prioritise free cash flow generation and maximise returns form our significant portfolio of established locations.”

Related Articles

18th December 2024 - Viva Leisure reveals UK expansion with Plus Fitness master franchise agreement

10th December 2024 - Club Lime owner Viva Leisure to acquire 25% stake in World Gym Australia

29th November 2024 - Viva Leisure gets high ranking in AFR Fast 100 List for 2024

26th November 2024 - Viva Leisure advises of Plus Fitness’ expansion in Southeast Asia

23rd October 2024 - Fernwood Fitness and Plus Fitness among 2024 Topfranchise award winners

4th October 2024 - Viva Leisure trading update advises of membership numbers exceeding 400,000 and 7.8 million visits in last quarter

16th September 2024 - Viva Leisure launches new health and wellness initiative

11th September 2024 - Viva Leisure announces Boutique Fitness Studios investment to drive growth of Xponential Fitness brands in Australia and New Zealand

14th August 2024 - Viva Leisure reports 15.9% growth in annual income

9th August 2024 - Completion of Western Australian acquisitions sees Viva Leisure network expand to 361 locations

24th June 2024 - Viva Leisure opens Club Lime Rosebery and grows network across all brands to 342 locations

6th June 2024 - Viva Leisure launches $16 million equity raising to fund new acquisitions

22nd May 2024 - Viva Leisure advises of completion of Viva Pay across the Plus Fitness network

8th April 2024 - Viva Leisure enters Northern Territory fitness market with acquisition of four iFitness 24/7 gyms

16th February 2024 - Revenue growth prompts Viva Leisure to look for further fitness club acquisitions

16th January 2024 - Viva Leisure passes 20 years since opening of first Club Lime

12th December 2023 - Viva Leisure continues growth with new gym and studio openings

29th September 2023 - Viva Leisure annual report charts ‘remarkable journey’

11th August 2023 - Viva Leisure reveals ‘robust’ full year results with 55% rise in revenue

17th July 2023 - Viva Leisure reports 55.4% revenue rise over last financial year


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