Fitness clubs boost Ardent Leisure's quarterly performance

Further strong performance from its expanded Goodlife Health Clubs division has helped boost first-quarter revenue and earnings for the Ardent Leisure Group.

For the the three months to 30th September, revenues for the multi sector leisure group (which also operates AMF and Kingpin Bowling; d'Albora Marinas; and the Dreamworld, WhiteWater World & SkyPoint theme parks and attractions on the Gold Coast) rose 19.8% to $126.2 million, and earnings before interest, tax, depreciation and amortisation lifted 19.4% to $32.3 million compared with the previous corresponding period.

Within these figures, Goodlife Health Clubs generated a 51.6% lift in revenue to $40.43 million with figures boosted by Ardent having strengthened its network of health clubs over the past 12 months. Principally, this included the completion of a $60.9 million acquisition of 11 fitness clubs, and one under development, previously operated by Fenix Fitness Clubs.

Commenting on the performance, Ardent Leisure Chief Executive Greg Shaw explained "the transition to fully outsourced personal trainers is now complete and this restructure has positively impacted operating margins.

"As a result of this restructure and the success of our Goodlife Personal Training academy, we are now experiencing great penetration of our personal training services across the membership base."

Ardent Leisures Theme Park, Bowling and d'Albora Marinas operations maintained steady revenues with Dreamworld, WhiteWater World and the SkyPoint attraction recording revnues of $26.55 million, slightly down on revenues of $26.61 million for the corresponding period last year.

While Theme Park division revenues had not improved, Shaw was positive about the remainder of the year, adding "the recent announcement of the $15 million 'Theme Park Capital' campaign ... is expected to provide significant incremental traffic to the Gold Coast destination(s) for the balance of the financial year.

"The Theme Park division has a range of new products in place ... that will add new experiences and customer value to support this marketing campaign."