Goodlife Health Clubs bounce back with 24/7 clubs plus new marketing and membership strategies

Having reported mixed results over the past year largely as a result of changing membership patterns, Ardent Leisure's Goodlife Health Club division has bounced back in the last half year, reporting "exceptional membership growth" through a period in which it has advanced new marketing and operational initiatives.

Ardent Leisure’s half year group results show that Goodlife’s half year revenues had risen by 3.9% to $92 million.

Reporting EBITDA (earnings before interest, tax, depreciation and amortisation) of $6.8 million in the second quarter (up to 20.9% on the corresponding period in the previous year), commentary on the results advised of a "significant trend reversal" on the first quarter, driven by Goodlife’s acquisition of 8,300 new members in first year.

Nonetheless, challenging first quarter performance contributed to EBITDA of $13.3 million in the half year – a decline of 8.1%.

The commentary advised of the ongoing conversion of clubs to 24/7 operations, with 37 clubs in the group now in continuous operation, and 45 planned by the end of June this year.

Among the clubs converted, they have seen a 25.8% uplift in sales and a15.7% reduction in member attrition.

During the half year, Goodlife completed the acquisition of former Fitness First clubs in Western Australia, added two new standalone Hypoxi weight loss facilities in the USA, and added 12 Hypoxi facilities within existing Australian clubs.

However, Goodlife also closed clubs during the period including a club in Booval, Queensland and a Hypoxi facility in Sydney’s Surry Hills.

With membership numbers at the end of December higher than the previous peak in September 2014, the commentary also highlighted a “focus on driving longer duration, premium membership” and future enhancements of service and facilities.

With Goodlife having a range of marketing initiatives in recent months, including a link with the Coles/Flybys program, its own app and with online fitness phenomenon Emily Skye delivering her  popular F.I.T program in clubs Australia, the network is also looking at a “digital transformation” in online activities, e-commerce and integration with wearable technology.

Across Ardent Leisure, the group is also looking at strategies to "aggregate group wide customer data to facilitate cross promotion, targeted digital marketing and loyalty."

Images (from top): Goodlife Health Clubs, Hypoxi weight loss technology and online fitness phenomena Emily Skye with Goodlife Chief Executive Greg Oliver.

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