Viva Leisure 2018/19 financial results exceed prospectus forecasts

Leading fitness facilities operator Viva Leisure Limited has revealed extraordinary financial performance during the last fiscal year with profits more than doubling on the back of tripled revenue.

Listed on the Australian Securities Exchange (ASX) in June, shares in the Canberra-based company, which added around $8 million to its market capitalisation as of this morning, rose as much as 14% to $1.30.

Total group revenue hit $31.2 million for the financial year 2018/19, up 310% on 2018’s $7.6 million with a full-year profit of $2.9 million, a 112% improvement on last year’s $1.3 million.

Revenue was slightly down on the prospectus forecast of $32.9 million, but profit exceeded forecasts of $2.7 million.

Explaining that the result was achieved on the back of business expansion, Viva Leisure Chief Executive Harry Konstantinou (pictured) stated “today we have delivered a solid set of financial results for our shareholders, exceeding prospectus forecasts on all key metrics while continuing to build the business to be fit and strong for the future.

“Over the past 12 months, my team and I continued Viva Leisure’s growth trajectory by doubling the number of locations, at the same time increasing membership by over 50%.

“Our mature locations - opened in the previous financial year or earlier - continued to grow and contributed an additional $4m in revenue over the previous financial year.

Viva Leisure’s 7th June listing raised $20 million.

Strategic and operational achievements

• Viva Leisure’s total membership base at the end of June was 54,039, up 51.6% on 2017/18;
• Its number of operating locations increased from 21 to 40 during 2018/19;
• It competed and fully integrated four acquisitions, totalling six new locations in 2018/19;
• Viva Leisure entered the Victorian market with first location in Wodonga; and
• Monthly member visitations increased 53% to 282k visits in June 2019, up from June 2018.

Looking forward, Viva Leisure aims to maintain its entrepreneurial drive to ensure that it can respond to market conditions quickly, provide the best quality service and facilities possible to members and lead in its chosen markets.