Viva Leisure advises of Plus Fitness' expansion in Southeast Asia

Viva Leisure Limited has announced of the advance of its international growth strategy with significant developments through its 100%-owned subsidiary, Plus Fitness International (PFI). 

In advice released to the ASX today, the company stated that PFI has successfully executed an Area Development Agreement (ADA) in Singapore with further agreements in Malaysia and the Philippines expected to be finalised shortly.

In a landmark achievement, PFI has also sold a franchise comprising five locations in Singapore while its ADA partner in Southeast Asia will spearhead efforts to secure additional franchise groups, rapidly expanding our footprint in these dynamic markets.

Advising that "this strategy is both low-cost and low risk for Viva Leisure", Viva Leisure announced that it is leveraging the ADA partner’s regional expertise while offering significant upside as the franchise network grows, generating profitable and scalable revenue streams and enhancing the brand's market presence.

Commenting on the growth, Viva Leisure Chief Executive, Harry Konstantinou commented "we are genuinely excited about these developments, which represent significant milestones in our global expansion journey.

"Executing the first Singapore agreement and securing multiple territory sales, together with agreeing to terms for further growth in Southeast Asia not only demonstrates the universal appeal of the Plus Fitness brand but also our strategic focus on profitable and sustainable growth. 

“We believe the Southeast Asian market is especially receptive to our model, which offers affordable and high-quality fitness solutions that align perfectly with the evolving preferences of consumers. By embracing a low-cost, low-risk franchise model augmented by our cutting edge technology, we are well-positioned to deliver outstanding value to our investors and unparalleled experiences to our members worldwide.

"The substantial opportunity in Southeast Asia complements the broader narrative of Viva Leisure’s global expansion strategy.”

Potential market size in Southeast Asia
Viva Leisure believes the market potential for Plus Fitness in Southeast Asia is immense, as a result of low gym penetration rates and evolving consumer interest in fitness and wellness.

Market Analysis 
• Low gym penetration rates: 
Gym penetration rates in Singapore, Malaysia, and the Philippines remain substantially below global benchmark: 
o Singapore: below 6% 
o Malaysia: below 2% 
o Philippines: below 1% 
This is significantly lower than the 16% penetration rate in Australia, underscoring the untapped opportunities in these markets. 

• Singapore's significant opportunity: 
In Singapore alone, Viva Leisure projects the potential for over 100 locations, driven by increasing urbanisation, rising disposable incomes, and growing health awareness. 

• Wider Southeast Asia Expansion: 
Across the region, the fitness industry is poised for substantial growth, with a younger demographic and increased emphasis on preventive health measures creating favourable conditions for Plus Fitness International. 

By strategically aligning with ADA partners and leveraging a proven low-cost franchise model, PFI is well-positioned to capture this growth, meeting the demand for affordable, high-quality fitness solutions in these high-potential markets. 

Strategic advantages of the Plus Fitness International Franchise Model 
The international expansion of Plus Fitness is underpinned by a low-cost, low-risk model with high rewards for Viva Leisure’s Plus Fitness wholly owned subsidiary, offering significant benefits including: 
• Scalable growth: rapid market penetration without substantial capital expenditure. 
• Diversified revenue streams: increased income through franchise fees, royalties, and technology services. 
• Local market expertise: franchise partners bring invaluable regional knowledge and networks. 
• Brand strengthening: enhanced global brand recognition and competitive positioning. 
• Market adaptability: flexibility to tailor offerings to meet local market needs and consumer preferences. 

Leveraging Viva Leisure’s core payment and Hub tech to drive further growth 
The agreements with our ADA partners include the adoption of our innovative Hub technology and Viva Pay systems upon availability in their respective regions. This integration not only streamlines operations but also amplifies the growth of Viva Leisure's technology segment, delivering seamless experiences for members and franchisees alike. 

Vision for future expansion 
Viva Leisure is actively exploring additional opportunities for Master Franchisees and ADAs in new regions. The Company is committed to leveraging its key technological advantages and successful franchise model to drive sustained international growth and deliver exceptional value to shareholders. 

Images: Plus Fitness International is expanding in Southeast Asia (top), Harry Konstantinou, Chief Executive of Plus Fitness owner Viva Leisure (middle) and the first Plus Fitness opened in Singapore in 2019 (below).