Viva Leisure annual report charts 'remarkable journey'

The newly released 2022/23 annual report of leading Australian fitness brand owner Viva Leisure has advised of the ASX-listed company's first full year of uninterrupted trading post COVID 19, delivering a series of performance milestones.

Writing in the annual report - its fifth since its listing on the ASX - Viva Leisure Chief Executive and Managing Director, Harry Konstantinou stated “I cannot help but reflect on the remarkable journey we have traversed together.

"We have witnessed a full year of uninterrupted performance, and I'm immensely proud to report that the business hasn’t just performed - it has shined.

"The resilience and drive of our community have been undeniably evident this year, with key milestones achieved that showcase our unwavering commitment to health and fitness:

Released this week, the annual report shows that:

• Viva Leisure met or exceeded the guidance issued in October 2022.

• Corporate Membership across the group rose 14% to 181,950.

• Network membership rose by 7.2% to 343,325 members.

• There has been a significant rise in utilization to 72.7% at Viva Leisure's corporate locations, indicating strong demand and customer satisfaction.

• Revenue increased by 55.4% to $141.2 million, primarily due to robust organic growth.

• EBITDA rose by 429.2% to $29.2 million.

• NPAT (pre-AASB16) reflected a turnaround from previous loss of $5.5 million, up a significant $14.3 million to $8.8 million profit

• A 28% increase in free cash flow before tax between H1-FY2023 and H2-FY2023, setting the stage for self-funded growth.

The annual report shows that Viva Leisure's focus on increasing the average revenue per ember (ARPM) per week has borne fruit, with the ARPM growing to $15.59 ($14.59 in PCP), a significant improvement from the previous years, a trend Konstantinou expects will continue.

He noted "our membership growth is a testament to the trust and value we bring to our community.

"With a 7.2% increase in our network membership, we now boast a total of 343,325 members (while) our corporate membership also saw a 14% rise, reaching 181,950 members.

"This growth has been driven by a balanced approach, with both new locations and acquisitions contributing evenly."

The last financial year also saw Viva Leisure acquire 11 new locations, aligning with its strategy of corporatising suitable locations within the Plus Fitness network and also growing the Club Lime network.

Ownership now extends to 24 corporate Plus Fitness locations, following our acquisition of the master franchisor rights in 2020.

Looking to the future, Konstantinou added "my excitement for our future is boundless.

"While our strategy remains rooted in proven models, our vision extends to uncharted territories.

"Viva's unique position as a multi-brand, multi-modality fitness provider allows us to adapt to evolving member needs."

Also writing in the annual report, Viva Leisure Limited Chair, Rhys Holleran advised "I am proud to report that the business has performed exceptionally well, reflecting the dedication and hard work of our team.”

Holleran also emphasised the group’s community links, stating “Viva Leisure remains deeply rooted in its commitment to fostering positive relationships within the communities we serve.

“Our team has passionately fundraised for various charities, and our expanding sponsorships and contributions to many worthy causes are a testament to this dedication.

“As we venture into new markets, our resolve to support more local communities and make a meaningful difference only grows stronger. We are consistently looking for ways to make positive impacts and uphold our reputation as a responsible and proactive corporate citizen.”

In addition to Plus Fitness, Viva Leisure’s brands include Club Lime, hiit republic, GroundUp, Psycle Life, Club Lime Ladies Only, Club Lime Aquatics and Club Lime Swim Schools.

Click here to view the Viva Leisure Annual Report 2023.