Viva Leisure experiencing share price rebound as it looks forward to facility reopenings

Impacted by state lockdowns that, at worst, have seen up to 65% of its gyms closed, ASX-listed fitness operator Viva Leisure is looking forward to the reopening of facilities.

In a market update released today, Viva Leisure Limited Managing Director and Chief Executive, Harry Konstantinou advised "with all states and territories in which Viva Leisure operates now having provided a clear re-opening path, we look forward again to be able to fully trade over the next few months."

Halting trading in late August as it sought to raise new equity, on the market the company’s share price went on to rise above $2 as of the second week of September, its highest level since the NSW lockdown began in late June.

With the share value rallying more than 50% over recent months, as of 2pm today, it stands at $2.34.

With a clear line of sight to reopening, today’s market update, advised that:

Its Club Lime portfolio - the second largest non-franchised health club brand in Australia - continues to expand both organically, with conversions (from FitnFast) and via acquisitions.

With over 70 clubs in the portfolio, the following conversions to Club Lime are expected to be completed over the next 60 days - FitnFast Campbelltown and FitnFast Shellharbour (both NSW); Active Life Norman Park, Queensland; two locations on the NSW Coffs Coast and G-Fitness in the Sydney suburb of Rhodes.

Its Hiit Republic portfolio comprised 22 locations as of 31st August 2021; and that

That is has no immediate plan to re-brand the Pinnacle portfolio of six locations that it acquired in February 2021 to Club Lime as “it is currently operating strongly and has a slightly different product offering to Club Lime”.

Despite the challenges of COVID-19 lockdowns, the Canberra-based company increased memberships by nearly 34%, expanded locations and doubled its revenue in the 2020/21 financial year.

As of 30th June, it had almost 300,000 members across all of its locations, with 126,006 members at its owned locations.