Viva Leisure growth continues in March quarter

Viva Leisure Limited has announced impressive results for the March quarter of the current financial year with record revenue of $13 million for March 2023, an increase in membership and an expanding club network.

The company’s annualised revenue run rate (ARRR) has reached $152.5 million while its EBITDA margin continues to exceed 20%.

The achievement in revenue growth and membership base by Australia’s second largest health club owner and operator, is attributed to its strategic expansion plan, which includes the addition of new clubs to its network.

The company’s total corporate club locations now stand at 168, and two more are expected to open before the end of the financial year.

Viva Leisure Chief Executive and Managing Director, Harry Konstantinou, expressed his pride in the company's strong performance, stating “(this) is a testament to the dedication and hard work of our team, as well as the loyalty of our growing membership base.

"Our strategic expansion plan continues to deliver results, and we are committed to maintaining this momentum as we move towards the end of the financial year. With a focus on providing exceptional fitness experiences and broadening our presence in the market, we are confident that Viva Leisure will continue to thrive as a leader in the health and fitness industry."

The slight decrease in utilisation rate during Q3 is attributed to the opening of new sites, which is expected to stabilise as the new clubs reach their full potential. The average revenue per member (ARPM) for March 2023 is $15.42, while the utilisation rate stands at 72.2%, a slight decrease compared to January utilisation rate due to new sites opening during the period.

Viva Leisure's guidance for the full financial year has been re-affirmed, with revenue expected to range between $137 million to $140 million and EBITDA between $28 million to $30 million.

VIVA Leisure has an extensive portfolio of facilities, starting with its flagship brand Club Lime and extending all the way to aquatic facilities, a cycle studio and a day spa with hydrotherapy pool.

Its brands include Pinnacle Health Clubs, Fit n Fast, HIIT Republic, GymmyPT, GroundUp and Plus Fitness.