Viva Leisure reveals 98% profit rise as group footprint rises to 338 locations

Fitness club network Viva Leisure Limited has reported revenue of $67.4 million during the second half of 2022, a rise of 98%.

Releasing its results for the first half of the 2022/23 financial year (for the period ending 31st December 2022), the group advised of adjusted EBITDA of $14 million, up from a loss of $3.8 million in the previous year - a result higher than any full year result in the company’s history.

It also advised that its number of corporate and franchise locations increased to 338 as of 31st December 2022, up by 8%, with Viva Leisure corporate club locations increased to 162 at the end of 2022 while network membership stood at 333,423 for the period, up 12.2% and rising to 343,352 members as of 20th February.

For the first time, Viva Leisure’s results included India were its membership base has grown to 3,457.

Commenting on the performance, Viva Leisure Chief Executive and Managing Director, Harry

Konstantinou explained ”this is an excellent result with record numbers across the key metrics of Revenue, EBITDA, NPAT, locations and members.

“With COVID now in the rearview mirror, the company has been able to demonstrate its potential for growth and use of operating leverage. It also highlights the resilience of our members and their enthusiasm to return to healthy lifestyles in a social and welcoming environment, which Viva facilities offer.

“This has resulted in H1 FY23 revenue of $67.4 million exceeding any previous half year result by a wide margin, with adjusted EBITDA for the half year being larger than any previous full year result. EBITDA margins have improved driven by increased utilisation across our corporate owned locations, up by nearly 10% over the past 12 months.

“We continued to invest in club acquisitions and greenfield locations, with our expansive footprint now at 338 gym locations across six Australian states and territories and three countries.

“Memberships continued to grow with more than 333,000 members across our network, of which 172,000 are corporate members as at the end of half year FY2023. With the holiday seasonal impacts now behind us, members have returned in record numbers, and we have seen growth of approximately 9,500 members across our Network to a total of 343,352 - including India members for the first time at 3,457 - at 20th February 2023, and including an additional 4,873 corporate members to a total of 177,279 at 20th February 2023.

“In another milestone, we are pleased to note that our membership now exceeds 2% of the Australian population aged 15-69 years, an impressive statistic.”

Geographic diversification across the country broadened with Viva Leisure continuing its expansion into Western Australia having acquired a further five Plus Fitness locations during the period.

Anticipating ongoing growth through both acquisitions and greenfield locations with 14 new greenfield locations secured and two acquisitions close to completion, Konstantinou added “calendar year 2022 was the first full year without COVID interruptions since we listed in 2019. This allowed us to demonstrate the company’s potential with continued expansion while improving overall utilisation and operating leverage. This has led to a significant improvement in margins and free cash generation.

“We have a very strong pipeline of 14 new greenfield locations secured, with Club Lime and GroundUp to be the initial focus.

“We are well positioned to utilise our available debt facilities and free cash, we expect to grow indefinitely without the need for additional funding with a target of 24+ sites over the next 12 months.”

Viva Leisure’s Club Lime brand is also poised to reach 100 locations - a first for any non-franchised fitness club brand in Australia.