This article is from the Australian Property Journal archive
VIVA Leisure will shift focus to optimising the value of its existing network of health and fitness clubs across Australia and slow down its rate of greenfield site openings.
New greenfield locations and acquisitions revenue grew 18.1% or $12.93 million in the first half, compared to the prior corresponding period, as it reported a record revenue result of $99.0 million, up 25.2% from the prior corresponding period.
EBITDA was up 26.2% to $21 million, and EBITDA margin increased 20 basis points to 21.2%.. Net profit after tax was up 15.2% to $5.5 million.
New greenfield locations and acquisitions have added an extra 50,000 members
“Over the next 12 months, our focus will shift towards optimising the value of our existing network while moderating the pace of new greenfield site openings,” it said.
“This strategic pivot is designed to prioritise free cash flow generation and maximise returns from our significant portfolio of established locations.”
Total membership exceeded 593,000, an increase of 71.9%, with corporate membership exceeding 238,565. Its network now operates 476 locations worldwide, with an additional 118 secured sites, bringing total open and upcoming locations to 594.
It reported strong franchisee growth across its Plus Fitness, Boutique Fitness Studios, and World Gym Australia brands, with new international markets secured in Singapore, Hong Kong, Philippines and the UK.