Viva Leisure Limited (ASX: VVA) (“Viva Leisure”) Australia’s second largest health club owner and operator has released its bi-monthly market update for the period ended 30 April 2022.
FY22 guidance expected to be exceeded:
- May monthly revenue above $10 million, achieving target of $10 million in monthly revenue one month earlier than expected
- H2 revenue forecast expected to exceed guidance (previously $54-56 million) H2 margin tracking toward upper end of previous guidance of between 15-17%
- June 2022 EBITDA Margin expected to exceed 20%
Key highlights for March-April 2022:
- Record monthly Revenue Run Rate (MRRR) of $9.5 million in April 2022, up 10.3% on previously reported February 2022 MRRR
- April 2022 annualised Revenue Run Rate now exceeding $116 million
- Total corporate members increased to ~150,000 (as of 30 April), up from ~145,000 in February 2022
- Average Revenue Per Member (ARPM) increased to ~$14.28 in April 2022, up from $13.95 in February 2022
Commenting on the Company’s strong performance, Viva Leisure CEO and Managing Director, Harry Konstantinou said:
“Viva Leisure performed very well over March and April, achieving an average monthly revenue run rate of $9.5 million supported by an increase of about 5,000 corporate members. This momentum is accelerating as we build on our record level of 150,000 corporate members.
“We achieved $10 million average monthly run rate in May, one month earlier than previously expected, and are aiming for a 20% margin milestone in June. With three clubs in Western Australia still to complete and increasing yield as our clubs return towards optimum capacity thanks to the trust and rapport we have with our customer base.
“We have continued the rollout of our growth strategy, entering the Western Australian market with five Plus Fitness acquisitions. Along with an additional three acquisitions expected to settle in June, this cements Viva’s position as Australia’s second largest operator in the Australian health and leisure industry, and the only one that operates in all four segments of the fitness industry”