The Viva Leisure Ltd (ASX: VVA) share price will be one to watch on Wednesday when the market reopens.
This afternoon the technology-focused Australian health club owner and operator released its half year results after the closing bell.
How did Viva Leisure perform in the first half?
For the six months ended December 31, Viva Leisure reported a 52.7% increase in revenue to $22.99 million and a 79.8% lift in EBITDA to $10.34 million.
On the bottom line, the company reported a 121.2% increase in net profit after tax to $2.81 million and earnings per share of 5.23 cents. Both were pre-AASB16.
This was driven by a 50% increase in operating locations to 60, a 31.2% increase in its total membership base to 70,886, and the completion of three acquisitions (totalling 13 health clubs) during the half.
Since the end of the half, the company has continued its acquisition spree and completed the acquisition of FitnFast in February. This has lifted its network to 75 clubs operating with 96,000+ members.
Management commentary.
The company's CEO, Harry Konstantinou, was pleased with the half.
He said: "Viva Leisure has again delivered a solid set of financial results for the half year, exceeding forecasts on all key metrics while continuing to manage our impressive growth. Membership grew by 31.2%, and while we boosted our corporate overheads and team to support the growth, EBITDA per member continued to yield upwards."
"Our members are now 50% located in the ACT, and 50% in NSW, VIC and QLD as the business grows from its roots in Canberra to service most parts of Australia. Our hiit republic boutique brand is also going from strength to strength, now generating over $3.6m of annualised revenue, with less than 12 months passing since the first location opened, and mature clubs older than six months now generating a 50% EBITDA margin contribution. These are all very impressive statistics and will ensure the business continues to be fit and strong for the future," he concluded.
Outlook.
Management has reiterated the guidance it provided in December.
It continues to forecast annualised June 2020 run-rate revenue of ~$85 million and annualised June 2020 run rate EBITDA of ~$21 million.
