The Viva Leisure Limited (ASX: VVA) share price is one to watch in early trade after a quarterly update from the Aussie leisure group.
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Why is the Viva Leisure share price on watch?
Viva Leisure reported stronger membership numbers for the quarter ended 31 March 2021 (Q3 FY21). Direct member numbers totalled 120,300, up from 117,000 on 25 February 2021. Plus, Fitness membership increased to 177,551 compared to 172,364 members in February.
Membership suspensions have reportedly remained in line with management expectations at 4,461, down from 4,700 in February.
Today's update means Viva Leisure has grown its direct membership base by 313.1% since FY2017 when it recorded 29,124 members.
The Viva Leisure share price is on watch this morning following the update. As at yesterday's close, shares in the leisure group were trading at $2.60 with a $213.1 million market capitalisation.
Viva Leisure this morning reported an increased annual revenue run rate. That now sits above $95 million, up from $90 million in January 2021, with March bringing in $8.1 million.
The Aussie company has appointed Gordon Martin as head of franchising. He is a former general manager of Anytime Fitness Australia with success managing brands in the fitness industry. According to the release, the appointment is part of a master plan to rapidly expand the Plus Fitness network across Australia and overseas.
Viva Leisure now has 107 operating corporate locations in its portfolio, and all are open without restriction. The company has reportedly secured a further 20 locations, with the majority opening during FY2022.
Foolish takeaway
The Viva Leisure share price is in focus early this morning after a quarterly update from the gym operator. Shares in the company are up 52.1% in the last year after being smashed in the March 2020 bear market but have struggled to climb higher in 2021.
The All Ordinaries Index (ASX: XAO) has climbed 4.7% this year to 7,280.6 points, while the Viva Leisure share price is down 11.3% to start the year.
