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Viva Leisure revenue a record as more growth looms on horizon

John Thistleton 2 September 2019
Viva Leisure

Well located, well-equipped in spacious, light-filled surroundings, Viva Leisure’s health and fitness clubs are drawing a growing number of members. Photos: Supplied. 

Canberra’s Viva Leisure, a leading Australian health club owner and operator, has recorded more than $33 million in revenue in the last financial year.

This is Viva Leisure’s first financial results release following a successful listing on the Australian Stock Exchange in June 2019.

The fast-growing fitness provider had net profit after tax (NPAT) of $3.2 million, an 8.2 per cent increase on the previous year and 17.6 per cent higher than its prospectus forecast.

Viva Leisure’s Chief Executive Officer and Managing Director Harry Konstantinou says the solid financial results for shareholders exceed prospectus forecasts on all key metrics. Mr Konstantinou says at the same time Viva is continuing to build the business to be fit and strong for the future.

“Over the past 12 months, my team and I continued Viva Leisure’s growth trajectory by doubling the number of locations, at the same time increasing membership by more than 50 per cent,” he says.

Viva’s mature locations opened in the previous financial year or earlier, continued to grow and contributed an additional $4 million in revenue over the previous financial year.

The successful group of fitness and wellbeing outlets has seen strong performance from all business brands in the first two months of financial year 2020. Membership now exceeds 57,000 and continues to grow, which is a net growth of more than 3,000 members since July 1, 2019.

The outlook is positive. Viva Leisure maintains its entrepreneurial drive to ensure that it can respond to market conditions quickly, provide the best quality service and facilities possible to members and lead in its chosen markets. The company is reporting that the 2020 financial year will see Viva Leisure expand in a controlled manner to achieve its strategic objectives. It is on track to exceed the projected FY2020 forecast as set out in the May 2019 Prospectus.

Management is looking forward to updating the market in relation to new club openings and acquisitions currently under negotiation.

Viva completed and fully integrated four acquisitions and entered the Victorian market with its first location in Wodonga. Meanwhile, monthly member visitations increased 53 per cent to 282,000 visits in June 2019.

Founded in 2004, Viva Leisure’s mission is to connect health and fitness to as many people as possible and aims to provide its members with affordable, accessible and awesome facilities. Most of the Viva Leisure clubs operate under the Club Lime brand which offers customers several different membership options and different types of facilities from big-box fitness outlets to boutique fitness amenities.

Earlier this month Viva Leisure announced the launch of a new app that gives Club Lime and hiit republic members unprecedented ease of accessing their favourite health and fitness facility. In an Australian first, members will now enjoy keyless entry into 24/7 clubs via members’ mobile phones.

Original Article published by John Thistleton on The RiotACT.

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