Basic Fit (BFIT) Q2 2024 earnings summary

Executive summary

• Achieved strong H1 2024 results with 1,537 clubs (+18% YoY), 4.1 million memberships (+13% YoY), and revenue up 17% to €585 million, despite macroeconomic and geopolitical challenges.

• Underlying EBITDA less rent rose 26% to €139 million, driven by mature clubs and cost focus.

• Net profit reached €4.2 million, reversing a €6.1 million loss in H1 2023; underlying net profit up 126% to €13 million.

• Record net club growth of 135, with significant expansion in France and Spain.

• Completed acquisition of RSG Spain clubs and divested five Holmes Place clubs.

Financial highlights

• Group revenue increased 17% to €585 million; average monthly yield per member rose to €23.80.

• Underlying club EBITDA less rent up 18% to €240 million; mature club EBITDA less rent up 16% to €188 million.

• Operating profit surged 72% to €55.1 million; diluted underlying EPS up 128% YoY to €0.20.

• Net debt (excl. leases) at €944 million, up from €804 million at year-end 2023, reflecting front-loaded club openings and RSG Spain acquisition.

• Cash finance costs increased to €22.8 million due to higher interest rates and debt.

Outlook and guidance

• Full-year 2024 guidance reiterated: club network to reach ~1,575, revenue €1.20–1.25 billion, average revenue per member per month at least €24.50.

• Underlying EBITDA less rent expected between €305–330 million; free cash flow before new club expansion per share €2.60–2.95.

• ROIC of mature clubs expected well over 30%.

• Further strong membership and club network growth anticipated.