Viva Leisure (VVA) H2 2024 earnings summary

Executive summary

• FY 2024 delivered record revenue of AUD 163.6 million, up 15.9%, driven by organic membership growth, operational efficiency, and new income streams from technology and payments.

• EBITDA reached a record AUD 35.4 million, up 21%, with margins improving to 21.6% for the year and 22.7% in Q4.

• Net profit after tax (pre-AASB 16) grew 19.7% to AUD 10.6 million; statutory NPAT was AUD 3.2 million.

• Corporate memberships surpassed 200,000, and total network memberships grew to 372,000, with further growth post-year-end from acquisitions and organic expansion.

• The business diversified revenue with launches of The Hub, Viva Pay, and a new online supplements business, while expanding its network and completing strategic refurbishments.

Financial highlights

• Revenue increased 15.9% year-over-year to AUD 163.6 million, with organic growth accounting for about three-quarters of the increase.

• EBITDA rose 21% to AUD 35.4 million, with margin improvement from 20.7% to 21.6%; Q4 margin at 22.7%.

• Net profit after tax (pre-AASB 16) grew 19.7% to AUD 10.6 million.

• Free cash flow before growth CapEx and tax was AUD 15.5 million, up from AUD 13.4 million.

• Cash at year-end was AUD 22.3 million, strengthened by a AUD 16 million capital raise and new banking facilities.

Outlook and guidance

• No formal FY 2025 guidance provided, but management expects to build on Q4 FY 2024 run rate, with upside from membership growth, synergies from acquisitions, and new product launches.

• Q4 annualised run rates suggest potential FY2025 revenue of AUD 172.8 million and EBITDA of AUD 39.2 million.

• Strategic refurbishments will continue at a smaller scale, and the new HVLP (Zoo Fitness) concept is set to launch in early 2025.

• Supps Society, the online supplements business, is launching imminently, targeting high margins and leveraging the existing member base.

• New banking facilities provide significant headroom for acquisitions and growth initiatives.