Global gym chain Planet Fitness has reported revenue up by 7.1 per cent to US$365.2 million for the second quarter, compared to the prior year period. System-wide sales lifted from US$66.6 million to US$1.4 billion.
The franchised segment revenue rose 13.5 per cent to reach US$135.8 million over the second quarter, primarily attributed to a US$10.1 million increase in advertising contributions.
Royalty revenue increased by US$4.7 million, which included US$1.7 million from boosted same-club-sales.
Higher fees, new club sales, and equipment sales to both new and existing franchised clubs added to the revenue boost.
Across its network, the group opened 21 franchised and two corporate gyms in the period.
Planet Fitness CEO, Colleen Keating, said “During the second quarter, we made important progress advancing our strategies to reignite sustainable member growth. We are moving quickly with several actions to clearly communicate our differentiated welcoming, non-intimidating environment in the immediate term, while we work in parallel to develop a new marketing campaign that sets the brand up for success with a broader audience in the coming months.”
Keating said Planet Fitness had initiated and expanded tests on pricing, member experience, and retention.
