Viva Leisure’s $34 million half-year revenue is down $2 million on the same period last year. However the figure reflects the lockdown constraints of 2021, according to CEO and managing director Harry Konstantinou.
“We have remained focused on our operational plans and growth aspirations even with Covid lockdown constraints creating earnings headwinds across the health club industry in the first half.”
Viva Leisure owns a number of brands including franchise chain Plus Fitness.
Konstantinou said “We continued to invest in club acquisitions and greenfield locations, growing our footprint to 325 locations across five states and territories in Australia and three countries.”
Plus Fitness has sold more than 23 new territories which are scheduled to open within the next 12 months; five are set for launches before the end of June.
“We have resourced the business and prepared it as part of its new branding and look-and-feel strategy to continue to grow in FY23,” Konstantinou said. “We remain dedicated to providing an exceptional member experience and providing a fitness environment that meets our members’ needs.”
Konstantinou predicted a more diversified income for the business as the franchise network expands.
“For example we will start to see our VivaLabs team start to generate revenue as part of licencing our membership, access control, direct debit and other technologies to the Plus Fitness network.”
Most of Viva’s 12 health club and fitness brands are company-owned. Last year’s purchase of eight Rebalance Pilates & Yoga studios along with the master franchisor rights and IP will open the way for further franchising.
“With approximately 10 Rebalance and 23 hiit republic locations now operating, the foundations to start growing the franchising part of these brands has already been laid,” Konstantinou said.
“We are preparing the business to start franchising Rebalance shortly, but will continue to open corporate-owned locations. We expect to have all the systems, processes, documentation, and training in place to offer territories for sale by the end of 2022,” he said.
