Robust mature club ROIC of 35% despite high cost inflation
FULL-YEAR FINANCIAL HIGHLIGHTS
• Revenue increased by 32% to €1,047 million (2022: €795 million)
• Increase in average revenue per member per month to €23.53 (2022:€22.86)
• Underlying EBITDA less rent increased by 28% to €261 million (2022: €204 million)
• Underlying net profit1 increased by 55% to €27.5 million (2022: €17.8 million)
• Net result of minus €2.7 million (2022: minus €3.7 million)
FULL-YEAR OPERATIONAL HIGHLIGHTS
• Record 202 net club openings, expanding the network to 1,402 clubs
• Number of memberships increased by 13% year-on-year to 3.80 million (2022: 3.35 million)
• Percentage of Premium memberships in membership base increased to 44% from 34%
OUTLOOK 2024
• Revenue of between €1.20 billion to €1.25 billion
• Average revenue per member per month to increase to at least €24.50
• Club network to increase to around 1,575 clubs, including RSG Spain acquisition
RENE MOOS, CEO BASIC-FIT:
"In 2023, Basic-Fit delivered on its promise by offering high quality fitness club access at very affordable prices in more locations and to more people in Europe. With a net growth of 202 clubs to 1,402, and an increase of our membership base by 450 thousand to 3.80 million, Basic-Fit further expanded its market leadership in Europe. The robust membership development in 2023 was despite a somewhat weaker consumer sentiment in France, including periods of protest and turmoil in the first half of the year. In the first couple of months of 2024, the membership development in France continued to be slightly behind expectations.
We started 2023 with significantly higher costs, due to inflation. Energy costs, which nearly doubled on a per club basis, had a particularly large impact. To cope with this inflationary pressure, we made changes to our membership structure early 2023, which contributed to the 28% increase in underlying EBITDA less rent to €261 million. We continue to evaluate the results of our efforts to optimise our product offering and membership structure and make appropriate adjustments to enhance revenue and profit development whilst remaining the most affordable fitness club available to people. With our new long term energy price contracts, we expect the average energy costs per club to decline by close to 30% to approximately €35,000 in 2024.
Barring any unforeseen developments, we expect revenue to increase to between €1.20 billion and €1.25 billion in 2024.
At our Capital Markets Day in November 2023, we updated our stakeholders on our growth plans and other initiatives for the period through 2030. We confirmed our target of operating between 3,000 and 3,500 own clubs in our existing markets by 2030.
We also announced that we initiated a process to determine which approach to franchising would be most suitable to further enhance our company's growth and return profile. The franchise initiative should be extended to cover markets that are not geographically adjacent to our current operations and possibly expand into other continents. We have confidence in our industry-leading value-for-money concept, in combination with the technology stack we intend to offer to aspiring entrepreneurs.
Lastly, we announced a new method for refurbishing our fitness equipment. Thanks to smart refurbishing, which we developed in close cooperation with one of our key suppliers, we are increasing the economic lifetime of fitness equipment from six to eight years to 12 years. I truly believe this initiative is a game-changer, offering financial and operational benefits to Basic-Fit and having a positive impact on the planet due to its lower environmental impact.
We expect to close the acquisition of the 47 clubs of RSG Spain, which we announced at the end of 2023, in the next few weeks. With the addition of RSG Spain, we will operate around 200 clubs, making us the clear market leader in Spain. Including the additional financing facility as part of the amendment and extension of our bank financing in 2023, we ended the year with €215 million in available liquidity. This financial position will enable us to pay for the acquisition of RSG Spain and continue our club rollout plans, while maintaining sufficient financial headroom. Following the closing of the acquisition, we will rebrand the acquired clubs to the Basic-Fit brand to be ready for the important post-summer sales period.
Press release:
https://corporate.basic-fit.com/docs/Basic-Fit%20reports%20annual%20results%202023?q=60MqVkXIagkh909R9IYQIh
FOR MORE INFORMATION
Basic-Fit Investor Relations
investor.relations@basic-fit.com
Basic-Fit is listed on Euronext Amsterdam in the Netherlands
ISIN: NL0011872650 / Symbol: BFIT
FINANCIAL CALENDAR
Full-year 2023 results 14 March 2024
ABOUT BASIC-FIT
With 1,402 clubs, Basic-Fit is the largest fitness operator in Europe. The company operates in six countries and has 3.75 million memberships. Basic-Fit operates a straightforward membership model and offers a high-quality, value-for-money fitness experience that appeals to the fitness needs of all people who care about their personal health and fitness.
NOTES TO THE PRESS RELEASE
The financials are presented in millions of euros and all values are rounded to the nearest million unless otherwise stated. Change percentages and totals are calculated before rounding. As a consequence, rounded amounts may not add up to the rounded total in all cases. This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
FORWARD-LOOKING STATEMENTS / IMPORTANT NOTICE
Some statements in this press release may be considered 'forward-looking statements'. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside of our control and impossible to predict and may cause actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current expectations, estimates, forecasts, analyses and projections about the industry in which we operate and management's beliefs and assumptions about possible future events. You are cautioned not to put undue reliance on these forward-looking statements, which only express views as at the date of this press release and are neither predictions nor guarantees of possible future events or circumstances. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities law.
FULL-YEAR FINANCIAL HIGHLIGHTS
• Revenue increased by 32% to €1,047 million (2022: €795 million)
• Increase in average revenue per member per month to €23.53 (2022:€22.86)
• Underlying EBITDA less rent increased by 28% to €261 million (2022: €204 million)
• Underlying net profit1 increased by 55% to €27.5 million (2022: €17.8 million)
• Net result of minus €2.7 million (2022: minus €3.7 million)
FULL-YEAR OPERATIONAL HIGHLIGHTS
• Record 202 net club openings, expanding the network to 1,402 clubs
• Number of memberships increased by 13% year-on-year to 3.80 million (2022: 3.35 million)
• Percentage of Premium memberships in membership base increased to 44% from 34%
OUTLOOK 2024
• Revenue of between €1.20 billion to €1.25 billion
• Average revenue per member per month to increase to at least €24.50
• Club network to increase to around 1,575 clubs, including RSG Spain acquisition
RENE MOOS, CEO BASIC-FIT:
"In 2023, Basic-Fit delivered on its promise by offering high quality fitness club access at very affordable prices in more locations and to more people in Europe. With a net growth of 202 clubs to 1,402, and an increase of our membership base by 450 thousand to 3.80 million, Basic-Fit further expanded its market leadership in Europe. The robust membership development in 2023 was despite a somewhat weaker consumer sentiment in France, including periods of protest and turmoil in the first half of the year. In the first couple of months of 2024, the membership development in France continued to be slightly behind expectations.
We started 2023 with significantly higher costs, due to inflation. Energy costs, which nearly doubled on a per club basis, had a particularly large impact. To cope with this inflationary pressure, we made changes to our membership structure early 2023, which contributed to the 28% increase in underlying EBITDA less rent to €261 million. We continue to evaluate the results of our efforts to optimise our product offering and membership structure and make appropriate adjustments to enhance revenue and profit development whilst remaining the most affordable fitness club available to people. With our new long term energy price contracts, we expect the average energy costs per club to decline by close to 30% to approximately €35,000 in 2024.
Barring any unforeseen developments, we expect revenue to increase to between €1.20 billion and €1.25 billion in 2024.
At our Capital Markets Day in November 2023, we updated our stakeholders on our growth plans and other initiatives for the period through 2030. We confirmed our target of operating between 3,000 and 3,500 own clubs in our existing markets by 2030.
We also announced that we initiated a process to determine which approach to franchising would be most suitable to further enhance our company's growth and return profile. The franchise initiative should be extended to cover markets that are not geographically adjacent to our current operations and possibly expand into other continents. We have confidence in our industry-leading value-for-money concept, in combination with the technology stack we intend to offer to aspiring entrepreneurs.
Lastly, we announced a new method for refurbishing our fitness equipment. Thanks to smart refurbishing, which we developed in close cooperation with one of our key suppliers, we are increasing the economic lifetime of fitness equipment from six to eight years to 12 years. I truly believe this initiative is a game-changer, offering financial and operational benefits to Basic-Fit and having a positive impact on the planet due to its lower environmental impact.
We expect to close the acquisition of the 47 clubs of RSG Spain, which we announced at the end of 2023, in the next few weeks. With the addition of RSG Spain, we will operate around 200 clubs, making us the clear market leader in Spain. Including the additional financing facility as part of the amendment and extension of our bank financing in 2023, we ended the year with €215 million in available liquidity. This financial position will enable us to pay for the acquisition of RSG Spain and continue our club rollout plans, while maintaining sufficient financial headroom. Following the closing of the acquisition, we will rebrand the acquired clubs to the Basic-Fit brand to be ready for the important post-summer sales period.
Press release:
https://corporate.basic-fit.com/docs/Basic-Fit%20reports%20annual%20results%202023?q=60MqVkXIagkh909R9IYQIh
FOR MORE INFORMATION
Basic-Fit Investor Relations
investor.relations@basic-fit.com
Basic-Fit is listed on Euronext Amsterdam in the Netherlands
ISIN: NL0011872650 / Symbol: BFIT
FINANCIAL CALENDAR
Full-year 2023 results 14 March 2024
ABOUT BASIC-FIT
With 1,402 clubs, Basic-Fit is the largest fitness operator in Europe. The company operates in six countries and has 3.75 million memberships. Basic-Fit operates a straightforward membership model and offers a high-quality, value-for-money fitness experience that appeals to the fitness needs of all people who care about their personal health and fitness.
NOTES TO THE PRESS RELEASE
The financials are presented in millions of euros and all values are rounded to the nearest million unless otherwise stated. Change percentages and totals are calculated before rounding. As a consequence, rounded amounts may not add up to the rounded total in all cases. This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
FORWARD-LOOKING STATEMENTS / IMPORTANT NOTICE
Some statements in this press release may be considered 'forward-looking statements'. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside of our control and impossible to predict and may cause actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current expectations, estimates, forecasts, analyses and projections about the industry in which we operate and management's beliefs and assumptions about possible future events. You are cautioned not to put undue reliance on these forward-looking statements, which only express views as at the date of this press release and are neither predictions nor guarantees of possible future events or circumstances. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities law.
