Holmes Place International (HLMS) Investor update summary

2024 performance

• Year-end membership 194k (+10% YoY), revenue NIS 552m (+8.6%), ARPU NIS 247 (+2%) and Non-GAAP EBITDA NIS 96.2m (+14.21%); EBITDA excludes IFRS 16.

• Gross profit NIS 114.2m (+10.26%), operating profit NIS 64.2m (+14.8%), pre-tax profit NIS 56.7m (+10.9%) and net profit NIS 57.5m (+15.64%) YoY.

First-half 2025 update

• Membership reached 200.9k (+4.7% YoY) and revenue NIS 284.4m (+7.89%); ARPU was NIS 238.9 (-2.2%) and Non-GAAP EBITDA NIS 48.1m (+1.96%).

• Gross profit was NIS 53.9m (-2.68%), operating profit NIS 30.8m (-2.6%), pre-tax profit NIS 25.8m (-7.69%) and net profit NIS 20.5m (-27%); tax expense reflects a move to full tax accounting and not cash tax paid.

• Premium segment: 117.4k members (+5.81%), revenue NIS 208.5m (+9.48%) and EBITDA NIS 48.6m (+8.15%); ARPU NIS 298.85 (-4.54%).

• ICON: 83.5k members (+3.24%), revenue NIS 79.7m (+5.09%) and EBITDA NIS 24.2m (-7.59%); ARPU NIS 161.80 (+0.5%).

Growth plan and operating initiatives

• Three priorities: improve profitability at existing clubs and among current customers, open new clubs and realize expansion potential, and assess additional investments.

• Existing-club measures include resizing locations, closing loss-making clubs, adding services in existing space, retail sales and customer-focused automation; targeted EBITDA improvement is NIS 3-4m by 2030.

• Fifteen clubs in ramp-up, comprising 11 ICON and 4 Family locations, are expected to contribute NIS 24-28m EBITDA.

• A further 21 planned clubs, comprising 8 ICON and 13 Family locations, are expected to add NIS 34-36m EBITDA.

• Proposed acquisition of 51% of REVO Pilates is subject to competition authority approval; 2024 EBITDA was NIS 4.2m and 2025 forecast EBITDA is NIS 6-6.5m.