The Gym Group (GYM) H2 2024 earnings summary

Executive summary

• Membership grew 5% to 891k, with average members up 4% year-on-year to 906k, and yield up 7%, driving an 11% increase in revenue (7% like-for-like).

• EBITDA less normalized rent rose 24% to £47.7m, and mature site ROIC reached 25%, hitting the midterm target ahead of schedule.

• Free cash flow surged 39% to £37.5m, enabling debt reduction and funding 12 new site openings at the top end of guidance.

• Profit before tax was £2.5m, up £10.8m year-on-year.

• Plan for c.50 new sites over 3 years, with 2025 guidance for 14-16 new openings weighted to the second half.

Financial highlights

• Revenue for 2024 was £226.3m, up 11% year-on-year, with average revenue per member per month up 7% to £20.81.

• EBITDA less normalized rent was £47.7m, up £9.2m (24%) year-on-year and £2m ahead of consensus.

• Statutory profit before tax was £2.5m, up £10.8m from a loss in 2023.

• Free cash flow increased 39% to £37.5m, enabling debt reduction and new site openings.

• Net debt reduced by £5.1m to £61.3m, with net debt to EBITDA leverage at 1.3x, down from 1.7x.

Outlook and guidance

• On track to open 14-16 new sites in 2025, with openings weighted to the second half.

• Expect like-for-like sales growth of ~3% and site cost inflation of ~2% in 2025.

• 2025 EBITDA less normalized rent expected at the top end of analyst forecasts (£49.0m–£50.8m).

• Revenue YTD up 8% vs Feb 2024; members at 951k, up 7% since Dec 2024.

• Confident in further progress on mature site ROIC and new site performance.