Viva Leisure (VVA) H2 2024 earnings summary

Executive summary

• FY2024 delivered record results with revenue up 15.9% to AUD 163.6 million and EBITDA up 21% to AUD 35.4 million, driven by organic membership growth, operational efficiency, and new income streams from technology and payments.

• Corporate memberships surpassed 200,000, with total network memberships growing to over 372,000, supported by acquisitions and organic expansion.

• Completed all 27 site upgrades in the refurbishment program, achieving over 75% ROI run-rate and supporting operational efficiency.

• The business diversified revenue with launches of The Hub, Viva Pay, and Supps Society, while expanding its network to over 185 corporate-owned and 205 franchise locations.

• Strategic acquisitions, especially in Western Australia, and new technology rollouts supported growth.

Financial highlights

• Revenue increased 15.9% year-over-year to AUD 163.6 million, with organic growth accounting for most of the increase.

• EBITDA rose 21% to AUD 35.4 million, with margin improving to 21.6% for the year and 22.7% in Q4.

• Net profit after tax (pre-AASB 16) grew 19.7% to AUD 10.6 million.

• Free cash flow before growth CapEx and tax was AUD 15.5 million, up from AUD 13.4 million.

• Cash at year-end was AUD 22.3 million, strengthened by a AUD 16 million capital raise.

Outlook and guidance

• FY2024 results met or exceeded guidance; management expects to build on Q4 FY2024 run rate, with upside from membership growth, synergies from acquisitions, and new product launches.

• Q4 annualised run rates suggest potential FY2025 revenue of AUD 172.8 million and EBITDA of AUD 39.2 million.

• Smaller refurbishment program planned for FY2025, with ongoing franchisee upgrades and new site rollouts.

• Supps Society, the online supplements business, is launching imminently, targeting high margins and leveraging the existing member base.

• New banking facilities provide significant headroom for acquisitions and growth initiatives.