Viva Leisure Limited (ASX:VVA) Achieves Record Revenue and Profit in H1 FY25
Financial Performance
Viva Leisure reported record revenue of $99.0 million for the first half of FY2025, a 25.2% increase from $79.1 million in 1H FY24. EBITDA rose 26.2% to $21.0 million, with a margin increase to 21.2%. Net profit after tax increased by 15.2% to $5.5 million, and adjusted free cash flow grew 22% to $15.9 million.
Operational Highlights
Total membership exceeded 593,000, a 71.9% increase, with corporate membership over 238,565. The network expanded to 476 locations worldwide, with 118 additional secured sites, totaling 594 open and upcoming locations. Over 90% of revenue is recurring, and franchise growth continued across multiple brands and international markets. Technology and payments revenue surged 124.0% to $6.4 million, supported by Viva Pay and The Hub. The company conducted a share buy-back of $1.9 million in the half.
Executive Comments
CEO and Managing Director Harry Konstantinou said: “1H FY25 has been a phenomenal period for Viva Leisure, with record-breaking results reflecting the strength of our diversified strategy and the resilience of our business model. Our expanding corporate and franchise network, combined with our high-margin technology and payments division, continues to drive sustainable and profitable growth.
“With strong membership momentum, strategic investments, and continued innovation, we remain well-positioned with levers for expansion. The reaffirmation of our Q4 FY25 forecast underscores our confidence in continuing to deliver.
“As we have created significant scale across our network – with a membership base exceeding 600,000 – we will over the next 12 months shift our focus towards optimising and leveraging this network. This strategic pivot will prioritise free cash flow generation and maximise returns from our significant portfolio of established locations and importantly, our unique Viva technology providing the bedrock to this strategy.”
Strategic Investments
Viva Leisure expanded its investments in Boutique Fitness Studios and World Gym Australia. Viva Pay is processing over $300 million in transaction volume annually, with plans to integrate further. The company also launched The Hub, a proprietary gym access and payment system, and plans to launch unified access apps in the second half.
Segment Update
Health club revenue grew 23.6% to $88.5 million, with new locations and acquisitions adding 18.1%. Memberships grew by over 8,000 members, totaling more than 600,000. Viva Leisure plans to optimise the existing network and prioritise free cash flow in the next 12 months.
Outlook
Viva Leisure reaffirms its Q4 FY25 forecast, expecting quarterly revenue above $56 million and EBITDA above $12.5 million. The company remains focused on optimising its network, driving free cash flow, and expanding its technology-driven offerings.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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