Brait, the Luxembourg- and JSE-listed investment company, said Virgin Active’s implied earnings before interest, tax, depreciation and amortisation (Ebitda) increased to £55 million (R1.3 billion) at February 29, 2024, from £30m for the six months to September 30, 2023.
Brait, which has said it might list Virgin Active, said in a trading statement yesterday the operational and financial turnaround of Virgin Active continued during the period.
Brait’s share price slipped 9.09% yesterday to R1.20 on the JSE, well down from R3.81 a year previously.
Virgin Active’s international business benefited from strong membership growth and higher yields given price increases during the period.
Virgin Active South Africa increased its active membership base from 606 000 as at September 30, 2023, to 625 000 as at February 29, 2024.
Sales remained relatively robust despite the impact of inflation on consumer spend, and due to management’s focus on membership engagement through operational changes to address attrition, which was starting to benefit the business, the group said.
Italy continued its strong performance with active membership increasing from 175 000 to 188 000 as a result of like-for-like club growth, and new club openings as well as from the yield gain initiatives.
The UK saw an increase in its active membership from 132 000 to 140 000 with good growth across its Provincial clubs, the London Residential clubs and the London Corporate clubs, with revenues also increasing disproportionately due to higher yields.
The Asia-Pacific territories showed positive membership growth (Australia 4%, Singapore 8% and Thailand 5%) and yield improvements. All of the territories, other than Australia, were now Ebitda positive.
The overall performance resulted in an increase in active members from 972 000 in September 2023 to 1 015 000 as at February 29, 2024.
The renewal of the Vitality contract, the extension to the international business debt facilities and the new capital raised provided Virgin Active with the platform to complete the turnaround of the business and position it for growth, the group said.
Premier continued to perform strongly and was on track, at this stage, to pay a maiden, final dividend for the year ending March 31, 2024.
New Look experienced a slight reduction in revenue while trading conditions in the UK remained challenging. Management were focused on the actions within their control to streamline and optimise the business.
BUSINESS REPORT