Exercise Professionals - Product innovation helps boost Virgin Active turnover...
23 Aug 2017 Exercise professionals: News, jobs and training
 
 
HOME
JOBS
NEWS
FEATURES
PRODUCTS
FREE DIGITAL SUBSCRIPTION
PRINT SUBSCRIPTION
ADVERTISE
CONTACT US
Sign up for FREE ezine
Latest news

15 Jun 2017

Product innovation helps boost Virgin Active turnover
BY Deven Pamben

The gym chain will focus on investing in innovative classes

The gym chain will focus on investing in innovative classes

A roll-out of fitness classes and improved member experience helped revenue at Virgin Active rise by 6 per cent to £483million (US$615.5m, €548.6m) in the year to 31 December 2016, results from South African investment group Brait show.

Brait, which owns a controlling stake in the health club, also reported that earnings before interest, tax, depreciation and amortisation (EBITDA) grew 13 per cent to £104m (US$132.5m, €118.1m).

Total membership, including juniors, grew 0.3 per cent to 1.23m across its 241 clubs at the end of 2016.

Brait said Virgin Active's commitment to product innovation and member experience was evidenced in 2016 with the continued rollout of Grid classes, its Barre programme, the HEAT (a high energy athletic training class) offering, Hydro (a high intensity swim class) and Iron ZUU (group exercise combining weightlifting with movement), as well as improvements to its digital offering.

A breakdown shows that in Europe Virgin Active had 91 clubs at the end of 2016 (down one from the previous year): 46 in the UK, 33 in Italy, eight in Spain and four in Portugal. Revenue in Europe rose 3 per cent to £286m (US$364.5m, €324.8m), with membership remaining at 375,000.

Last year Virgin Active sold 36 UK clubs, 35 of which were bought by Nuffield Health in July 2016. It has also sold 14 clubs to David Lloyd Leisure, which completed on 31 May 2017.

The financial report said: "These two transactions represent the final significant step for the UK operations to focus on metropolitan and commuter hubs in key markets at the premium end, which is in accordance with Virgin Active's international strategy."

In southern Africa, revenue grew 7 per cent to £155m (US$197.5m, €176m) across its 137 clubs. Membership was down 1 per cent on the previous year to 728,000, impacted by a tougher consumer environment.

Asia Pacific showed strong growth for the company with turnover rising 28 per cent to £42m (US$53.5m, €47.7m) during the period. Virgin Active had 13 clubs at the end of the year in Australia (6), Singapore (2) and Thailand (5). Membership grew 21 per cent to 45,000 in the region.

In terms of this year, the club had 245 sites as of March.

The report said: "The South African business continues to be affected by economic and political uncertainty in common with other consumer facing business. In the near term, investment will be focussed on the existing clubs estate with a moderated roll out plan."

On Europe, it said: "The smaller, more streamlined UK estate is trading well under new leadership. With a focus on people and product, the business is positioned well to grow in the future. The company continues to monitor any Brexit impacts, with no major impact seen so far. The Italian business continues to trade well."

The Asia Pacific business "continues to trade strongly", with the medium-term outlook for Virgin Active remaining strong as the company continues to invest "in growth markets in Asia and Australia" and focuses on product innovation and the digital customer journey worldwide.



Connect with
Exercise Professionals
Magazine:
View issue contents
Sign up:
Instant Alerts/zines

Print edition
 

News headlines
Strictly star to lead National Fitness Day workout
Strictly star to lead National Fitness Day workout   23 Aug 2017

Strictly Come Dancing star Darcey Bussell will lead a workout in Central London to kick-start National Fitness Day on Wednesday 27 September. The .... more>>
Anytime Fitness appoints Stuart Broster as UK CEO
Anytime Fitness appoints Stuart Broster as UK CEO   22 Aug 2017

Stuart Broster has been appointed Anytime Fitness UK chief executive - a newly created role in which he is charged with making the brand the largest .... more>>
The Bannatyne Group continues expansion, opening Colchester spa
The Bannatyne Group continues expansion, opening Colchester spa    22 Aug 2017

The Bannatyne Group has expanded its spa portfolio with a £1m refurbishment of the Colchester, Kingsford Park club in England, part of its 2017 .... more>>
Xiaomi becomes top seller of wearables worldwide
Xiaomi becomes top seller of wearables worldwide   22 Aug 2017

Chinese electronics maker Xiaomi has overtaken Apple to become the world’s largest wearables vendor, capturing 17 per cent of the global wearable tech .... more>>
ukactive chief backs 'healthy towns' strategy
ukactive chief backs 'healthy towns' strategy   22 Aug 2017

ukactive is backing NHS proposals to create 10 “Healthy New Towns” that place physical activity at the heart of community life. Under proposals, .... more>>
MyZone appoints global director of marketing
MyZone appoints global director of marketing   22 Aug 2017

MyZone has appointed Gemma Bonnett as its global director of marketing – a position newly created as part of the brand’s expansion. Bonnett will be .... more>>
Company profile


Wexer

From mobile technology to virtual fitness, Wexer’s mission is to make world-class exercise accessible to more people by providing a convenient and non-intimidating way to exercise, through the use of technology.

View full profile>>

Catalogue gallery


Featured Supplier

The all new Expresso GO Bike raises the bar for indoor cycling

The all new Expresso GO Bike raises the bar for indoor cycling

Cardio equipment is generally the largest expense that a club makes, but it is often hard for operators to quantify their return on investment. More>>




in this issue

• Eden Project plans global expansion
• Celebrity trainer sells Rush Fitness gyms
• Malhotra Group completes hotel revamp



Latest jobs

Jobs Search



Aqua Aerobics Instructors
Salary: Competitive
Location: Elephant and Castle, London, United Kingdom
Company: Everyone Active
Sales Manager
Salary: Competitive
Location: Rotherhithe, United Kingdom
Company: Everyone Active
Personal Trainer
Salary: Competitive
Location: Ipswich, United Kingdom
Company: energie group
Group Cycling Instructor
Salary: Competitive salary
Location: Melton Mowbray, United Kingdom
Company: Everyone Active
Diary dates
Powered by leisurediary.com




24 Aug 2017

Leisure Industry Communication and Marketing Awards

ANZ Stadium, Sydney, Australia


28-29 Aug 2017

Live Love Spa: Cancun

Playa del Carmen, Mexico



Health Club Management magazine 2017 issue 8
Health Club Management
2017 issue 8

View issue contents
View on turning pages
Download PDF
  Technology: Shape of the future
Could body scanners be the secret to keeping gym-goers engaged and motivated? More>>
  Promotional feature: Wattbike
Simplifying the science More>>


Health Club Management magazine 2017 issue 7

Health Club Management
2017 issue 7

View issue contents
View turning pages
Download PDF
  Promotional feature: Xn Leisure
Xn Leisure is revolutionising the physical activity sector by helping operators unlock the power of their activity data More>>
  Technology: Easy Money
Businesses in the fitness sector have a lot to gain by tapping into the full potential of online mobile and cashless payment systems More>>


Published by The Leisure Media Company Ltd Portmill House, Portmill Lane, Hitchin, Herts SG5 1DJ. Tel: +44 (0)1462 431385 | Contact us | About us | © Cybertrek Ltd