Basic Fit slumps to over 3-yr lows on soft club network growth forecast

Basic-Fit

14/03/2024 08:54

** Shares of Basic Fit  BFIT.AS  fall more than 10% after
the Dutch operator of discount gyms gave a soft outlook for
growth in fitness club networks, while results slightly missed
estimates 
    ** For 2024, Basic Fit expects its club network to grow to
around 1,575 clubs, including its acquisition of RSG Spain,
while a consensus cited by KBC expects 1600
    ** "Slower growth expectations in FY24 and France continues
to lag," says KBC Securities 
        ** "We believe continued changes in the membership
structures introduces more volatility to the story and the
impact is hard to asses in the short term" - KBC 
    ** Basic Fit had amended its membership policy in early 2023
to cope with higher costs 
    ** The gym operator's 2023 underlying EBITDA less rent rises
28% y/y to 261 million euros ($285 million), on sales up 32% to
1.05 billion euros 
    ** KBC Securities says the results were 1% below its
expectations  
    ** The shares head for their worst day in 16.5 months, with
price touching over 3-year lows 


($1 = 0.9145 euros)

 (Reporting by Olivier Sorgho)
 ((Olivier.Sorgho@thomsonreuters.com))