UK's Gym Group H1 revenue rises on higher membership
UK's Gym Group H1 revenue rises on higher membership
Overview
UK low-cost gym operator's H1 revenue grew 10% yr/yr, driven by higher membership and yield
Adjusted EPS for H1 rose 21% yr/yr
Company completed £3.8 mln of planned £10 mln share buyback in H1
Outlook
Company expects 3% like-for-like revenue growth for the full yr
Like-for-like cost growth now seen at lower end of 3-4% guided range
Company expects full-yr Group Adjusted EBITDA Less Normalised Rent at top end of analysts' forecast range
Result Drivers
MEMBERSHIP GROWTH - Co said 5% higher average membership numbers and targeted acquisition initiatives drove revenue gains
YIELD IMPROVEMENT - Co attributed 5% yield growth to sustained pricing opportunity, price increases for new members, and selective repricing
SITE DESIGN AND REFURBISHMENT - Co said elevated site design and refurbishment led to performance gains and incremental membership growth
Company press release: ID:nRSI9192Ta
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 133.10 mln |
|
H1 Adjusted EPS |
| GBP 0.029 |
|
H1 EPS |
| GBP 0.023 |
|
H1 Net Income |
| GBP 4.30 mln |
|
H1 Adjusted EBITDA |
| GBP 53 mln |
|
H1 Adjusted Pretax Profit |
| GBP 6.40 mln |
|
H1 Free Cash Flow |
| GBP 27.70 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the leisure & recreation peer group is "buy"
Wall Street's median 12-month price target for GYM Group PLC is GBp250.00, about 29.5% above its September 8 closing price of GBp193.00
The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 36 three months ago
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Sept 7 - UK retailers seek to create 100,000 jobs for young unemployed over next 3 years
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)