Australia's Viva Leisure jumps most in over 6 months on strong forecast

Viva Leisure

11/10/2022 05:46

(Adds citi's comments)
    ** Shares of health club Viva Leisure  VVA.AX  rise as much
as 11.1% to A$1.2, their best intraday session since March 25
    ** VVA sees FY23 revenue between A$137 mln and A$140 mln
($86.28 mln-$88.17 mln), up from the A$90.8 mln reported in FY22
    ** FY23 EBITDA expected to be between A$28 mln and A$30 mln,
up 445% over FY22
    ** Q1 FY23 EBITDA of A$6.4 mln already exceeds FY22, says co
    ** Citi says co's FY23 forecasts in line with brokerage's
estimates
        ** However, brokerage sees a slowdown in revenues in
2H23 from the risk of members trading down or cancelling
memberships amid worsening economic conditions 
  
        ** Says Greenfield Plus Fitness Site and other
acquisition sites secured to date appear to be behind
expectations, likely due to development applications taking
longer
  
    ** Shares hit their highest levels since Sept 12
    ** More than 51,000 shares change hands, compared with the
30-day average volume of about 50,000 shares
    ** Stock down ~51% this year, as of last close
     ($1 = 1.5878 Australian dollars)
 (Reporting by Anan Ashraf and Echha Jain in Bengaluru)
 ((Anan.Ashraf@thomsonreuters.com;
Echha.Jain@thomsonreuters.com))