Viva Leisure Ltd. · ASX:VVA
Viva Leisure — H1 2025 Earnings Presentation
34 slides from Viva Leisure's earnings presentation, Feb 13, 2025
Slide 1: 1H FY25 Results Presentation
1H FY25 RESULTS ASX | VVA 13 FEBRUARY 2025 PRESENTATION
Slide 2: Contents
CONTENTS HIGHLIGHTS 5 FINANCIAL PERFORMANCE 9 TRADING & OUTLOOK 17 APPENDIX 19 STRATEGIC INVESTMENTS UPDATE 20 AASB-16 RECONCILIATION & NORMALISATIONS 21 SEGMENT FOCUS 22 HEALTH CLUBS 23 FRANCHISE 27 TECHNOLOGY, SYSTEMS & PAYMENTS 31 ASX | VVA 1H FY25 RESULTS PRESENTATION 2
Slide 3: The Viva Way
THE VIVA WAY…. At Viva Leisure, we’re shaping the future of fitness and wellness through innovation, resilience, and excellence. 01 02 03 04 We are successfully Financial performance Our unique high margin The Viva business is delivering on our continues to increase technology and payment powered by
Slide 4: Viva Today
VIVA TODAY…. NOT JUST A GYM… CONNECTING FRANCHISING, PAYMENTS, TECHNOLOGY SOLUTIONS AND LEVERAGING INTO OTHER REVENUE AT SCALE HEALTH CLUBS TECHNOLOGY 197 CORPORATE SOFTWARE (THE HUB) 238,565 MEMBERS HARDWARE (ACCESS CONTROL) 25 MILLION VISITS VIVA PASS ANNUALLY APPS FRANCHISES 1 3 OTHER PAYMENTS 3
Slide 5: 1H FY25 Financial Highlights
1H FY25 FINANCIAL HIGHLIGHTS Revenue1 Up NPAT1 Up 25.2% 15.2% 1H FY25 has been a phenomenal period for Viva Leisure, delivering $99.0m $5.5m record-breaking results across all key metrics. This performance underscores the strength of our strategy, the resilience of our business model, and the unwave
Slide 6: Financial Snapshot
FINANCIAL SNAPSHOT CONTINUOUS HALF-ON-HALF GROWTH REINFORCES VIVA’S MODEL FY2020 REPRESENTS FIRST FULL YEAR AS LISTED COMPANY3 REVENUE1 ($M) EBITDA1 ($M) 163.6 35.4 141.2 29.2 Up Up 25.2% 26.2% PCP2 84.5 PCP2 18.8 15.2 21.0 73.8 99.0 90.8 83.7 11.9 47.8 56.8 5.5 21.0 99.0 6.3 16.6 40.9 6.1 14.0 79.1
Slide 7: 1H FY25 Operational Highlights
1H FY25 OPERATIONAL HIGHLIGHTS Members Locations Corporate Corporate Corporate & Franchise Up Up 197 476 Corporate 32.5% & Franchise 71.9% 238,565 593,697 Up 17.3% 29 locations Up 38.0% 131 locations Secured All Open & Upcoming1 Upcoming 118 594 “Corporate” Refers to company owned locations, whereas
Slide 8: Building Australia's Largest and Most Diversified Fitness Network
476 OPEN LOCATIONS (Worldwide) BUILDING AUSTRALIA’S LARGEST AND MOST 10 SECURED CORPORATE LOCATIONS DIVERSIFIED FITNESS NETWORK AND COMMUNITY 108 SECURED FRANCHISE LOCATIONS 594 Corporate & Network Locations Open or Opening Soon 593,000 Corporate & Network Members (31 Dec 2024) ASX | VVA 1H FY25 RES
Slide 9: Financial Performance
FINANCIAL PERFORMANCE ASX | VVA 1H FY25 RESULTS PRESENTATION 9
Slide 10: Results Reflect Strong Growth on All Key Metrics
RESULTS REFLECT STRONG GROWTH ON ALL KEY METRICS PROFIT & LOSS 1H FY25 1H FY24 VARIANCE VARIANCE (ex AASB16) (ex AASB16) $ % HIGHLIGHTS Revenue 99.0 79.1 19.9 25.2 ▪ Revenue growth derived from health clubs and technology Operating Costs (78.0) (62.5) (15.4) 24.8 segments EBITDA 21.0 16.6 4.5 26.2 ▪
Slide 11: Revenue Segments
REVENUE SEGMENTS MOVING FORWARD, VIVA WILL NOW REPORT ON REVENUE SEGMENTS The four segments of the business are Incorporates technology licencing fees, Viva Pay Incorporates all Corporate owned health Health Technology payments division, personal training income, vending clubs, including corporate o
Slide 12: Revenue Performance
REVENUE PERFORMANCE CONTINUED INVESTMENT IN GROWTH Half-year ($m) 1H FY25 1H FY24 Var % Performance summary • Continued membership growth via greenfields and acquisitions • Strong consumer sentiment to health and fitness despite economic pressures Health Clubs 88.5 71.6 23.6% • Viva’s broad network
Slide 13: Balance Sheet
BALANCE SHEET CONTINUED INVESTMENT IN GROWTH ($m) 1H FY25 1H FY24 Cash 18.1 22.3 Receivables and other Current Assets 6.5 5.1 HIGHLIGHTS P, P & E 120.8 63.6 ▪ Investment in 21 acquisitions and GF Right of Use Assets 226.5 265.3 sites during the period Intangibles 115.1 91.9 Investments 6.2 - ▪ Funde
Slide 14: Cashflow Analysis
CASHFLOW ANALYSIS CASHFLOW DETAILS ($M) 1H FY25 2H FY24 1H FY24 2H FY23 1H FY23 Net Receipts from Customers / 43.4 43.2 36.5 36.7 31.2 Payments to Suppliers 30.6 Normalisations (incl. Viva Pay funds in Trust) 4.3 2.8 0.8 1.0 0.2 Rent Payments (25.6) (22.6) (20.5) (19.1) (18.2) 26.8 Net Interest (Ex-
Slide 15: Cash Flows
CASH FLOWS THE COMPANY HAS PRIORITISED REINVESTING IN ITS OPERATIONS TO SUPPORT SUSTAINABLE EXPANSION. ($m) 1H FY25 1H FY24 HIGHLIGHTS Opening cash 22.3 6.8 Cashflows from Operations 31.6 27.7 ▪ Cashflows from operations committed to Investment in P,P,E and Intangibles (15.9) (10.7) expansionary Cap
Slide 16: Trading & Outlook
TRADING & OUTLOOK
Slide 17: Trading Update
TRADING UPDATE 2H PERFORMING STRONGLY ACROSS ALL SEGMENTS Health Clubs Franchise Technology, Payments & Other • Successful January and February new Plus Fitness • New unified access apps to member enrolment Trading strong for franchise network; launch in 2H • Corporate Members above 250,000 strong i
Slide 18: Q4 FY25 Forecast Run Rates - Reaffirmed
Q4 FY25 FORECAST RUN RATES - REAFFIRMED Based on information currently available and barring any unforeseen events, Q4-FY25 forecast run rate has been reaffirmed. Revenue Forecast Q4-FY25 Q4-FY25 Annualised FY24 Actual Revenue >$56m >$224m $163.6m EBITDA* Forecast Q4-FY25 Q4-FY25 Annualised FY24 Act
Slide 19: Appendix
V2 APPENDIX
Slide 20: Strategic Investments and Joint Ventures
STRATEGIC INVESTMENTS AND JOINT VENTURES PROVIDE LONG RUNWAY OF GROWTH Viva has recently made the strategic investments, as outlined below. These initiatives are set to unlock significant growth opportunities across Viva’s technology, network, and payments divisions, while also delivering substantia
Slide 21: Statutory Reconciliation & Normalisations
STATUTORY RECONCILIATION & NORMALISATIONS UNDERLYING & AASB16 FOR H1 FY2025 1H FY25 AASB16 1H FY25 COMMENTS ($M) ▪ Removal of amortisation of Statutory Normalisations Impact (pre AASB16) Right of Use Asset Revenue 99.0 - - 99.0 ▪ Removal of finance charges against rental liabilities Expenses (53.3)
Slide 22: Segment Focus
SEGMENT FOCUS
Slide 23: Health Clubs
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Slide 24: Health Clubs: Performance Overview
HEALTH CLUBS: PERFORMANCE OVERVIEW INCORPORATES ALL CORPORATE OWNED AND OPERATED HEALTH CLUBS AND BOUTIQUE STUDIOS Revenue growth of 23.6% to $88.5 million • LFL locations revenue grew 5.8% over PCP • New greenfield locations and acquisitions added 18.1% or $12.93 million over PCP Membership • LFL m
Slide 25: Health Clubs: Strategy & Outlook
HEALTH CLUBS: STRATEGY & OUTLOOK Strategy: Outlook: Membership: Continue to invest in the best customer offer Over the next 12 months, our focus will shift towards across all price points and brands, ensuring availability of an optimising the value of our existing network while option for the entire
Slide 26: Covering Australia
COVERING AUSTRALIA THE VIVA NETWORK 466 Australian Corporate & Network Locations Viva Plus Fitness BFS WGA State Total Corporate Franchisees Franchisees Franchisees 5 ACT 51 - 1 - 52 72 NSW 54 132 25 17 228 61 VIC 31 6 3 - 40 QLD 34 6 11 21 72 8 NT 4 - - 1 5 228 SA - 5 3 - 8 (NSW) WA 23 15 15 8 61 5
Slide 27: Franchise Network
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Slide 28: Franchise: Overview
FRANCHISE: OVERVIEW INCORPORATES FRANCHISED NETWORKS OWNED OR INVESTED IN BY VIVA Plus Fitness • Viva acquired the Plus Fitness franchise network in August 2020 • The network currently operates in Australia, New Zealand and India, with new territory agreements executed during 1H FY25 for Singapore,
Slide 29: Franchise: Strategy & Outlook
FRANCHISE: STRATEGY & OUTLOOK Strategy: Strategy: Strategy: Plus Fitness will continue to solidify its position as a Boutique Fitness Studios (BFS) will continue its World Gym’s strategy centres on expanding its cornerstone of Viva’s growth strategy through a expansion of diverse, market-leading bra
Slide 30: The Viva Franchise Network
THE VIVA FRANCHISE NETWORK A GROWING NETWORK FOR PAYMENTS, SOFTWARE, ACCESS CONTROL, DIGITAL SIGNAGE AND MORE Open Additional Sold Long Term Brand Country Total Locations Locations Opportunity4 Plus Australia 197 29 400 226 The Franchise Advantage Fitness1 • Low risk, high reward New 2 - 30+ 2 • Low
Slide 31: Technology & Other
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Slide 32: Technology, Payments & Other: Overview
TECHNOLOGY, PAYMENTS & OTHER: OVERVIEW Technology at the Heart of Viva Leisure • Viva Leisure has successfully developed its own membership software, access control solution, apps, and payment gateway. • These innovative solutions have already been rolled out across the Plus Fitness network and will
Slide 33: Technology, Payments & Other: Strategy & Outlook
TECHNOLOGY, PAYMENTS & OTHER: STRATEGY & OUTLOOK Strategy Outlook Technology Strategy: Driving Growth Through Innovation Technology Outlook: Unlocking Financial Upside Viva Leisure is committed to leveraging its in-house technology solutions Over the next 12 months, Viva Leisure is poised to deliver
Slide 34: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Future performance Important information This presentation may contain certain ‘forward-looking statements’. Forward-looking statements include those The information in this presentation is general in nature and does not purport to be complete. It has been prepared by