Viva Leisure Ltd. · ASX:VVA
Viva Leisure — FY2023 Earnings Presentation
18 slides from Viva Leisure's earnings presentation, Oct 11, 2022
Slide 1: FY2023 Guidance Presentation
FY2023 GUIDANCE PRESENTATION 11 OCTOBER 2022 ASX | VVA
Slide 2: Contents Page
CONTENTS PAGE Welcome 3 FY2023 Guidance Highlights 4 FY2023-Q1 Highlights 5 Journey to FY2023 Guidance ▪ Drivers to Achieve Guidance ▪ Journey: Revenue ▪ Journey: EBITDA Margin 6 ▪ Journey: Members Corporate ▪ Journey: Utilisation ▪ Journey: Average Revenue Per Member ▪ Journey: Locations Further up
Slide 3: Welcome
WELCOME Viva Leisure is pleased to provide guidance for FY2023 for our shareholders and investors. “ Viva Leisure is issuing revenue and EBITDA guidance in which we forecast FY23 revenue growth of up to 54%, and an EBITDA increase of up to 445% over FY22. This guidance shows how well the business ha
Slide 4: FY2023 Guidance Highlights
FY2023 GUIDANCE Guidance HIGHLIGHTS Revenue ▪ Revenue up $46 million to $49 million on FY2022 (51% to 54%) Range ▪ EBITDA up $22.5 million to $24.5 million on FY2022 (409% to $137m to $140m 445%) ▪ Guidance based upon opportunities already secured (greenfield FY22: $90.8m locations and acquisitions
Slide 5: FY2023-Q1 Highlights
FY2023-Q1 HIGHLIGHTS RECORD REVENUE AND EBITDA FOR Q1 Q1-Revenue* Q1-EBITDA* Q1-EBITDA MARGIN* $33.0m $6.4m 19.4% Q1-FY22: $11.7m Q1-FY22: (-$5.1m) Q1-FY22: nm1 Average Revenue# Utilisation# Corporate Members# Per Member Per Week $15.26 70.7 % 163,842 FY22: $14.59 FY22: 69.3% FY22: 159,546 Based on
Slide 6: Journey to FY2023 Guidance
Journey to Fy2023 guidance ASX | VVA
Slide 7: Drivers to Achieve Guidance
DRIVERS TO ACHIEVE GUIDANCE Drivers to achieve Guidance Corporate Members Corporate Locations Range Owned 173k to 178k 165 to 170 FY22: 159k FY22: 151 Utilisation Average Revenue Range Per Member Per Week Range 71% to 73% $15.25 to $15.45 FY22: 69.3% FY22: $14.59 Excluding any one-off adjustments an
Slide 8: Revenue
JOURNEY: REVENUE Monthly Revenue ($m) 12.5 BACKGROUND 12.0 Revenue target will be achieved by: 11.5 11.0 ▪ Estimate of ~800 net member growth per month ▪ Currently run rating >1,400 per month 10.5 ▪ Estimate is lower to cover seasonal suspensions over 10.0 Christmas period 9.5 ▪ Average Revenue Per
Slide 9: Revenue: Annualised Revenue Run Rate
JOURNEY: REVENUE Annualised Revenue Run Rate ($m) 148 BACKGROUND 150 145 4 Annualised Revenue Run Rate is an important 140 137 measurement for a direct debit business such as Viva, 135 with >88% of revenue being 14 day recurring membership 131 fees 130 125 125 125 123 June 2023 Forecast: 120 116 114
Slide 10: EBITDA Margin
JOURNEY: EBITDA MARGIN Monthly Revenue ($m) and EBITDA Margin (%) 13.0 22 BACKGROUND 12.5 21 EBITDA Margin target will be achieved by: 12.0 20 ▪ Increase in Utilisation across the network which has 11.5 19 occurred month on month 11.0 18 EBITDA Margin % 10.5 ▪ Increase in Average Revenue Per Member
Slide 11: Members Corporate/Owned
JOURNEY: MEMBERS CORPORATE/OWNED Members (‘000s) 180 BACKGROUND Membership target based upon: 175 ▪ Estimate of ~800 net member growth per month ▪ Currently run rating >1,400 per month ▪ Flat for Nov/Dec due to seasonal 170 suspensions ▪ Known acquisitions: 165 ▪ ~2,000 acquired members in October ▪
Slide 12: Utilisation
JOURNEY: UTILISATION BACKGROUND Utilisation (%) ▪ September 2022 achieved record portfolio utilisation of over 70.7% 75 ▪ State based Utilisation, as at 30 September 2022: ▪ ACT 78% 74 ▪ NSW 74% 73 ▪ QLD 69% 72 ▪ VIC 48% 71 ▪ WA 85% 70 ▪ Utilisation refers to Viva estimated maximum 69 capacity per l
Slide 13: Average Revenue Per Member Per Week
JOURNEY: ARPM AVERAGE REVENUE PER MEMBER PER WEEK ARPM+ ($) 15.50 BACKGROUND 15.00 Average Revenue Per Member Per Week: 14.50 ▪ September ARPM over $15.00 for the first time, at 14.00 $15.26 (ex GST) 13.50 ▪ Recent price increases having a positive impact on ARPM and no significant impact on member
Slide 14: Locations
JOURNEY: LOCATIONS CORPORATE OWNED LOCATIONS BACKGROUND Corporate Owned Locations / Clubs Viva has historically over the past three years since listing opened or acquired a new location every 9 days, 190+ approximately ~41 locations a year on average 190 185 Guidance provided is based on the data po
Slide 15: Further Upside Opportunities Not in Guidance
FURTHER UPSIDE OPPORTUNITIES NOT IN GUIDANCE ASX | VVA
Slide 16: Further Upside Opportunities Not in Guidance
FURTHER UPSIDE OPPORTUNITIES NOT IN GUIDANCE The following opportunities are not included in Guidance and if executed may provide additional upside. BACKGROUND ▪ Viva Pay ▪ Commencement of trade for Viva Pay and processing of the Plus Fitness franchise direct debit ▪ Guidance has been prepared with
Slide 17: Financial Snapshot
FINANCIAL SNAPSHOT RECORD Q1-FY2023 REVENUE AND EBITDA COMPARISON TO PREVIOUS YEARS REVENUE ($M) EBITDA ($M) 90.8 83.7 11.9 56.8 47.8 6.3 7.3 40.9 6.1 6.4 0.5 5.5 33.1 33.0 5.2 17.9 24.1 20.7 3.3 35.9 34.0 5.6 5.6 9.3 23.0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 -3.8 FY2017 FY2018 FY2019 FY
Slide 18: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Important information Past performance The information in this presentation is general in nature and does not purport to be complete. It has been prepared by Past performance and pro-forma financial information given in this presentation is given for illustrative purp