Viva Leisure (ASX:VVA) shares close higher on February results

Image Source: © Blueximages | Megapixl.com

Highlights

  • Viva has posted a record monthly Revenue Run Rate of AU$8.6 million in February.
  • The company witnessed a record increase across its all-key metrics.
  • Total locations rose to 330 and members increased to 309,800, up 4.2%.

The shares of Viva Leisure Limited (ASX:VVA) closed 4.294% higher at AU$1.700 on Wednesday following its bi-monthly market update for the period ended on 28 February 2022.

With 137 locations within the Australian Capital Territory, New South Wales, Victoria and Queensland, Viva Leisure operates health clubs within the leisure and health industry.

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As per the release, the company witnessed a rebound in the latest reporting period – January & February 2022. Viva revealed that this rebound was primarily supported by direct debit nature of revenue of the business as gyms were allowed to reopen.

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Moreover, in February, the health leisure company witnessed a record increase across all key metrics, including revenue, membership, locations, and average revenue per member.

Image source - © Jirsak | Megapixl.com

Key highlights –

The company reported a record monthly Revenue Run Rate (RRR) of AU$8.6 million in February 2022.

This reflects an increase of 3.3% and 19% from December and February 2021. 

Moreover, the February 2022 revenue exceeded pre-COVID levels, with VVA’s total locations increasing to 330.

  • VVA also increased its members to 309,800 as of 28 February 2022, up 4.2% on 31 December 2021.
  • The average revenue per member (ARPM) increased to AU$14.02 in February 2022 from AU$13.79 in December 2021.
  • The club margin remained stable at 29% for the period.
  • Also, it is worth mentioning that VVA’s Hiit Republic (HIIT Republic a boutique functional fitness class based environment) ARPM stood at AU$27.99, above June 2021 levels for the first time.
  • The company achieved its second-highest ARPM ever with its Health Club ARPM of AU$13.55.

Outlook 

With record monthly results, the company expects strong growth in March as it has come back on track to become a leading technology-focused health club operator in Australia.

VVA share price movement

VVA shares have dropped over 40% in the last 12 months and 26% on YTD this year. However, over the previous three years, it has gained 54%.


 


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