Viva Leisure (ASX:VVA) Sets Ambitious FY25 Targets with AUD 224Mn Revenue and AUD 50Mn EBITDA

4 min read | December 16, 2024 05:01 PM AEDT | By Team Kalkine Media

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Viva Leisure (ASX:VVA) Sets Ambitious FY25 Targets with AUD 224Mn Revenue and AUD 50Mn EBITDA — Image source: shutterstock

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Highlights

In FY24, VVA’s EBIT grew by 23.9% YoY to AUD 19.1 million, while NPAT jumped 19.7% YoY to AUD 10.6 million.

The company has recently acquired 25% interest in World Gym Australia (WGA) and three corporate locations in Queensland.

In FY25, the company expects to achieve revenue of AUD 224 million and EBITDA of AUD 50 million.

Viva Leisure Limited (ASX:VVA) is an ASX-listed company that operates in the health leisure industry. The company operates nearly 120 health clubs and manages health club brands - Club Lime and Club Pink.

In the financial year 2024 (FY24), VVA recorded 15.9% YoY rise in its revenue to AUD 163.6 million, with a compound annual growth rate (CAGR) of 41.4%. FY24 revenue growth was driven by innovative strategies and focus on organic expansion. During the reported period, EBIT grew by 23.9% YoY to AUD 19.1 million, while NPAT jumped 19.7% YoY to AUD 10.6 million.

In the first quarter of FY25, the company saw significant growth and sustainable momentum across all business units. During the quarter, revenue jumped 10% YoY to AUD 47.5 million, membership increased by over 7.5% YoY and recorded 7.8 million visits.

Recent business update

Viva Leisure has acquired a 25% equity stake in World Gym Australia (WGA) and three corporate locations in Queensland. Valued at approximately AUD 16.7 million as of 10 December 2024, this marks the second-largest acquisition in the history of VVA. Viva anticipates significant financial and strategic benefits from this transaction.

Outlook

In 4QFY25, the company expects to record revenue of over AUD 56 million and EBITDA of AUD 12.5 million. In FY25, expected revenue is AUD 224 million and anticipated EBITDA is AUD 50 million.

Growth prospects for hotel & entertainment sector

According to the data released by the Australian Bureau of Statistics (ABS) on 12 December 2024, in November 2024, unemployment rate fell by 0.2 percent points, employment rose by 36,000 people and unemployed dropped by 27,000 people.

The company is likely to benefit from the rise in the employment rate in November 2024.

Share performance of VVA

VVA shares closed at AUD 1.45 apiece on 16 December 2024. Over the past year, VVA’s share price has increased by over 5.07%, while in the last three months, the share price has surged by 3.20%.

52-week high of VVA is AUD 1.65, recorded on 15 February 2024, and 52-week low is AUD 1.28, recorded on 9 October 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 16 December 2024. The reference data in this report has been partly sourced from EODHD/Others.

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