Exercise Professionals - Product innovation helps boost Virgin Active turnover...
24 Jun 2017 Exercise professionals: News, jobs and training
 
 
HOME
JOBS
NEWS
FEATURES
PRODUCTS
FREE DIGITAL SUBSCRIPTION
PRINT SUBSCRIPTION
ADVERTISE
CONTACT US
Sign up for FREE ezine
Latest news

15 Jun 2017

Product innovation helps boost Virgin Active turnover
BY Deven Pamben

The gym chain will focus on investing in innovative classes

The gym chain will focus on investing in innovative classes

A roll-out of fitness classes and improved member experience helped revenue at Virgin Active rise by 6 per cent to £483million (US$615.5m, €548.6m) in the year to 31 December 2016, results from South African investment group Brait show.

Brait, which owns a controlling stake in the health club, also reported that earnings before interest, tax, depreciation and amortisation (EBITDA) grew 13 per cent to £104m (US$132.5m, €118.1m).

Total membership, including juniors, grew 0.3 per cent to 1.23m across its 241 clubs at the end of 2016.

Brait said Virgin Active's commitment to product innovation and member experience was evidenced in 2016 with the continued rollout of Grid classes, its Barre programme, the HEAT (a high energy athletic training class) offering, Hydro (a high intensity swim class) and Iron ZUU (group exercise combining weightlifting with movement), as well as improvements to its digital offering.

A breakdown shows that in Europe Virgin Active had 91 clubs at the end of 2016 (down one from the previous year): 46 in the UK, 33 in Italy, eight in Spain and four in Portugal. Revenue in Europe rose 3 per cent to £286m (US$364.5m, €324.8m), with membership remaining at 375,000.

Last year Virgin Active sold 36 UK clubs, 35 of which were bought by Nuffield Health in July 2016. It has also sold 14 clubs to David Lloyd Leisure, which completed on 31 May 2017.

The financial report said: "These two transactions represent the final significant step for the UK operations to focus on metropolitan and commuter hubs in key markets at the premium end, which is in accordance with Virgin Active's international strategy."

In southern Africa, revenue grew 7 per cent to £155m (US$197.5m, €176m) across its 137 clubs. Membership was down 1 per cent on the previous year to 728,000, impacted by a tougher consumer environment.

Asia Pacific showed strong growth for the company with turnover rising 28 per cent to £42m (US$53.5m, €47.7m) during the period. Virgin Active had 13 clubs at the end of the year in Australia (6), Singapore (2) and Thailand (5). Membership grew 21 per cent to 45,000 in the region.

In terms of this year, the club had 245 sites as of March.

The report said: "The South African business continues to be affected by economic and political uncertainty in common with other consumer facing business. In the near term, investment will be focussed on the existing clubs estate with a moderated roll out plan."

On Europe, it said: "The smaller, more streamlined UK estate is trading well under new leadership. With a focus on people and product, the business is positioned well to grow in the future. The company continues to monitor any Brexit impacts, with no major impact seen so far. The Italian business continues to trade well."

The Asia Pacific business "continues to trade strongly", with the medium-term outlook for Virgin Active remaining strong as the company continues to invest "in growth markets in Asia and Australia" and focuses on product innovation and the digital customer journey worldwide.



Connect with
Exercise Professionals
Magazine:
View issue contents
Sign up:
Instant Alerts/zines

Print edition
 

News headlines
Zumba enters HIIT market
Zumba enters HIIT market   23 Jun 2017

Zumba, the popular dance and aerobics programme, has launched a new high-intensity interval training (HIIT) workout as it expands into the UK's studio .... more>>
Your Personal Training links up with Future Fit
Your Personal Training links up with Future Fit   23 Jun 2017

Your Personal Training, the fitness professional management company, has teamed up Future Fit Training’s Pro Zone network. As part of the deal, .... more>>
Teenagers as inactive as 60-year-olds, study concludes
Teenagers as inactive as 60-year-olds, study concludes   23 Jun 2017

Physical activity levels among teenagers are similar to that of 60-year olds, according to US research. The study confirmed that World Health .... more>>
easyGym unveils franchise plans as part of growth strategy
easyGym unveils franchise plans as part of growth strategy   22 Jun 2017

easyGym plans to become a major player in the fitness market by opening 500 franchise units globally in the next five years. The budget operator .... more>>
Serco Leisure signs CIMPSA partnership deal
Serco Leisure signs CIMPSA partnership deal   21 Jun 2017

Serco Leisure, which operates more than 60 facilities across the UK, has become an employer partner of the sport and physical activity sector's .... more>>
ukactive urges gym-goers to follow hygiene advice following C4 investigation
ukactive urges gym-goers to follow hygiene advice following C4 investigation   21 Jun 2017

The risk of catching an infection from visiting a health club is "extremely low" despite a Channel 4 programme investigation that found some gym .... more>>
Company profile


Physical Company Ltd

Striving to offer their customers the very best in service, over the last 26 years Physical Company has earned the reputation of delivering on all levels and takes pride in offering a quick, reliable service and lowest industry prices.

View full profile>>

Catalogue gallery


Featured Supplier

Leisure-net launches theme for active-net 2018

Leisure-net launches theme for active-net 2018

Places at active-net 2018 are already filling up following the roaring success of the 2017 event in March, which saw 95% of delegates say they’d like to attend next year. More>>




in this issue

• Yorkshire Wildlife Park's £50m expansion
• IHRSA: Global gym revenues grow
• Boutique hotel for fire station site



Latest jobs

Jobs Search



General Manager
Salary: up to £37,000 + c20% bonus + optional PT income
Location: London Greenwich, Cutty Sark, United Kingdom
Company: The Gym Group
Sports Assistants
Salary: £15,554 pa
Location: Colchester, United Kingdom
Company: University of Essex Commercial Services Limited
Two day dynamic reformer course
Location: Central London
Company: Ten Education
Membership Consultant
Salary: £14,470 - £15,912
Location: Rochdale, United Kingdom
Company: Link4Life
Diary dates
Powered by leisurediary.com




26-27 Jun 2017

Professional Beauty Delhi

Pragati Maidan, Delhi, India


26-28 Jun 2017

MuseumNext Europe 2017

de Doelen, Rotterdam, Netherlands



Health Club Management magazine 2017 issue 6
Health Club Management
2017 issue 6

View issue contents
View on turning pages
Download PDF
  Talking point: Artificial Intelligence
Is AI to be feared or embraced by operators in the health and fitness industry? More>>
  Editor’s letter: Real-time revolution
Real-time insight into members’ exercise patterns and behaviours will change the industry, says Liz Terry More>>


Health Club Management magazine 2017 issue 5

Health Club Management
2017 issue 5

View issue contents
View turning pages
Download PDF
  HIIT Programming: HIIT fusion
With HIIT now well established on the club timetable, operators are finding new ways to mix things up with fusion programmes More>>
  Studio Equipment: In the studio
Lauren Heath-Jones rounds up the latest product launches for fitness studios More>>


Published by The Leisure Media Company Ltd Portmill House, Portmill Lane, Hitchin, Herts SG5 1DJ. Tel: +44 (0)1462 431385 | Contact us | About us | © Cybertrek Ltd