Viva Leisure has reported a robust FY2025 with record membership and a 30% jump in revenue, driven by strategic acquisitions and a booming technology segment. The company’s multi-brand approach and expanding network position it strongly for future growth.
- Record 620,902 members, second largest in Australia
- Revenue up 30% to $211.3 million
- Statutory EBITDA rises 25.6% to $99.1 million
- Technology and payments revenue grows 127.7%
- Over 170 franchises sold domestically and internationally
Strong Membership and Network Growth
Viva Leisure has solidified its position as a leading fitness operator in Australia, boasting a record 620,902 members and 491 locations by the end of FY2025. This marks a remarkable expansion from just 29 locations at its 2019 IPO, reflecting a compound annual growth rate of 60.2% over six years. The company’s scale now affords it significant market leverage and brand presence.
Financial Performance Highlights
The company’s revenue surged 30% year-on-year to $211.3 million, underpinned by both organic growth and strategic acquisitions. Statutory EBITDA climbed 25.6% to $99.1 million, while net profit after tax jumped 60.9% to $5.2 million, signaling improved operational efficiency and profitability. Earnings per share rose 47.6%, boosted further by a $4.7 million share buy-back program.
Technology and Payments Driving Diversification
Viva Leisure’s technology, payments, licensing, and services segment experienced explosive growth of 127.7%, highlighting the company’s successful pivot towards high-margin revenue streams beyond traditional gym memberships. The rollout of proprietary systems and the Viva Pay payments platform is set to continue, with integration into World Gym locations planned for 2027. Licensing technology to third parties is expected to commence in FY2026, opening new revenue avenues.
Franchise Expansion and Strategic Capital Deployment
The company sold over 170 franchises across its brands, including Plus Fitness, World Gym, and Boutique Fitness Studios, expanding both domestically and internationally. Capital reinvestment totaled $60.9 million, split between $36.9 million in acquisitions and $19.2 million in growth capital expenditure. This disciplined capital allocation supports network expansion and technology investments, reinforcing Viva Leisure’s long-term growth trajectory.
Outlook and Strategic Positioning
Viva Leisure’s management expresses confidence in the company’s future, emphasizing a multi-brand, multi-segment strategy and a substantial pipeline of over 1,560 potential new sites. The company’s scalable business model, combined with technology-enabled operational advantages, positions it well to capitalize on evolving consumer trends and industry consolidation. While no specific short-term targets are provided, the company commits to measured communication and ongoing updates on significant milestones.
Bottom Line?
With a robust balance sheet and technology-driven growth, Viva Leisure is poised to accelerate its leadership in Australia’s fitness market.
Questions in the middle?
- How will Viva Leisure’s technology licensing to third parties impact future revenue streams?
- What is the timeline and expected financial impact of the World Gym Viva Pay integration?
- How will the company balance franchise expansion with maintaining operational control and margins?