Viva Leisure Limited has reported a robust half-year performance for the period ending 31 December 2025, with revenues climbing 17.6% and profit after tax soaring by 167.8%. The company’s strategic focus on franchise expansion and technology innovation is driving growth.
- Total revenue increased to $116.5 million, up 17.6% year-on-year
- Profit after tax surged 167.8% to $5.23 million
- Franchise network expanded to 218 clubs with strong pipeline
- Technology, payments, licensing, and retail segment grew 45%
- Senior debt reduced to approximately $97.9 million with strong cash reserves
Strong Financial Performance
Viva Leisure Limited has delivered a compelling half-year result for the six months ended 31 December 2025, underscoring its growing footprint in the Australian health and fitness sector. Total revenues rose to $116.5 million, marking a 17.6% increase compared to the prior corresponding period. More strikingly, profit after tax jumped 167.8% to $5.23 million, reflecting improved operational efficiencies and successful strategic initiatives.
Operational Expansion and Network Optimisation
The company’s health club services remain the core revenue driver, contributing $102.9 million, up 16.3%. Viva Leisure has actively rationalised its network by closing underperforming sites, allowing it to focus resources on high-performing clubs with capacity constraints. This optimisation strategy is complemented by the successful launch of new greenfield sites in Forestdale, Warun Ponds, and Torquay, which have exceeded expectations.
Franchise operations also showed robust growth, with the Plus Fitness network expanding to 218 clubs, up from 209 a year earlier. The company has secured commitments for approximately 50 new territories slated for development over the next 12 to 18 months, signalling strong pipeline visibility and confidence in the franchise model.
Technology and New Revenue Streams
Viva Leisure’s technology, payments, licensing, and retail segment recorded exceptional growth of around 45%, reaching $9.3 million in revenue. This division’s expansion is driven by vending and supplements sales surpassing $500,000 per month, an annualised run rate exceeding $6 million. Additionally, the company recorded its first fitness equipment rental sales, opening a new revenue stream, and secured an enhanced digital advertising agreement increasing minimum annual net revenue from $300,000 to $500,000.
Capital Management and Debt Reduction
On the capital front, Viva Leisure has prudently reduced its senior debt to approximately $97.9 million through a mandatory cash sweep mechanism. The company maintains a healthy cash position of $18.2 million, excluding Viva Pay balances. Notably, the share buyback program expired during the period but is set to recommence, reflecting management’s ongoing commitment to shareholder value. Revised banking covenants provide additional flexibility to accelerate greenfield site rollouts.
Governance and Risk
The board confirmed no new material risks have emerged since the last annual report, and the directors remain confident in the company’s ability to meet its financial obligations. The independent auditor’s review found no issues with compliance or financial reporting, reinforcing confidence in the company’s governance and financial controls.
Bottom Line?
Viva Leisure’s strong half-year results set the stage for continued growth, but investors will watch closely how the company balances expansion with operational discipline.
Questions in the middle?
- How will Viva Leisure sustain momentum in franchise expansion amid competitive pressures?
- What impact will the accelerated greenfield rollout have on future profitability and cash flow?
- Can the technology and retail segment maintain its rapid growth trajectory in the coming periods?