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Goodlife Health Clubs Report Growth in Earnings

Goodlife Health Clubs continue to grow in Australia with earning up 52%.

Boosted by successful acquisitions of former Fenix and Fitness First clubs, Goodlife Health Club earnings grew by 52% for the financial year to 30th June 2013.

The Ardent Leisure-owned chain, which now operates 66 clubs, recorded a 37.2% lift in total revenue from $102.6 million to $140.7 million, with EBITDA up 52% from $20 million to $30.3 million.

Commenting on the performance, Ardent Leisure Chief Executive Greg Shaw noted “this exceptional result has been driven by both strong constant club performance, where earnings before property costs grew by 5.4% over the prior year and the success of the Fenix and Fitness First acquisitions completed in the first half of the financial year.”

Ardent Leisure also noted he benefits of labour productivity, improved efficiency and greater penetration of personal training services which saw operating margins rise to 42.7%, against 39.2% achieved in the prior year.

The recent acquisition of 19 former Fenix Fitness and Fitness First clubs (11 former Fenix Fitness Clubs and eight former Fitness First clubs) is set to be followed by the openings of new clubs in Maroochydore, Queensland and Dernancourt, South Australia.

Looking to the future of its consistently high-performing health clubs division, Ardent Leisure’s recently released 2012/13 financial statement also noted “the division continues to see earnings and revenue momentum build, with strong June and July membership sales set to provide a solid foundation for the 2014 financial year.”

It continued, “July 2013 revenues of $13.6 million represented a 57.1% increase on July 2012.”

Information sourced from Active Management

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