Business and operational highlights

• Data-driven approach to revenue growth levers continues to deliver benefits, supported by steps to further increase appeal to Gen Z member demographic in particular, through targeted marketing and enhanced site experience
• Five new sites opened year to date (three in H1) and currently on site at a further eight; on track to open 14-16 new sites in 2025, in line with our plan to open circa 50 sites over three years, funded from free cashflow
• Continued to build on high levels of member engagement and satisfaction, with 94% of members rating The Gym Group 4 or 5 out of 5 for overall satisfaction; proportion of members visiting 4+ times a month increased by 108bps

Financial highlights

• Revenue for the period increased by 8%, with average members up 4% and average revenue per member per month (‘ARPMM’) up 4%; like-for-like revenue grew 3%; closing membership up 5% year on year
• Group Adjusted EBITDA Less Normalised Rent at £27.4m was 24% ahead of the prior year period as revenue growth continues to outpace cost inflation
• Strong free cash flow generated in H1, up 8% to £25.1m, funding new sites, enhancements to existing sites and continued technology investment, including new member management and payment capabilities

Will Orr, CEO of The Gym Group, commented: 

"This strong set of half year results reflects continued progress against the strategic objectives set out in our Next Chapter growth plan 18 months ago. Our high value, low cost proposition continues to resonate, with members visiting the gym more often than ever.

Encouragingly, the sites opened this year, which reflect new design features, are performing ahead of expectations, and we are on track to deliver our target of opening 14-16 new gyms this year, all funded from free cash flow, taking us beyond 250 sites. In a growing sector, we have once again increased membership, revenue and profit and are well set to deliver full year results at the top end of market expectations."

Source: The Gym Group
Picture: The Gym Group