Investing.com — Gym Ltd (LON:) shares soared more than 6% on Monday after the company released a post-close trading update, pointing to strong revenue growth and a positive outlook.
The update reported solid progress in key areas, including increased membership, improved revenue per member, and the launch of a new site that is expected to continue to drive the company’s growth trajectory.
In an update, the company reported an 11% increase in FY24 revenue to £226m, beating consensus estimates by 1%.
Membership increased by 5% to 891,000 and average monthly revenue per member increased by 7% to £20.81.
The company also reported a reduction in net debt from £66.4m to £61.3m, highlighting its strong financial position.
Jefferies analysts noted that the company’s latest guidance for FY24 expects EBITDA to be slightly above the high end of market expectations, representing a 4% increase over current consensus estimates.
This follows previous guidance upgrades in July and September, reflecting the company’s continued momentum.
EBITDA is expected to increase by 2% in FY25 compared to current expectations, with continued growth expected due to accelerated location openings. The company has already opened 12 new locations in fiscal 2024, and is targeting 14 to 16 locations in fiscal 2025.
“Average membership was about 0.8% higher than our estimate, and ARPMPM was about 1.4% lower. From this, we can infer that Ultimate and Off-Peak still have similar proportions (about 30% and low single digits). ” he said. analysts at RBC Capital Markets said in a note.
