Viva Leisure's Strong First Half 2025 Earnings: A Recipe for Resilience

Alright, fellow investors, let's dive into the world of Viva Leisure and their impressive first half 2025 earnings. With an EPS of AU$0.02, up from AU$0.017 in 1H 2024, it's clear that this fitness giant is cooking up something special. So, let's grab our aprons and explore the ingredients that make Viva Leisure's recipe for success so irresistible.



First, let's talk about Viva Leisure's strong recurring revenue model. With over 90% of total revenue being stable and predictable, this company is like a well-oiled machine, churning out cash flow even in the face of economic challenges like rising inflation and interest rates. As CEO Harry Constantino put it, "Our strong recurring revenue model contributes significantly to our resilience against economic challenges." And the numbers don't lie – Viva Leisure reported a record EBITDA of $21 million for the first half of FY25, marking a 26.2% increase from the previous period. That's like a personal trainer pushing you to new heights, even when you think you've reached your limit.

Now, let's not forget about Viva Leisure's strategic shift towards optimizing its existing portfolio and leveraging technology. By maximizing utilization and updating older sites, the company is squeezing every last drop of revenue from its network without breaking the bank. As Constantino explained, "The focus is on maximizing utilization and updating older sites, which falls under our maintenance cap limit." It's like finding that hidden ab muscle you never knew you had – it might take some work, but the results are well worth it.

But Viva Leisure isn't just about squeezing every last drop from its existing portfolio. Oh no, this company is all about growth, baby! And they're doing it in style with their franchise expansion and high-margin technology and payments division. By expanding internationally and generating revenue through fees, Viva Leisure is maximizing returns from established locations and prioritizing free cash flow. It's like having a personal chef who knows exactly what you want before you even ask – delicious and satisfying, every time.

Now, you might be wondering about the integration of Viva Pay into World Gym, which is set to commence in 2027. Don't worry, this delay is just a chance for Viva Leisure to cook up an even more mouth-watering dish. As Constantino pointed out, "The technology and payments division is a high-margin segment and represents the biggest growth opportunity." By offering unified access apps, expanding vending machine networks, and growing digital signage, Viva Leisure is set to drive non-membership revenue streams and position itself as a technology-driven leader in the fitness industry. It's like having a secret ingredient that makes your dish the talk of the town – everyone wants a taste, and Viva Leisure is more than happy to serve it up.

So, there you have it, fellow investors. Viva Leisure's strong first half 2025 earnings are just the appetizer, and the main course is looking even more delicious. With a recipe for success that includes a strong recurring revenue model, strategic optimization, franchise expansion, and high-margin technology, Viva Leisure is cooking up a storm that's sure to leave investors hungry for more. So, grab your forks and dig in – this is one meal you won't want to miss.