The Gym Group sales stay strong as premium pays off
New membership options have increased revenue per customer.
The Gym Group’s finances were boosted by the growth of its premium membership in the first half, as the budget fitness brand continued its expansion.
Total revenue was up 26.9% to £74 million for the half-year ending June 30.
Meanwhile the average revenue per member per month was up 5.6% to £15.47.
Speaking to PA, chief executive Richard Darwin said: “What’s contributing to that strong yield is the Live It product.
“We’re seeing strong take-up across the whole business.”
The proportion of total members signed up to the programme is now 16.9%, compared with 11.7% in December last year.
The premium package offers perks such as guest passes and access to multiple gyms.
On the back of its success, the group has now launched a third option called Flex It, which includes being able to freeze membership for three months for free.
Mr Darwin also said the group hoped to recruit some new Generation Z customers through its free summer programme for 16-18 year olds, which gives teenagers six weeks of free access to gyms.
“That generation has almost more affinity to health and fitness than any other,” he said.
“We want to start their journey in terms of being able to go to the gym, not feeling intimidated.”
Total membership numbers by the end of June had reached 796,000, up 10.6%.
The number of gyms reached 165, with eight new sites opening in the period.
The group said its expectations for the full year were unchanged and it remains on track to open between 15 and 20 standard size gyms this year, plus one “small box” site.
Shares in the company were trading 2.6% higher on Friday.