March 23 Dutch discount gym chain Basic Fit
reported a 34 percent rise in annual core earnings
(EBITDA) and a record number of club openings in its first
full-year results since listing in June 2016.
Adjusted earnings before interest, taxes, amortisation and
depreciation rose to 80.4 million euros ($86.8 million) which
was mainly a result of an increase in the number of clubs, the
company said on Wednesday.
Basic-Fit, Europe's largest low-cost gym group, has rapidly
expanded across European capitals, employing fewer staff and
more basic equipment than traditional gyms. Members can exercise
with videotaped instructors, rather than paying for live
The company listed in Amsterdam in June, with its shares
priced at 15 euros each. Its shares were 0.7 percent higher by
0805 GMT on Thursday.
In 2016, Basic Fit opened 81 clubs, above its medium-term
target of 65-75 new clubs per year, bringing the overall number
to 419, located in growth markets France and Spain and its
Benelux core market.
The company forecast 100 new openings in 2017, of which
about 60-70 will be in France, where it is aiming for a leading
market position similar to the one it currently has in home
markets Belgium and the Netherlands. The company plans an
additional 10 clubs in both Belgium and the Netherlands before
the end of the year.
"Given the accelerating openings we see upside to our FY17
revenue forecasts," Morgan Stanley analyst Jamie Rollo, who has
an "overweight" recommendation on the shares, said.
Basic Fit remains loss-making on a net basis, reporting an
annual net loss of 32.4 million euros, following 2 prior years
of smaller losses. The company said it would make a net profit
($1 = 0.9259 euros)
(Reporting by Wout Vergauwen. Editing by Jane Merriman)