• Revenue: Increased by 16% to EUR 1,215 million.
• Underlying EBITDA Less Rent: Increased by 20% to EUR 313 million.
• Club Network: Expanded to 1,575 clubs, a 12% increase from 1,402 clubs in 2023.
• Membership Base: Grew to 4,250,000, reflecting a 12% year-on-year increase.
• Average Monthly Yield: Increased to EUR 24.24 from EUR 23.53 a year ago.
• Net Result: Profit of EUR 8 million compared to a loss of EUR 2.7 million in the previous year.
• Net Debt: EUR 938 million at year-end 2024, up from EUR 804 million at year-end 2023.
• Marketing Costs: EUR 61 million, 5% of revenue, down from 5.4% in 2023.
• Expansion CapEx: EUR 224 million, down from EUR 289 million in 2023.
• Maintenance CapEx: EUR 58,000 per club, up from EUR 55,000 per club in the prior year.
• Net Debt to Adjusted EBITDA Ratio: 2.6 times at year-end 2024, unchanged from the previous year.

• Warning! GuruFocus has detected 3 Warning Signs with BSFFF.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Basic-Fit NV (BSFFF) reported a 16% increase in revenue to EUR1,215 million for 2024, with underlying EBITDA less rent growing by 20% to EUR313 million.
• The company expanded its club network to 1,575 clubs and increased its membership base to 4,250,000, reflecting a 12% year-on-year growth.
• Basic-Fit NV (BSFFF) successfully implemented a 24/7 unstaffed club model in Benelux, enhancing member accessibility and convenience.
• The company plans to initiate a EUR40 million share repurchase program in 2025, reflecting a commitment to enhancing shareholder value.
• Basic-Fit NV (BSFFF) aims to achieve a leverage target of below 2 times adjusted EBITDA by 2026, ensuring a strong financial position for future growth.

Negative Points

• The average EBITDA per mature club was reported at EUR399,000, below the target of EUR460,000, with expectations to reach the target by 2026 or 2027.
• The company has reduced its club opening plans to 100 new clubs per year for 2025 and 2026, indicating a slowdown in expansion.
• The 24/7 staffed club model in France incurs additional costs of EUR35 million annually, with profitability expected only by 2026.
• Basic-Fit NV (BSFFF) faces regulatory challenges in France, preventing the implementation of unstaffed clubs, which increases operational costs.
• The franchise model launch has been delayed, with monetization expected only by 2026 or 2027, impacting potential revenue streams.

Q & A Highlights

Q: Do you still expect EBITDA per mature club to reach EUR460,000, given the current figure is EUR399,000? A: Rene Moos, CEO: We expect to reach EUR460,000 EBITDA per club in the near term, but not this year. We anticipate achieving this target by 2026 or 2027, as we integrate the last COVID cohort in 2025.

Q: Why have you opted for a modest share buyback program and a significant cut in new club openings? A: Rene Moos, CEO: The decision to reduce club openings was made to improve the balance sheet and focus on franchise opportunities. The share buyback was a logical step given our cash flow projections, but it was not directly linked to the reduction in club openings.

Q: Can you provide more details on the EUR35 million investment in 24/7 gyms, particularly in Germany and Spain? A: Rene Moos, CEO: Over 90% of the EUR35 million cost is allocated to France due to staffing requirements. In Spain and Germany, costs are limited as we use a camera system for security. The investment aims to enhance member service and is expected to increase membership over time.

Q: Is there any possibility of lobbying for a change in French law to allow unstaffed clubs? A: Rene Moos, CEO: We have been lobbying for years, and while it takes time, we hope for a change eventually. We are prepared with a safe system for when the French government is ready to allow unstaffed clubs.

Q: Will the 100 club openings this year and next year include M&A, and when will the share buyback start? A: Rene Moos, CEO: The 100 club openings are organic and do not include M&A. The share buyback will start soon and will be completed within 12 months.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.