Investing.com — Shares of Gym Ltd (LON:) jumped more than 6% on Monday after the company issued an after-hours trading update, signaling strong revenue growth and a positive outlook.
The update reported solid progress in key areas, including membership gains and improved revenue per member, as well as new site launches that are expected to continue to drive the company’s growth trajectory.
In an update, the company reported an 11% rise in revenue for FY24, reaching £226m, beating consensus estimates by 1%.
Memberships increased by 5%, reaching 891,000, while the company’s average revenue per member per month increased by 7%, reaching £20.81.
The company also reported a reduction in net debt, to £61.3m from £66.4m, underlining its strong financial position.
Analysts at Jefferies noted that the company’s updated guidance for FY24, which expects EBITDA to come in slightly above the upper end of the market forecast, indicated a 4% increase from current consensus expectations.
This follows previous guidance upgrades in July and September, reflecting the company’s current momentum.
EBITDA is expected to increase 2% in FY25 compared to current forecasts, with continued growth expected due to accelerated location openings. The company has already opened 12 new locations in FY24 and plans 14-16 for FY25.
“Average members were c.0.8% higher than our estimate with ARPMPM c.1.4% lower – from this we would conclude that Ultimate and Off-Peak remain a similar share of the mix, c.30% and high single digits” , analysts at RBC Capital Markets said in a note.
