Dutch Gym Basic-Fit Reports Jumps in Revenue, Members

Basic-Fit released its half-year results for 2023, noting impressive milestones as its European expansion continues.

By the numbers:

• EBITDA rose 83% to €110M (from €60.2M in H1 2022).
• H1 2023 brought in €500M revenue, up 41% from €355M in H1 2022.
• Memberships increased by 686K to 3.61M, up from 2.92M in H1 2022.
• 41% of members are paying the premium tier, up from 26% in 2022.

Basic-Fit opened 103 new clubs in H1 2023 while five closed, bringing the total network to 1,303. France and Spain saw most of the launches (71 and 22, respectively), Benelux added seven, the Netherlands opened four, and Belgium announced three.

Between the lines: A tuned-in multi-layered growth strategy, which involved increasing premium memberships, renegotiating energy deals, and closing and opening clubs, proved effective at warding off the impact of spiralling rent and energy costs.

An important note, France hosts 55% of its club network with 718 clubs, followed by the Netherlands (235), Belgium (222), Spain (112), Luxembourg (10) and Germany (6). Its France business is also growing the fastest.

But while 2023 has brought new members, 103 clubs and clear revenue growth, behind the scenes, strategies have been at play to stymie the impact of “elevated operating costs” and “volatile” joiner numbers in France, mostly due to civil unrest over the government’s pension plans.

Beyond the budget. Conceptualised as a low-cost gym chain, Basic-Fit has been successfully upgrading its base to premium – up 55% in H1 2023. CEO René Moos says the strategy will continue to be a priority:

“The average revenue per member per month is increasing and will continue to increase this year and in 2024. This will help us mitigate the inflationary pressures.”

The extra per-member revenue (€23.13 compared with €22.22 in H1 2022) has helped to weather the eye-watering ~€55K-per-club energy bills. Having renegotiated a fixed-rate contract for 2024 and 2025, this expense should drop to ~€35K per club from next year.

Members’ increased consumption of personal training, physiotherapy and nutritional products also contribute to the brimming revenue pot.

Looking ahead: With 2023’s agile management keeping Basic-Fit out of hot water and on an upward trajectory since 2022, it will be business as usual going forward. Premium memberships should hit 45%, and with a 200-club expansion plan for 2023, Moos’ €1B revenue target for 2023 seems achievable – especially as unforeseen factors in its largest market normalise.