Technogym Reports Revenue Growth, Doubles Down on Healthcare

Technogym announced half-year results for 2023, reporting steady gains, especially in the B2B market, while also showing its hand for ambitious growth to come.

By the numbers:

The Italian equipment maker is targeting ‘long-term profitable and sustainable growth’, yet has also yielded ‘excellent short-term results’.

• Total revenue was up 13.8% YoY, reaching €370M from €325.2M in H1 2022.
• EBITDA grew by 14.6% to €59.4M.
• Net profits increased by 12.6% to €28.1M.

Geographically, Europe leads the revenue race (€173M), but all territories thrived apart from Asia-Pacific. Dropping 3%, China’s COVID hangover offset buoyant revenues in Australia and Japan.

Of special note, B2C revenue dropped 4.6%, from €83.8M to €79.9M, while its B2B segment surged 20.2%, hitting €290M.

Between the lines: Technogym serves 50M users across 85K wellness centres and 400K private homes.

Having positioned itself as a prestige lifestyle product for “High Net Worth clients” in the B2C market – reinforced through partnerships with the likes of Dior – Technogym affirms that despite B2C revenue dropping, there are ‘signs of normalisation’. The consumer segment recorded growth in Q2 2023 and double revenue compared to H1 2019.

But its B2B division is both its biggest revenue-maker and contribution to public health. Already in 14K hotel fitness centres and 6K hospitals, further investment plans from hospitality and residential developments provide positive signals for future growth.

Daily Dose

Technogym claims a new AI integration implemented across its app and ecosystem in H1 delivers a ‘30% increase in performance for equivalent training time’ for athletes. As an official supplier of the Paris Olympic Games and world-leading sports teams, from football to Formula 1, it’s clear sports performance remains topline. 

But with health as its fastest-growing market, the forward-thinking company is racing to set up a future where exercise (on its machines) is prescribed daily.

Along with delivering the financial forecast, CEO Nerio Alessandri aligned Technogym’s mission with the UN’s Good Health and Wellbeing goal ‘to reduce the mortality rate from noncommunicable diseases by one-third by 2030 through prevention’.

‘“Technogym is Medicine” is our challenge for the future, aiming to become the new ‘sustainable and aspirational medicine’ through prevention and care protocols, promoting healthy longevity with our world-class solutions.’

Looking ahead: Alessandri envisages a future where health authorities see exercise and strength training as both preventative treatment and disease management. Aligning with the UN confirms the formal role he wants his products to play in reducing the $300B burden from ~500M physically inactive people, but his company will be competing with a European manufacturer with a similar goal, EGYM.