Continued growth and increasedaverage revenue per member
In today's half-year report, Actic Group reported growth of 14 percent to SEK 443 (390) million, primarily driven by acquisitions. Organic growth was 4 percentage points, and the elements behind are intensified focus on add-on services and new establishments. At the same time, average earnings per member increased by 13 percent to SEK 344 (305) per month, due to strong development for the PT business. During the year, four new facilities were opened and three clubs were acquired, providing a total of 170 (162) facilities at the end of the period.
"Marginal development during the second quarter was not satisfactory, although a higher pace of establishment explains some of the decline. As we have previously communicated, the Norwegian operations have developed weaker than expected during the year, and we are working to increase the inflow of new members and develop the PT business there. We also had lower bath revenues in the second quarter compared with the first quarter of the year", said Christer Zaar, President and CEO of Actic Group.
The adjusted operating profit, measured as EBITDA, amounted to SEK 71 million during the first half of the year. This gives a margin of 16.1 (19.3) percent, related to the medium-term objective of 20 percent. The margin has been affected by investments in central and local support functions. The investments aim to secure continued expansion as well as providing a competitive offer to the members. This puts pressure on the operating margin in the short term, but is of importance for achieving the right efficiency and scalability in future, which will lead to the medium-term achievement of the financial targets.
"Even if we prioritize operational efficiency in the short term and to make the most of the opportunities for member inflow in connection with the transition to the autumn's higher activity, we will work to fulfill our strategy", says Christer Zaar, President and CEO of Actic Group.
For further information, please contact:
Christer Zaar, VD Actic, firstname.lastname@example.org, +46 70 893 33 22
Niklas Alm, Investor Relations, email@example.com, +46 70 824 40 88
Actic Group shares are listed on Nasdaq Stockholm, where Actic Group is a Small Cap company with the ticker code ATIC.
The information above is such that Actic Group AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 07:45 CET on 15 August 2017.
Actic (formerly Nautilus Gym) was founded in 1981 and launched the Gym & Swim club concept. The company began its international expansion in 1995 and as per 30 June 2017, Actic had 170 facilities and over 215,000 members in five countries. Actic’s main markets are Sweden, Norway, Finland as well as Germany and Austria. Actic offers a well-established exercise method known as high-intensity training (HIT) and offers its members personal training programmes including follow-up sessions with trained instructors. Together with swimming, this forms the core of Actic’s offering and differentiates us in the market.
Actic’s vision is to create a healthier society by attracting a broad target group and thereby expanding the market. The facilities engage in the local community to contribute to a healthier society. Actic, which has its head office in Solna, Stockholm, has approximately 700 full-time equivalent employees and had net sales of SEK 802 million in 2016. Actic is led by its President and CEO Christer Zaar.