In the third quarter of 2021, the Benefit Systems Group generated sales revenues of PLN 297.3 million and operating profit of PLN 6.2 million. At the end of the third quarter, sports cards were used by over 709,000 users in Poland and 276,000 users on foreign markets. In November, the number of active sports cards totalled over 1.1 million, of which 814,000 in Poland and 292,000 on other markets. The Group undertakes numerous activities supporting the sale of sports cards and strengthening the product offer by acquiring, among others, a mental health mobile application as well as a network of 14 fitness clubs.
– As predicted, after such a long lockdown and with the still ambiguous pandemic situation, it will take longer for us to rebuild our results than last year. We should not expect this to be achieved within one or two quarters. Therefore, our priority for the coming months is to expand the group of customers and users of our flagship product, the MultiSport Programme. At the same time, we are continuing to develop our portfolio. In the last two years we have been observing dynamic changes in the needs and, consequently, in the expectations of employers and employees. We intend to respond to these trends with a strong offer of innovative non-financial solutions, supporting, among others, psychophysical health and wellbeing of employees. We have acquired the YesIndeed gamification system which strengthens us technologically and will allow us to offer our clients optimal solutions in the field of HR programmes, including employee motivation. The Focusly mobile application will, in turn, strengthen the MultiLife Programme in the mental health area. Additionally, we acquired 88% of shares in Total Fitness which operates 14 modern and popular sports facilities. These are important steps for us in the implementation of the long-term development strategy of the Group, including its new MultiLife Programme, which is a flexible and modern solution tailored to the post-pandemic reality – explains Bartosz Józefiak, Management Board Member at Benefit Systems responsible for the Capital Group’s finances.
In the first two quarters of 2021 the financial results of the Benefit Systems Group were significantly influenced by pandemic restrictions. In the third quarter of this year, after reopening the fitness industry, the Group focused mainly on rebuilding the sports card base and strengthening its product offer. Consolidated sales revenues in the third quarter amounted to PLN 297.3 million and were 5% lower than in the corresponding period in 2020. The Group recorded PLN 6.2 million of operating profit and PLN 10 million of net loss attributable to the shareholders of the parent company (compared to PLN 18.1 million of profit a year earlier). In the three quarters of 2021, sales revenues amounted to PLN 576.3 million (a 33% decrease year on year), which translated into an operating loss of PLN 41.9 million (compared to PLN 42.5 million profit a year earlier) and the net loss attributable to the shareholders of the parent company in the amount of PLN 48.6 million (compared to PLN 20.6 million loss for three quarters of 2020).
In the third quarter of this year the Poland Segment recorded revenues of PLN 196 million (a 9% decrease compared to the same period in 2020) and the number of cards at the end of the third quarter was 709,300. As part of supporting sales activities, both in the B2B and B2C channels, the Benefit Systems Group carried out several nationwide educational and sales campaigns, including the MultiSport “Get ready for sport” campaign with the participation of Robert Makłowicz and “Get ready!” campaign of fitness chains, including Zdrofit, featuring Paulina Przybysz.
Currently, there are about 4,400 sports facilities operating within the MultiSport partner network. In the discussed period, the company recorded higher user activity compared to the corresponding period before the pandemic, observed in many markets where access to sports infrastructure was limited due to the pandemic.
In the third quarter of this year the Group had 155 own clubs. Additionally, at the beginning of November this year Benefit Systems acquired 88% shares in Total Fitness which operates 14 high-quality sports facilities in Warsaw and Gdańsk.
In the Cafeteria Segment, the company continues the technological development of the platform and its product offer, recording a 5% increase in the number of users. In the third quarter of this year the number of users was 511,700 and the turnover was PLN 108 million (an increase by 20% year on year). The revenues amounted to PLN 13.9 million and were higher by 47% compared to the same period in 2020.
At the end of September, there were 275,900 active cards on foreign markets. In the third quarter of this year revenues of the Foreign Segment amounted to PLN 89.3 million, and operating profit – to PLN 8.8 million. In the discussed period, two fitness clubs were closed in the Czech Republic (currently 13 facilities), while a second club was opened in Slovakia (a total of 24 own clubs, including 9 in Bulgaria). Due to the pandemic, since 21 October this year access to gyms and swimming pools in Bulgaria is only available to vaccinated and convalescent people as well as holders of a valid negative COVID-19 test. Restrictions were also introduced in Slovakia where they have been in force in some communes since 8 November this year. As announced, the Group is continuing works related to the commencement of operating activities on the Turkish market.
Detailed information on Benefit Systems’ financial results for 3Q 2021 can be found at https://www.benefitsystems.pl/dla-inwestora
The report presentation is available at https://www.benefitsystems.pl/dla-inwestora/daneprezentacje/prezentacje/
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