Benefit Systems Group announced preliminary results for Q4 2022: record number of sports cards, strong balance sheet and good operating profit

– We had a very successful year, which we ended with a record number of 1.6 million sports cards, a good operating result, and a strong balance sheet. Throughout 2022, despite the first months devoted to rebuilding our business after the pandemic, we gained almost half a million new users. The fourth quarter was also very successful: the number of cards increased by over 120,000 in Poland and by over 50,000 on foreign markets – says Bartosz Józefiak, Management Board Member at Benefit Systems, and adds: – The attendance in fitness clubs last year, which was the highest in a decade, is particularly noteworthy. The demand for the offer of fitness clubs significantly exceeded our expectations. Our own fitness networks ended the year with more than 180,000 passes and revenues over 20% higher than the results reported at the end of the fourth quarter of 2019. Numerous initiatives focused on cost optimisation implemented since the beginning of the pandemic and the revenues generated last year resulted in a significant improvement in the profitability of our fitness clubs. This area was an important element of the increase in profits in 2022 compared to the period before the pandemic. Its impact amounted to over PLN 40 million.
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The Group recorded a significant progress in results compared to the period before the pandemic (increase in operating profitability by 1% in 2022 compared to 2019 and by 6.2% in the fourth quarter of last year). The Benefit Systems Group’s sales revenues in 2022 amounted to PLN 1,909.7 million and were 100% higher than in 2021, which translated into an operating profit of PLN 212.8 million. The EBITDA result in 2022 was 117% higher and amounted to PLN 444.9 million.
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Poland Segment

At the end of the fourth quarter of 2022 there were more than 1,187,300 sports card holders in Poland. Benefit Systems estimates that during the first quarter of this year this number will increase by 120,000. In response to the growing demand for physical activity in sports facilities, the Group continues to develop the MultiSport Programme offer, both by expanding the group of partners (over 4,700 facilities in Poland) and developing its own network of fitness clubs. At the end of last year the Group’s portfolio contained 170 own fitness clubs, including seven new ones: four opened in Warsaw (Zdrofit PZO, Lazurowa, HUB, Mennica), one in Stara Iwiczna (Zdrofit NPark), one in Wodzisław Śląski (Fabryka Formy ) and one in Łódź (FitFabric Strażacka).
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In the period in question the company recorded much higher user activity compared to the same period before the pandemic (although slightly lower year-on-year). – Since the end of the pandemic we have been observing very high activity of fitness club customers. This was the case throughout 2022. This phenomenon is an important factor influencing the demand and the growing attachment of customers and users to the product. At the same time, we can generate satisfactory margins in such environment – explains Bartosz Józefiak.
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According to preliminary data, in the fourth quarter of 2022, the Poland Segment recorded revenues at the level of PLN 403.2 million (an increase of 43% compared to the same period in 2021). EBIT amounted to PLN 72.1 million and EBITDA – to PLN 123.9 million (increase by 63% compared to Q4 2021).
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The company focuses on further development of the MyBenefit platform, both technologically (“Active” module with gamification) and product-wise (an extended range of services in the “Tourism” category). In the fourth quarter of last year the number of users increased to 614,000 and the turnover on the platform reached PLN 200.9 million. The Group’s offer is also intensively developed under the MultiLife Programme, which will be promoted as part of an extensive marketing campaign building brand recognition and supporting sales in the first quarter of this year.
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Foreign Countries Segment

At the end of December 2022 there were 430,800 active cards on foreign markets. According to Benefit Systems estimates, in the first quarter of this year their number will increase by over 30,000. The revenues of the Foreign Countries Segment in the fourth quarter of last year amounted to PLN 159.6 million, and operating profit – to PLN 2.2 million. Currently, the company has 15 own clubs in the Czech Republic, 8 own clubs in Bulgaria and 1 own club in Slovakia. Activities related to building a partner network and selling sports cards among employers are continued on the Turkish market.
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Commentary on the beginning of 2023

– We observe a dynamic increase in demand, both for benefits and fitness services. This demand is best seen in the estimated sales of sports cards in Poland. In the first months of the year, we increased our card base by 120,000, thus meeting our previous annual forecast in three months. The sale of B2C passes and volumes on foreign markets in the first quarter are in line with expectations and we do not observe the negative effects of the double-digit increases in price lists from the beginning of the year. We are very active in developing our own club network: we opened two new, large-format My Fitness Place facilities in Krakow and the Form Factory club in Brno (Czech Republic). Thanks to the successful transaction with Calypso Fitness S.A., we have additionally expanded our base by 16 facilities in very attractive and prospective locations. These activities are important due to the needs of MultiSport card users and the stable increase in interest in training in our networks observed for several quarters. We hope that this trend will continue and support our profitability in the coming years. We look at the rest of the year with great optimism and expect further growth. In 2023 we want to add 180,000 to 200,000 sports cards and about 30,000 passes in Poland. We also plan to increase the number of cards on foreign markets to 100,000. In 2022 we recorded very good operating profitability, and we have ambitions to increase it this year. We also maintain our willingness to recommend a dividend pay-out at a level significantly higher than 60% of the net profit for the previous year – adds Bartosz Józefiak.
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Important events after the end of the reporting period

As part of the transaction with Calypso Fitness S.A., Benefit Systems will take over 16 clubs that will significantly strengthen the Group’s offer in cities with high growth potential, primarily in Szczecin (4 facilities) and the Tri-City (7 facilities). Other clubs are situated in Warsaw (2), Wrocław (1), Kraków (1) and Częstochowa (1). After the transaction, the number of the Group’s own clubs in Poland will increase to 186. The value of the acquired clubs was set at PLN 54 million (PLN 34.3 million of this amount is due to Benefit Systems’ overdue claims against Calypso Fitness).
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In the first quarter, the company also obtained a positive decision on the B Corp recertification from B Lab Europe. Benefit Systems is thus the first and so far the only listed company in Poland to renew its certification after joining the B Corp movement in 2018. The recertification process – independent verification carried out by B Lab – was even more difficult as it concerned the year 2021 when the company’s flagship product and the fitness industry as such struggled with numerous pandemic restrictions.Detailed information on the Benefit Systems preliminary financial results of for Q4 2022 can be found at benefitsystems.pl/en/for-investors/.
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Benefit Systems has been operating on the Polish market for over two decades and is one of the leaders in providing non-financial benefits that support the wellbeing of employees. The company is the creator of the MultiSport Programme, which allows its users to take up physical activity in sports facilities all over the country. The Benefit Systems portfolio also includes the MyBenefit cafeteria platform and the MultiLife wellbeing programme. For several years now, the company’s sports offer has been developed on foreign markets, including in the Czech Republic, Slovakia, Bulgaria, and Croatia. The Benefit Systems Group also operates over 200 fitness clubs in four markets (in Poland it is responsible for the Zdrofit, Fitness Academy, My Fitness Place, Fabryka Formy, StepONE, S4 Fitness, Total Fitness and FitFabric networks). ​ An important area of Benefit Systems activities is promoting an active lifestyle at every stage of life, which is why the company implements initiatives supporting the physical activity of children, adults, and seniors. Since 2018, Benefit Systems has been part of the global B Corp initiative bringing together companies involved in solving the most important social problems. More information about the company can be found at www.benefitsystems.pl.
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