Benefit Systems Group continues stable growth of its flagship product in Poland and abroad
• In the first half of this year the Capital Group’s revenue amounted to PLN 735.5 million.• The Benefit Systems Group’s operating profit amounted to PLN 69.8 million, which means 8% increase year on year (including the positive impact of MSSF 16), and the net profit attributable to shareholders of the parent company amounted to PLN 56.2 million.
– The Group's financial results in the first half of the year were in line with expectations. The 26% increase in revenues year on year is a derivative of the dynamic development of the flagship product and the growing network of fitness clubs. Benefit Systems Group is developing in accordance with the adopted strategy, and the current situation on the labour market is conducive to further, stable growth in the key areas – says Adam Radzki, Management Board Member at Benefit Systems.
The Group's revenues in the first half of this year increased by 26% year on year to PLN 735.5 million. Revenues from the Foreign segment (also reported jointly for the area of sports cards and fitness) in this period amounted to PLN 151.0 million (increase by 62% year on year). The Benefit Systems Group’s operating profit amounted to PLN 69.8 million, which means an increase of 8% year on year. EBIT cleared from the impact of MSSF 16 amounted to PLN 64.7 million and was at a comparable level as in the first half of 2018. The Benefit Systems Group reported PLN 56.2 million of net profit attributable to shareholders of the parent company.
– The sale of sports cards is carried out as planned for this year. We also see a positive impact of the holiday campaign promoting physical activity in low season, which we started in June this year – says Emilia Rogalewicz, Management Board Member responsible for sales strategy and customer service.
In the first half of this year the number of sports cards in Poland increased by 13.8% compared to the first half of 2018 (1,046,500 cards, which means an increase by 127,100 cards year on year), while on foreign markets (Czech Republic, Slovakia, Bulgaria, Croatia and Greece) – by 60.6% (285,700 cards). At the end of this period, the Benefit Systems Group was managing companies operating 153 own clubs throughout the country and 23 clubs on foreign markets. These facilities significantly affect the stable development of the sports cards offer and their attractiveness to users, therefore it was decided to include Polish companies responsible for fitness networks in the structures of Benefit Systems. – We are currently working intensively on reorganisation, which is a complicated process due to the number of entities connected with Benefit Systems. In fitness clubs we focus on pro-sales activities and cost optimisation – explains Wojciech Szwarc, Management Board Member responsible for developing the partnership network.
According to the company, the attractiveness of the flagship product, i.e. sports cards, favourable trends and dynamic development of the sports industry indicate that the Benefit Systems Group has the potential to continue its growth in the coming years: – The further development of our business will be positively affected by low unemployment rate and the employee market, good economic situation as well as the continuing trend of an active lifestyle. According to the MultiSport Index survey, currently 62% of Poles, i.e. nearly 21 million people, take up physical activity at least once a month – adds Emilia Rogalewicz, Management Board Member. – In addition, our cafeteria programmes, which are already an important sales channel for MultiSport cards, and valuable support for many clients in the area of distribution of non-wage benefits, will be a response to the growing needs of HR departments in the field of tailor-made solutions, including process automation and benefit personalisation.
Compared to the first quarter of 2018, the Cafeteria segment (MultiKafeteria and MyBenefit platforms) has increased the number of users by over 80,000 to the level of 400,500. The turnover in the discussed period was at the level of PLN 155 million. The Sport category, which accounts for more than a half of the turnover on e-platforms, is invariably the most popular among cafeteria platform users. The company continues to invest in technological development in this area.
