Benefit Systems with another sports card record and historical results for 2023.
The Benefit Systems Group ended 2023 with over 1.9 million cards in all markets, which means an increase of over 300,000 compared to 2022. In the first quarter of this year the company continues to grow and estimates that the number of cards will increase by another 77,000. In 2023, its net profit increased by 218% and amounted to PLN 439.6 million. In 2024, Benefit Systems expects an increase in the number of sports cards by 230,000 and maintaining the profitability of its operations at the current level.
– We ended 2023 with record results. 1.9 million sports cards and a tripling of net profit makes us proud and constitutes another milestone in our company’s development. All areas of our business contributed to this success, but I would especially like to emphasise that the network of our own fitness clubs in Poland recorded a positive operating result for the first time in history. The clubs acquired last year contributed to this result, confirming the accuracy of our decisions. Each quarter, we record a higher level of visits by MultiSport Programme users to our own fitness clubs – says Marcin Fojudzki, Management Board Member and CFO of Benefit Systems.
In 2023, the sales revenues of the Benefit Systems Group increased by 45% to PLN 2,774.1 million. This translated into an operating profit of PLN 540.1 million, i.e. 154% higher compared to 2022. In turn, the EBITDA result in 2023 was 86% higher and amounted to PLN 827.6 million. At the end of the fourth quarter of 2023, Benefit Systems had almost three times more net cash than a year earlier (PLN 373 million compared to PLN 134 million at the end of 2022).
– Our financial results allow us to look into the future with optimism. We want to maintain this dynamic pace. We assume a further increase in sports card volumes: by 150,000 in Poland and 80,000 on foreign markets. Both on the Polish and foreign markets, we expect ARPU growth by several percent. We also expect operating profitability to remain at the 2023 level. A very good cash position will allow us to increase investments. This year we plan to open approximately 15 new fitness clubs in Poland and at least 20 in other markets. We also intend to continue analysing markets in terms of acquisition opportunities – concludes Marcin Fojudzki.
Poland Segment
At the end of the fourth quarter of 2023, there were over 1,425,000 sports card holders in Poland. The Poland Segment recorded revenues of PLN 554.5 million, which is an increase of 38% compared to the same period in 2022. EBIT amounted to PLN 133.2 million and EBITDA was PLN 202.6 million (an increase of 116% and 76%, respectively, compared to Q4 2022).
Benefit Systems continued the development of the MultiSport Programme, expanding its own network of sports facilities and partners. At the end of last year, the group’s portfolio in Poland included 218 own fitness clubs. In total, during 12 months of 2023 the company expanded its own network by 48 locations, of which 7 were organic openings. This was the most dynamic growth in the number of clubs since 2018. In 2023, the group acquired facilities of such networks as Interfit Club (5), Max-Gym (3), Active Fitness Club (2), Calypso Fitness (21), Gravitan (2), Studio Energia (1), Manufaktura Zdrowia (2) and Saturn Fitness (6). At the same time, the number of MultiSport Programme partners exceeded 5,000.
– We have ambitious goals for the development of the MultiSport offer, and one of them is the constant increase in the base of partner facilities and sports activities. Last year, we included nearly 600 new entities in the programme and ended 2023 with over 5,000 facilities and more than 40 sports activities. Since the pandemic, user activity has remained at a higher level and last year was slightly higher compared to 2022 – explains Wojciech Szwarc, Management Board Member at Benefit Systems responsible for the development of the partner network. – In recent months, we have been working intensively on the offer of activities as part of the Summer Game. Our holiday gamification is aimed at motivating people to be active and educating them about a healthy lifestyle. Last year alone, we encouraged 69% more users than the year before, and the highest score in gamification was for activities in sports facilities, including workouts in new locations – he adds.
Foreign Countries Segment
At the end of December 2023, there were a total of 495,800 active sports cards on foreign markets. The revenues of the Foreign Countries Segment in the fourth quarter of last year amounted to PLN 203.0 million and operating profit was PLN 27.2 million. Currently, the Benefit Systems Group has 31 fitness clubs abroad: 17 in the Czech Republic, 12 in Bulgaria, 1 in Slovakia, and from the end of December 2023 also the first club in Croatia.
Detailed information on the financial results of Benefit Systems S.A. for the fourth quarter of 2023 can be found at https://corp.benefitsystems.pl/en/for-investors/reports/.
Along with the financial results, Benefit Systems published its ESG Report for 2023, which can be found at https://corp.benefitsystems.pl/en/for-investors/esg/esg-nonfinancial-reports/.
