Benefit Systems with very good financial results in the fourth quarter of 2021 and high sales dynamics of sports cards in Poland
The demand for the Benefit Systems Group’s offer of non-financial employee benefits, especially the MultiSport Programme as well as sports and recreational services provided by its own fitness networks, is growing. The company’s estimates show that in the first months of 2022 the number of sports cards in Poland will increase by nearly 100,000 compared to the end of the fourth quarter of last year. Four new own clubs were opened, and the number of partner facilities exceeded 4,500. The group continues intensive sales, marketing, and product offer enhancement activities.
At the end of the fourth quarter of 2021 there were over 842,000 sports card holders in Poland and 285,000 on foreign markets. Benefit Systems estimates that in March this year the number of cards in Poland will reach 939,000, which will mean an increase by over 97,000 compared to the end of the fourth quarter of last year. The partner network of the MultiSport Programme has grown to 4,500 sports facilities and the number of own fitness clubs increased to 168. In December there were 285,000 MultiSport cards in foreign markets. According to Benefit Systems’ estimates, in March this year their number will increase to 316,000.
– The beginning of this year shows that the pandemic and restrictions have not affected the foundations of our business and the experience as well as a strong, complementary product offer are valuable support for entrepreneurs in the implementation of activities aimed at the wellbeing of employees. The result is an increase in the number of sports cards in the first months of this year that exceeds our expectations as well as very good sales results of all our fitness networks – explains Bartosz Józefiak, Management Board Member at Benefit Systems responsible for the capital group’s finances.
According to preliminary data, in the fourth quarter of last year the Poland Segment recorded revenues of PLN 258.2 million (an increase of 108% compared to the corresponding period in 2020). EBIT amounted to PLN 16.4 million and EBITDA – to PLN 61 million (an increase of PLN 53.4 million compared to the fourth quarter of 2020). In 2021 the financial results of the entire group were significantly influenced by the restrictions related to the pandemic. Last year the Benefit Systems Group’s sales revenues amounted to PLN 954.9 million and were lower by 8% compared to 2020, which translated into an operating loss of PLN 4.3 million. Despite the restrictions caused by the pandemic, the EBITDA result in 2021 was similar to the level from 2020 and amounted to PLN 204.6 million. In the fourth quarter of last year Benefit Systems acquired 88% of shares in Total Fitness – the operator of 14 high-quality sports facilities in Warsaw and Gdańsk. In the discussed period, the company recorded higher user activity compared to the corresponding period before the pandemic. Identical increases are observed in many markets where access to sports infrastructure was limited due to the pandemic.
– The Group’s financial results, including the Poland Segment, for the fourth quarter of last year are very good and the beginning of this year is a great prognosis for the coming months, mainly in terms of rebuilding our business. During the pandemic we implemented a liquidity strategy and quick response to changes, we optimised costs and we secured sources of financing for new projects. These activities allow us to strengthen our long-term competitive advantages, especially in four areas that are important to us: new technologies, professional services supporting mental health and work-life balance, an attractive fitness offer and development on foreign markets. It is worth noting that in Poland we are additionally supported by the favourable situation on the labour market which translates into the growing demand for non-financial benefits that are flexible and respond to new employee needs – adds Bartosz Józefiak.
In the Cafeteria Segment, the company focuses primarily on the technological development of the platform. In the fourth quarter of last year the number of users amounted to 511,700. The turnover amounted to PLN 174.4 million and was higher by 28% compared to the same period in 2020.
At the end of December 2021 there were 285,000 active cards on foreign markets. According to the Benefit Systems’ estimates, in March this year their number will increase to 316,000. In the fourth quarter of last year revenues of the Foreign Segment amounted to PLN 97.6 million and operating profit – to PLN 11.4 million. There are currently 14 own clubs operating in the Czech Republic (including a new facility in Ostrava, opened in the first quarter of this year), nine in Bulgaria and two in Slovakia. In Turkey, a partnership network is being built and the pre-sale process in the form of distribution of test cards for employers is being prepared.
Detailed information on Benefit Systems’ preliminary financial results for the fourth quarter of 2021 can be found at https://www.benefitsystems.pl/dla-inwestora
