An expanded global footprint and a surge in membership numbers have helped Plus Fitness owner Viva Leisure (ASX: VVA) bulk up earnings to a record high in the first half of FY25.

Viva Leisure, which currently operates 476 locations worldwide with brands such as Club Lime, Hiit Republic, Rebalance and Groundup, has reported net profit after tax of $5.5 million for the six months to the end of December, up 15.2 per cent compared with a year earlier.

The result was supported by a 25.2 per cent increase in revenue to $99 million, although the impact of the company’s most recent acquisitions – a 34 per cent stake in Boutique Fitness Studios and the 25 per cent interest in World Gym Australia – have yet to be fully felt on the bottom line.

The growth in underlying earnings has beaten the pace of the company’s revenue increase with EBITDA up 26.2 per cent to $21 million.

The company says a 20-basis-point increase in EBITDA margin to 21.2 per cent has been led by improved operational efficiencies, with Viva Leisure adding that this shows the scalability of the business model is able to withstand higher operating costs.

Viva Leisure CEO Harry Konstantinou describes the first half of FY25 as a “phenomenal period” for the company with the record result reflecting “the strength of our diversified strategy and the resilience of our business model”.

“Our expanding corporate and franchise network, combined with our high-margin technology and payments division, continues to drive sustainable and profitable growth,” he says.

“With strong membership momentum, strategic investments, and continued innovation, we remain well-positioned with levers for expansion.”

Viva Leisure has today reaffirmed that its fourth-quarter forecast for FY25 will see quarterly revenue exceed $56 million and EBITDA rise above $12.5 million.

“As we have created significant scale across our network – with a membership base exceeding 600,000 – we will over the next 12 months shift our focus towards optimising and leveraging this network,” says Konstantinou.

“This strategic pivot will prioritise free cash flow generation and maximise returns from our significant portfolio of established locations and importantly, our unique Viva technology providing the bedrock to this strategy.”

Membership numbers across the Viva Leisure portfolio rose 71.9 per cent to more than 593,000 in the year to the end of December, with corporate membership exceeding 238,565.

In an update on those figures today, the company says corporate members now total above 250,000 while corporate and franchise members have exceeded 600,000.

Viva Leisure’s portfolio expansion has also led to a scaling of its Viva Pay division, which is now processing over $300 million in total transaction volume annually.

Revenue from the technology division, which includes Viva Pay and its proprietary gym access and payment system known as The Hub, surged 124 per cent to $6.4 million.

Viva Leisure says despite the acquisitions of Boutique Fitness Studios (BFS) and World Gym Australia only being completed late in the half-year, progress has been made for Viva Pay to be deployed through the BFS network, and The Hub to be implemented at WGA’s franchise locations. The company says this opens up further revenue and technology opportunities.

Viva Leisure’s current footprint of 476 locations globally will grow closer to 600 once 118 new sites currently secured are opened.

"Over the next 12 months, our focus will shift towards optimising the value of our existing network while moderating the pace of new greenfield site openings," says the company.

"This strategic pivot is designed to prioritise free cash flow generation and maximise returns form our significant portfolio of established locations."

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