Fitness financials: Club revenue improves for Q3, survey says
A survey of nearly 500 health and sport club facilities reported strong revenue performance and favorable expense management for the third quarter -- marking the second consecutive quarter of improved performance, according to IHRSA.
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Club revenue improves for Q3, survey says
A survey of nearly 500 health and sport club facilities reported strong revenue performance and favorable expense management for the third quarter — marking the second consecutive quarter of improved performance, according to IHRSA.
IHRSA’s 2010 Third Quarter Index reviewed the financial performance of a sample of the commercial health club industry — 17 U.S. health and sports club companies, representing a total of 499 facilities — for the months of July through September.
“Participating commercial health clubs indicated excellent performance for the second and third quarters of 2010, signifying a positive industry outlook,” said Jay Ablondi, IHRSA’s executive vice president of global products, in a statement. “As the third-quarter Index results demonstrate, clubs with strong leadership are resilient and prepared to withstand challenging business and economic conditions.”
For the quarter ending Oct. 31, 2010, compared to Oct. 31, 2009, total revenue improved by 3.4 percent, while membership dues revenue increased by 1.9 percent. Participating clubs also showed improvements in non-dues revenue and EBITDAR (earnings before interest, taxes, depreciation, amortization and rent). Revenue from ancillary services increased by 7.0 percent, and EBITDAR improved by 6.8 percent.
Performance was also robust among same-store facilities, IHRSA said. Same-store sales revenue improved by 1.8%, while membership dues revenue increased by 1.6 percent and non-dues revenue grew by 2.3 percent.
Total membership accounts increased by 4.2 percent during the third quarter. Same-store total membership accounts also recorded an improvement of 1.4 percent.
To access results online, log on to the IHRSA Research Portal at ihrsa.org/research.
–Compiled by Wendy Geister
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