Life Time definitely leaves the pandemic behind. The chain of premium sports centers has closed the first half of 2023 with a turnover of 1,072.6 million dollars (966.9 million euros), 25.7% more than in the same period of the previous year. In addition, it has left the red numbers behind and has registered a net profit of 44.5 million dollars (40.1 million euros). This contrasts with the losses of 40.3 million dollars (36.3 million euros) in the first half of 2022.
The increase in revenue registered by the chain is explained by the increase of 65,000 subscribers compared to the first half of last year. The number of clients of the chain amounts to more than 832,000 registered between face-to-face quotas and exclusively online.
As a consequence of its expansion plan, The company has raised its operating costs by 11.1% year-on-year in the first half, up to 576.7 million dollars (519.8 million euros). The heading of general, administrative and marketing expenses, on the other hand, have fallen by 19.6% year-on-year, up to 95.3 million dollars (85.9 million euros).
“Our strategies are working and contributing to our success. We have reduced our leverage ratio and are actively seeking an increasing number of asset-light growth opportunities,” said Bahram Akradi, Life Time founder, president and CEO.
In May, the company refinanced a $274 million loan with a $310 million loan due 2026. Looking to 2023, Life Time anticipates revenue growth up to between 2,235 million and 2,265 million dollars (between 2,014 million and 2,041 million euros), which would mean a minimum increase of 22.6%.
At the end of June, the chain had 164 sports centers. The company plans to open twelve new centers, four of them are already operational and another eight that will be inaugurated in the second half of the year.
The company plans to continue releasing ballast in the coming months with the aim of selling real estate for 300 million dollars (270 million euros) in 2023, as announced in a statement addressed to shareholders. The plan is to take advantage of these resources to strengthen its treasury situation and have capital to undertake future projects.