Life Time cuts its profit by 9% despite increasing its sales to 557 million until March 2024

Life Time cuts its profit by 9% despite increasing its sales to 557 million until March 2024
Life Time cuts its profit by 9% despite increasing its sales to 557 million until March 2024

Life Time begins 2024 as it ended 2023, with benefits. The American chain of sports centers premium earned 24.9 million dollars (23.2 million euros) in the first quarter of 2024, 9.2% less year-on-year. This, despite billing 596.7 million dollars (557.7 million euros), 16.8% more than in the same period of the previous year. The number of clients, both in person and online, improved by 4.9%, up to 853,072 users.

Operating expenses, however, grew at a faster rate than income, with an increase of 17.4% year-on-year, up to $321.9 million (€300.9 million). The drop in its profit, on the other hand, is explained by taxes derived from the sale of establishments, and an income of 3.6 million dollars (3.3 million euros) from the sale of two triathlon events on last year, gains that were offset by better business performance in the current period.

Bahram Akradi, founder, president and CEO of the company, said that the company has “improved our own full-year revenue expectations and also adjusted EBITDA forecasts.” “We are also on track to achieve other financial objectives by 2024, to have positive free cash flow from the second quarter, to further improve our balance sheet and reduce our net debt leverage ratio,” he added.

The chain opened a center in the first quarter and already manages 172 establishments. Looking ahead to 2024, the company expects to invoice between 2,500 million and 2,530 million dollars (between 2,336.9 million and 2,364.9 million euros), 12.8% more than in 2023.


About 2Playbook Intelligence

2Playbook Intelligence is the data and market intelligence unit of 2Playbook, whose data platform monitors in real time the business of more than thirty sports facility managers and a map with more than 3,700 indexed sports centers. If you want more information, contact us at [email protected].

 
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