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Commercial US health club performance "remains solid"
A survey of 14 US health and sports club companies has found that commercial health club performance remained solid for the quarter ending 31 March, 2003, relative to the same period last year.
Conducted for the International Health, Racquet Sportsclub Association (IHRSA) by Industry Insights, the survey found that, on average, the clubs surveyed improved same-store total revenues by 4.2 per cent this year’s first quarter.
In particular, the average same-store non-dues revenues from services such as personal training grew by 6.6 per cent over the first quarter last year, for an overall average of $2.9m.
Americans averaged 92 days at their clubs in 2002, representing a 10 per cent increase in attendance since 1997.
"These data illustrate that the commercial club industry continues to grow in spite of the relatively weak US economy," said John McCarthy, IHRSA’s executive director.
"The fact that the participating companies also maintained their level of profitability is especially encouraging," continued McCarthy. "This suggests that these companies have effectively managed fundamental operational issues, like member retention, while maintaining control of expenses."
The survey found that the average earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR) grew by 12.1 per cent to an average of $4.6m. As a percentage of total revenues EBITDAR remained steady, representing 31 per cent of revenues in the first quarter this year as compared to 32 per cent for the same period in 2002. Details: www.ihrsa.org
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