Half Year 2026 Basic-Fit NV Earnings Call Transcript
Key Points
- Basic-Fit NV (BSFFF) delivered strong first-half 2026 results with double-digit growth across all headline metrics, including a 36% increase in underlying EBITDA less rent to EUR204 million.
- The company raised its full-year 2026 underlying EBITDA less rent guidance for the second time to EUR430-460 million, reflecting improved cost control and operating leverage.
- Membership growth remains robust, with Basic-Fit branded clubs adding 269,000 members in H1 2026, and average members per club rising to 2,999, up 97 from year-end 2025.
- The acquisition of wellyou in Germany is on track to close in Q3 2026, adding 41 clubs and 110,000 members, accelerating the path to critical mass in Germany.
- Free cash flow turned positive at EUR25 million in H1 2026, a significant improvement from negative EUR57 million in the prior year, with expectations of further improvement in H2.
- Net leverage improved to 2.3x from 2.7x at year-end 2025, and the company has ample liquidity of EUR359 million to fund growth initiatives.
- The company is executing a multi-vertical growth strategy (organic, inorganic, and franchise) to enhance returns, with a new Group ROCE target of low-to-mid teens in 3-5 years.
- Operational improvements, including 24/7 opening hours and a refreshed club design, are driving strong performance in key markets like France and Spain.
- ARPU growth was muted at just 1% year-on-year to EUR25.64, impacted by founding membership campaigns and flat other club revenues.
- Expansion CapEx per club increased to EUR1.47 million from EUR1.38 million, reflecting larger club sizes and the new look and feel, which could pressure returns.
- The integration of Clever Fit is still in early stages, with no clear timeline for franchise conversions, and the company expects it to take time before meaningful contributions.
- The wellyou acquisition will require substantial rebranding CapEx, estimated at around EUR250,000 per club, adding to near-term capital expenditure.
- The company discontinued franchise operations in Romania and the Czech Republic, indicating a strategic retreat from certain markets.
- Working capital fluctuations remain unpredictable, with timing differences in supplier payments and CapEx causing volatility in free cash flow.
- The company remains cautious on guidance, with the midpoint increase of EUR10 million only partially offsetting external factors like the Belgian VAT increase and wellyou contribution.
- Overhead costs are slightly higher in H1 2026 due to the inclusion of Clever Fit, and the company is still optimizing head office costs.
Hello and welcome to the 2026 half year results conference call and webcast. Please note that today's conference is being recorded and for the duration of the call your lines will be on listen-only.
(Operator Instructions) Richard Picard, Head of Investor Relations.
Well, thank you. And good afternoon and welcome everyone to our results conference call and webcast and with me today are CEO, Rene Moos, and our CFO, Maurice De Kleer. This call is being broadcast live on our Website and a recording of the call will be available shortly afterwards. And as usual, I would like to point out that safe harbor applies. We will start with Rene, who will discuss the highlights and the operational developments during the first half, followed by a more detailed look at the financial results for Maurice. After these prepared remarks, we will open the call for questions, and the call will finish no later than 3:00 PM. With that, Rene, I hand it over to you.
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