Private equity types think of it as a potential COVID-19 re-opening type trade, with the ability to bulk up gym membership numbers after a tough few years for the industry. It’s also one that plays into the aging population/increased focus on health trends thematic. It may be one of the more defensive plays in the sector given its membership prices.
fighting fit
Anytime Fitness is a large multinational budget gym franchise chain, which started in the United States at the turn of the century and entered Australia in 2008.
The Australian business, under the Anytime Australia Pty Ltd corporate account, has about 570 locations mostly in NSW and Victoria, and is focused on budget 24-hour gym franchises.
It’s the No.2 player in Australia with 17.4 per cent market share, according to IBISWorld’s sector report as at March, placing it behind only Quadrant Private Equity’s Fitness and Lifestyle Group, which owns a bunch of brands including Fitness First, Goodlife Health Clubs and Jetts Fitness.
The market’s reasonably concentrated, with four players accounting for nearly 60 per cent of the industry’s revenue.
IBISWorld reckons Anytime Australia would have reported about $380 million revenue in the year to June 30, including franchise revenue. While the 2021-22 number would be up on the previous two years, it would still trail the $400 million recorded before the pandemic.