May 17, 2016 Issue N°7

Basic-Fit firms up IPO plans NEW! asic-Fit, the low-cost operator with the larg- “We believe an IPO is the logical next step in the est number of gyms in Europe, announced development of Basic-Fit and a listing will be in- You’re reading the seventh this morning that it intends to launch an ini- strumental in effectively implementing our strat- issue of Fitness News Europe, Btial public offering (IPO) Euronext Am- egy going forward.” the independent business - It had already been reported earlier this year news publication for executives tion could take place “in the near future, subject that 3i, which bought a majority stake in Basic-Fit in the international fitness industry. With an online portal sterdam.to market The conditions.” company said the envisaged flota in 2013, was studying an IPO and several other and a bi-monthly newsletter, Basic-Fit runs 351 clubs in the Netherlands, Bel- options. On the back of a report by Bloomberg, Fitness News Europe provides gium, Luxembourg, France and Spain, with more the potential valuation was then estimated at reliable business news and than 1 million members at the end of March. The about €1 billion including debt. The prospect of often exclusive analysis on the company says its sales reached €202.2 million fast-moving fitness market. in 2015, yielding €60.1 million weeks, as some companies are Turn to the last page for in adjusted EBITDA and strong a flotation appearedeager to to come tap the closer stock in themarket last further information about the underlying cash generation. ahead of the British referen- publication, to register for a free dum on the European Union. trial and obtain your subscription growth over the past years, The offering would be targeted at a special launch rate. supported“We have by realised our current significant main at institutional investors in the indirect shareholder 3i, and are Netherlands and some other ju- CONTENTS now ready for a new phase,” risdictions, and at Dutch retail Basic-Fit firms up IPO said René Moos, chief executive investors. intentions...... p1-7 and shareholder of Basic-Fit. Continued on page 7.... Photo: Basic-Fit Technogym on the rise. p1-3 New Intersport chief...... p1 Technogym Amer manager Technogym on the rise Octane bulks up Nautilus.p3 Q1 2016 (€ 000, %) Bodytalk to build European to take over as ust a few days after its ini- 3.8% in the Middle East, India business...... p4 Q1 2016 Change tial public offering (IPO) on and Africa. The group blamed takes off in Intersport chief the Milan stock exchange, European market...... p5 Sales 115,574 + 11.2% mer , the parent J Technogym reported a rise “reorganisation of certain lo- Ireland Active moves...... p6 Acompany of Precor, said of 11.2% to €115.6 million in thecal subsidiaries.”decline in Asia Although Pacific on the a Italy 10,875 +12.8% GymForLess raises funds this morning that its execu- company declined to provide for Italian growth...... p7 Europe tive board member in charge They were up by 13.3% in con- further details, it indicated that 62,022 +14.5% British market hits fitness (excl. Italy) of marketing and retail sales, itsstant sales currencies, for the firstwith quarter. ample these changes did not entail the Victor Duran, is to become gains in European markets. opening or closing of any sub- records...... p8 North America 10,484 +19.9% sidiaries. Asia Pacific 15,758 -5.6% Intersport International Cor- supplier’s turnover was up by Field sales by Techno- Other news theporation chief (IIC) executive from officerthe start of 14.5%The Italianto €62.0 fitness million equipment in Euro- gym subsidiaries and agents (p4), Bannatyne (p8), Latin America 5,852 +58.7% of January 2017. Duran will pean markets other than Italy, - Elevate (p6), Europe Active MEIA (*) 10,583 -3.8% join the executive board of IIC fueled by demand in France, the ter, against rises of 5.6% for (p6), Fitbit (p4), Fitness First from October and will take United Kingdom and Germany. jumpedwholesale by and 13.8% 3.9% for for the “inside quar (p8), Garmin (p4), Gym Factory over next year from Franz Ju- The group estimates its Euro- sales” (teleselling and online (p6), Kettler (p2), Life Fitness len, who has been in charge pean market share at 13% and sales). The group’s retail busi- (p2), MyFitnessPal (p2), for more than 16 years. Julen ness advanced by 19.0% for the Samsung (p4), turned the Intersport buying it to “strengthen its leadership three months. (p2&4) group into a sports retail or- saysposition.” that the quarter enabled The overall double-digit sales ganisation with sales of €11.0 Technogym raised its sales rise comes after a prosperous billion in 43 countries last in Italy, North America and year in the run-up to the com- Fitness News Europe is year, making it a key partner Latin America as well. The pany’s IPO on May 3 (FNE#6). published by Zelus (France) company said that the North The shares were launched at a Michael White, Amer Sports’ American sales hike of 19.9% price of €3.25, valuing the en- Editor: Barbara Smit for fitness retail products. was driven by interest from tire company at €650 million, [email protected] manager in EMEA and the the premium club, corporate and they closed at €3.88 today. @ All rights reserved. [email protected] chiefAmericas, sales has officer been and appointed general and hospitality segments. The IPO provided plenty of The information published in this newsletter Then again, Technogym’s details on Technogym, as out- cannot be copied or distributed electronically added functions in direct-to- turnover slipped by 5.6% in lined further. without the publisher’s written permission. chiefconsumer commercial and marketing. officer, with Continued on page 3.... FITNESS NEWS Europe 1 Asia Pacific and it declined by Top Gear Octane bulks up Nautilus sales - The growth of the international business an increase of 9.6%, which would have tane Fitness in January, along with was another factor in the retail segment. been 13.7% without the step-up charge. ushedrobust upunderlying by the acquisitiondemand, the of Nau Oc- Apart from Octane, the company said the Nautilus ended up with net income of P tilus group raised its sales by 25.7% $11.4 million, up from $10.7 million. countries, compared with one or two in - Bill McMahon, the company’s chief com- Bowflex Max Trainer is distributed in 15 to $120.9 million for the first quarter. Octane clearly lifted the gross margin of reachSid Nayar, 10-12% the growth group’s in chief sales, financial 11-15% of in last week that the integration of Octane the retailfirst quarter business, last which year. moved up by 7.9 ficer, outlined mid-term projections to- mercial officer, said in a conference call percentage points to 29.9%. It would even vious guidance of 9-13%) and an EBITDA Universal in the home market is “well un- have reached 31.8%, up by 9.8 percentage operatingmargin of 13-17%.profit margin (up from the pre inderway.” the group The sellingteams haveSchwinn, been Bowflexworking anddil- points, without a purchase price inventory step-up charge of $0.7 million relating to Nautilus Inc. Q1, 2016 (%, $ million) igentlysales. Nautilus to fill in reiterated product roadmaps, that the $115 as most mil- Nautilus saw its turnover rise by 9.7% to Q1 2016 Change % oflion the purchase benefits of shouldOctane comeshould from not lead added to the$81.2 acquisition million in ofthe Octane. direct-to-consumer seg- any redundancies, but it added that some ment, owing to strong demand for the Bow- Sales 120.9 m + 25.7% of the cost reductions in the supply chain were materialising faster than predicted. Nautilus is ramping up production of the Direct 81.2 m + 9.7% flexMax Max Trainer Trainer M7 to and reduce other lead cardio times. products. Retail 38.8 m + 82.3% in the Nautilus group’s retail segment, There was also a small uptick in the whichThe Octane raised acquisitionits sales by was 82.3% strongly to $38.8 felt strength training business. Nautilus is Royalty 0.9 - 0.3% - Gross margin 54.9% - 1.1 pp that the rise was also fueled by strong dou- forble-digit the quarter. growth However,for cardio McMahon and strength said launchingthe market Bowflex in 2017. dumbbells in the sec Direct GM 66.3% + 1.1 pp products in the organic part of the busi- ondThe quarter gross margin and a for new the product direct segment is to hit Retail GM 29.9% + 7.9pp ness. Expanding sales in the commercial improved by 1.1 percentage point to 66.3%. market made up for some pressure in the But due to a shift in sales toward the low- Operating proft 19.3 m +9.6% sports retail channel. er-margin retail channel, the entire Nautilus Direct 21.4 m +8.0% Along with the latest Octane Zero Run- group’s gross margin dipped by 1.1 percent- ner, the brand’s XT-One cross trainer age points to 54.9%. Another factor in the Retail 3.9 m + 162.9% found strong resonance in the market. Da- decline was the above step-up charge. Net income 11.4 m +6.6% The group’s operating income for the chains that took up the product. Source: Nautilus Inc. vid Lloyd was one of the European fitness Moversquarter came in at& $19.3 Shakers million. This was n As part of structural changes at Life n Michael Lee, co-founder of MyFit- n Bert van der Velden, management board Fitness to deal with the company’s ex- nessPal, is to take over as chief digital member in charge of international sales and pansion, Mike Shedivy has been appoin- officer at Under Armour (UA), as Robin marketing at Kettler, has left the company ted vice president of global commercial Thurston will be leaving the company in July. on April 26. Van der Velden joined the German category management and product devel- Thurston joined UA in December 2013 in maker of fitness equipment and other con- opment at Life Fitness. Shedivy already connection with the company’s acquisition sumer products in 2014 and then became its spent 13 years at Brunswick Corporation, of MapMyFitness. Lee came on board in chief commercial officer. Van der Velden was the parent company of Life Fitness, most 2015, when UA snapped up MyFitnessPal, also the managing director at Kettler Bene- recently working as president for the and he currently supervises the digital lux, one of the managing directors at Kettler unit in Europe, the Middle product strategy for UA’s Connected Fitness France and a director at Kettler U.K. The Ger- East and Africa. He previously held other unit. Kevin Plank, the company’s chief exec- man company, which came out of receivership functions at the group involving strategic utive, said Lee has been a critical leader on in April, said that the management board is planning, marketing, category manage- Under Armour’s Connected Fitness strategy. now composed of two people: Ludger Busche, ment and business development. Chris The two above buys and that of Endomondo chief executive officer; and Christian Krause, Clawson, president of Life Fitness, said in last year form a community of more than chief restructuring officer, who joined Kettler a statement that “with the rapid addition 160 million unique registered users. In when it filed for insolvency under self-admin- of new brands at Life Fitness comes the another high-profile change, UA said that istration in June 2015. Busche is also in charge need to restructure” to provide optimal Henry Stafford, chief merchandising officer, of Kettler USA and the company says that he service to customers. The Life Fitness is leaving the company in July as well. He “carries out the duties and responsibilities of commercial fitness business has grown spent six years at UA, previously in charge of the managing director” at its German strongly in the last year with the acquis- apparel and of North America. His job will be office. It’s unclear what function has been set itions of SciFit and taken over on an interim basis by Kip Fulks, aside for Karin Kettler, who was described as adding to the Life Fitness and Hammer who has been focusing on key development the company’s chief executive prior to the in- Strength brands. The appointment areas since November while leading the solvency. She is the daughter of Heinz Kettler, became effective on May 2 and Shedivy company’s search for a new chief marketing who founded the company and whose family reports to Clawson. officer. owns the firm. Disclaimer: Content in this publication and on the related website is for your general information and use. It does not constitute the offering of investment advice (either actual or implied) and should not be relied upon in making (or not making) any decision. We use all reasonable endeavors to ensure the accuracy of the content but do not guarantee or warrant the accuracy, completeness or timeliness of any content whether from a third party or otherwise. Views expressed by third parties are their own. 2 FITNESS NEWS Europe Top Gear Surge in profit at Technogym echnogym enjoyed soaring prof- The share of “digital solutions” in the Turnover breakdown its ahead of its initial public of- company’s turnover moved up to 2.1% Technogym, 2015 fering (IPO) earlier this month, in 2015, compared with 1.4% the pre- (€ 000, %) T - vious year. Services account for the an- other 17.3% of sales, while the bulk of % of 2015 Change maker.it transpires from the figures re - sales leasedWhile by the the group’s Italian revenuefitness equipment advanced - Revenues 511,786 +10.0% 100% by 10% to €511.8 million in 2015, its thetion turnover of a small comes majority from stake fitness in equipExerp, operating income more than doubled to ment. All of this was before the acquisi Italy 45,221 +1.3% 8.8% management software. reached €28.3 million, up from less theThe Danish group’s specialist spending in fitnesson market club- Europe 276,083 +8.9% 53.9% €58.4than €5.6 million. million Technogym’s in 2014. net profit ing, advertising and communications (excl. Italy) As previously reported, the group’s reached €18.4 million, about 3.6% of North America 54,461 +17.6% 10.6% EBITDA soared by nearly 40% to €86.7 its sales. million in 2015, which amounted to an Technogym’s reference for global Asia Pacific 68,892 +15.9% 13.5% operating margin of 16.9%. This com- market size is the €7.4 billion reported Latin America 17,425 -7.1% 3.4% pares with a margin of 13.3% the pre- by Allied Market Research for 2015, up vious year, which was already a sharp by 3% for the year. Technogym thus MEIA (*) 49,704 +16.8% 9.7% improvement on the operating margin performed better than the market and of 8.3% for 2013. ended the year with a global market The group’s annual report further share in the range of 7% (and 10% for Distribution channels (**) provides insightful breakdowns of sales by region as well as sales channels and Life Fitness). Field sales 352,959 +8.3% 69.0% customer categories, as detailed in the commercialThe same source fitness estimates equipment, that behind about Wholesale 112,835 +11.8% 22.0% accompanying tables. - The regional breakdown showed am- ket (both retail and commercial) is in the Inside sales 36,853 +25.2% 7.2% ple sales increases in nearly all markets. 40%hands of of the seven global suppliers. fitness equipment About 40% mar of Retail 9,139 +2.0% 1.8% Sales were up by 8.9% in European mar- sales are generated in North America, com- kets other than Italy, driven by France, pared with 30% in Europe and the remain- the Iberian Peninsula, the Benelux coun- der spread between all other regions. Customer categories tries and Germany and the U.K., which all The researchers predict that the com-

Club 290,728 +9.3% 56.8% key market operators. will rise at an average annual com- benefitted from increased investment by mercial market for fitness equipment Health, Corpo- 78,368 +5.2% 15.3% the Middle East, India and Africa (MEIA) until 2020, while the consumer market rate & Public wereThe supported turnover rises by similar in Asia investments Pacific and poundwill expand rate by of 3.6% 4.1% per for year. the five years Hospitality & as well as favourable currency exchange 73,204 +17.7% 14.3% Residential rates. The sales jump of 17.6% in North also revealed that 57.6% of the group’s America was almost entirely attributed The documents filed around the IPO Home & Con- 69,486 +10.9% 13.6% to changes in exchange rates. Cesena, Italy, while 42.4% came from sumer Clubs remained by far the largest equipmentits plant in Malýwas madeKrtíš, inat Slovakia.its facilities in category of customers for Technogym Technogym markedly reduced its net Consolidated Income Statement last year, accounting for 56.8% of sales. debt last year, from €67.1 million in Other vertical accounts made up 29.6% 2014 to €38.1 million in 2015. Revenues 511,786 +10.0% -

Net operating ofroughly sales, leavingunchanged 13.6% in forthe home last fitnessthree Technogym 58,442 +107% 11.4% income equipment.years. This spread has remained Q1 2016 (€ 000, %) When it comes to sales by distribution Pre-tax Profit 54,973 +125% - channel, the share of 69.0% attributed Q1 2016 Change Net Profit 28,354 +407% 5.5% generated by subsidiaries and agents. Sales 115,574 + 11.2% Earnings per 2.82 0.55 - toAbout “field 32.4% sales” of these refers sales to the went turnover to key Italy 10,875 +12.8% share (€) accounts in the club segment. Europe Wholesale describes sales to 85 inde- 62,022 +14.5% Other metrics pendent distributors. The ten largest of (excl. Italy) them accounted for about 10.9% of the North America 10,484 +19.9% EBITDA 86,681 +39.7% 16.9% entire group’s sales last year. Its “inside sales” encompass teleselling and online Asia Pacific 15,758 -5.6% ROE 65.3% +10.9pp - sales through Technogym’s website. As Latin America 5,852 +58.7% for “retail” sales, they are generated in ROI 71.7% +35.3pp - the group’s seven showrooms and re- MEIA (*) 10,583 -3.8% Source: Technogym (*) Middle East, India, Africa tail facilities, which are described as an Source: Technogym (*) Middle East, India, Africa (**) A description of the channels is provided in the article important marketing tool. FITNESS NEWS Europe 3 Soft Side Bodytalk to build up European business odytalk, the leading other European countries. European markets where Body- The focus in the last three - The Greek brand already had talk is distributed are Cyprus, years has been on structural wear brand, has changed Slovenia, Croatia, Serbia and adjustments that allowed Body- B Greekits chief fitness executive and sports and in Paris, opened two years ago Montenegro, along with Leba- opened a French subsidiary to ato showroom support the and sales a liaison efforts office of non and several other countries despite the economic situation drive its European expansion in agents around the country. But in the Middle East. talklast year.to raise its sales and profit the coming years. this year the company is open- The company’s strategic While some other sports- Vassilis Karamanlis, who has development plan calls for wear brands struggled to ob- been Bodytalk’s international which should form the basis for brand awareness to be raised tain payments from their retail sales manager for the last ten inga wider a full-fledgedEuropean sales subsidiary, push. around Europe and the Mid- partners, Bodytalk says the own years, was appointed chief ex- “The idea is to reinforce our dle East. These ecutive from the start of May. market presence in France, and efforts could in- The company’s majority share- then to duplicate this approach clude the opening holder and former chief execu- in other markets, with the sup- of a store in France tive, George Leotsakos, decided next year. The next to focus on trends and design. Claire Baril, Bodytalk’s market- large-scale market Bodytalk reaped sales of porting manager of the French in France. office,” said on Bodytalk’s tar- €16.7 million last year, yielding Formerly at Dunlop , get list is the U.K. Baril joined Bodytalk three The increased EBITDA of €2.2 million. It has years ago and is the brand’s focus on interna- grossbeen profitremarkably of €8.1 resilientmillion and in only employee outside Greece tional markets the face of economic upheavals so far. She has been support- comes after sev- in Greece, which made up about ing sales in about 200 French eral strategic ad- 76.5% of its turnover. stores, with key accounts such justments to deal Claire Baril at Body Fitness Yet Bodytalk is eager to re- as Intersport and 2000. with the market retail facilities left it without duce its exposure to the Greek situation in Greece, with invest- sizeable debt – in an environ- market and to expand in other gap between the technical ments in Bodytalk’s retail busi- ment that has been suffering European markets. “The target sports“Bodytalk brands neatly and filled sports the- ness and improvements in its from a lack of cash. is that the split between Greece wear,” said Baril. The target supply chain. The company has also been and international sales should is to reach about 300 French Bodytalk’s own retail sales moving some of its production stores next year,. Bodytalk is in Greece made up about closer to Greece, enabling it to says Karamanlis. currently hiring a manager to 40.1% of its turnover last year beThis about calls equal for after structural five years,” in- deal with key accounts. as it built up a network of 35 replenishment of its stores. It vestments such as the French France is the largest inter- stores, most of them in envi- becomehas turned more to suppliers flexible forin Tur the- national market for Bodytalk, able locations. Another 6.2% key and Egypt, and is currently product ranges to match the which made 17.2% of its turn- of the turnover is derived from searching for nearby suppliers office,often more and technical adjustments demand in the in over abroad last year. Other the group’s online store. to handle larger volumes. Tech Briefs n Under Armour and the Adidas Group have n Much-increased investment has slashed n Among the fitness tech novelties of reached an out-of-court settlement relating Fitbit’s profit for the first quarter, which was the last days, Garmin has launched the to the use of digital fitness patents. Although nearly halved despite a 50% jump in sales to vívosmart HR+, a smart activity tracker with the precise terms of the settlement were not $505.4 million. About 47% of the turnover wrist-based heart rate monitor and GPS. disclosed, the Adidas group said the parties came from the launch of the Fitbit Blaze and The product adds new features to the com- reached an agreement in which the Adidas the Fitbit Alta, which sold one million units pany’s vívosmart range, from GPS to extra group’s claims were dismissed with prejudice each in the latter part of the quarter. About running data such as personal records and and Adidas granted a license to its patents in 15% of the sales were generated by Europe, virtual pace. The device is equipped with suit, in exchange for a licensing fee. Adidas the Middle East and Africa, compared with Garmin’s Move IQ auto activity detection, filed a suit in February 2014 against Under 70% for the U.S. market, 11% for Asia Pacific which monitors for periods of sustained Armour and MapMyFitness, which Under and 4% for other countries in the Americas. activity and recognises walking, running, Armour bought in December 2013 for $150 Fitbit saw its gross profit margin contract by and elliptical training. The new million. The suit claimed that the American 3.9 percentage points to 46.3% and its net vívosmart, which syncs with Garmin Con- companies were selling digital fitness tools income plunged to €11.0 million, down from nect, also tracks steps, distance, calories, infringing on several Adidas patents. They re- €48.0 million. The group still upgraded its floors climbed and activity intensity. An- lated to fitness training devices and programs sales and profit guidance for the full year. other new fitness tracker on the market is supporting real-time interactive communica- Fitbit predicts that its sales will end up in the Samsung’s slick Charm fitness band, which tion. Under Armour and MapMyFitness denied range of $2.5 to $2.6 billion for the year, com- predictably works in conjunction with the the allegations and filed a counter-suit. pared with $1.8 billion in 2015. Its projection Samsung S Health app. The South Korean Adidas developed its own miCoach program for the gross margin remains unchanged, company said it was launched in its own and last year it bought Runtastic, an Austrian to reach about 48.5 to 49.0% in constant market, in Italy, France and Russia, and it specialist in running and fitness applications, currencies. Its adjusted EBITDA should reach will become available in some more markets for €220 million. between $430 and $490 million. at an unspecified date. 4 FITNESS NEWS Europe Soft Side Reebok takes off in Europe ar-reaching reforms at market, Reebok achieved am- million, yielding an operating Among the milestones men- Reebok in Europe last ple gains in and Japan, profit of €490 million and net year are starting to pay the Middle East, Africa and income of €351 million. speech to shareholders was F off, with a 14% rise in other Asian markets. Then The group’s activities could tioned in Hainer’s farewell sales to €121 million for the again, Reebok continued to well be reduced this year as biggest takeover in the history fitness brand in Western Eu- struggle in North America, theof the acquisition sporting of goods Reebok, indus “the- where its sales dipped by talks to sell the Taylor- try.” As previously reported 12% to €106 million for the HainerMade and said Adams that it started rope(FNE#4), in the Reebok first quarter. harmonized Reebok its European market approach in constant currencies. brands, along with under the leadership of Chris quarter, with a decline of 13%- Golfthe equipment Jan-March 2016 Froio last year and wants to ecutive of the Adidas Group, apparel brand. (million, %) double its sales in five years, whichHerbert owns Hainer, Reebok, chief said in ex a Change 2016 Change which would amount to about conference call that the brand on this occasion CN (*) €700 million in 2020. It has is continuing to clean up its Hainerthat the reiterated group received support from key outlet stores in the U.S. mar- had no intention Sales 416 + 1.0% +6.5% accounts such as Intersport, ket. At the same time, Reebok of selling Reebok, JD Sports and Sports Direct, is setting up controlled retail which neatly ful- Western 121 +14% +15% which are opening scores spaces with key accounts and fills demand from Europe of Reebok retail spaces. The opening up to 20 showrooms the growing fit- North European sales hike for the to display the brand across ness market. 106 -12% -13% the U.S. this year. “Bringing The chief exec- America 15% without currency ex- back Reebok to a successful utive attended his Greater 17 +22% +22% quarterchange rates. amounts to a rise of and profitable growth path in last annual share- China Reebok’s global turnover its home market is the brand’s holders’ meeting inched up by 1.0 percent to most relevant goal going for- in this function Russia/CIS 32 -13% +4% - last week. After Latin 44 -28% -8% ter. It climbed by 6.5% in While Reebok has been America €416constant million currencies, for the fueled quar ward,”growing Hainer sustainably said. in the Japan 24 +97% +86% by the training and Classics last three years, it has still fifteenbe handing years atover the categories. An encouraging failed to expand at the same helm,in October Hainer to Kas will- MEAA (**) 71 +18% +24% factor for the brand is that clip as Adidas, which raised per Rorsted, cur- Gross its gross margin moved up its sales by 20.4% to €4,036 rent chief execu- 38% +0.4 pp - by 0.4 percentage points to Margin 38.0%. entire group’s turnover German consumer(*) in constant currencies (**) Middle East, Africa and Apart from the European millionsoared by for 16.8% the quarter. to €4,769 The tivegoods of company. Henkel, the Other Asian Markets Source: Adidas Group Reebok maps out physical activity eebok has found that humans live an world, we felt compelled to shine a light in relation to time spent being physically average of 25,915 days and spend less on the disparities between what we may than 1% of them on physical activity – aspire to achieve and what we’re willing around them was Germany. R despite the wide-ranging health and to do about it,” said Yan Martin, vice pres- fitAmericans and engaging most socially often challenge with the themworld- ident of brand management at Reebok. selves to do something physically tough, That is the premise of Reebok’s latest “It gives us a renewed urgency to get out on average 9.84 times per month. They socialbrand benefits. campaign, which is derived from there and live fuller, healthier lives. If we are also the most adventurous, trying all traded in 30 minutes of phone time for Reebok says the campaign is “uncondi- a jog, we could actually help change the thetionally Be More targeted” Human at whatmarketing it calls platform. the Fit- dynamics of global wellness.” Gen consumer. Reebok says it “aims to The company added that people could inspire people worldwide to honour their easily add to their physical activity in days and push themselves to do more their daily lives, for example by climbing with the bodies they’ve been given.” a few extra stairs or running an extra lap. The global survey found that people The study found that humans already run spend an average of 0.69% of their time the circumference of the earth 1.9 times on physical activity, amounting to 180 on average in their lifetime. days in all. This compares with 10,625 The study was conducted in partner- days spent looking at technological de- ship with Censuswide, a global consul- Photo: Reebok tancy, which involved 9,000 people in human’s time. About 29.75% of a person’s the United States, the United Kingdom, something new on average seven times vices,time is equivalent spent sitting to down. 41% of the average Canada, Germany, France, Mexico, Russia, per month, and they spend the most on “As a brand dedicated to promoting and South Korea and Spain. The nation with the strongest results week. fitness with an average of $16.05 per supporting health and fitness around the FITNESS NEWS Europe 5 Community Ireland Active moves with new team reland Active is building up to the National Sports Cam- plementation of the national gestion to replicate the Get Ire- a new team after its move pus in the Dublin area. It com- physical activity plan. The land Walking project with oth- from Cork to Dublin, which prises various facilities, such Irish government has set aside ers around running, swimming I should support the involve- - €5.5 million for it this year, nity football pitches, an indoor and funding may include some participation of the relevant country’s national physical ac- assports an aquatics , thecentre, Institute commu of extra resources for Ireland Ac- andfederations, cycling. but This Ireland requires Active the menttivity plan. of fitness clubs in the tive in the years to come. Conn McCluskey became other sports organisations. “All the relevant depart- providers of facilities for in- chief executive of Ireland Sport“The andlocation the officesis critical of 20to ments bought into this plan membersdoor cycling, stand swimming to benefit and as our strategic goals,” says Barry training. While these projects previously business services Walsh, Ireland Active’s presi- are slated for 2020, Ireland Activemanager last at month.the Federation He was dent and the managing direc- Active is hoping they could be of Irish Sport and a member implemented earlier. of the working group for the are now walking the corridors The Irish Sports Monitor tor of Iconic Health Clubs. “We 2015 indicates that personal 500,000 more Irish people ac- people within the areas of exercise is the most popular firsttive in nationwide the next ten plan years. to Ire get- withsport, allrecreation, the most activity influential and sport in Ireland. About 12.2% land Active, which represents this will give our organisation of Irish people had taken part a mix of public and private more credibility and recogni- Sports HQ/ Conor McDonnell, in these predominantly gym- tion.” NSCDA Operations based activities in the week two more people to run the Ireland Active says about before the survey, up from fitnessorganisation. facilities, is appointing 230 to 250 of its members and Ireland Active members 11.5% in 2013. It compares Ireland Active was previ- - will have an important part to with 8.8% for running, 8.7% ously headed for three years ties. McCluskey estimates that play in supporting some of the for swimming and 7.1% for by Christine Moloney, chief ex- haveit represents health and about fitness 35% facili of related activities with their fa- cycling. The numbers for per- ecutive of LeisureWorld, who the industry, which is strongly cilities,” says McCluskey. sonal exercise do not include remains on the board of Ire- fragmented in Ireland. Among Among the projects that are the 2.1% who reported they land Active and Europe Active. the country’s largest operators, most directly relevant to Ire- had practiced yoga and 2.8% She implemented a three-year Ireland Active includes Coral land Active is a pilot project for weights. strategic plan that reinforced Leisure, Aura Leisure and Dal- for the exercise referral frame- - Ireland Active as the organi- work, which is meant to be ness Market Report by Deloitte - organised this year. It would andThe Europe European Active Health estimates & Fit club industry. The next stra- ataties Hotelare private Group. companies, About 40% and of allow doctors to prescribe that about 440,000 people in sationtegic plan for theis to country’s be unveiled fitness at the60% members of them arewith in fitness hotels. facili exercise, initially focusing on Ireland are members of health Ireland Active’s convention in The changes at Ireland patients in rehabilitation or November. Active come as many stake- suffering from particular con- to 12.2% of the population The board further decided holders from the Irish sports, ditions, to be funded by the andabove fitness 15 years. clubs, The amountingreport has health and education sectors department of health. from the southern city of Cork are joining forces for the im- Another example is the sug- 210 of them privately owned. to move Ireland Active’s office Community Briefs counted 710 fitness clubs, only n The European Commission has approved n Elevate, an event that brought together n Gym Factory, the trade fair that was financial support for ALCIS 2, the second British fitness industry leaders, health- held in Madrid last week, saw its number of edition of the project by Europe Active to care professionals and sports participation visitors increase by more than 30% to 3,459 support physical activity among children. The specialists in London earlier this month, is over two days, the organisers said. The fully first edition ran in September 2015, during the to be organised again on a larger scale next booked fair drew many of the largest suppli- European Week of Sport, involving more than year. The inaugural Elevate took place on ers this year, such as Life Fitness, Techno- 8,000 children in 84 schools in the U.K., the May 4-5 at Olympia with the declared aim gym, Precor and Matrix, along with smaller Netherlands, Italy, Ireland and Lithuania. The to help tackle physical inactivity. It featured companies that may not have the resources second edition will take place in the same five equipment suppliers such as Matrix, Octane to attend international fairs. The increase countries but with the addition of Sweden, Fitness, eGym, Virtuagym, Wattbike, Prama, came in spite of a timing that wasn’t entirely the Czech Republic, Poland and Spain. Europe Ziva and Speedflex, along with many top- ideal, since many people had a long weekend Active, which held its first project meeting for level presentations on health and fitness. in Madrid as well as Barcelona. Gym Factory ALCIS 2 last week, hopes to reach more than The event was appreciated for its compact also featured the first Sports Meeting Point 14,000 children in 180 schools. About 80% of lay-out and the senior level of the attendees, congress, with speakers such as Ray Algar the participants in ALCIS 1, all aged from 10 to including decision-makers from fitness from Oxygen Consulting, and Hans Muench, 12 years, said they had raised their activity on chains such as Virgin Active and Nuffield formerly in charge of IHRSA in Europe. The the back of the program. Fitness trainers led Health. Max Quittenton, Elevate’s director, event drew influential Spanish gym operat- fun-based group exercise classes and there said in a statement that a large number of ors and the organisers were widely lauded was a four-week learning program with edu- influential brands and other stakeholders for their tenacity in pulling off such an event. cation materials developed for the project. For have confirmed their support for the 2017 The 2017 edition of Gym Factory has already the second edition a special pilot intervention event, which is be held at ExCel London. been scheduled for May 26 and 27 at the will be organised with refugee children living More news from Elevate in upcoming issues same venue, the Recinto Ferial Juan Carlos I in Brussels. of Fitness News Europe. in Madrid. 6 FITNESS NEWS Europe Gyms

...continued from page 1. company says it could move - membership base of about into several other European tual classes. The facilities are 3,300 members within 24 The IPO would consist of a countries in the longer term, includesmostly large-scale equipment gyms and of vir at months of opening, and newly primary offering of new or- but the current focus is on ex- opened clubs typically achieve dinary shares and a second- panding in existing markets. positive adjusted club EBITDA ary offering of existing shares The proliferation of Basic-Fit leastThe 1,500 Dutch square group meters points withto a within four months of open- held by current shareholders. gyms has been disrupting the brightproven orange and scalable fittings. business ing. That even occurred within A spokeswoman said that the market in the Netherlands model, with marketing syner- one month for French clubs. At potential sellers included 3i as and Belgium, where they have gies that enable Basic-Fit to the end of last year, 54% of the well as some of the managers a particularly strong market invest in impactful advertising. company’s clubs had reached and founders. Moos, the former share with 145 clubs. This Apart from the above openings, maturity. Basic-Fit boasts an pro who is the driving compares with 140 in the the medium term objective for adjusted mature club EBITDA force behind Basic-Fit’s rise, Netherlands, 8 in Luxembourg, the group is to achieve an an- margin of 48.0% (for clubs that apparently does not intend to 32 in France and 26 in Spain. nual sales increase of at least have been open at least two divest at this point. - years and excluding overhead ing leverage, and return on in- costs). amid a rush of investment in 20%vested with capital significant on mature operat clubs Basic-Fit is a Dutch concept The intended flotation comes of at least 30%. bought in 2010 by the three that valued The Gym Group at Net proceeds from the sale men who previously built up the£250 fitness million sector. (€315 After million)the IPO of new shares should be used in November, there have been clubs: Moos, Eric Wilborts and reports about projected stock debt and to repay shareholder theDennis more Aarts. upmarket Their Health functions City market launches by Pure Gym toloans refinance in full. partIts net of thedebt group’s at the were later split, with Wilborts and Bannatyne’s, which more end of March was €281.6 mil- Moos taking the helm at Ba- last year after abundant invest- René Moos. Photo: Basic-Fit was negative at €30.9 million. supervisingsic-Fit to build Health and roll City out andthe ments. than doubled its pre-tax profit At a press conference held at lionThe and Benelux its consolidated generated equity sales current concept. Basic-Fit points out that it a Basic-Fit gym in Amsterdam of €180.8 million and adjusted 3i said it invested €110 mil- has been expanding rapidly, today, Moos said that he saw EBITDA of €64.5 million in lion in Basic-Fit in November with 78 club openings in 2015 potential for another 100 gyms 2015, while France and Spain 2013, when it had 174 gyms in in the Netherlands. brought in sales of €21.4 mil- the Netherlands and Belgium, months of 2016. The target is Basic-Fit offers monthly lion and adjusted EBITDA of and 26 in France and Italy. It andto open 13 more65 to 76in theclubs first in 2016,three membership of just under €2.3 million. was reported that the deal val- and a similar number per year €18 in the Netherlands, for a On average, Basic-Fit says ued Basic-Fit at €275 million. over the medium term. The basic package that primarily that its clubs reach a mature Aarts then stepped aside. GymForLess raises funds for Italian foray ymForLess, one of the on its advance. passes – and particularly the network. “We think we have a - “We are making it a priority unlimited G4L CLub option, gregators in Spain, has to expand in Italy, because we which was launched last year. both private and business cus- G leadinglaunched fitness a fundraising club ag know that our competitors are The aim for Spain is to con- uniquetomers, offer and becauseour monthly we target sub- campaign to obtain €350,000 fast,” says Vinzia. “We started tinue building up the number scriptions can be cancelled at that would allow it to rapidly working the Italian market of users, with a target set at any time,” he says. gain ground in the Italian mar- about nine months ago and 10,000 for the end of the year. GymForLess already raised ket and to spread more widely we already have some results.” The expansion may involve in- €600,000 in 2014, about half of in Spain, beyond Madrid and Most of the Italian gyms work- vestments in other cities, such that contributed by a public in- Barcelona. ing with GymForLess so far as Valencia, Bilbao or Málaga. stitutional investor from Catal- Oriol Vinzia, managing direc- are in Milan but the company But the fresh funds should be onia and the other half by busi- tor at GymForLess, says that started building up its business most useful in the next months ness angels. The cash injection the company is aiming to raise in Rome as well. - enabled it to test the waters in €100,000 from private inves- GymForLess is one of the vestments in Madrid and Bar- several international markets, tors, and it has started a cam- leading players in the Spanish tocelona, step upfor offline example marketing through in from Germany to France and paign on Crowdcube to raise market, with about 700 gyms in advertising on local buses, in Italy. The Italian market was the remaining €250,000, until its network and 3,000 monthly metro stations and local news- regarded as the most promis- the end of May. users for its three formulas. papers. ing option, due to the relative Vinzia says that the prime The company says it markets GymForLess faces robust weakness of competition. target for development is Italy, daily passes, a monthly pass competition in Spain from GymForLess was launched where GymForLess has already for one gym or a monthly pass Gympass. The group made par- two years ago by three former built up a network of about with unlimited access to all fa- ticularly rapid strides in Spain managers at Groupalia, an on- 125 facilities. There aren’t any cilities, both of which may be - line group buying company in major competitors so far but cancelled without hassle. visor last year. Spain. It was established by Gympass, the Brazilian market Vinzia says that the compa- withVinzia the acquisitionemphasizes of that Gymad the leader, has picked Italy as one ny’s turnover soared last year, approach of GymForLess is fo- and Juan Santana, although Lli- of its target markets in Europe due to a sharp rise in the num- Guillermobre is the only Llibre, founder Joaquín who Engel re- – making it all the more com- ber of users along with a shift - mains strongly involved in the pelling for GymForLess to build in usage from daily to monthly cuseding, rather on thethan quality the size and of the operations. flexible aspects of its offer FITNESS NEWS Europe 7 European markets British market hits fitness records he United Kingdom has of the private market value come together,” said Minton. the U.K. has a gym member- reinforced its lead as and a huge 32% of the private ship – an all-time high pene- the largest European sector membership,” reads a low-cost operators in the Brit- tration rate of 14.3%, up from T fitness market with summary of the report. ishUnderlining market, Pure the Gym influence has dis of- 13.7%. more than 9 million mem- David Minton, the Leisure lodged Virgin Active to become While it remained around bers and a market value that Database Company’s director, the country’s largest operator the 7% mark for more than increased by 3.2% to about emphasises that the rise of in the number of clubs – the eight years, the penetration £4.4 billion (€5.7 billion) for rate for private health clubs the full year until the end of occupies this spot. jumped from 7.5% four years March, according to the latest firstAs timepreviously that a low-costreported, group Pure ago to 9.1%. State of the UK Fitness Indus- Gym raised its sales by 82% Minton predicts that the try Report. to £125.2 million (€158 m) trend will continue. “The po- The survey published this - tential is enormous, but it week by the Leisure Database sition of 43 former LA Fitness would be best for the market to Company found that the num- lastgyms year, in May. aided The by buy the helped acqui continue growing at a similar ber of members advanced Pure Gym to lift its number of level in the coming years. That by 5.3% to 9.2 million. The members by 62% to 670,000 way the growth is more gran- number of facilities increased by the end of the year, while ular, as opposed to instant,” by 1.9% to 6,435, after 224 David Minton. the number of gyms trading he explained, adding that the public and private openings the low-cost sector has been as Pure Gym increased by 48 in the twelve months, up from supported by innovation and to 132. investments in education. 191 in the previous year. technology, ranging from on- Then again, Minton points market’s expansion requires The combination of these line joining platforms to high- out that some of the more numbers clearly points to a tech security and systems traditional gyms have been decrease in average prices and that enable gym operators to fighting back by multiplying the rise of larger gyms, both of precisely analyse customer and improving their activi- which relate to the prolifer- data. ties, such as the special pro- ation of low-cost gyms. “The “The uplift in each core in- grams at Gymbox. private low cost sector now dex shows the potential when The fresh increase in mem- accounts for 12% of the total technology, innovation and cus- berships means that about The full report is available at number of private clubs, 13% one in every seven people in www.leisuredb.com tomer centricGym fitness products Briefs n The Bannatyne Group reports that its n Even the German Supreme Court is getting n Advent International, a private equity pre-tax profit doubled last year, on the back interested in the country’s fitness industry. firm that engaged the former chief execut- of acquisitions and a refurbishment program The Bundesgerichtshof ruled in Karlsruhe ive of Fitness First as operating partner in of £7.5 million covering 29 clubs. It delivered earlier this month that a change of resid- November, is reportedly among the inter- a sales uptick of 7% in these clubs, and the ence triggered by a professional move could esting parties to acquire the British arm of remaining 37 gyms are to be refurbished this not justify the cancellation of a long-term the fitness group. Sky News reported that year, with the addition of 16 spas, as part contract with a fitness club. The case was Advent was envisaging an offer for U.K. of the group’s efforts to further upgrade its brought to the court by a soldier from Lower assets of Fitness First, as the group’s owners positioning. Bannatyne’s operates 66 gyms, Saxony who had a two-year fitness contract – are preparing a break-up of its international 37 spas and five hotels. It boasted 186,456 a deal which was automatically renewed three activities. The British business of Fitness members at the end of 2015, a rise of 14%. months before its expiry date. The contract First consists of 65 service-oriented gyms. Bannatyne’s sales were up by 2.8% to £100.9 came at a monthly cost of €65, along with an The entire group has more than 300 fitness million and its EBITDA jumped by 21.7% to extra training package costing €69.90 every centres across the U.K. and Germany as well £24.3 million. The operating profit came in six months. The fitness club member had to as Australia and Asia. As chief executive, at £14.4 million and pre-tax profit at £8.0 move suddenly and therefore wanted to put Andrew Cosslett supervised hard-hitting million, up from £3.3 million. Attrition rates an end to his contract. The Supreme Court restructuring measures and an investment declined by 17% to 3.9%. The company said ruled that this could be justified in case of program at Fitness First in the U.K., after the that its focus on technology and centralisa- illness or pregnancy, but not for an employ- then-ailing chain was acquired by Oaktree tion enabled it to offer strong value, with ment-related move. The case filed by the Capital Management and Marathon Asset flexible contract options and an average fitness center to recover the dues was rejected Management in a debt-for-equity swap in monthly fee of £43. Justin Musgrove, the in the lower court but the higher court in 2012. Cosslett became chairman of Fitness company’s chief executive, added in a state- Hannover supported the club’s case, which led First in July 2015, when the chief executive’s ment that trading in 2016 so far has been on to the Supreme Court. The German Employ- seat was taken over by Oren Peleg from the rise and that the group added more than ers’ Organisation for Fitness and Health Clubs Oaktree. Cosslett then teamed up with Ad- 9,000 new members to just over 195,000. (DSSV) welcomed the ruling and the legal cer- vent to work closely with its retail consumer Musgrove previously told The Daily Telegraph tainty that it brings to German fitness clubs. It and leisure team. It appears that Cosslett that Bannatyne is interested in buying some added that members ought to be adequately has now also left Fitness First. Oaktree and Fitness First sites. advised about their commitment. Advent declined to comment.

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