Quarterly Index Shows Improved U.S. Health Club Performance
IHRSA announced today the release of the IHRSA 2010 First Quarter Index, which demonstrates the financial performance of a sample of the commercial health club industry. The survey of 22 leading U.S. health and sports club companies, representing a total of 549 facilities, showed improvements in key performance metrics in the first quarter of 2010 relative to the first quarter of 2009.
For the quarter ending March 31, 2010 relative to March 31, 2009, overall Index clubs posted consistent performance in total revenue, membership dues/revenue, and non-dues revenue. Total revenue declined by a marginal 0.3 percent, while membership dues held steady with no change (0 percent) and non-dues revenue increased slightly by 0.2 percent. All clubs demonstrated improvements in EBITDAR, evident by a median company percent change of 3.7 percent; the greatest Index improvement to date.
“Comparable performance results for the overall Index signals steadily improving performance as clubs recover from the economy,” said Jay Ablondi, Executive Vice President of Global Products at IHRSA. “While the Index collectively performed consistently in the first quarter, a select group of clubs improved in key indicators, including total revenue, non-dues revenue, and membership accounts.”
For a select group of clubs total revenue increased by 4.2 percent, membership dues by 2.4 percent, and non-dues revenue by 9.6 percent. Typical of first quarter performance, total membership accounts improved by 6.2 percent.
“Leading clubs have attracted additional members, thus increasing the pool of customers to market non-dues services,” said Melissa Rodriguez, manager of IHRSA research. “With increased membership and improved cost management, clubs are positioning themselves for strong performance in 2010.”
“EBITDAR declines signify the need for clubs to implement more effective cost-control initiatives to counterbalance any drops in revenue,” said Rodriguez. “Regardless of the surrounding economy, clubs may need to establish specific cost reduction strategies during the summer.”
For more details on the IHRSA 2010 First Quarter Index, visit ihrsa.org.
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