Planet Fitness Reports Q3 Revenue Growth, Updates Outlook
Krissy Vann | Host, All Things Fitness and Wellness
Planet Fitness has released its financial results for the third quarter of 2024, reporting a 5.3% increase in total revenue to $292.2 million compared to $277.6 million in the same period last year. Net income attributable to Planet Fitness was $42.0 million, or $0.50 per diluted share, up from $39.1 million, or $0.46 per diluted share, in the prior year period.
According to CEO Colleen Keating, “We delivered solid results in the quarter, including more than 5 percent revenue growth, approximately 3 percent net income growth, and approximately 10 percent Adjusted EBITDA growth.” Adjusted EBITDA rose by 10% to $123.1 million, compared to $111.9 million in Q3 2023.
The quarter also saw a 4.3% increase in system-wide same club sales. Total system-wide sales reached $1.2 billion, up from $1.1 billion in the prior year. The franchise segment revenue increased by 4.3% to $102.4 million, driven largely by higher royalty fees and club openings. In the corporate-owned clubs segment, revenue grew by 13.1% to $128.1 million due to both existing and newly opened locations. However, equipment sales decreased by 6.7% to $61.7 million, primarily due to fewer new franchisee-owned club openings.
During the quarter, the company opened 21 new clubs, bringing the system-wide total to 2,637 locations as of September 30, 2024.
Looking ahead, Planet Fitness has adjusted its outlook for 2024. The company expects system-wide same club sales growth of 4% to 5%, revenue growth of 8% to 9%, and Adjusted EBITDA growth of 8% to 9%. Additionally, the company plans to open 140 to 150 new clubs by the end of the year.
The company also completed a $280 million accelerated share repurchase program, buying back approximately 3.8 million shares at an average price of $76.88 per share. As of September 30, there is $500 million remaining under its new 2024 share repurchase program.
These results are part of Planet Fitness’s ongoing efforts to refine its business model, expand its footprint, and adjust pricing to reflect current market conditions.
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