Profits up at gym group amid “gen z boom”

The Gym Group has returned strong full-year financial results for 2024, reporting an 11% increase in revenue and a 24% increase in group-adjusted EBITDA (less normalised rent).

Like-for-like revenue grew 7% during the year ending 31 December 2024, while the low-cost gym operator also saw the average number of members per club increase by 4%. Pre-tax profits for the year were £3.6m, up from a pre-tax loss of £5.5m in 2023. One of the key drivers for growth is the changing membership profile.

Will Orr, Gym Group CEO, said that Gen Z – the generation of people born between 1997 and 2012 – now make up 40% of its membership.

“Gyms are part of Gen Z’s identity and one of the places they go to socialise,” Orr said. “They go to the gym because they want to – not because they feel they have to. They don’t see it as a chore.”

This, Orr said, has been reflected in high levels of member engagement and satisfaction during 2024. According to company data, 93% of members rated The Gym Group four or five out of five for overall satisfaction. More than half (57%) rated it five.

This led to a financial “win” too, as The Gym Group saw average revenue per member per month (‘ARPMM’) increase by 7%. Meanwhile, the proportion of members visiting a gym four or more times a month also increased by 1.2% (120bps).

During 2024, the group opened 12 new sites, at the top end of its initial guidance. Orr revealed that the group plans to open between 14 and 16 new sites in 2025.