How Europe’s largest gym chain, Basic-Fit, came back to life

On March 9, Basic-Fit, the largest and fastest-growing gym chain in Europe, released its 2020 full-year financial report. Affected by the epidemic, Basic-Fit’s annual revenue was not good. The revenue dropped from 377 million euros, with a net loss of 125.2 million euros. , the financial situation has been severely impacted.
The main low-cost market has allowed Basic-Fit to gain a large number of users in Europe. In 2020, its users once rose to 2.25 million. Although the forced closure of stores during the epidemic caused the loss of Basic-Fit members to 2 million, its stores increased this year. From 121 to 905, the total number reached a new high. The annual visits to these stores exceeded 33 million. In addition, coupled with the additional experience of technology, Basic-Fit’s online users have skyrocketed during the epidemic, and the number of exercise sessions using the Basic-Fit APP has been completed 7 million times throughout the year.

Although it has been a difficult year, Basic-Fit CEO Rene Moos is still full of confidence in the company’s future prospects, because after the epidemic, people will pay more attention to health, which is an opportunity for the fitness industry. It is worth mentioning that Basic-Fit just received a bank loan of 150 million euros last month, which can help it increase its liquidity and help it spend 2021 better. Currently, Basic-Fit is currently valued at around 1.334 billion euros.

A tough 2020 for Europe’s largest gym chain Basic-Fit founder and CEO Rene Moos started a health club called Health City in 1984, and by 2004 it had expanded to six high-end clubs. In the next two years, the addition of new shareholders allowed the brand to expand to a total of 128 clubs in 3 countries. In 2010, 28 clubs were acquired, and the Basic-Fit brand was officially established. In 2013, it was officially
transformed into a low-cost gym. Penetrate the low-priced market and focus on affordable fitness brands.

Basic-Fit’s membership operation model is simple, divided into comfortable members and advanced members, and the prices of the two are divided into 19.99 euros and 29.99 euros per month. Comfort members can enjoy all the offline stores, online courses and APP tutorials of Basic-Fit. Advanced members have the rights to share fitness qualifications in addition to all the rights and interests of Comfort members, and can bring one person to exercise together. Basic-Fit provides users with a simple, essential and effective fitness experience while keeping prices low. The value-for-money and threshold-free approach has made it popular in Europe. By the end of 2020, Basic-Fit had 905 clubs in the Netherlands, Belgium, France, Spain, and Luxembourg with a total of 2 million members and more than 5,000 employees, ranking first in the European chain gym market.
The closure of offline stores caused by the epidemic has had a greater impact on Basic-Fit. According to its financial report statistics, its store closing time accounted for 41% of the entire 2020. Its CEO also said: “2020 has been the toughest year in the history of Basic-Fit and the entire fitness industry. We had a strong start and continued until March when our club had a record number of members, but in the face of the epidemic, we had to close all of them. store.” The earliest store closures in Europe were in mid-March, a situation that kept Basic-Fit from reopening stores until around June. However, with the deterioration after the epidemic, the second phase of store closures began in various markets in September, and Basic-Fit had to operate according to the epidemic policies of various countries.
The store closure affected Basic-Fit’s membership. Originally, its membership increased to 2.25 million in September after the gym opened in the first half of the year. However, due to the subsequent closure of the gym, its membership dropped to 2 million at the end of 2020, which is similar to 2019. Year-on-year decline of 10%. During this period, various membership qualifications were frozen, and Basic-Fit also compensated users. For this reason, Basic-Fit suffered heavy losses. Compared with the 2019 full-year revenue of 515 million euros, Basic-Fit’s 2020 revenue fell 27% year-on-year to 377 million euros, with a net loss of 125.2 million euros. In 2019, its profit amounted to 11 million euros. It originally had a trend of continuous growth in 2020, but the epidemic reversed this trend. The long-term closure of offline gyms is the main reason for the decline in Basic-Fit’s revenue. During this period, it has implemented various throttling measures, but it is still not enough to reverse the loss.

On the other hand, in the first half of 2020, Basic-Fit secured a bank loan of 100 million euros and raised 133 million euros of equity to restart the brand’s growth strategy. In February 2021, for the same reason, Basic-Fit secured another €150 million bank loan, which gave them a significant amount of liquidity. Basic-Fit reduces costs and makes changes in personnel costs, marketing expenses and rent, but not enough to cover revenue, so open source is even more important. In terms of open source, after the gym began to gradually open, Basic-Fit launched a series of epidemic prevention measures to ensure that users can exercise safely. Among the more than 33 million gym visits, there was no case of infection. And within the revenue, other revenue from gyms includes personal trainers, day passes, physical therapists, in-store on-screen advertisements and automatic delivery revenue. In addition, Basic-Fit has also seized the trend of online fitness, and further improved and expanded the Basic Fit APP during the epidemic period, providing fitness training plans, podcasts, virtual group classes, nutrition advice and recipes, personal trainer search, etc. Hundreds of practical information to ensure that users can enjoy the service. Basic-Fit has also found home gym equipment to be a hit during the pandemic, such as treadmill,and these are also being sold on Basic-Fit’s website, which has also boosted revenue.

Post time: Mar-01-2022