Basic-Fit 1H25 results: underlying EBITDA less rent below CSS

Basic-Fit reports 1H25 revenue in line with CSS but misses -5.6% on underlying EBITDA less rent due to higher than expected personnel costs. Personnel costs increased 43% YoY of which 25% is related to opening clubs 24/7. The membership growth is in line with 2Q24 (+40k) and slightly below CSS of +50k despite the management confirming it sees the expected in-growth in the 24/7 clubs. Overheads incl. marketing (11.0%) are ahead of CSS and guidance (11.5-12.%). The full year guidance is reiterated as BFIT expects the higher employee costs to be offset in 2H25. Despite the slowdown in club openings (100 vs 200), the net debt of BFIT increased by EUR 87.0m to EUR 1025m (960m CSS) vs YE24. Club expansion (53 vs 65 CSS) could not be financed from CFO and the maintenance capex was frontloaded (58m YTD vs 22m in 1H24). The company did not address the ongoing rumour regarding a potential Planet Fitness acquisition which has led to the recent share price rally.