Latest
issue
GET HCM
magazine
Sign up for the FREE digital edition of HCM magazine and also get the HCM ezine and breaking news email alerts.
Not right now, thanksclose this window I've already subscribed!
Centrica
Centrica
Centrica
Follow Health Club Management on Twitter Like Health Club Management on Facebook Join the discussion with Health Club Management on LinkedIn Follow Health Club Management on Instagram
FITNESS, HEALTH, WELLNESS

Latest news

Life Time breaks the US$500m barrier in Q3 – trials weight loss drugs

Shares in US-based health club operator Life Time have fallen by 15 per cent after the group released its Q3 financial results
The full-service club operator saw revenue increase 17.9 per cent to US$585.2 million
However, net income decreased to US$7.9 million from US$24.7 million a year before
Life Time was reporting its figures for the three months to 30 September 2023

US-based health club, lifestyle and wellness operator, Life Time, has published its Q3 2023 results, revealing ambitions to widen its reach.

Bahram Akradi, Life Time founder and CEO, said: "We generated record levels of revenue in Q3 – our trailing 12-month adjusted EBITDA surpassed US$500 million for the first time in our history."

The company's rollouts are accelerating – it opened 10 new sites through the first nine months of 2023, six of which were in the third quarter. Two further sites are expected to open in the fourth quarter of 2023.

As of 30 September 2023, Life Time operates a total of 170 locations.

Akradi revealed the business has an ambitious diversification strategy, saying: “With 150 billion web impressions a year, we’re asking, what other products and services consumers can buy from us.

“We’re not yet taking advantage of all the different connections and programmes we have, so there’s essential work being done to systematise all of that across the business,” he said.

Akradi said that in addition to building full-service clubs, the Life Time board can also see a number of ‘asset-light’ opportunities in the market. It's introduced an assisted stretching offering called Dynamic Stretch, for example, which it says could present a US$50 million market opportunity in 2024.

It’s also trialling the introduction of weight loss drugs for members, with Akradi saying the various new offerings are worthwhile long-term investments that will strengthen the luxury brand.

The company is spending on facilities such as pickleball courts, as well as new personal training programmes to boost its premium member experience. The changes have helped drive member engagement, with average visits per member up 24 per cent since 2019.

“Higher engagement from members means higher return visits and increased spending over the lifetime of the relationship,” commented Akradi.

The programme changes have been partly designed to keep Life Time’s affluent customers satisfied with service as prices have risen and to avoid consumers moving to more value-priced health club offerings.

Life Time has been increasing prices at many of its locations, although these vary according to local markets.

Akradi says the majority of planned price changes have already been implemented, but that 20 - 25 per cent of the company’s clubs will still have the option to increase membership rates over the next year.

Life Time has recently been pushing further into the residences market with the opening of a new 52,000sq ft club with luxury living in Connecticut. It's been tackling the wider wellness market with the opening of a wellness village in Las Vegas last year. More such developments are on the cards, with Life Time being one of the first health and fitness operators globally to follow the residences trend that is so prevalent in the hospitality and spa and wellness sectors.

The company’s Q3 2023 financial results were coolly received by the market and shares fell by 15 per cent after it forecast a slight softening in Q4, although they’re still up on the year.

Life Time said it expects turnover for the fourth quarter of 2023 to be between US$555 and US$565, against a forecast of US$576.6, with full year revenue at between US$2.21 and 2.22 billion, versus the US$2.24 million previously expected.

Reporting its figures for the three months to 30 September, the full-service operator saw revenue increase by 17.9 per cent to the record high of US$585.2 million, up from US$496.4 million in the third quarter of 2022.

Adjusted EBITDA increased 101.4 per cent to US$143.0 million (from US$71.0 million in 2022).

On the operating front, Life Time saw its total club memberships increase by 55,602 (or 7.6 per cent) during Q3, when compared to 2022.

Net income fell US$16.8m from US$24.7 million the year before to US$7.9 million in Q3 2023, mainly due to gains from sale and leaseback deals in the previous year of US$48.6 million, which inflated the comparison figures. There was also a loss from a sale-and leaseback transactions in Q3 of US$12.7 million.

These impacts were partly offset by improved business performance in Q3, but still led to diluted earnings per share decreasing to US$0.04 from $0.12 Q3 in 2022.

Operating costs, including new and upgraded locations, rose 8.2 per cent year-on-year during Q3 to US$319.4 million.

"As we look to next year, we expect to be free-cashflow-positive after all capital investment – including new club growth – by the middle of 2024, two years earlier than originally anticipated,” said Akradi.

"With expectations for continued Adjusted EBITDA growth and significant asset-light opportunities, we expect to fund our targeted growth in 2024 and beyond with internally generated cashflow. We are well positioned for continued success," he concluded.

Related news

Life Time launches luxury living at new Connecticut property

05 Oct 2023
Premium health club operator, Life Time, has opened its first ever property in the state ...

Life Time adds two major clubs to growing US portfolio

12 Apr 2023
Full-service health club operator Life Time has added two regional lifestyle clubs to its growing ...

Life Time opens its doors to 16.5-acre wellness village in Las Vegas

18 Oct 2022
US-based health, fitness and racquets club operator, Life Time, has opened a residential wellness resort ...
Shares in US-based health club operator Life Time have fallen by 15 per cent (at the time of writing), after the group released its Q3 financial results.
HAF,FIT,IND,PTS,PHR
2023/THUMB352036_258852_552386.jpg
Latest News
The first bricks and mortar Kinrgy studio opens today (1 March) in West Hollywood. Founded ...
Latest News
Orangetheory and Self Esteem Brands have revealed plans to merge 'as equals' creating a new ...
Latest News
In the same week as tennis legend, Andre Agassi, was appointed to the board of ...
Latest News
According to a pilot study by Yale School of Medicine, exercise can not only slow ...
Latest News
Self Esteem Brands (SEB), owner of Anytime Fitness, has released year-end results which show year-on-year ...
Latest News
Basic-Fit has introduced a new approach to tackle gymtimidation and create an inclusive environment in ...
Latest News
Speaking exclusively in the current issue of HCM magazine, Third Space CEO, Colin Waggett, says ...
Latest News
Australian exercise and active health trade body, AUSactive, has partnered with the national Royal Life ...
HCM promotional features
Sponsored
On opening night, our attendees pushed their limits during a team- centred workout
HCM promotional features
Sponsored
Ridgeway has created a series of luxury spaces for the new Third Space in Wimbledon, designing, making and installing furniture in key areas of the club
HCM promotional features
Sponsored profile: Technogym
The GM of The Club & Spa Bristol tells us about the cutting edge club refresh that showcases the Technogym Artis Line
HCM promotional features
Promotion
Small group training is popular for its energy, but must evolve to retain popularity, says the director of training at Matrix Fitness
HCM promotional features
Sponsored
Creating successful training environments requires a deep knowledge of functional design. Gregory Bradley, sales director at BLK BOX Fitness talks us through the company’s approach
HCM promotional features
Promotion
Using research that revealed three key pillars for cardio exercisers, Life Fitness has created its greatest-ever console: the Discover SE4
HCM promotional features
HCM magazine
HCM People

Jamie Groves

MD, Denbighshire Leisure
Denbighshire Leisure’s turnover has increased by 25 per cent since 2021, so the developments have paid for themselves and more
HCM magazine
It's about health being everybody’s business and recognising that inclusion is everyone’s responsibility
HCM magazine
If we had a product that only worked if people had lots of money, we’d be out of business by now
HCM magazine
Fuel the debate about issues across the industry and share your ideas and experiences. We’d love to hear from you: [email protected]
HCM magazine
HCM People

Chibs Okereke

Stress and burnout coach, Mettle
Almost 40 per cent of men have never spoken to anyone about their mental health. There's a lot of suffering in silence
Featured supplier news
Featured supplier news: Longevity and recovery specialist Jonathan Leary to headline PerformX 2024
PerformX Live, the premier business of fitness event, has announced Dr Jonathan Leary, founder and CEO of Remedy Place, as the headliner for its 2024 event.
Featured supplier news
Featured supplier news: seca TRU: Medical values for medical fitness
Developed for the world of medicine, tailored to the needs of modern fitness studios. The seca TRU seamlessly provides medical expertise for health-focused training with a clinically validated body composition analysis meeting the health and fitness industry's evolving demands.
Company profiles
Company profile: PSLT Ltd
PSLT Fitness Solutions manufacture, remanufacture and buy back commercial gym equipment. We supply and maintain ...
Company profiles
Company profile: Anytime Fitness UK
As a globally recognised brand, Anytime Fitness provides the most comprehensive support structure and training ...
Supplier Showcases
Supplier showcase - Fisikal: Fast reactions
Catalogue Gallery
Click on a catalogue to view it online
Featured press releases
Precor UK press release: Precor launches new functional strength training line powered by BeaverFit
Precor, trusted fitness solution provider to more than 14,000 global facilities, has selected BeaverFit, the world’s largest supplier of fitness equipment to U.S. and NATO militaries, to design and manufacture their new functional training line.
Featured press releases
The Health & Fitness Institute press release: THFI Launches Wellness Coaching Qualification Aimed at NHS Relief and Economic Boost
Recent data from UK Active has revealed that a shocking 25% of the UK’s population is classed as ‘inactive,’ averaging less than 30 minutes of exercise a week.
Directory
Snowroom
TechnoAlpin SpA: Snowroom
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
salt therapy products
Saltability: salt therapy products
Spa software
SpaBooker: Spa software
Cryotherapy
Art of Cryo: Cryotherapy
Lockers
Crown Sports Lockers: Lockers
Property & Tenders
Loughton, IG10
Knight Frank
Property & Tenders
Grantham, Leicestershire
Belvoir Castle
Property & Tenders
Diary dates
11-14 Apr 2024
Exhibition Centre , Cologne, Germany
Diary dates
22-24 Apr 2024
Galgorm Resort, York,
Diary dates
30 May - 02 Jun 2024
Rimini Exhibition Center, Rimini, Italy
Diary dates
08-08 Jun 2024
Worldwide, Various,
Diary dates
11-13 Jun 2024
Raffles City Convention Centre, Singapore, Singapore
Diary dates
12-13 Jun 2024
ExCeL London, London, United Kingdom
Diary dates
22-25 Oct 2024
Messe Stuttgart, Germany
Diary dates
04-07 Nov 2024
In person, St Andrews, United Kingdom
Diary dates

Latest news

Life Time breaks the US$500m barrier in Q3 – trials weight loss drugs

Shares in US-based health club operator Life Time have fallen by 15 per cent after the group released its Q3 financial results
The full-service club operator saw revenue increase 17.9 per cent to US$585.2 million
However, net income decreased to US$7.9 million from US$24.7 million a year before
Life Time was reporting its figures for the three months to 30 September 2023

US-based health club, lifestyle and wellness operator, Life Time, has published its Q3 2023 results, revealing ambitions to widen its reach.

Bahram Akradi, Life Time founder and CEO, said: "We generated record levels of revenue in Q3 – our trailing 12-month adjusted EBITDA surpassed US$500 million for the first time in our history."

The company's rollouts are accelerating – it opened 10 new sites through the first nine months of 2023, six of which were in the third quarter. Two further sites are expected to open in the fourth quarter of 2023.

As of 30 September 2023, Life Time operates a total of 170 locations.

Akradi revealed the business has an ambitious diversification strategy, saying: “With 150 billion web impressions a year, we’re asking, what other products and services consumers can buy from us.

“We’re not yet taking advantage of all the different connections and programmes we have, so there’s essential work being done to systematise all of that across the business,” he said.

Akradi said that in addition to building full-service clubs, the Life Time board can also see a number of ‘asset-light’ opportunities in the market. It's introduced an assisted stretching offering called Dynamic Stretch, for example, which it says could present a US$50 million market opportunity in 2024.

It’s also trialling the introduction of weight loss drugs for members, with Akradi saying the various new offerings are worthwhile long-term investments that will strengthen the luxury brand.

The company is spending on facilities such as pickleball courts, as well as new personal training programmes to boost its premium member experience. The changes have helped drive member engagement, with average visits per member up 24 per cent since 2019.

“Higher engagement from members means higher return visits and increased spending over the lifetime of the relationship,” commented Akradi.

The programme changes have been partly designed to keep Life Time’s affluent customers satisfied with service as prices have risen and to avoid consumers moving to more value-priced health club offerings.

Life Time has been increasing prices at many of its locations, although these vary according to local markets.

Akradi says the majority of planned price changes have already been implemented, but that 20 - 25 per cent of the company’s clubs will still have the option to increase membership rates over the next year.

Life Time has recently been pushing further into the residences market with the opening of a new 52,000sq ft club with luxury living in Connecticut. It's been tackling the wider wellness market with the opening of a wellness village in Las Vegas last year. More such developments are on the cards, with Life Time being one of the first health and fitness operators globally to follow the residences trend that is so prevalent in the hospitality and spa and wellness sectors.

The company’s Q3 2023 financial results were coolly received by the market and shares fell by 15 per cent after it forecast a slight softening in Q4, although they’re still up on the year.

Life Time said it expects turnover for the fourth quarter of 2023 to be between US$555 and US$565, against a forecast of US$576.6, with full year revenue at between US$2.21 and 2.22 billion, versus the US$2.24 million previously expected.

Reporting its figures for the three months to 30 September, the full-service operator saw revenue increase by 17.9 per cent to the record high of US$585.2 million, up from US$496.4 million in the third quarter of 2022.

Adjusted EBITDA increased 101.4 per cent to US$143.0 million (from US$71.0 million in 2022).

On the operating front, Life Time saw its total club memberships increase by 55,602 (or 7.6 per cent) during Q3, when compared to 2022.

Net income fell US$16.8m from US$24.7 million the year before to US$7.9 million in Q3 2023, mainly due to gains from sale and leaseback deals in the previous year of US$48.6 million, which inflated the comparison figures. There was also a loss from a sale-and leaseback transactions in Q3 of US$12.7 million.

These impacts were partly offset by improved business performance in Q3, but still led to diluted earnings per share decreasing to US$0.04 from $0.12 Q3 in 2022.

Operating costs, including new and upgraded locations, rose 8.2 per cent year-on-year during Q3 to US$319.4 million.

"As we look to next year, we expect to be free-cashflow-positive after all capital investment – including new club growth – by the middle of 2024, two years earlier than originally anticipated,” said Akradi.

"With expectations for continued Adjusted EBITDA growth and significant asset-light opportunities, we expect to fund our targeted growth in 2024 and beyond with internally generated cashflow. We are well positioned for continued success," he concluded.

Related news

Life Time launches luxury living at new Connecticut property

05 Oct 2023
Premium health club operator, Life Time, has opened its first ever property in the state ...

Life Time adds two major clubs to growing US portfolio

12 Apr 2023
Full-service health club operator Life Time has added two regional lifestyle clubs to its growing ...

Life Time opens its doors to 16.5-acre wellness village in Las Vegas

18 Oct 2022
US-based health, fitness and racquets club operator, Life Time, has opened a residential wellness resort ...
Shares in US-based health club operator Life Time have fallen by 15 per cent (at the time of writing), after the group released its Q3 financial results.
HAF,FIT,IND,PTS,PHR
2023/THUMB352036_258852_552386.jpg

Latest news

The first bricks and mortar Kinrgy studio opens today (1 March) in West Hollywood. Founded
Orangetheory and Self Esteem Brands have revealed plans to merge 'as equals' creating a new
In the same week as tennis legend, Andre Agassi, was appointed to the board of
According to a pilot study by Yale School of Medicine, exercise can not only slow
Self Esteem Brands (SEB), owner of Anytime Fitness, has released year-end results which show year-on-year
Basic-Fit has introduced a new approach to tackle gymtimidation and create an inclusive environment in
Alliance Leisure
Alliance Leisure
Elevate, the premier event in the physical activity, fitness, sports therapy and performance sector, is
Speaking exclusively in the current issue of HCM magazine, Third Space CEO, Colin Waggett, says
Australian exercise and active health trade body, AUSactive, has partnered with the national Royal Life
Kerzner International has ushered in a new era of wellness-centric hospitality and unveiled its highly-anticipated
Following a successful pilot, The Gym Group is rolling out a programme, delivered by The
As Planet Fitness announces strong year-end results there are reports the company is planning a
The ICO has ruled that eight leisure operators have been unlawfully processing the biometric data
Elevate
Elevate
PerformX Live, the premier business of fitness event, has announced Dr Jonathan Leary, founder and
Xponential Fitness has told HCM it will vigorously defend itself against claims made in a
“2024 is going to the be biggest year for Gymshark ever,” says CEO and founder,
More consumers are realising meditation is beneficial, but many give up because it’s difficult to
Les Mills has been through a senior management refresh following the recent departure of CEO
EuropeActive has appointed Kai Troll as its new CEO. He has a background in the
CIMSPA has published its 2024-2030 strategy Releasing the Power of Our Profession, which sets out
Global Wellness Summit
Global Wellness Summit
Developed for the world of medicine, tailored to the needs of modern fitness studios. The
Mark Hewlett, founder of padel tennis operator Soul Padel has told HCM the company is
While strength training gives valuable muscular gains it doesn’t give the heart health benefits of
1 - 20 of 12,300
HCM promotional features
Sponsored
On opening night, our attendees pushed their limits during a team- centred workout
HCM promotional features
Sponsored
Ridgeway has created a series of luxury spaces for the new Third Space in Wimbledon, designing, making and installing furniture in key areas of the club
HCM promotional features
Sponsored profile: Technogym
The GM of The Club & Spa Bristol tells us about the cutting edge club refresh that showcases the Technogym Artis Line
HCM promotional features
Promotion
Small group training is popular for its energy, but must evolve to retain popularity, says the director of training at Matrix Fitness
HCM promotional features
Sponsored
Creating successful training environments requires a deep knowledge of functional design. Gregory Bradley, sales director at BLK BOX Fitness talks us through the company’s approach
HCM promotional features
Promotion
Using research that revealed three key pillars for cardio exercisers, Life Fitness has created its greatest-ever console: the Discover SE4
HCM promotional features
HCM magazine
HCM People

Jamie Groves

MD, Denbighshire Leisure
Denbighshire Leisure’s turnover has increased by 25 per cent since 2021, so the developments have paid for themselves and more
HCM magazine
It's about health being everybody’s business and recognising that inclusion is everyone’s responsibility
HCM magazine
If we had a product that only worked if people had lots of money, we’d be out of business by now
HCM magazine
Fuel the debate about issues across the industry and share your ideas and experiences. We’d love to hear from you: [email protected]
HCM magazine
HCM People

Chibs Okereke

Stress and burnout coach, Mettle
Almost 40 per cent of men have never spoken to anyone about their mental health. There's a lot of suffering in silence
HCM magazine
Kath Hudson talks to industry experts from around the world about their key takeaways from last year and their hopes for 2024
HCM magazine
The right storage can transform the flow and feel of your training spaces and the user experience. Steph Eaves asks the experts for their most creative solutions
HCM magazine
Our experts believe love is the best foundation on which to build a business. Kath Hudson finds out why
HCM magazine
Brick recalls the terror of buying a failing club and how the lessons learned have propelled him through his career
HCM magazine
How healthy is your flooring for the people who train on it and the planet? Steph Eaves sheds light on sustainability practices
HCM magazine
Consumer expectations are rising all the time, but nowhere more than in relation to digital. UK Active’s Dave Gerrish explains how the industry is shaping up
HCM magazine
Featured supplier news
Featured supplier news: Longevity and recovery specialist Jonathan Leary to headline PerformX 2024
PerformX Live, the premier business of fitness event, has announced Dr Jonathan Leary, founder and CEO of Remedy Place, as the headliner for its 2024 event.
Featured supplier news
Featured supplier news: seca TRU: Medical values for medical fitness
Developed for the world of medicine, tailored to the needs of modern fitness studios. The seca TRU seamlessly provides medical expertise for health-focused training with a clinically validated body composition analysis meeting the health and fitness industry's evolving demands.
Company profiles
Company profile: PSLT Ltd
PSLT Fitness Solutions manufacture, remanufacture and buy back commercial gym equipment. We supply and maintain ...
Company profiles
Company profile: Anytime Fitness UK
As a globally recognised brand, Anytime Fitness provides the most comprehensive support structure and training ...
Supplier Showcases
Supplier showcase - Fisikal: Fast reactions
Catalogue Gallery
Click on a catalogue to view it online
Featured press releases
Precor UK press release: Precor launches new functional strength training line powered by BeaverFit
Precor, trusted fitness solution provider to more than 14,000 global facilities, has selected BeaverFit, the world’s largest supplier of fitness equipment to U.S. and NATO militaries, to design and manufacture their new functional training line.
Featured press releases
The Health & Fitness Institute press release: THFI Launches Wellness Coaching Qualification Aimed at NHS Relief and Economic Boost
Recent data from UK Active has revealed that a shocking 25% of the UK’s population is classed as ‘inactive,’ averaging less than 30 minutes of exercise a week.
Directory
Snowroom
TechnoAlpin SpA: Snowroom
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
salt therapy products
Saltability: salt therapy products
Spa software
SpaBooker: Spa software
Cryotherapy
Art of Cryo: Cryotherapy
Lockers
Crown Sports Lockers: Lockers
Property & Tenders
Loughton, IG10
Knight Frank
Property & Tenders
Grantham, Leicestershire
Belvoir Castle
Property & Tenders
Diary dates
11-14 Apr 2024
Exhibition Centre , Cologne, Germany
Diary dates
22-24 Apr 2024
Galgorm Resort, York,
Diary dates
30 May - 02 Jun 2024
Rimini Exhibition Center, Rimini, Italy
Diary dates
08-08 Jun 2024
Worldwide, Various,
Diary dates
11-13 Jun 2024
Raffles City Convention Centre, Singapore, Singapore
Diary dates
12-13 Jun 2024
ExCeL London, London, United Kingdom
Diary dates
22-25 Oct 2024
Messe Stuttgart, Germany
Diary dates
04-07 Nov 2024
In person, St Andrews, United Kingdom
Diary dates
Search news, features & products:
Find a supplier:
Centrica
Centrica
Partner sites