Benefit Systems (BFT) Q3 2024 earnings summary

Executive summary

• Revenue for 3Q24 was PLN 836mn, up 20% year-over-year; nine-month revenue reached PLN 2,481.8m, up 23% year-over-year.

• Net profit attributable to shareholders was PLN 134mn in 3Q24, up 16% year-over-year; nine-month net profit was PLN 339.1m, up 12.6%.

• Number of active sport cards surpassed 2 million, with 1.5m in Poland and 506k abroad.

• Significant expansion in fitness club network, including acquisitions in Poland, Czech Republic, Bulgaria, and Croatia.

• Dividend of PLN 399.4m (PLN 135/share) declared, a threefold increase over the prior year.

Financial highlights

• Gross profit in 3Q24 was PLN 314mn, up 22% year-over-year; gross margin improved to 37.6% in 3Q24 and 35.1% for nine months.

• EBITDA rose 22.5% to PLN 720.3m; operating profit increased 22.1% to PLN 464.1m year-over-year.

• Net cash from operating activities was PLN 644.3m; net cash position at quarter-end was PLN 314mn.

• SG&A ex. ESOP grew 36% year-over-year, reflecting business expansion and M&A activity.

• Basic EPS increased to PLN 113.34 from PLN 101.31 year-over-year.

Outlook and guidance

• For 2025, further improvement in results is expected, with projected card volume growth of +130k in Poland and +150k abroad (including 50k in Turkey).

• Long-term growth potential for MultiSport cards estimated at 2.5–2.8m in Poland and 1.7–2.0m abroad.

• ARPU growth anticipated at low single digits in all markets; Poland profitability to remain stable or slightly lower, with margin pressure in the foreign segment due to investments.

• Group expects continued demand driven by health awareness, low unemployment, and strong labor markets.

• Economic conditions, inflation, and currency fluctuations in operating countries may impact future results.