As a lot of things in their model seem to be driven by...

As a lot of things in their model seem to be driven by utilisation rate, the main question is probably to have a view on utilisation rate going forward.
Not that simple to answer.

Of course, it may be seen as a consumer discretionary item that is easy to cut.
At the same time, it remains a low cost item (15 $ on average per week for their customers) which remains reasonable for what it can bring in term of health benefit. In the long term, I imagine that it will benefit from a link with insurance premiums (as I expect insurance premiums to be reduced for people who can prove that they regularly exercise).

So if demand is expected to remain quite stable*, the main question is about supply.
It looks quite easy to open a new gym, so there is always the risk that this sector is over-crowded in term of supply.
According to figures I could find, there has been a regular increase for the number of gym and fitness center businesses in Australia from 2013 to 2021, but a decrease since 2022 (obviously covid effect).

So, this trend for supply supports the increase of utilization rate for VVA since bottoming in 2022. The main question is probably to wonder what will be the trend for supply going forward.
Getting tougher to open a new gym as the level of breakeven point has probably increased with the inflation trend.
Higher inflation had an impact on their main costs (reminder : + 6.5 %e for their costs lfl in 2023, due probably mainly to wages and utilities).


* except exceptional events, like covid.