Virgin Active Cuts Losses as Membership Surges Amid WFH Trends

Virgin Active, the gym chain established by Sir Richard Branson, has made significant strides in reducing its losses as it navigates the ongoing impact of the work-from-home trend. The company, which operates 224 locations worldwide, reported a pre-tax loss of £78.1 million for the financial year ending 2024, a considerable improvement compared to the £146.7 million loss recorded in 2023.

New accounts filed with Companies House reveal that Virgin Active’s revenue increased from £511.4 million to £576.3 million during the same period. This boost can be attributed to a 5 percent rise in adult memberships, which now exceed one million and have returned to levels seen before the pandemic.

Ownership and Future Prospects

Virgin Active is primarily owned by private equity firm Brait, which holds 67.6 percent of the shares. South African billionaire Christo Wiese controls Brait, while Sir Richard Branson’s Virgin Group retains a 16.8 percent stake and Titan Premier Investments owns 7.9 percent.

Founded in the late 1990s by Branson and Matthew Bucknall, the company’s first club opened in Preston, Lancashire. In November 2024, reports indicated that Wiese was considering a potential listing for Virgin Active on the London stock exchange. However, no formal announcement has been made regarding this move.

A statement from the board emphasized the robust market fundamentals for Virgin Active. “We see a growing number of consumers understanding and embracing the importance of maintaining a healthy lifestyle, not only in fitness but in nutrition and broader wellness,” the statement read.

Challenges and Adaptation

Despite the gains, the shift towards remote working continues to impact gym usage, particularly in urban areas. The statement acknowledged that while city club attendance has been affected, there are signs of a gradual uptick. “Residential demand remains strong,” it added, hinting at a promising outlook for future growth.

The board’s confidence in the company’s trajectory highlights the adaptability of Virgin Active in facing the challenges posed by changing consumer habits. As more individuals prioritize health and wellness, the company is poised to capitalize on these evolving trends.

With its significant revenue growth and a rebound in membership numbers, Virgin Active appears well-positioned to navigate the ongoing challenges of the fitness industry.