Benefit Systems Group published its financial report for the Q3 2014 and cumulatively for the 9 months of 2014. Highlights from the report:

• 490,000 sports cards at the end of September 2014 (+17.5% y/y), i.e. +73,000 y/y, the rate of growth of the number of sports cards is higher than in the previous year by 13,000 pcs
• PLN 332.8 million revenues after 9 months of 2014 (+18.7% y/y)
• stable profitability: PLN 75.9 million gross profit on sales
• decrease of the costs of sales in relation to revenues

Summary of the results

In Q3 2014, Benefit Systems S.A. maintained the growth dynamics of sales recorded in the previous quarters and earned PLN 109.8 million revenues, which is an increase of 19.7% compared to Q3 2013 (sales at the level of PLN 91.7 million). After 9 months of 2014, the sales of Benefit Systems amounted to PLN 332.8 million and increased by 18.7% compared to the 9 months of 2013. The Company maintains high profitability – the gross profit after 9 months of 2014 amounted to PLN 75.9 million (PLN 35.0 million in Q3 2014 itself).

Q3 2014 was another quarter in which Benefit Systems recorded higher profits. Thanks to the sales growth and maintaining profitability, the EBIT of the Benefit Systems Group amounted to PLN 37.1 million after 9 months of 2014 and was higher by 35.5% y/y. In Q3 2014 itself, EBIT amounted to PLN 22.3 million (+35.9% y/y).

Net profit attributable to the shareholders of the parent company amounted to PLN 29.6 million after 9 months of 2014 and was higher by 35.9% y/y (net profit in Q3 PLN 17.7 million +39.7% y/y).

We are recording stable growth in the segment of sports cards, which translates into good results in individual quarters. We recorded higher revenues in this segment while maintaining a satisfactory level of margin and improving the retention of cards in relation to the comparable period of the previous year, says Tomasz Józefacki, President of the Management Board of Benefit Systems S.A.

Increase in the number of sports cards

The number of subscription sports cards at the end of September 2014 amounted to 490,000 pcs – compared to the end of September 2013 their number increased by 17.5% (+73,000 pcs).

The increase in the number of users of the sports program was influenced by sales to new customers and additional sales to entities already cooperating with Benefit Systems, as well as a better retention year to year. The gross margin on sales in the segment of sports cards after 9 months of 2014 amounted to 25.6% and increased by 2.8 p.p. compared to the 9 months of 2013.

New products*

The revenues of the segment of new products after 9 months of 2014 amounted to PLN 10.6 million and increased by 61.4% y/y. The number of entries to the MultiBenefit platform, which offers subscription access to the products of Benefit Systems and its partners, has reached 199,000 (an increase of more than three times y/y).

We are pleased that revenues in the segment of new products are steadily growing – in Q3 2014 we recorded a nearly twofold increase in sales compared to Q3 2013. Our customers are getting a wider access to the offer in terms of using their leisure time, such as: recreation, personal development, and culture,says Tomasz Józefacki.

Investments and consolidation in the fitness industry

In Q3 2014, the Benefit Systems Group continued its strategy of investments and consolidation in the fitness industry. After opening subsequent two (2) clubs, their number at the end of September 2014 increased to 41 (including 19 mature clubs**). By the end of this year it is expected that another five (5) clubs will be opened. The completion of the process of contribution of assets to the new entity is planned in Q1 2015.

Summary of the financial results of the Benefit Systems Group for 9 months of 2014 and Q3 2014 itself:

*** net profit attributable to the shareholders of the parent company

More information:

Rafał Janik – Benefit Systems S.A. Investor Relations  | tel. +48 22 24 24 090 | e-mail: r.janik@benefitsystems.pl

About us:

Benefit Systems is the leader of the Group, which is composed of entities operating on the non-wage employee benefits and fitness markets. Benefit Systems Group, in accordance with its mission, supports people and organisations in their development, achieving balance and building commitment. Using the upward trend in the leisure-time industry market, it creates and develops a portfolio of innovative and comprehensive solutions allowing to motivate employees in an efficient and flexible manner and to assist them in achieving a balance between work and private life. The offer of the Group includes products in the field of sports and recreation (MultiSport, FitProfit), culture and entertainment (MultiBilet, MultiTeatr), nutrition (BenefitLunch), tourism (MultiWypoczynek), custom-made cafeteria programs (MultiKafeteria, MyBenefit), as well the MultiBenefit incentive program. Since April 2011, the shares of Benefit Systems are listed on the main trading floor of the Warsaw Stock Exchange. The group of clients of Benefit Systems currently includes more than 7,000 companies and institutions employing more than 2 million employees, with the sports products having themselves nearly 500,000 users, with nearly 4,000 sports and recreation facilities in almost 650 Polish towns and cities available

Important definitions:

*) New products – other than sports cards, non-wage incentive tools in the offer of the Group

**) Mature club – an average of two (2) years from launch and achieving an operating margin of more than 10%