The MultiSport card is the flagship product of the Group. In Poland, MultiSport Plus offers an unlimited number of monthly visits to almost 5,000 sports and leisure facilities and participation in more than 25 sports disciplines. With MultiSport Classic or Lightcard you may visit a slightly smaller number of facilities once a day (Classic) or within a monthly limit (Lightcard). Moreover, we offer MultiSport cards dedicated to specific age groups: MultiSport Kids, MultiSport Aqua (access to over 500 swimming pools for children), MultiSport Student or MultiSport Senior. We also offer membership cards of our subsidiary company VanityStyle: FitProfit and FitSport, which allow unlimited access (FitProfit) or eight visits per month (FitSport) to many sports facilities.
Abroad, we offer a MultiSport card allowing access to sports facilities once a day, Lite product, a product for children and in the Czech Republic also for college students.
Our clients are employers, and it is through them that users can acquire our cards. Employers have a choice - they can cover the entire cost of the card or they can opt for a form of subsidizing cards purchased by employees. The most common co-funding scheme is where employees and employers fund the card on a 50:50 basis, but other proportions are also possible.
Users gain access to several thousand facilities across Poland (most fitness clubs or swimming pools) within a single product. Thanks to the employer's contribution, employees can use a wide range of services, including various online supplementary services, at a relatively small price. If an user wants to try a new place to train, they do not have to worry about handling any formalities on the spot - it is enough to present a physical card (or in a mobile device) together with an identity document. Keeping fit and healthy becomes easier and cheaper.
The sports cards allow employers to top up salaries with a unique product. They also make an employer more attractive on the labour market and contribute to employee retention. In addition, thanks to using the card, employees can stay fit and healthy, which, for employers, translates into lower costs associated with employee absenteeism. Settlement of the costs of the product also means less work for administrative departments - companies receive one invoice instead of dozens from different sites.
Benefit Systems with the MultiSport card has been present in the Czech Republic since 2010, in Bulgaria and Slovakia since 2015 and in Croatia since 2018. In 2021 we announced entrance to Turkish market, where we are currently building operations.
As part of the MultiSport programme, Polish users have access to the MultiSport Zone at: https://www.kartamultisport.pl/en. Not only does the site offer information on the user’s account or a sports facility search tool, but you can also take advantage of a diet creator, information on mindfulness, or language and yoga basics courses. Our users in Slovakia and Croatia can access online training services on MyMultiSport Online Platform.
From 2021, we offer a new product - MultiLife - which is a product based primarily on online services in the area of health/fitness/wellness.
In 2020, we created, from scratch, the Yes2Move.pl web portal - an online platform for physical exercising. In the afternoon hours, it offers live trainings led by the most popular trainers of our fitness clubs. The platform also offers over 800 recorded video workouts and dedicated exercise sets. The platform is available to individual customers of our clubs as part of the MultiSport and the MultiLife programmes, also in the form of an app for mobile devices.
Under the Yes2Move brand, we also operate an online store: www.sklep.yes2move.com, with dietary supplements, diet food and workout support accessories.
Our digital products also include the Cafeterias, which are marketplace platforms that offer, to our clients’ employees, tickets to cultural events, travel trips, sports cards, vouchers to physically located or on-line stores and much more.
In 2021, we launched new project: MultiLife, a product based primarily on offering online services, addressed to people who are interested in an active and healthy lifestyle but prefer not to exercise in sports facilities. We will develop this product taking into account the most important health/fitness/wellness trends, including those that have accelerated during the pandemic. MultiLife offers access to: the Diet Wizard, the Yes2Move training platform, the Mindfulness on-line course, video consultations with psychologists, coaches and nutritionists.
As of the mid December 2023, the Benefit Systems Group had 213 facilities in Poland, including 99 Zdrofit fitness clubs, 27 under the Fabryka Formy brand, 18 Fitness Academy clubs, 18 Fit Fabric clubs, 18 clubs under the My Fitness Place brand, 3 StepOne Clubs, 6 Saturn Fitness clubs, 14 Total Fitness clubs, 2 each Manufaktura Zdrowia and Gravitan clubs, 3 Max-Gym and 2 Active fitness clubs. The portfolio of the Group also comprises the Wesolandia swimming pool.
In foreign markets, we operate 27 clubs, including sixteen in the Czech Republic, ten in Bulgaria and one in Slovakia.
Year to date in 2023 we already opened seven new clubs in Poland and four in foreign markets, while in the remainder of 2023 we plan to open four on the foreign markets. In 2024 we plan to open around 15 clubs in Poland and minimum 20 foreign clubs. In the long run, the Group takes a selective approach to the development of its network, while primarily taking into account the attractiveness of new locations for the users of the MultiSport programme or individual gym attendants (B2C clients).
At the end of March 2023 Benefit Systems assumed control in thirteen club as a part of multi-stage transaction with Calypso Fitness, while three additional were incorporated as of 31 July 2023. In the mid April the parent Company acquired stake in Saturn Fitness Group, which controls 6 fitness clubs. In the second half of 2023 the Group acquired 2 Manufaktura Zdrowia clubs, 1 location in Rybnik that joined Fabryka Formy brand, 2 Gravitan clubs, additional 5 clubs from Calypso Fitness and 5 clubs under brands of Max-Gym and Active.
In year 2022 the Group had capital expenditure of PLN 120.2 million, including PLN 47.0 million on intangible assets (software and IT) and PLN 73.2 million net on fixed assets, mainly in the clubs. Additionally in 2022 the Group spent PLN 36.2 million on M&As.
In 2023, the Group’s planned Capex approximates around PLN 150-160 million. On top of that, the Group plans to continue selecitive acquisitions of other companies. In the longer term, the level of capital expenditure will depend primarily on the pace of opening of fitness clubs.
When choosing new destinations for geographical expansion, we pay attention primarily to the fragmented fitness market, high urbanisation and the presence of large cities, as well as an advantageous competitive environment. Also, trends opting for a healthy lifestyle and physical activity are important.
Considering our selection criteria, the Western European countries with their fitness markets dominated by a few large players do not fit into our vision of development. We continuously analyse other markets for further expansion.
In 2021 we announced preparations to enter Turkish market, where in 2022 we have started test cards distribution and sales of first cards. Currently on Turkish market we focus on increasing the number of partner facilities in Istanbul, which currently stands above 400.
The Cafeterias are web platforms of a marketplace type. They offer a selection of employee benefits of different types made that are made available to individual customers who are employers. The web portals facilitate it for their employees to decide on the way they can spend the non-wage benefits (i.e. company’s social funds) granted to them. The platforms enable buying tickets for cultural events, paying for tourist trips, offer vouchers to stores, whether physically located or on-line stores. Benefit Systems acts as an intermediary in this process.
Cafeterias play an important role in establishing our relationships with HR departments – we provide a range of possibilities of how the non-wage benefits can be spent, including the MultiSport card, in one place. This is very important, especially for clients with the largest number of employees, since it significantly facilitates the management of non-wage benefits with an extended staff. The 2021 turnover of the platform totaled more than PLN 550 million.
On 15 December 202, the Management Board of Benefit Systems adopted a dividend policy for 2023-2025, under which the Management Board will recommend it to the General Meeting to pay the dividend, amounting to at least 60% of the consolidated net profit of the Company's Group for the previous financial year, excluding positive or negative unrealized foreign exchange differences recognized during the period, provided that this is afforded by the financial and liquidity situation, development prospects and investment needs. The new Dividend Policy substituted previous "Dividend Policy for years 2020-2023", which implied 50% payout of the consolidated net profit of the Company's Group for the previous financial year.
During 2020-2022, the Company has departed from its dividend policy due to the economic uncertainty caused by the COVID-19 coronavirus outbreak. In 2023 the Management Board proposed PLN 41 dividend per share from 2022 net income, which was approved by the Annual General Meeting.
Detailed information on dividends and the history of profit sharing with shareholders is available at: https://www.benefitsystems.pl/en/for-investors/shares/dividend-policy/