Virgin Active Cuts Losses and Grows Membership Amid WFH Trends

Virgin Active, the gym chain established by Sir Richard Branson, has made significant strides in reducing its losses while grappling with 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 in 2024. This marks a considerable improvement from the £146.7 million loss recorded in 2023.

New financial statements filed with Companies House reveal that Virgin Active’s revenue increased from £511.4 million to £576.3 million during the same period. The company has seen its adult membership rise by five percent, surpassing one million members, thus returning to levels seen before the pandemic.

Ownership and Market Position

Virgin Active is primarily owned (67.6 percent) by the private equity firm Brait, controlled by South African billionaire Christo Wiese. The Virgin Group, led by Branson, holds a 16.8 percent stake in the business, while Titan Premier Investments maintains a 7.9 percent share.

Founded in the late 1990s by Branson and Matthew Bucknall, who stepped down as CEO in 2022, Virgin Active opened its first club in Preston, Lancashire. In November 2024, speculation arose regarding plans for a public listing in the UK, but no concrete actions have followed.

While the prevailing work-from-home culture continues to affect usage at city clubs, the company has noted a gradual increase in attendance. The board issued a statement emphasizing the market’s robust fundamentals. It highlighted a growing consumer awareness of the importance of maintaining a healthy lifestyle, which encompasses fitness, nutrition, and overall wellness.

Future Outlook

The statement further indicated that, despite challenges, there is a strong foundation for continued global growth. The board expressed optimism about increasing city club usage and a strong demand from residential members. This combination of factors suggests that Virgin Active is well-positioned to adapt to the evolving fitness landscape.

The gym chain’s financial recovery and membership growth reflect a broader trend in the health and wellness industry, as more individuals seek to prioritize fitness amid changing work dynamics. Virgin Active’s ability to navigate these challenges will likely be crucial as it looks to expand its presence further in the global market.