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Benefit Systems SABenefit Systems counts on high double-digit earnings growth rate for Turkey's MAC in 2025
Listed employee benefit schemes provider Benefit Systems, which had completed the acquisition of Turkish MAC Group at the beginning of May, is counting on the acquired company to record a high double-digit earnings growth rate this year, member of Benefit Systems' management board Marcin Fojudzki told a conference call.
"We are satisfied with the current results and with MAC's operations in Turkey and the management there, which is responsible for these results. We think that there is still potential for growth in the scale of operations and results of the MAC group in Turkey," Marcin Fojudzki said.
"I don't want to announce precisely what results we expect for 2025. I think we can say that it will be a high double-digit year-on-year earnings growth rate. It won't be 100 percent like in the first quarter, but probably between 30 and 50 percent," he added.
In May, Benefit Systems finalised the acquisition of MAC Group, which operates a network of more than 120 fitness clubs in Turkey.
The total purchase price was USD 431.6 million, and the acquired company had approximately USD 40 million in cash at the end of April. The EV/EBITDA of the transaction was 6.4x.
From the middle of the second quarter, this business will be consolidated.
As reported by Fojudzki, as at the end of April, the MAC group's estimated EBITDA for the last 12 months was USD 61 million against USD 50 million at the end of 2024.
According to unconsolidated data, MAC had in the first quarter of 2025. USD 37.2 million in revenue (up 65 percent year on year) and USD 16.9 million in non-IFRS16 EBITDA (up 102 percent year on year).
The Benefit Systems group's first quarter revenues amounted to PLN 952 million (EUR 223.9 mln), up 19 percent year on year.
As reported, the results were impacted by an increase in the volume of sports cards and passes by several percent year on year and an annual change in the average ARPU by a low few percent.
EBITDA amounted to PLN 199.2 million (EUR 46.8 mln), down from PLN 204.2 million (EUR 48 mln) in the prior year period. Adjusted EBITDA (excluding IFRS16) increased by 13 percent year on year to PLN 182.3 million (EUR 42.9 mln).
The company maintained its assumptions for the full year.
The number of cards is assumed to increase by 130,000 in Poland and by around 150,000 in foreign markets.
Year-on-year ARPU growth is expected to be at the low-teens level in Poland and at a comparable year-on-year level abroad.
At the end of the first quarter, Benefit Systems' debt amounted to PLN 1.15 billion (EUR 270.4 mln), of which PLN 1 billion (EUR 235.2 mln) were bonds and PLN 147 million (EUR 34.6 mln) debt under the 2022 financing agreement.
In April, the company repaid this agreement and signed a new financing agreement for PLN 1.6 billion (EUR 376.3 mln) of available credit and PLN 175 million (EUR 41.2 mln) of guarantee lines.
In May, a PLN 1.18 billion (EUR 277.5 mln) loan was drawn down for the purchase of MAC, with PLN 420 million (EUR 98.8 mln) available for future use.
Net debt is currently PLN 760 million (EUR 178.7 mln). The net debt/EBITDA ratio is approximately 0.9x, and 0.7x after taking into account the pro forma results of the acquired MAC network in Turkey.
According to Fojudzki, the company plans to implement its strategic plans while gradually reducing debt.
pel/ han/ ao/
