Fabián Bifaretti
CEO
Sports World
/
View from the Top

Active and Expanding

Sat, 09/07/2019 - 17:59

Q: How important is it for Mexican companies to work together, such as Sports World does with Grisi?

A: One of the major advantages is the direct contribution to the national economy via the increasing quality of goods and services that can be attained through joint efforts. These alliances also foster competition and consumers reap the benefits of a bigger and more balanced market.

Q: Membership also comes with access to Dentalia. What is the strategy behind this?

A: In line with our wellness strategy, we keep adding different services and products related to enhancing our customers’ health and wellbeing. Dentalia offers our customers two free-of-charge dental cleanings per year as well as significant discounts on all their services. Some of our additional health benefits are yearly blood tests, nutritional and 24-hour medical phone assistance, two ambulance services per year and special medical insurance discounts.

Q: To what extent has Sports World incorporated activities for children?

A: At Sports World we have an area of approximately 400m2 named FitKidz that is designed exclusively for children. They can join more than 30 different activities such as SafeSplash, aerial dance, indoor climbing, tae-kwondo and baby gym, among others. The goal is to start the habit of exercising from a very early age and introduce children to a wellness lifestyle. Q: How can gyms inspire more people to be active and help lower the chronic disease burden in Mexico? A: Gyms are able to link sedentary people with a more active life, not only through strength and cardio equipment but with a robust wellness orientation that includes group classes, meditation, yoga, Pilates, steam rooms, saunas, massage services, nutrition experts, facilities for kids, swimming pools and a Feel Healthy Program (for people with T2D and hypertension), as well as many other special activities.

Q: As new gyms appear, how is Sports World prepared to rise above the competition?

A: New gyms and studios are constantly appearing and innovating with new forms of exercising. The competitive advantage we have is that we can easily adapt to new trends and offer those new activities within our facilities at a very low or zero cost. We have a comprehensive offer that we are constantly innovating and adapting to new trends in the market.

Q: How many new clubs do you expect to open in 2017 and how will you finance that expansion?

A: During 2017, we have opened four clubs and four more are under construction with the pre-sale of memberships ongoing, so we are in line with our expansion plans for the year. Most of these openings have been and will be financed with debt.

Q: Last year, Sports World mentioned wanting to expand outside of the capital. What growth and results has it seen from this?

A: We have 15 clubs outside of Mexico City and its metropolitan area. We have had a very good acceptance and positive results in the states we are present in and we plan to expand to other states. In 2017, three of our eight new clubs will be outside of Mexico City. In the coming years, most clubs will be opened outside of Mexico City but we will continue to look for opportunities in the capital.

Q: What are your overall revenue expectations for 2017 and are there any plans to expand internationally?

A: Our objective is to open eight clubs during 2017, achieving 19-21 percent growth in revenues and an EBITDA margin over revenues of more than 17 percent. In terms of international expansion, we do not have specific plans yet but we are open to opportunities that might come either through organic expansion or acquisitions.