Bangkok--Sep 22--Branded The Agency
California WOW Xperience will be listing on the Stock Exchange of Thailand in November, boosted by 141% increase in 6-month net profit to Bt35.90 million and a 135% increase in revenue to Bt366.37 million
Eric Levine, Chairman and Chief Executive Officer of California WOW Xperience Plc, revealed that the company has received the Securities and Exchange Commission's permission for the issuance of 50 million new shares for the initial public offering. The new shares are expected to start trading on the Stock Exchange of Thailand within November.
Levine added that the proceeds will finance three objectives: repay partial loans from financial institutions, open new branches, and reserve the rest for working capital.
In expanding the branch network, Levine said that the Ratchayothin Branch should commence operations around late 2005 while the Siam Paragon and Chaeng Wattana Branches should be open around the first quarter of 2006. At present, California WOW operates with 3 branches in Silom, Sukhumvit 23 and Pinklao.
"The company has witnessed a sharp growth in revenue and net profit due to Thailand’s mass population tuning into fitness awareness and the fact that California WOW is the clear market leader. Our branches are located in Triple A locations and our membership has soared from 26,000 in September 2004 to roughly 46,000 in mid-September 2005.
“The Thai society’s acceptance of our Exertainment concept also results in the expanded membership base, which allows efficiency in cost management and pushes up the net profit.”
Aside from membership fees, the company also receives from the personal training fees as well as additional fees from yoga and Pilates classes which have been warmly welcomed among its members and proven to be a huge success
“In the past six months, the company's service revenue reached Bt366.37 million and we reaped Bt35.90 million in profit. That represents a 135% and 141% increase from the same period last year when our service fees were Bt156.13 million and net profit at Bt14.90 million."
California WOW Xperience Plc was formerly registered as California Fitness Centers Co Ltd. It was established on July 25, 2000 and unveiled the first branch at Liberty Square Building in December in the same year. It is owned by two groups of investors: the one led by Eric Mark Levine (51%) and the other being Major Cineplex Group Plc (49%).
For more information, please contact:
Uracha Jaktaranon
Narumon Hanpairojkajon
Branded The Agency Co.,Ltd.
Tel : 0-2650-9090 End.