Soho House Q3 2021 Earnings Report
Key Takeaways
Membership Collective Group Inc. reported a 57% increase in total revenue to $180 million compared to the third quarter of 2020. The growth was driven by a rebound in In-House Revenue, which increased by 122%. Total members increased by 16,663 in the quarter to 144,503. The company reported a net loss of $76 million and an Adjusted EBITDA of $9 million.
Total members increased by 16,663 in the quarter to 144,503, driven by continued high retention of members, the resumption of intakes at existing Houses, new Soho House openings and the continued growth across our membership platform.
Total Revenue increased 57% from the third quarter 2020 to $180m driven by the rebound of In-House Revenue, which increased 122% in the three-month period-on-period, rising to pre-pandemic levels through the quarter.
Membership Revenue grew by 21% to $51m, accounting for 28.5% of Total Revenue.
MCG Waitlist continued to increase to 66,800 to support future growth.
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Soho House Revenue by Segment
Forward Guidance
MCG expects ongoing recovery of In-House Revenues and is positioned well to grow the membership base.
Positive Outlook
- Experience from the third quarter gives us confidence about the ongoing recovery of In-House Revenues.
- The strength of our growing waitlist combined with a continually strong number of new applications positions MCG well to grow the membership base.
- Soho House Rome opened in October following the end of the quarter.
- Our pipeline for site openings in 2022 remains on track.
- In the first quarter of 2022 we expect to open Soho Houses in Nashville, West Hollywood and Brighton.
Challenges Ahead
- The exact profile of the recovery remains conditional on the progression of Covid-19.
- Soho Roc House in Mykonos also had a 90% occupancy rate in the quarter.
- Scorpios Beach Club in Mykonos was impacted by incremental Covid-19 restrictions in July, although the Club still operated at or near the reduced capacity levels for the summer season.
- Membership credits with a sales value of $21m, recorded in the prior period as a liability, were redeemed in this quarter and accordingly were not captured within Total Revenues.
- Operating loss of $(53)m compared to $(16)m in the same three-month period last year, largely due to the impact of non-cash share-based payments, foreign exchange and costs associated with the IPO.