Soho House lowers revenue forecast

Soho House parent company the Membership Collective Group (MCG) has lowered its revenue and earnings targets “mostly reflecting headwinds from FX and Hong Kong”.

The group has lowered its 2022 financial guidance suggesting it was on target to hit total revenues of between $950m to $1b (£790m-£852m), instead suggesting a range of $910-$985m (£757m-£819m). Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) guidance was changed from $80m-$90m (£66m-£75m) to $70m-$80m (£58m-£67m).

In the group’s financial results for the second quarter ended 3 July 2022 it reported total revenues of $243.8m (£203m), and EBITDA of $15.4m (£12.8m). Its membership grew to 193,370 from 171,927 in the first quarter in 2022, and 51.3% year-over-year.

Nick Jones, founder and chief executive of MCG, said: “We had a good second quarter, welcoming more than 21,000 new MCG members and successfully opening a new Soho House in Los Angeles and the Ned NoMad in New York City. We have since opened two more Soho Houses, in Balham (South London) and Copenhagen, in July. We were able to grow revenue almost 100% year-over-year, driven by continued strong membership growth, as well as recovery of our in-house and other revenues. This growth was despite significant FX headwinds and some continued Covid impact, most noticeably in Hong Kong.

“We continue to increase our EBITDA and remain confident in our membership targets. We are on track to meet our target of nine new Soho House openings this year, as well as two new Ned sites in New York and Doha, and a new the Line in San Francisco. We update our fiscal 2022 guidance primarily to reflect the impact of FX and Hong Kong on our reported numbers.”

The group said it remained on track to open nine Soho Houses this fiscal year, that it had been able to offset most inflationary pressures through “pricing power and continued improvements in our purchasing”.

The business has 36 Soho Houses globally, 12 of which are in the UK.