And looking at the Spanish market for fitness equipment, how does Life Fitness compare to other brands like Technogym, Matrix, and others? How do you compare in terms of pricing and offerings? Can you help me understand the overall market structure for equipment, specifically in Spain or the Iberian market.

Life Fitness entered the Spanish market as a direct business unit about 21 years ago. Before that, it operated through a distributor. So, the market share was already well established when we arrived, making it challenging to gain ground. In terms of revenue, Technogym is number one, generating around €30 to €35 million annually.

And looking at the Spanish market for fitness equipment, how does Life Fitness compare to other brands like Technogym, Matrix, and others? How do you compare in terms of pricing and offerings? Can you help me understand the overall market structure for equipment, specifically in Spain or the Iberian market.

Technogym produces high-quality equipment as well, similar to Life Fitness. However, they don’t have the same legacy when it comes to strength or cardio equipment. What they do excel at is marketing. They’ve grown very quickly because they focus heavily on user experience. Their designs are visually appealing, which is a key selling point. Gym operators often see Technogym as a design-driven company that prioritizes aesthetics and user experience over pure functionality.

Let’s go back a bit. I wanted to ask you more about the differences between you and your competitors. How do you compare in terms of pricing? You mentioned that Life Fitness is a bit more premium. How do the prices compare?

The price war became very aggressive. When we arrived to the market 20 years ago to compete vs Technogym they seeked to protect its part of the pie and started to discount in a very agressive manner. We did the same and this accustomed the market to receive a high level of discounting. This was normalized for over 15 years and when Matrix arrived they were even more agressive. So over the past 15 years the price war has been brutal. COVID fortunately helped us to reset the discounting a bit.