Next Generation Clubs 1H19 Results

Next Generation (Next Gen, Group) reported 1H19 results which were noticeably softer than 1H18, as revenue, EBITDA and NPAT were all affected by the lower membership count stemming from the sale of Perth South. In addition, the construction of the new Doncaster club continues to be delayed. As a result, we revise our recommendation on the Group's 7.90% senior secured notes due June 2023 due to our view of limited price upside in the near term.