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Planet Fitness is hiking its base-level membership prices for new customers for the first time since 1998, even as the gym operator warns that customers are growing increasingly cost-conscious.
The company reported weaker-than-expected first-quarter revenue and cut guidance for the fiscal year.
Interim CEO Craig Benson said several macro conditions weighed on an increasingly price-sensitive consumer.

People work out at a Planet Fitness in Alexandria, Virginia, Jan. 8, 2024.
Leah Millis | Reuters

Planet Fitness said it’s hiking its base-level membership prices for new customers for the first time since 1998, even as the gym operator warns that customers are growing increasingly cost-conscious.
Classic card membership will be priced at $15 per month for new members starting this summer. Current members will continue to pay $10 per month “for the duration of their membership,” Planet Fitness said Thursday alongside its quarterly earnings report.

“It will take some time for the benefit of the price change to expand our store level margins as the price increase will only be on new classic card membership,” said Tom Fitzgerald, the company’s outgoing chief financial officer.
The change comes after months of price testing in several markets countrywide. Planet Fitness also said it will start testing higher prices for its top-tier membership, known as the Black Card, this summer. That membership offers customers access to any Planet Fitness location, as well as to digital content and other benefits, for a starting price of $24.99 per month.
The decision to raise prices comes after the company reported weaker-than-expected first-quarter revenue and cut guidance for the fiscal year, in contrast to competitor Life Time Holdings, which posted better-than-expected results and strong membership growth for its most recent quarter.
Life Time members tend to be older, more affluent gymgoers, whereas Planet Fitness appeals to a younger, more budget-conscious consumer.
In the company’s earnings release, interim CEO Craig Benson said several macro conditions weighed on an increasingly cost-conscious consumer.

“We faced several headwinds which impacted our results including a shift in consumer focus in the New Year to savings and concern over the increase in Covid infections and other illnesses,” said Benson.
He also said the company’s national advertising campaign failed to resonate with consumers as broadly as anticipated.
Despite the warning, analysts still see positive catalysts ahead for the company.
“Despite lowered guidance, results today were not as weak as feared,” said Piper Sandler analyst Korinne Wolfmeyer. “And we’ve now seen two key changes occur that have been needed to recharge shares, including a new CEO and White Card pricing.”
Piper Sandler maintains a “buy” rating on Planet Fitness stock and an $80 price target. Shares currently trade for about $65 apiece, having gained more than 5% Thursday.
The Street is bullish on a company turnaround from Planet Fitness’ incoming CEO, Colleen Keating, who assumes the role on June 10.
“We see the new CEO’s past experience in brand building and leading consumer-facing companies as being instrumental here,” said Wolfmeyer.

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Mike Tyson will return to the ring on July 20th to fight Jake Paul in a boxing match streamed on Netflix.
Fans are already betting on the fight, and is expected to be the most wagered on match of the year.
Promoters are offering a $2 million VIP package to the fight.

In this composite image a comparison between Former Boxer Mike Tyson (L) and Jake Paul (R). Tyson and Paul face in July 2024 exhibition fight. 
Francois Nel | Christian Petersen | Getty Images

Mike Tyson’s return to the boxing ring to fight Jake Paul this summer is already seeing soaring ticket prices and strong bettor interest.
The July 20 bout, which will take place at AT&T Stadium in Arlington, Texas and be streamed globally on Netflix, is expected to be the most heavily bet on boxing match of the year. Fans are already lining up for tickets to see the former heavyweight champion Tyson, who will be 58 at that time, take on the 27-year old social media influencer turned boxer Paul.

The fight, which will be sanctioned as a professional bout, will be 8 rounds, consisting of two minutes each. Tyson last fought in an exhibition match in 2020, but his last professional fight took place in 2005.
The event will also feature lightweight world champion Katie Taylor vs. boxing trailblazer and unified featherweight champion Amanda Serrano. The two previously achieved the first ever sold out women’s headline boxing event at Madison Square Garden.
Most Valuable Promotions, the company co-owned by Paul that is promoting the event, said more than 121,000 fans have signed up for presale access for the fight. Tickets go on sale officially next Thursday.
“This is a once-in-a-lifetime event that literally touches six generations,” said Nakisa Bidarian, co-founder of MVP.
Bidarian said 35,000 people have indicated they want to sit on the floor of the venue and over 10,000 have said they want VIP seats.

Most Valuable Promotions also has a unique offer for the fight — a $2 million VIP package. The promotion said it will include two ringside seats, which it said have never been offered before in boxing.
The package will also include four first-row floor seats for the event, four second-row floor seats, a pre-fight locker room photo with both Paul and Tyson, gloves signed by both fighters and two-night luxury penthouse accommodations at the hotel where the fighters will stay.
“We’re trying to bring awareness and exposure back to boxing in a gigantic way. That has not been the case for many, many years,” Bidarian said.
For those who can’t shell out the $2 million, secondary market sites like Gametime have released ticket prices for the event. Currently, the lowest-cost tickets are available for $357 each, and ringside seats are selling for $8,067 each.
Gambling interest in the fight has increased, too. BetMGM is already taking bets on the bout. The odds show Jake Paul as the current favorite (-145), but 70% of the money is being bet on Tyson.
“This is the type of mega fight that will draw in multiple demographics: Tyson supporters, Jake Paul haters and casual sports fans,” said Alex Rella, senior trader at BetMGM. “I fully expect this to be the most bet on boxing match of the year.”
Financial terms of the fight, and what Netflix will receive from it, have not been released. Netflix will make the bout available to all subscribers at no cost as the streaming giant continues its push into sports.
Tyson and Paul are expected to make eight figures, Bidarian said.
“We’re hoping that this becomes the most viewed streaming event in sports in the U.S.,” he added. More

Sinclair is looking to sell more than 30% of its 185 owned or operated broadcast stations, according to people familiar with the matter.
The media company has hired Moelis as an investment bank to assess possible asset sales, including the stations and the Tennis Channel, the people said.
Sinclair recently settled litigation with subsidiary Diamond Sports Group, which owns the largest portfolio of regional sports networks and is under bankruptcy protection.
Last year, Sinclair rebranded and restructured, separating the company into two operating units, the broadcast business and Sinclair Ventures, which includes non-media holdings.

Signage stands outside the Sinclair Broadcast Group Inc. headquarters in Cockeysville, Maryland, U.S., on Friday, Aug. 10, 2018. 
Andrew Harrer | Bloomberg | Getty Images

Sinclair, one of the largest owners of broadcast stations in the U.S., is looking to sell more than 30% of its footprint, according to people familiar with the matter.
The company has hired Moelis as its investment banker and has identified more than 60 stations in various regions of the U.S. that it would be willing to sell, said the people, who asked not to be named because the discussions are private. Sinclair owns or operates 185 TV stations in 86 markets.

The stations are a mix of affiliates including Fox, NBC, ABC, CBS and the CW. If sold together, their average revenue for 2023 and 2024 is an estimated $1.56 billion, the people said. Sinclair is willing to sell all or some of the stations, which are in top markets like Minneapolis; Portland, Ore.; Pittsburgh; Austin, Texas and Fresno, Calif., among others.
Sinclair CEO Chris Ripley said Wednesday that the company is open to offloading parts of its business, without providing specifics.
“As we’ve always stated, we have no sacred cows,” Ripley said during his company’s earnings conference call. “We want to unlock the sum of the parts valuation that we think we’re grossly undervalued for. And to the extent that asset sales makes sense in order to unlock that value and help us de-lever, then that’s something that we’d be open to as well.”
The company began officially shopping them in February, one of the people said.
Spokespeople for Sinclair and Moelis declined to comment.

Sinclair is also exploring options for its Tennis Channel, a cable TV network that features the sport and pickleball matches, the people said. Bloomberg earlier reported that development.
Broadcast TV station groups have suffered in the past five years as millions of Americans have canceled traditional pay TV. Most stations make money from so-called retransmission fees, paid on a per-subscriber rate by traditional TV distributors, such as Comcast, DirecTV, and Charter, for the right to carry the stations.
Sinclair has lost more than 70% of its market value in the last five years. The company’s market capitalization is about $975 million with an enterprise value of about $4.7 billion.

Sinclair changes

Last year, Sinclair rebranded and reorganized, splitting the company into two operating units — Local Media, which focuses on the stations, and Ventures, which houses Tennis Channel but can also act as an investment vehicle.
The split in the company divisions, and the recent sale process for some of its stations, stems from tension within the Smith family, the shareholders and the board directors who helped build Sinclair, some of the people said.
The stations are up for sale in the months before the 2024 election, which usually draws high political advertising revenue for broadcast TV companies. Sinclair said during earnings on Wednesday that it pre-booked $77 million in political advertising for the second half of the year through Election Day, compared with $21 million at the same point in 2020, the last time former President Donald Trump and President Joe Biden were on the ticket.
The company’s overall revenue and advertising revenue both rose slightly during the first quarter. Sinclair’s stock was up 12% on Thursday.
Sinclair’s broadcast stations have been known for having a conservative editorial voice, and the company faced backlash in 2018 after requiring some of its stations to read promos criticizing the media about “fake stories.”

Diamond woes

The process also comes after Sinclair faced headaches in the regional sports networks business.
Sinclair acquired the largest portfolio of regional sports networks from Disney in 2019 for $10.6 billion, including $8.8 billion in debt. Between ramped-up cord-cutting and the hefty debt load, Diamond Sports, the independently run and unconsolidated subsidiary of Sinclair, sought bankruptcy protection last year.
Diamond later sued parent Sinclair, and the litigation was settled in January. Sinclair made a $495 million payment to settle lawsuits related to Diamond. More

McDonald’s will require its U.S. operators to pay into a new digital marketing fund starting next year, according to a memo viewed by CNBC.
The company is recommending that franchisees invest in the fund using their existing marketing contribution.
The switch is meant to modernize the company’s marketing strategy and widen its competitive advantage as it doubles down on mobile ordering and its digital business.

A Big Mac is displayed on a page of the McDonald’s app
Daniel Acker | Bloomberg | Getty Images

McDonald’s U.S. franchisees will start paying into a digital marketing fund next year as the fast-food giant looks to expand its booming digital business, according to a memo viewed by CNBC on Thursday.
The change is meant to modernize the company’s marketing strategy and widen its competitive advantage, according to the memo, which was written by U.S. Customer Experience Officer Tariq Hassan and Chief Information Officer Whitney McGinnis. The memo also said that McDonald’s plans to invest hundreds of millions of dollars over the next couple of years to improve its loyalty program and add ordering channels, including placing web orders without downloading an app, which should also bolster its digital business.

Loyalty program members accounted for more than $6 billion in system-wide sales globally during McDonald’s first quarter. The company has 34 million active digital customers in the U.S. By comparison, Chipotle Mexican Grill has 40 million loyalty members, while Starbucks has 32.8 million.
In December, McDonald’s said it aims to reach 100 million loyalty program members by 2027.
For now, the franchisor is recommending that franchisees pay for the new fund using their existing marketing contribution, which requires that they spend at least 4% of gross sales, according to the memo. As a result, the new approach will likely lead McDonald’s to cut back on legacy marketing tools, such as TV commercials, and focus on areas that tangibly lead to higher sales.
Next year, U.S. operators will have to chip in 1.2% of projected identified digital sales, such as transactions that occur when a customer logs into the loyalty program or orders delivery, according to the memo. The rate will change annually, based on projections created at the start of the year.
As a result of the change, McDonald’s is forecasting that every U.S. restaurant will see its cash flow increase by roughly $2,600, starting in 2025. The windfall comes from the digital investment costs moving from a franchisee’s profit and loss statement to the marketing contribution.
Franchisees in the U.K., Canada, Australia and Germany will also pay into the global digital marketing fund. The rest of McDonald’s markets will transition to the approach later.

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YOUNG JOB-SEEKERS are different from their elders. They expect employers to be cuddlier, more forgiving and more generous with perks and pay cheques. The way they go about hunting for work is also distinct. Rather than relying on family and friends, a growing number of Americans are turning to TikTok in search of advice that will help them climb those all-important first steps up the career ladder.Scrolling through their feeds on the short-video app they might come across a creator called Lauren Spearman. Ms Spearman uploads videos about “red-flag job postings” and “unreasonable job applications”. Or they might find Kennie Bukky, who shares her “salary journey” and hot tips for pay negotiations. If they scroll down further, sooner or later they are likely to happen upon Brittany Peatsch. She went viral after posting a video account of her own experience being laid off from Cloudflare, a software company, and now creates videos offering advice to others suffering through similar ordeals. More

ALIBABA USED to be synonymous with the success of Chinese e-commerce. Lately the company has been synonymous with its woes. In 2021 it became the grimacing face of an official crackdown against China’s biggest technology firms, whose growing size and seeming social indispensability must have spooked the Communist Party. It was fined a record $2.8bn for monopolistic practices that, the government said, were hurting customers and merchants. Its co-founder, Jack Ma, disappeared into self-imposed exile. Rivals such as PDD, which began life as a group-buying platform, and ByteDance, which owns TikTok and its Chinese sister app, Douyin, proved better at catering to thrifty consumers and at adapting to new trends such as “social commerce”, which mixes shopping and showbusiness.In late 2022 Alibaba’s market value, which two years earlier had exceeded $800bn, fell below $170bn, close to a record low since its blockbuster initial public offering (IPO) in 2014. To reverse the decline, in March last year the company decided to split itself in six. Five firms were spun out: a logistics business (Cainiao), a cloud-computing one (Aliyun), an international e-commerce operation (which contained Alibaba’s main global platform, AliExpress, and a few regional subsidiaries), a digital-services company (which controls Ele.me, a food-delivery app) and a small media group. Alibaba proper retained the domestic retail operation, which is centred around Taobao and Tmall, its two giant marketplaces, and which accounts for nearly 70% of the group’s revenues. More

General Motors believes it can regain market share in China after hitting a roughly 20-year low last year, GM President Mark Reuss said Thursday.
GM’s market share in China, including its joint ventures, has plummeted from roughly 15% as recently as 2015 to 8.6% last year — the first time it has dropped below 9% since 2003.
The market declines have spurred questions on whether GM would exit China, as it has other underperforming markets in recent years.

GM President Mark Reuss announces a $2.2 billion investment in the automaker’s Detroit-Hamtramck Assembly plant in Michigan for new all-electric trucks and autonomous vehicles on Jan. 27, 2020.
Michael Wayland / CNBC

DETROIT – General Motors believes it can regain market share in China after hitting a roughly 20-year low last year amid changing market conditions and increased domestic competition, GM President Mark Reuss said Thursday.
The longtime GM executive said new all-electric and plug-in hybrid electric vehicles, as well as the redesign of its Buick brand, will help the automaker turn around operations in the region.

GM’s market share in China, including its joint ventures, has plummeted from roughly 15% as recently as 2015 to 8.6% last year — the first time it has dropped below 9% since 2003. GM’s earnings from the operations have also fallen, down 78.5% since peaking in 2014, according to regulatory filings.
Reuss also touted the competitiveness of GM’s Chinese joint venture partners such as Wuling Motors. GM first established operations in China in 1997.

“You can look at it any way you want from a larger geopolitical standpoint, but for us in China, this has been a great advantage for us to be partnered so deeply for so many years with our JV partners there,” Reuss said during the Financial Times Future of the Car Summit. “We have an advantage there with Buick and Wuling, and it goes both ways.”
GM’s market share declines in China are the result of growing competition from government-backed domestic automakers fueled by nationalism and a generational shift in consumer perceptions of the automotive industry and electric vehicles. The company, along with other American-based automakers, is managing geopolitical tensions between China and the U.S.
GM’s U.S.-based brands such as Buick and Chevrolet have seen Chinese sales drop more than those of its joint venture. The joint venture models accounted for about 60% of GM’s 2.1 million vehicles sold last year in China.

The market declines have spurred questions on whether GM would exit China, as it has other underperforming markets in recent years.
Reuss said Thursday that GM plans to remain in China “for the foreseeable future.”
GM CEO Mary Barra told investors in February that “nothing is off the table in ensuring that GM has a strong future to generate the right profitability and the right return for our investors” in China.
GM on Tuesday announced a “leadership transition” in China. The automaker said Steve Hill, currently GM’s vice president of global commercial operations, would succeed GM China President Julian Blissett, effective June 1.

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Warner Bros. Discovery reported first-quarter results before the bell on Thursday that missed on the top and bottom lines.
Earlier this week, the company said it would offer a streaming bundle with Disney.
On Thursday the company said it repaid $1.1 billion in debt during the quarter, and also announced a $1.75 billion cash tender aimed at further reducing its debt.

In this photo illustration, the Warner Bros. Discovery logo is displayed on a smartphone screen.
Rafael Henrique | SOPA Images | Lightrocket | Getty Images

Warner Bros. Discovery reported first-quarter results on Thursday, missing analyst expectations on both the top and bottom lines despite strength in its streaming unit.
The company’s stock fell nearly 4% in premarket trading.

Here is how Warner Bros. Discovery performed, compared with estimates from analysts surveyed by LSEG:

Loss per share: 40 cents vs. 24 cents loss expected
Revenue: $9.96 billion vs. $10.231 billion expected

Warner Bros. Discovery — which owns streaming service Max, a portfolio of cable TV networks including TNT and Discovery, and a film studio — said revenue fell 7% to $9.96 billion compared to the same quarter last year.
Warner Bros. Discovery posted a net loss attributable to the company of $966 million, or 40 cents per share, an improvement from the year-ago quarter when it reported a loss of $1.07 billion, or 44 cents per share.
The company said total adjusted earnings before interest, taxes, depreciation and amortization were down roughly 20% during the first quarter to $2.1 billion, noting its “Suicide Squad: Kill the Justice League” video game generated significantly lower revenues.

Streaming growth

Warner Bros. Discovery said Thursday it added 2 million direct-to-consumer streaming subscribers during the quarter, bringing its total to 99.6 million.

That segment earned an adjusted $86 million during the quarter, an improvement of $36 million from the prior-year quarter, the company said. It also saw revenue increase “modestly” to $2.46 billion from the prior-year quarter.
Advertising revenue for streaming proved to be a bright spot, increasing 70%, boosted by higher engagement on Max in the U.S. due in part to subscriber growth in the streaming service’s ad-lite tier and the launch of sports on the app.
The earnings release follows an announcement this week that Warner Bros. Discovery would bundle its streaming services with those of Disney — tying together Max, Disney+ and Hulu — and offer it to consumers this summer, a callback to the traditional pay-TV package. Pricing has yet to be disclosed, but it will be offered at a discount, CNBC reported.
It marks the first time two media giants are joining forces to offer a streaming bundle as the push to make streaming profitable continues. While TV networks have long been a cash cow for media companies, the bundle continues to bleed subscribers.
“As you know, I’ve been a big proponent of bundling,” CEO David Zaslav said on Thursday’s earnings call. He noted subscribers will have to stick with the bundle to take advantage of the cheaper pricing offering, which should then reduce so-called churn, referring to people dropping their subscriptions.
The entertainment streaming bundle marks the second partnership with Warner Bros. Discovery and Disney in recent months. The companies, along with Fox Corp., previously announced a sports streaming joint venture that will launch this fall.

Sports rights

On the sports front, Zaslav said Thursday that media rights negotiations with the NBA — which has long been a staple on cable channel TNT — are still ongoing, and he is “hopeful to reach an agreement that makes sense for both sides.”
NBCUniversal recently made an offer to once again own the rights, CNBC previously reported. Zaslav noted while the company has strategies in place for various outcomes, its deal with the NBA includes the right to match any other offers before the league makes a decision.
Last fall Warner Bros. Discovery began offering NBA games on Max.
The company has been rolling out Max across the globe, and Zaslav noted on Thursday it will enter more European markets ahead of the Summer Olympics in Paris. While NBCUniversal holds the U.S. rights for the Olympics, airing the games on its TV networks and Peacock streaming service, Warner Bros. Discovery’s Max will be the streaming home in Europe.

TV, Studios weakness

Though advertising revenue was strong in streaming, it remained weak for Warner Bros. Discovery’s TV networks, as did the segment as a whole.
TV networks revenue was down 8% to $5.13 billion, with advertising revenue down 11%. While the ad market has been soft for some time now, recent quarterly earnings show there has been improvement for digital and streaming while traditional TV lags behind.
Meanwhile, Warner Bros. Discovery’s studio segment revenue was down 12% to $2.82 billion compared to the same quarter last year. The segment was weighed down by the lackluster release of the latest iteration of “Suicide Squad” and the lingering effects of the Hollywood writers and actors strikes last year.
On Thursday, Zaslav said the company is striving “to return the luster” to its film studio. As part of that, he announced work is underway for the latest installment of “Lord of the Rings,” with an anticipated release in 2026.
The company’s cash position improved, with free cash flow increasing to $390 million, a $1.3 billion improvement from the same quarter last year, the company noted.
Warner Bros. Discovery has been working to reduce its debt load, which now stands at $43.2 billion, stemming from the merger of Warner Bros. and Discovery in 2022. On Thursday the company said it repaid $1.1 billion in debt during the quarter, and also announced a $1.75 billion cash tender aimed at further reducing its debt.
Disclosure: Comcast NBCUniversal is the parent company of CNBC.
This story is developing. Please check back for updates. More