SATS ASA: Q3 2023 – Strong financial result and high-paced deleveraging

SATS ASA ("the Company") leaves behind a third quarter characterized by a strong EBITDA before IFRS 16 delivery of NOK 155 million and a high-paced deleveraging. An important contributor to the robust financial result is the member base growth over time. The Company has kept a precautionary expansion approach over the past year, so the member growth has taken place in the existing club portfolio and led to a higher club utilization.

SATS has delivered strong financial results three quarters in a row, which correspond with the indications provided at last year’s Capital Markets Day. However, these are not extraordinary results, this is the new normal and illustrates the financial strength of SATS.

Key highlights from the third quarter of 2023:

  • Successful measures implemented the past year focused on the core business, fully in line with the road outlined on the Capital Markets Day in October last year
  • The total number of workouts at SATS’ clubs increased by 17% in the quarter, driven by both member growth and higher activity per member
  • The member base counted 731 000 members by the end of the quarter, representing a 2% increase in members per sqm from the pre-pandemic Q3 2019 and thus a higher utilization of the asset base
  • The average revenue per member (ARPM) YTD increased by 7% (curr. adj.) from last year, and the average price for new memberships increased by 18% (curr.adj.) in the quarter, which in combination with the member growth, prove a continued willingness to pay for gym memberships
  • Total revenues summed up to NOK 3 507 million YTD, up 12% (curr. adj.) from YTD 2022
  • Maintained a strong cost discipline, resulting in a 1% (curr.adj.) increase in total operating costs YTD, and a conservative capex spend
  • EBITDA before IFRS 16 reached NOK 486 million YTD, significantly lifted from NOK 133 million in the corresponding period last year
  • Deleveraging at a high pace, reporting a leverage ratio of 3.1x net debt to EBITDA before IFRS 16, compared to 10.5x in Q3 2022


“We have the past year kept a sharp focus on improving our core business and product delivery, attracting members to our clubs and helping them succeed with their training. In parallel, we have kept a disciplined cost control and slowed down club expansion, which has enabled us to de-lever financially. Going forward, we will stick to these successful focus areas, but we will also continue investing in our existing club portfolio, making our clubs and product offering even more attractive for existing and new members”, says Sondre Gravir, CEO of SATS.

Please find enclosed the Q3 2023 presentation and report.

Investor Relations:
Cecilie Elde, Chief Financial Officer, phone: +47 924 14 195
Stine Klund, Investor Relations & Business Development Manager, phone: +47 986 99 259

Press:
Tina Brodal, Press Contact, phone: +47 938 44 171

Please see the attached quarterly report for definitions and reconciliations of the Alternative Performance Measures (APMs).

The stock exchange announcement was published by Stine Klund, Investor Relations & Business Development Manager, SATS ASA.

This information is information that SATS ASA is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2023-10-26 07:00 CEST.

Attachments
SATS ASA Q3 2023 Report
SATS ASA Q3 2023 Presentation