SATS ASA Q4 2023: Record-high revenues and significantly improved profitability

SATS ASA (or “the Company”) saw Q4 2023 total revenues improve by 13 percent compared to Q4 2022, reaching record-high NOK 1,227 million. The Company leverage the enhanced revenue performance by improving EBITDA before IFRS 16 to NOK 128 million this quarter, up from NOK 12 million in Q4 2022. The improved results are due to continued growth in SATS’ core business, as well as tight cost control to mitigate the inflationary pressure.

Key highlights from the fourth quarter of 2023:

  • Q4 2023 total revenues of NOK 1 227 million, driven by yield increase as a result of product improvements and price adjustments
  • Q4 2023 EBITDA before IFRS 16 reached NOK 128 million, up from NOK 12 million in Q4 2022, resulting in a Q4 EBITDA margin of 10%, 9 p.p. higher than in Q4 2022
  • Deleveraging at a high pace, reporting a leverage ratio of 2.3x net debt to EBITDA before IFRS 16, compared to 11.2x at year-end 2022
  • The total number of workouts at SATS’ clubs increased by 8% in Q4 2023 compared to Q4 2022, driven by member growth and higher activity per member
  • Total revenues for FY 2023 summed up to NOK 4 734 million, up 11% (curr. adj.) from FY 2022
  • FY 2023 EBITDA before IFRS 16 reached NOK 614 million, significantly lifted from NOK 145 million in FY 2022, resulting in a FY EBITDA margin of 13%, 9 p.p. higher than in FY 2022
  • The average revenue per member (ARPM) increased by 7% (curr. adj.) in FY 2023 compared to FY 2022
  • The member base increased by 10 000 members from Q4 2022, reaching 731 000 members by the end of 2023

“We are pleased to report record-high revenues and significantly improved profitability in the fourth quarter. We have executed on our strategic priorities of focusing on our existing portfolio, rapid deleveraging and increasing member activity. SATS is now in a notably improved financial position compared to a year ago, and we still have potential to improve further. We are excited to see what 2024 brings, as we are ready to capitalize on our current momentum,” says Sondre Gravir, CEO of SATS.

SATS’ CEO Sondre Gravir and CFO Cecilie Elde will hold a webcast presentation at 08:30 CET today, 13 February 2024. The presentation will be held as a webcast only, available both at and!/hegnarmedia/20240212_1
There will be a Q&A for investors and analysts from 09:30 to 10:00 (CET) over Microsoft Teams. Please note that the timing of the Q&A session has been adjusted from 10:00 to 09:30:
Please find enclosed the Q4 2023 presentation and report.

Investor Relations Contacts:
Cecilie Elde, Chief Financial Officer, phone: +47 924 14 195
Jonas Sortland Fougner, Interim IR Manager, phone: +47 948 05 851
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 Jonas Sortland Fougner, Interim IR Manager of 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 2024-02-13 07:00 CEST.