SATS ASA ("SATS" or the "Company") achieved a record net member growth in the
quarter driven by strong sales and low churn. At the end of October, the member
base was fully recovered, ahead of own expectations. The quarter also showed
underlying growth in visits, yield and other revenues.
"The recovery has been faster than expected. Member base is fully recovered and
underlying growth in member visits, yield and other revenues are all very
positive. The SATS organization is full of energy and ready to make even more
people healthier and happier", says Sondre Gravir, CEO of SATS.
During the pandemic there was uncertainty regarding potential structural changes
for our industry and member habits. Now, a few months after most restrictions
were lifted, we see that member habits and demographics are largely unchanged.
We also see that the pandemic highlighted the importance of living a healthy
lifestyle. Our members are more active than before the pandemic, with higher
visits per week per member.
The positive momentum is not yet fully reflected in financial results as the
ramp-up in members and reduction in freeze levels impacted late the quarter.
However, revenue run-rate at the end of the quarter approached pre-pandemic
levels. Our liquidity position is sufficient to handle existing operations and
our accelerated expansion plan, provided no material change in the current
SATS has throughout the pandemic strengthened the foundation for future growth
through multiple levers. We have capacity in our clusters for continued
membership growth. We have expanded our club footprint significantly. In 2020
and YTD 2021 SATS has opened 22 new clubs. We have an ambitious greenfield
roll-out plan with 17 new clubs to be opened throughout 2023, and more will
come. We also see the potential of improving the average revenue per member by
offering adjacent products and services, continued development of our personal
training and retail offering and pricing optimization. We have launched Mentra
by SATS which will further increase our digital presence both in new and
existing target groups.
Key highlights from the third quarter of 2021:
- Successful reactivation of the member base after reopening, as member
behaviour and visits are back to pre-pandemic levels
- Various COVID-19 restrictions have been in force in parts of the quarter, but
no restrictions were imposed on our clubs at the end of the quarter
- Strong recovery in the member base with record high member growth, increasing
the member base with 41 000 (+7%) during Q3 2021 (vs. 1 000 in Q3 2019)
- The member base end of Q3 2021 was 653 000, reducing the gap versus last year
- End of October the total member base was fully back to 2019 pre-pandemic level
(adjusted for nine divested Danish clubs)
- Member revenues decreased by 7% compared to last year as the ramp-up in
members and reduction in freeze levels impacted late in the quarter
- Total revenues in the quarter increased 2% to NOK 971 million, partly due to
governmental compensation in Denmark and Norway related to club closures in Q2
- Operating expenses increased due to 11 additional clubs and temporarily higher
sales campaign costs in the quarter
- Adjusted EBITDA is recovering but was down 16% to NOK 83 million in the
Please find enclosed the Q3 2021 presentation and report.
Cecilie Elde, Chief Financial Officer, phone: +47 924 14 195
Martin Stenshall, Finance and Investor Relations Manager, phone: +47 473 38 331
Julie Tellugen Hæhre, Press Contact, phone: +47 419 01 011
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation, and is subject to the disclosure requirements pursuant
to Section 5-12 of the Norwegian Securities Trading Act. The stock exchange
announcement was published by Martin Stenshall, Finance and Investor Relations
Manager, SATS ASA.