SATS ASA (“SATS” or the “Company”) leaves behind a challenging quarter, weighted
by the outbreak of COVID-19 and the following closure of clubs, but also
dominated by a high pace of innovation and numerous product launches,
contributing to making people healthier and happier.
Key highlights from the first quarter of 2020:
• Reduction in member base of 1% versus last year due to a negative sales effect
from COVID-19
• Total revenues of NOK 990 million, compared to NOK 1 010 million last year
(-2%). Estimated COVID-19 related revenue loss of NOK 110 million
• Adjusted EBITDA of NOK 40 million, down -67% from NOK 120 million last year,
including an estimated negative EBITDA effect of NOK 85 million from COVID-19
• Four new club openings, of which two acquisitions and two greenfields, filling
out the clusters in Stockholm and Helsinki
• Temporarily closed all clubs on 12 March, with reopening in Sweden on 26 March
and in Finland on 24 April
• Retaining parts of the membership revenue, as members were given option to
continue the membership and use SATS’ extended digital offering at a reduced
price during closure period
• Swift action to manage the cash position and lower the cost base, reducing
operating costs by ~20% during the closed period in March:
• Temporarily laid off more than 5 000 employees in Norway and Denmark
• Support from governmental compensation packages
• Expansion and maintenance capex partly put on hold
• Strong liquidity position due to partly continued member revenues, RCF
drawdown and reduced cash burn
SATS has reopened clubs in Sweden and Finland and will use the experience from
these reopenings when the clubs in Norway reopen on 15 June. The Company is
continuing to work close with local industry organizations and health
authorities in Denmark to establish an industry standard for how to reopen in a
responsible matter, but is still awaiting an opening date from the Danish
government.
“Public health is more important than ever, but the activity in the population
is declining. According to an Opinion survey in collaboration with Virke, 21% of
the Norwegian population have seen a decline in fitness during the pandemic. In
Denmark, an analysis from “Idrættens Analyseinstitut” shows that the share of
the Danes working out regularly has dropped from 55% before the closure to 39%
during the closure. SATS is ready to open in a safe and responsible manner,
continuing to make the Nordic population healthier and happier”, says Sondre
Gravir, CEO of SATS.
Investments in the digital offering the Company made the past years is now
really proving its worth. Building on the existing platform, SATS has further
increased the pace of innovation drastically to meet the members' need to be
able to work out from home during the outbreak of COVID-19. The Company has
rapidly launched a range of new digital products, including live sessions,
online physiotherapy, online personal training, and online nutrition counseling,
which are well received by both members and employees.
SATS expects the negative effects caused by the COVID-19 outbreak to prevail
some time after reopening of all clubs but is confident that the long-term
outlook is still dominated by society’s increased focus on health and well-being
and robust global trends, such as political initiatives for health and
digitalization. Over the longer-term, the economic impact of the pandemic is
expected to drive further consolidation in the fitness industry. SATS believes
the market dynamics post COVID-19 will be suited to the company’s business
model. SATS has plans for further expansion in the Nordics and continued
investment in the product offering to remain the leading provider of fitness and
training services in the Nordics.
Please find enclosed the Q1 2020 presentation and report.
Investor Relations:
Cecilie Elde, Chief Financial Officer, phone: +47 924 14 195
Stine Klund, Finance and Investor Relations Manager, phone: +47 986 99 259
Press:
Malin Selander, Head of Communication & PR, phone: +46 70 426 40 06
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
