SATS’ financial performance is returning to normal, and the members’ activity level continue to increase
SATS ASA (“SATS” or the “Company”) is today reporting a third quarter showing the Company’s ability to recover after the set-back during the COVID-19 related lock-down in the first half of 2020.
The Company has adapted to a new normal after the reopening of clubs, where infection control and a commercial mindset go hand in hand. The number of club visits is in line with last year, and the number of workouts per member increased both at club and online, proving that SATS’ commercial offering is appreciated by its members.
Key highlights from the third quarter of 2020:
- We have seen a rapid comeback of members and visits after opening our clubs
- We have proven that it is safe to work out at SATS, with no confirmed infection cases among members tracked back to our clubs
- We have strong operational routines and tight cost control, resulting in a significant improvement in member satisfaction and solid financial delivery
- After adjusting for the sale of nine clubs in Denmark, the member base grew with 4%
during Q3, compared to a flat development last year, reducing the gap versus last year to -1%
- Total revenues summed up to NOK 955 million, increasing by 2% (-3% currency adjusted)
- Adj. EBITDA is recovering, but was down 23% to NOK 99 million in Q3 as the member base is not fully recovered and marketing costs increased temporarily in the quarter
- Once the member base is back to pre-COVID-19 levels, we expect to return to the healthy financials proven prior to the pandemic
- The record high net growth in member base in Q3 is not expected to continue in Q4 given the COVID-19 development and uncertainty around potential new governmental restrictions – but we have proven that we are able to quickly recover even after a long club closure
- Our number one priority is to ensure that it is safe to train in our clubs, so we can continue with our positive contribution to public health – which is now more important than ever
- We have proven that we are able to combine strong infection control measures, and at the same time deliver positive member experiences, growth and product development – and we are ready to operate in this “new normal” for as long as necessary
- Digital fitness is growing, creating new growth opportunities for SATS
- We will continue to invest in growth both in existing and new clusters going forward
“SATS had a rapid recovery after re-opening, both in visits and record high member growth. Our number one priority is to ensure that it is safe for members to visit our clubs, and we have proven this with no COVID-19 member infection cases tracked back to our clubs. With 38 million visits annually, our contribution to public health is substantial. In the lock down during the spring, the Nordic population was very inactive. And we believe that activity and exercising is a key pillar for health recovery and COVID-19 prevention”, says Sondre Gravir, SATS CEO.
Cecilie Elde, Chief Financial Officer, phone: +47 924 14 195
Stine Klund, Finance and Investor Relations Manager, phone: +47 986 99 259
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.