SATS presents strong revenue growth and margin expansion in the fourth quarter
SATS ASA (“SATS” or the “Company”) delivered a solid fourth quarter in line with guiding:
• The member base grew by 20.9 per cent to 687 000 members during 2019 (+3.8 per cent excl. Denmark)
• Revenue rose by 21.3 per cent to NOK 1 036 million compared to the same quarter last year (+6.3 per cent excl. Denmark)
• Adjusted EBITDA before impact of IFRS 16 increased with 19.4 per cent to NOK 155 compared to the same quarter last year (+28.0 per cent excl. Denmark)
The Company shows solid margin expansion, both in the fourth quarter and in full-year 2019, as all country segments improved compared to last year. The newly acquired Denmark segment still contributed negatively, as expected, but improved compared to the third quarter.
One of the most important operational measures for SATS is the number of visits. Active members have a longer lifetime which drives revenue growth. All together SATS’ members completed more than 36 million (+12%) workouts at the clubs during 2019.
“I’m excited to share that our members completed more than 36 million workouts at our clubs in 2019, which represents a 7% increase per member compared to 2018. This is a result of an improved member experience, both in terms of product offering and member activation. We have also developed our digital products and we see a 31% growth in the usage of our online training offering in January”, says Sondre Gravir, CEO of SATS.
SATS’ growth strategy is to establish fitness centers in areas where people live and work, as that will help our members succeed with their training. During the fourth quarter, the Company opened two new greenfields, one at Danmarksplass in Bergen and one in Scheelegatan in Stockholm. Going forward, there are so far seven signed greenfields and acquisitions with planned openings in 2020.
Please find enclosed the Q4 2019 presentation and report.
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.