SATS Q1 2021: Short term set-back – long term opportunities
SATS ASA (“SATS” or the “Company”) leaves behind a first quarter with 40% of the capacity closed, materially affecting both the public health and the short term financial performance. However, the Company has weathered the storm and sees many opportunities going forward.
SATS is increasing the growth pace. The club portfolio will be expanded by 30 new clubs in 2020 and 2021. On the digital side, SATS is launching a new digital home training offering, unlike anything seen in the Nordics before – Mentra by SATS. This product will combine curated and live content with outstanding coaches and community circles, all presented through a fitness mirror.
Key financial highlights:
- Member base of 599 000 members, down 12% adjusted for club divestment in Denmark
- Total revenues summing up to NOK 605 million, 39% below last year, including governmental supporting packages of NOK 108 million
- Total operating expenses down 25%, as cost reducing initiatives are partly offsetting the revenue loss
- Sufficient liquidity to handle a continued unsecure regulatory environment going forward, with a liquidity position of NOK 778 million, including cash and undrawn revolving credit facility (RCF)
- Short term financial flexibility increased through an addendum to the RCF agreement signed in April, temporarily waiving the original covenants
“For SATS as a company, it has been important to manage the crisis along two tracks. First, we needed to handle the pandemic in the short term. We have changed our operational routines to ensure safe training. We have reduced operational costs. We have activated our members through digital training. But even more importantly, we have been preparing ourselves for the opportunities arising post the pandemic. The megatrend in our society around health and wellness, and the willingness to invest in fitness and personal health, have never been stronger. Hence, we are ramping up our growth investments”, says Sondre Gravir, CEO of SATS.
Please find enclosed the Q1 2021 presentation and report in the original stock exchange announcement and under Reports and presentations at satsgroup.com.
Cecilie Elde, Chief Financial Officer, phone: +47 924 14 195
Stine Klund, Finance and Investor Relations Manager, phone: +47 986 99 259
Anne Flæte, Press Contact, phone: +47 932 56 295
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.