SATS Q2 2021: Successful re-opening and strong new membership sales

SATS ASA (“SATS” or the “Company”) leaves behind a second quarter with a solid re-opening as members have returned quickly, coupled with strong new membership sales. During the pandemic, the Company has maintained focus on handling the COVID-19 restrictions, getting back on track, and investing in future growth.

All clubs are currently open, although with COVID-19 restrictions on capacity and operations. Restrictions are even stronger than after the re-opening in 2020. However, the numbers are clear; members are returning even quicker than last time. A higher share of the member base has been re-activated and the visit levels per active member is up to 10% higher than last year. In many clubs, visit levels are already back to the normal pre-pandemic level. In addition, the sale of new memberships is strong, resulting in a 7% increase in the paying member base during the quarter, despite only having operated with the full club portfolio open for one month. The Company expects the positive member development to continue in the months to come.

SATS has about 40 million club visits in a normal year. Hence, the Company is very well positioned to play an even more important role in lifting public health. SATS aims to contribute more to UN’s SDG 3 target of ‘Good health and well-being’ and WHO’s goal to reduce inactivity by 15% by 2030. Consequently, SATS has increased its growth investments by adding 19 new club openings through 2023. In addition, SATS is continuing to expand the digital presence, including the launch of Mentra by SATS in Q3, an additional offering for the home training market.

Key highlights from the second quarter of 2021:

Strong visit development after re-opening with increased engagement in the member base compared to the re-opening last year
Paying member base increased by 7% in Q2 vs Q1, despite only having operated with the full club portfolio open for one month. Total member base increased to 612 000 at the end of Q2 2021, up from 599 000 at the end of Q1 2021 (+2%)
Total revenues summing up to NOK 670 million, compared to NOK 744 million last year (-10%)
Adjusted EBITDA of negative NOK 113 million, compared to NOK 38 million last year
No compensation for fixed costs from the Norwegian government accrued for the period March to June, due to new restrictions in the compensation scheme for applicants part of a corporate group. The estimated compensation for the four-month period would be approximately NOK 70 million if applying for support on entity level as in previous compensation scheme periods
With a liquidity position of NOK 495 million, the Company has sufficient financial liquidity to handle to current regulatory environment, as well as the planned strong growth investments

“We are very happy to see that members are eager to return to our clubs, even stronger than in the re-opening last year. It has also been great to welcome 8 500 colleagues back to their jobs as we opened our clubs. The re-opening has been a success and we are pleased to see strong new membership sales. The megatrend around health and wellness is strong, and we are thus focusing on investing in growth”, says Sondre Gravir, CEO of SATS.

Please find the Q2 2021 presentation and report in the original stock announcement or on https://satsgroup.com/reports-presentations/quarterly-reports/

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:
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 Stine Klund, Finance and Investor Relations Manager, SATS ASA.