SATS Q2 2022: SATS reports 10% member growth and revenue improvement of 53% year-on-year
SATS ASA (“SATS” or the “Company”) today presents its quarterly results for the second quarter of 2022, showing revenues of NOK 1 022 million, a growth of 53% year-on-year. Adj. EBITDA before IFRS 16 was NOK 83 million, up from a negative NOK 113 million in the corresponding quarter last year.
Key highlights from the second quarter of 2022:
- The club portfolio consisted of 267 clubs by the end of Q2 2022, representing a net increase of 13 clubs from the corresponding quarter last year
- The member base grew by 10% from Q2 2021 to 671 000 members and is thus in line with the pre-pandemic quarter of Q2 2019
- Total revenues summed up to NOK 1 022 million, up 53% since Q2 2021, which was heavily affected by covid and related restrictions
- Tight cost control in an inflationary environment, with an operating expenses CAGR of 1.4% in comparable clubs since Q2 2019
- Adjusted EBITDA before impact of IFRS 16 was NOK 83 million in the quarter, up from a negative NOK 113 million in the corresponding quarter last year
- The net profit reached NOK 12 million, up from NOK -163 million in Q1 2021
- Robust financial position with NOK 838 million in total available liquidity
- The fitness market characteristics and consumer preferences are largely unchanged
- The key driver for growth is increasing the number of members per club, through club optimization and member activation initiatives. Expansion strategy focused on delivering the current greenfield pipeline, as well as pursuing new attractive consolidation opportunities
The total member base and revenues remain in line with 2019-levels, partly driven by new clubs added to the portfolio. The member base in the like-for-like clubs is approaching recovery, but there is still significant potential in filling the clubs to reach the pre-pandemic average member base per club. A key priority going forward is therefore to grow the member base in the current club portfolio, in addition to grow the club portfolio through further consolidation and delivering on the current greenfield pipeline.
“We see that the fitness market is recovering and believe that SATS’ competitiveness is strengthened. We are very proud to see that our members, on average, are more active than prior to the pandemic, succeeding with their training. This is a key metric for SATS, both in terms of our contribution to the public health and for the loyalty in the member base. Our key focus going forward will be to grow the member base, which will strengthen our EBITDA significantly, due to the high operational leverage of our business model. This is also important in order to deliver on our vision of making people healthier and happier, as we see a higher share of the Nordic population being passive now than before the pandemic”, says Sondre Gravir, CEO of SATS.
Please find enclosed the Q2 2022 presentation and report.
CEO Sondre Gravir and CFO Cecilie Elde will present the results by webcast today at 8:30 a.m. CET. The presentation can be accessed at https://satsgroup.com/reports-presentations/quarterly-reports/
Cecilie Elde, Chief Financial Officer, phone: +47 924 14 195
Stine Klund, Finance and Investor Relations Manager, phone: +47 986 99 259
Tuva Spiten, Press Contact, phone: +47 468 28 304
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.