SATS’ Q4 financial performance dominated by second wave of club closures, but expect to repeat successful recovery at reopening
ATS ASA (“SATS”) is today reporting a fouth quarter dominated by COVID-19 and the related second wave of club closures in selected regions, affecting the financial performance significantly.
Key highlights from the fourth quarter of 2020:
- Operational and financial set-back in the fourth quarter, with a new wave of imposed temporary club closures in Denmark and selected Norwegian municipalities
- Member base reduction of 9% compared to last year (6% when adjusting for divested club portfolio in Jylland and Fyn, Denmark)
- Total revenues of NOK 846 million, compared to NOK 1 036 million last year (-18%)
- Adjusted EBITDA of negative NOK 32 million, down 120% from NOK 155 million last year
- Sufficient liquidity to handle a continued unsecure regulatory environment going forward
- Nine new club openings in the quarter, of which six in the Greater Oslo area in Norway, two in the Greater Stockholm area in Sweden and one in Turku in Finland
- Gym visits are to a low extent replaced by other forms of training, at home or outdoor. Hence, the activity level in the population is significantly reduced in the pandemic, with strong negative effects on physical and mental health
- Still, strong development in the usage of SATS digital products, and continued expansion of the product portfolio
- Expect to repeat the successful member base recovery proven after the first wave of closures, once allowed to reopen the currently closed clubs
- Strong visit development when reopening clubs, proven after reopening Bergen with visits nearly on par with last year, while maintaining strong infection control. More than 5 million visits in Norwegian clubs since reopening after the first closure, with 227 COVID-19 cases but no confirmed transmission in the clubs
- SATS ready to reopen clubs in a safe way with additional measures, including increased minimum distance between members and mandatory use of face masks to and from changing rooms. Constructive dialogue with national and local governments
- The pandemic has increased the focus on living a healthy lifestyle; demand is expected to increase and structural opportunities to arise
- SATS expects to increase both the physical and digital presence going forward
“We are highly concerned about the level of physical activity, or let’s say inactivity, in the population now that several regions have imposed lock-downs of fitness clubs for longer periods of time. We are impressed by our members, who try to find alternative ways of moving and working out, both outdoor and at home, but more than 60% state that they are working out less now than prior to the pandemic. Physical activity is more important than ever before, and SATS is here to contribute”, says Sondre Gravir, CEO of SATS.
Please find the Q4 2020 presentation and report enclosed in the orginal stock exchange announcement and 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.