SATS ASA Q3 2024: Breaking profitability records, with EBITDA before IFRS 16 up 10 percent to NOK 170 million

05 Nov 2024 07:00 CET

SATS ASA ("the Company") reports third quarter revenues of NOK 1 194 million,
an increase of 8 percent from last year, and again delivered record-high
profitability, with an EBITDA before IFRS 16 of NOK 170 million. The strong
liquidity position of NOK 1.1 billion and leverage ratio of 1.8x, comfortably
within the Company's target range of 1.5x to 2.0x, provide a solid foundation
for continued growth.

The strengthened financial result is driven by an improved product offering
and increased activity in the member base. The product offering is improved by
both club upgrades and investments in the group training product, facilitating
for higher capacity utilization and more active members.

Key highlights from the third quarter of 2024:

* The third quarter total revenues increased by 8 percent (5 percent curr.
adj.) to NOK 1 194 million
* Club operating cost increased by 7 percent (4 percent curr. adj.), driven by
inflation and additional investments in the product offering
* EBITDA before IFRS 16 of NOK 170 million in the quarter, up 10 percent from
Q3 2023, resulting in an EBITDA margin of 14 percent
* EBIT before IFRS 16 of NOK 127 million and net profit of NOK 71 million, up
29 and 127 percent, respectively, compared to Q3 2023
* Operating cash flow of NOK 22 million and cash conversion of 13 percent,
negatively affected by timing of payments related to quarterly rent (NOK 85
million)
* Continued investments in the product offering, focusing on upgrading the
clubs and further enhancing the group training product
* The average revenue per member (ARPM) increased by 8 percent (5 percent
curr. adj.) compared to the same quarter last year, mainly driven by
successful pricing initiatives during the past year, enabled by continuous
investments in the product offering
* During the same period, the member base has been kept relatively stable,
however with members per square meter up 2 percent

"We remain committed to investing in our product offering to deliver the best
possible experience for our members. The response has been positive, with
third-quarter visits reaching a record high of 10.1 million. This growth is
largely driven by the rising popularity of group training, which we have
fuelled by expanding our class schedule and launching innovative new group
training classes. This quarter, we launched a wellness bundle to address the
increasing focus on mental health and stress relief, furthering our commitment
to a holistic approach to public health," says Sondre Gravir, CEO of SATS.

SATS' CEO Sondre Gravir and CFO Cecilie Elde will hold a webcast presentation
at 08:30 CET today, November 5, 2024. The presentation will be held as a
webcast only, available at https://satsgroup.com/reports-presentations/

There will be a Q&A for investors and analysts from 10:00 to 10:30 (CET) over
Microsoft Teams:
https://teams.microsoft.com/l/meetup-join/19%3ameeting_NjBmZTU3ZjItMTA2OS00NzJhL
Tk4MjQtYmEzZjE1ZGY1MjIz%40thread.v2/0?context=%7b%22Tid%22%3a%22b15a587d-acc9-46
44-aa51-b56dee85c304%22%2c%22Oid%22%3a%227c7a4263-6531-4e9f-9f3f-79defb4ad3fe%22
%7d

Please find enclosed the Q3 2024 presentation and report.

Investor Relations Contacts:
Cecilie Elde, Chief Financial Officer, phone: +47 924 14 195
Stine Klund, Investor Relations, phone: +47 986 99 259

Press Contact:
Tina Brodal, Press Contact, phone: +47 938 44 171

Please see the attached quarterly report for definitions and reconciliations
of the Alternative Performance Measures (APMs).

This information is subject to the disclosure requirements pursuant to Section
5-12 of the Norwegian Securities Trading Act.

More information:
Access the news on Oslo Bors NewsWeb site

631212_SATS ASA Q3 2024 Report.pdf
631212_SATS ASA Q3 2024 Presentation.pdf