SATS (SATS) Q1 2025 (Q&A) earnings summary

Executive summary

• Achieved record member growth of 24,000 in Q1 2025, reaching 757,000 members, with ARPM up 6% year-over-year, driven by strong sales, marketing, and low churn.

• Club visits and workouts increased by 7%, with group training up 16%, supporting reduced churn and higher member lifetime value.

• EBIT grew 38% year-over-year (excluding prior year’s COVID compensation), reflecting operational leverage and premium positioning.

• Dividend distribution of at least 50% of net profit planned, with share buybacks executed and further planned.

• 30-year anniversary marketing drove above-normal membership sales and higher costs, considered growth investments.

Financial highlights

• Total revenues reached NOK 1,395 million in Q1 2025, up 9% year-over-year.

• EBITDA before IFRS 16 increased 19% to NOK 186 million; EBIT before IFRS 16 up 38% to NOK 133 million.

• Net profit for the period was NOK 94 million, with earnings per share at NOK 0.46.

• Free cash flow was NOK 99 million, down 21% year-over-year due to working capital effects.

• Net debt reduced by 22% to NOK 1,044 million; leverage ratio improved to 1.4x.

Outlook and guidance

• Member growth in Q1 was unusually high; future quarters expected to return to normal seasonal growth patterns.

• Dividend payout of at least 50% of net profit planned, with further share buybacks anticipated.

• Leverage expected to remain at the lower end of the 1.5x–2.0x target range.

• Continued focus on operational leverage, brand strength, and premium member experience to drive sustainable growth.

• Outlook details to be presented at Capital Markets Day on May 7, 2025.