SATS (SATS) Q4 2024 (Q&A) earnings summary

Executive summary

• Achieved strong financial growth in Q4 and FY 2024, with all key metrics showing positive trends and record member activity across all countries.

• Product development and increased group training capacity drove higher member engagement, satisfaction, and loyalty.

• Initiated a NOK 100 million share buyback program and continued deleveraging, supported by robust cash generation.

• Stable member base at 733,000, with improved utilization and yield per member.

• Entered 2025 with positive momentum, sustained activity levels, and a solid financial foundation.

Financial highlights

• Q4 2024 revenues rose 7% year-over-year to NOK 1,311 million; FY 2024 revenues up 7% to NOK 5,064 million.

• EBITDA before IFRS 16 increased 37% to NOK 175 million; EBIT before IFRS 16 up 87% to NOK 125 million.

• Free cash flow in Q4 was NOK 153 million, with a cash conversion rate of 103%; full-year free cash flow reached NOK 407 million.

• Net debt reduced to NOK 1,069 million; leverage ratio improved to 1.4x from 2.3x year-over-year.

• ARPM (average revenue per member) up 7% to NOK 598.

Outlook and guidance

• Positive Q4 momentum has continued into early 2025, with high activity levels and group training leading.

• Focus remains on product offering, yield initiatives, and operational efficiency for 2025.

• Guidance for 8–12 new club openings per year in the Nordics, with most growth expected from existing clubs.

• Maintenance capex expected to remain at 5% of revenues going forward.

• Leverage ratio to stay at the lower end of 1.5–2.0x, with at least 50% of net profit to be distributed via share buybacks and dividends.