Q1 2025 Sats ASA Earnings Call Transcript
Key Points
- SATS ASA (FRA:2S0) achieved the strongest membership growth in its history for Q1, increasing the member base by 24,000 to a total of 757,000 members.
- The company reported a 6% increase in Average Revenue Per Member (ARPM), driven by successful sales activities and effective marketing.
- Group training visits increased by 16%, contributing to reduced churn and positive development in member lifetime value.
- EBIT increased by 38%, showcasing strong financial performance and operational leverage.
- SATS ASA (FRA:2S0) remains committed to shareholder distribution, planning to distribute at least 50% of annual net profit through dividends and share buybacks.
- The company does not expect the current level of membership growth to continue throughout 2025.
- Operating costs increased by 8%, partly due to higher direct costs linked to personal training and retail.
- Overhead costs rose by 9% in the quarter, slightly above normal due to expenses related to the employee share purchase program.
- The company experienced negative working capital effects in the quarter, affecting free cash flow.
- Maintenance CapEx was temporarily below the long-term target, indicating potential future increases in investment requirements.
Good morning, and welcome to this SATS Q1 2025 presentation. I'm Sondre Gravir, the CEO of SATS, and I will present together with our CFO, Cecilie Elde. We will now present the operational and financial status for Q1, and we'll run the Q&A session in Teams at 9:30. Later today, at 10:30, we will host the second SATS Capital Markets Day. Here, we will present the future strategic direction for SATS and our financial ambitions.
And both this Q1 presentation and the CMD presentation were published at 7:00 this morning. Cecilie will cover the financial results in her section, and I will summarize the quarter. We are very happy with the start of 2025 for SATS. In Q1, we have delivered the strongest membership growth in the first quarter in the history of SATS. We have grown the member base with 24,000 members to 757,000 members in total, combined with an ARPM increase of 6%.
The growth is driven by successful sales activities, effective marketing push and healthy churn. We also see continued strong activity levels in our clubs, driven by
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