Q2 2026 Sats ASA Earnings Call Transcript
Key Points
- Revenue growth of 7% currency adjusted, outpacing cost growth of 4%, leading to EBITDA up 18% and EBIT up 23% currency adjusted.
- Strong member engagement with workouts up 3% and group training workouts up 5%, driven by a 7% increase in unique participants.
- Improved profitability with EBITDA margin up 2.3 percentage points and EBIT margin up 2.6 percentage points, with country EBITDA margins up in Norway, Sweden, and Denmark.
- Solid cash generation with free cash flow of NOK602 million over the last 12 months and a high EBITDA-to-cash conversion rate of 82%.
- Strong balance sheet with leverage at 1.1x, below the target range, and ample liquidity of NOK1.3 billion, supporting continued shareholder returns and expansion.
- Net member development was negative at minus 25,000 in the quarter, worse than the prior year's minus 19,000, due to a cohort effect and campaign timing.
- Club portfolio saw a net reduction of three clubs in 2026, with two club closures in the quarter, impacting member base growth.
- Reported revenue growth was held back by weaker Swedish and Danish kroner and a weaker euro, masking underlying performance.
- Cost growth of 4% currency adjusted was partly driven by deliberate investments in group training and higher direct costs from personal training and retail, which could pressure margins if not sustained.
- Maintenance CapEx was temporarily low due to timing, with a target of around 5% of revenues annually, indicating potential future capital expenditure increases.
Good morning and thank you for joining Sat's presentation for our second quarter results. I'm Sandri Gravir, the CEO, and with me today I also have Cecilie Elde, our CFO. And as usual, we will follow-up this presentation with the Teams Q&A session at 10:00 o clock. You will find the link. And the practical details in the stock exchange release published earlier this morning.
Before we go into the quarter, a short reminder of what Sats is for those of you who are new to the story. We operate 270 clubs across the Nordics with 744,000 members, and 10,000 employees, which makes us the clear number one in our region.
Our footprint is built around the large city clusters, Oslo, Stockholm, Helsinki and Copenhagen, where scale gives us both a better product for members and better economics for us. The value creation shows up in the earnings profile. Comparing to 2023, we have delivered 19% CAGR on EBITDA, and 30% CAGR on EBIT.
Earnings per share is up from NOK1.10 to NOK2.62 on the last 12-month basis, representing CAGR of 42%
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
