“The recovery has been faster than expected. Member base is fully recovered and underlying growth in member visits, yield and other revenues are all very positive. The SATS organization is full of energy and ready to make even more people healthier and happier”, says Sondre Gravir, CEO of SATS.
During the pandemic there was uncertainty regarding potential structural changes for the health and fitness industry and member habits. Now, a few months after most restrictions were lifted, the company notes that its member habits and demographics are largely unchanged. We also see that the pandemic highlighted the importance of living a healthy lifestyle. Its members are more active than before the pandemic, with higher visits per week per member.
Nevertheless, the positive momentum is not yet fully reflected in financial results as the ramp-up in members and reduction in freeze levels still impacted the quarter. However, revenue run-rate at the end of the quarter approached pre-pandemic levels. SATS’s liquidity position is sufficient to handle existing operations and its accelerated expansion plan, provided no material change in the current regulatory environment.
SATS has throughout the pandemic strengthened the foundation for future growth through multiple levers. It has capacity in its clusters for continued membership growth and expanded its club footprint significantly. In 2020 and YTD 2021 SATS has opened 22 new clubs. The company has an ambitious greenfield roll-out plan with 17 new clubs to be opened throughout 2023. It also sees the potential of improving the average revenue per member by offering adjacent products and services, continued development of its personal training and retail offering and pricing optimization. The company hast launched “Mentra” by SATS which will further increase its digital presence both in new and existing target groups.