Last year set a new standard for SATS with record-high revenues, less debt and more visits, showing the policy of cost discipline and focusing on existing clubs is paying off.

In a presentation this morning, CEO Sondre Gravir, says the company has enjoyed four consistently improved quarters, with record-high revenues of NOK 1,227 million (£92m, $116.8m, €108.5m) for Q4 2023.

“SATS’ overarching strategy has remained consistent since our Capital Markets Day in Q4 2022, says Gravir. “This involves boosting the utilisation of the existing club portfolio by expanding the membership base, enhancing revenue per member and maintaining strict cost discipline.”

Full-year EBITDA before IFRS 16 grew from NOK 145 million (£10.9m, $13.8m, €12.8m) in 2022, to NOK 614 million (£46.2m, $58.4m, €54.3m) in 2023, an increase of 322 per cent.

Gravir says that despite the challenging macro-economic situation people are continuing to invest in their health and the member base grew by 10,000 to a total of 731,000 across the 276 clubs in Denmark, Norwary, Sweden and Finland.

During 2023 there was only one club launch, as the company made the decision to focus on boosting the performance of existing clubs and reducing debt. Product development has increased member engagement, leading to 8 per cent more visits during Q4 2023 than Q4 2022.

Although there has been less appetite for personal training and retail spend, members have been resilient to the price increases imposed to offset inflation and average revenue per member has increased by 7 per cent.

There were 4.7 million visits to clubs in January 2024, which is 3 per cent higher than January 2022 and 20 per cent more than January 2020.

High-paced deleveraging had led to a reduction of the leveraging ratio from 11.2x net debt to EBITDA before IFRS 16 at the end of 2022 to 2.3x at the end of 2023. The company is aiming for a ratio of 1.5 to 2x, at which point club rollout will recommence.

This year there are plans to open four clubs and close two, while retaining a close focus on cost discipline, improving the product offering to keep members engaged and counteract inflation with price increases.

Gravir, will be sharing his Life Lessons in an upcoming edition of HCM magazine. Sign up here and we'll email you a free digital edition on publication.