Nordic gym chain SATS posts falling Q1 profits due to virus, digital development
12/05/2020 08:40
OSLO, May 12 (Reuters) - SATS SATSA.OL , a Nordics-wide
chain of gyms, reported falling profits in the first quarter
year-on-year due to the novel coronavirus pandemic forcing it to
close outlets in some countries and to develop new online
products at a rapid pace.
Sports clubs have been among the hardest hit businesses
during the COVID-19 outbreak as they were among the first to be
closed down by authorities to prevent contamination.
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Those offering online options have benefited, however, with
Peloton Interactive PTON.O raising its forecast for full-year
revenue on May 6 as stay at home orders led to a surge in sales
of the company's exercise bikes and fitness subscriptions.
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"SATS leaves behind a challenging quarter, weighted by the
outbreak of COVID-19 and the following closure of clubs, but
also dominated by a high pace of innovation and numerous product
launches," the Oslo-listed firm said in a statement.
SATS' adjusted earnings before interest, tax, debt and
amortisation fell 67% year-on-year to 40 million crowns ($3.88
million) in the quarter.
SATS has gyms in Sweden, Finland, Denmark and Norway where
authorities have taken very different paths to control the
COVID-19 outbreak.
After closing all clubs of its own accord on March 12, SATS
reopened gyms in Sweden on March 26 and Finland on April 24. Its
gyms in Denmark and Norway are still shut.
In the meantime, SATS developed digital products including
live sessions, online physiotherapy, online personal training
and online nutrition counselling, and has launched outdoors
classes, including yoga and pilates, at some venues.
"SATS expects the negative effects caused by the COVID-19
outbreak to prevail some time after reopening of all clubs,"
SATS said.
"The long-term outlook is still dominated by society's
increased focus on health and well-being and robust global
trends, such as political initiatives for health and
digitalization," it added.
SATS shares were down 1.6% at 0727 GMT, trailing a 0.6% rise
in the Oslo benchmark index .OSEBX .
($1 = 10.3099 Norwegian crowns)
(Reporting by Gwladys Fouche, editing by Ed Osmond)
((gwladys.fouche@tr.com; +47 23 31 65 94; Reuters Messaging:
gwladys.fouche.reuters.com@reuters.net; Twitter handle:
@gfouche))