Hi, and welcome to SATS Q4 2025 Q&A. My name is Stine Klund, and I run the IR. I'm joined by CEO Sondre Gravir and CFO Cecilie Elde during this session. Sondre will run through a brief summary of today's presentation before we leave the word to you for questions.
Thank you, Stine, and good morning, everyone. Great to see so many joining this Q&A session. We presented this morning our fourth quarter results, and we are progressing according to the plan and ambitions we laid out during our Capital Markets Day last spring, where we guided on the midterm EBITDA ambition of NOK 1.1 billion in EBITDA results. But if we look at the fourth quarter, it is driven mainly by a good development in members' visit and satisfaction. This is driving and resulting in a revenue increase of 9%. And if you look at the fourth quarter, isolated, EBITDA is up 28% and EBIT up 34%. And then we have a free cash flow in the quarter of NOK 244 million, which is up 59%.
Then looking at 2025, in total, we increased member base by 22,000 to 755,000 members. For the year, in total, revenues are up 9%, EBITDA up 18% and EBIT up 24%. So that's the numbers we presented this morning. And we also share that the board of directors has proposed a semi-annual dividend, half year after our last dividend payment of NOK 0.67 per share. And this is up for approval in the Extraordinary General Meeting to be held March third. So that's the highlights from the quarter. And also, looking into the start of the year, we see that the visit growth and engagement has continued.
So overall, we are happy with the results we presented for Q4 2025, and really see that we are delivering according to the plan that we laid out during the Capital Markets Day this spring. So with that, I think we will open for questions from the audience.
Petter Nystrøm.
Thank you. So, two questions from me. I'll take one at a time. So in Q4 now, you have operating costs up 2%, or club operating costs up 2% on a fixed FX. And you explain that this is mainly driven by investments in group training, basically saying that the other operating costs are broadly stable. Could you then share some additional insight here, given, you know, salary increase, CPI-adjusted rent, and so on? Thanks.
Yes, yes, you're right. If you look at the underlying salary increases, they are higher than what we now see is the underlying cost development in the quarter. So, that means that we have savings in other areas. Nothing specific to sort of mention. I think that's why I sort of also commented on that it's important to look at our cost development, not sort of quarter-over-quarter, but how it develops over the rolling twelve-month period, because there are variations from quarters, depending on activity and sort of more costs that are non-recurring, hitting the quarters differently. So for us, it's sort of important to look at the long-term cost development.
And if you look at 2025 isolated, we have a 4% increase in cost, adjusted for currency, and that's broadly in line with the communication that we had. And of course, we always work with operational efficiency, sort of trying to get the savings up where we can, and we've done so over the last couple of years, and we've done it throughout 2025 as well.
Thank you. And is it also possible to share some thoughts on the cost, club operating costs going into 2026 compared to what you have seen now in 2025?
I think overall, you should expect the same development in 2026 as we have seen over the recent quarters. We will continue to invest in the group training offering, and that's also something that we balance according to the visits and the load factor on these classes. So as long as we believe it's sort of beneficial for us to increase Group X classes more, we will do so. But we are always balancing that against the cost, the additional cost that it drives. And as we also do with marketing spend, that's also a cost that we are balancing based on sort of the performance.
So if you sort of exclude those two, the statement that were made over the last couple of years, I think, is that our cost base will increase broadly in line with the increase on the prices of our input factors.
Thank you. And, if I may, one final question. So, you share that you're... You're saying that you are prioritizing, or my understanding is that you are prioritizing price over volumes in 2026. Can you also here share some thinking of, you know, why that is the case? Thanks.
... I think we haven't stated that we will do so in 2026. I think we are stating that that's a balance that we sort of hit throughout the year. In some periods, volume is more important, and in other periods, we see that we are able to take out more yield. So, that's something that varies across the years and the quarters. So, we will have benefits from both increased yield and volumes throughout the year, I guess.
Thank you, Cecilie, for that clarification. That's all for me. I jump back in the queue. Ole Martin Westgaard.
Yes, thank you. Hopefully you can hear me. A quick question or follow-up on Petter's question here on cost. How should we think about the cost of group training in 2026? Are you continuing to expand in classes, or are... this is a year of more leveraging on the classes that is already available there?
I think in general, we will continue to expand. It's too soon to see if we will necessarily increase it at the same pace that we have done in 2025. At the same time, we have increased more in Norway than we have done in the other countries, and the other countries are still sort of developing, and we are increasing the offering. So we will sort of try to strike the right balance in adding sufficient classes to generate that growth that we believe that drives, looking against the cost related to it. So we will continue to improve our product offering, but we will have a balanced approach to it.
Okay, not really sure what that means, but, I guess it means lower cost than last year, in terms of increases at least. And then, on your, price, increases, are you happy with, sort of the strategy so far on the price increases versus the membership growth?
Overall, I think we are very happy with the strategy that we've laid for several years now. We are increasing the member base, we're increasing the list prices and balancing that against the volume. So I think we have been very successful with that so far, and we see that the stickiness in the member base has been at the level that we have expected. So we are able to increase the prices at the same time that we have a well approach to volume.
But in order to be happy with that in Q1, does that mean that the total revenue growth should be higher this year than compared to last year? Considering the fact that, you know, the membership base has come down or is not growing as fast, but you're getting more on price, or is... Are you happy with it actually being lower growth?
I think we are a business with pretty steady development when it comes to to revenue growth, which is what we are focusing on. Achieving the same revenue growth next year as we have seen in 2024 and 2025, I think we are happy with. We don't expect to see an explosive development in the growth. We are a steady business, and that's also why we are saying that we believe that we are on a good traction to reach our goal of NOK 1.1 billion in the EBITDA before IFRS 16, and this will unfold gradually over time.
And then, a question on Denmark. Other RPM increased surprisingly a lot, to 31% in Q4. Was there anything special here?
Yes, and I think we comment on the, in the... both in the report, as well. We have a one-off related to utility cost, which is, related to several years, where one of our landlords have, have, invoiced us way too much in, in utility costs, and that's a one-off that it's, for accounting reasons, part of revenues. So, that's around NOK 5 million on other revenues, so, so that's not sort of driven by underlying revenue development.
Last question before I join back in the queue. Can you remind us on the total electricity exposure and the current hedging levels?
We have hedged around 50% of our consumption.
But is that for the winter months, or is that, how should we-
That's for the full year.
Yeah.
So we have a 18-month hedge, which is around 50%, and then 25% on the remaining horizon as well. So we are sort of increasing the hedge, as closer as it gets.
Okay. Thank you.
Yes, thank you for taking my question. I just follow up on Ole Martin's questions there on the price increases that you've done. You raised the basic membership prices quite a lot, especially in Sweden. How has that been received by the customers, and is this also in line with what you're seeing that your competitors are doing?
I think overall, we are increasing our prices somewhat more than our competitors. The price increases are developing according to plan, but I think we will wait until the first quarter reporting to comment any more on sort of how that has progressed. It's still early to see the full results anyway.
On the competition in Sweden, are you seeing that you are moving alone from the market toward more premium and group training, or are you seeing that your competitors, especially in Stockholm, is moving toward that segment as well?
Our offering, our offering is the way we see it by far stronger than our competitors, and also our so to say step-ups in terms of increase and also expansion of the offering is continuing in terms of that leadership, so to say.
So you continue to expand that offering and create further distance to your competitors then?
Yes.
Okay. Thank you for the questions. I'll move back in line.
Thomas Helgø.
Thank you. Hope you guys can hear me. The member growth in H2 last year exceeded your expectations, going into Q4 last year, and now with January growth looking even stronger in terms of member visits compared to Q4 25 member visits. Can we now expect another solid quarter when it comes to new members, and what's your take on this? Thank you.
We will not comment on the member development for the quarter. We will, we will save that for the first quarter reporting. But I think it's important just to remember that the first quarter last year was exceptional. We had our 30-year anniversary and very strong campaigning linked to that. I think we also commented briefly in the outlook that we expect that the slightly higher price increases that we've now done will affect net growth in the first quarter. But we are also having. We are comparing with very strong numbers from last year, which if you look at the, the development in the first quarter historically, is, is, is extraordinary.
Okay. Thank you.
Petter Nystrøm.
Yeah, thank you. And just a few short follow-up questions from me on Denmark. Is it possible to say anything about the development in Denmark, given the VAT change? And a short follow-up on that, any discussion in other countries you are positioned in for the same change? Thank you.
For the last part of the question, in Finland and Sweden, we have VAT on memberships. The difference is there is that they have sort of partial VAT, so they are not affected by the full VAT rate, so that's not something that's been discussed in those countries. But in Norway, we still have no VAT on training. As of now, there's no discussions around that topic. And when it comes to development in Denmark after the VAT adjustments, I think, overall, it's we will comment on that on the first quarter. But I think it has been received as we expected. I think there is understanding amongst the Danish population that this is something that is not led by the industry, but it's something that's forced upon us.
So I think there is understanding in terms of that, the price, prices have been raised.
Thank you.
Any other questions? Ole Martin Westgaard.
Thank you. Hopefully you can hear me now. Just on Sweden, you have no clubs in the pipeline. Are you having difficulties finding good locations in Stockholm?
When it comes to the pipeline in Sweden, it's what we show on the pipeline size chart is signed and cleared clubs. We have a lot of dialogues going on, but we haven't signed any yet. So, in general, it is challenging to find great locations of the size we want. It's much easier to find, you know, 300, 400, 500 square meter retail-based locations in the bigger cities. As we have said all the way when it comes to expansion, we want to open 8-12 new clubs, but we will prioritize quality over quantity. So could we have signed many locations already? Yes.
Could we have signed, you know, many locations of the quality with the catchment area potential and, so to say, the attractiveness of the location in itself that we want? So far, no. But we have good dialogues and good, so to say, pipeline of dialogues in all countries, both in Norway and also in Stockholm. So we will improve the signed pipeline that we communicate now over time. And as we indicate in today's presentation, we will not reach 8-12 this year, but we are good on track on reaching it next year.
Hmm. And then, a question on Finland. Adjusted EBITDA declined in Q4. You have a flat member space despite one more club added, and you have only 2% underlying ARPU growth. Now, there's suddenly a new country manager in place. What are the main issues, and how are you aiming to fix them?
There's not any really main issues. The development in Finland is pretty flattish, as you say. We are not happy with the flattish development, and we would like to see growth coming forward. There are several reasons, but one of the main reasons are that Finland is somewhat later in the funnel in terms of investing in the product improvements. We started in Norway, then we have done it in Sweden, and we're doing it now in Finland. In Q1, Finland is the market with the highest relative growth in number of classes in percentage compared to last year, so we will see an improvement in Finland going forward.
Also in Finland, we would like to open some more locations to strengthen our city clusters and our Helsinki cluster specifically, which will, so to say, gain scale effects in the cluster. Overall, as we also see from other retailers, the Finnish consumer sentiment is lagging a little bit behind in terms of stepping up in positiveness, compared to the other countries. It's not affecting us a lot, but of course, it's affecting us. So yes, you're right. Finnish development is flattered. It's no dramatic situation at all. But of course, we would like to reinstall the growth, so to say, in our business there.
Mm-hmm. And then, last question on me. Can you comment on how Fresh Fitness is developing relative to the SATS brand?
Yeah. Fresh Fitness is. We're not reporting on Fresh separately. It's a part of the Norway numbers that we report. Overall, we are happy with the development of Fresh. It's a part of the market with the intense competition in all our countries with the low cost growing a lot. That's mainly linked to also what I said when it comes to locations that you asked about that, you know. It's quite easy to find smaller locations, and that's why it's also easier for low-cost expansion to happen. We are focusing on also expanding Fresh in the relevant clusters.
Mm.
Overall, and underlying, we are happy with the development in Fresh.
But is SATS growing more than Fresh-
We're not-
... in terms of members?
We're not commenting specifically on the segment division between SATS and Fresh.
Okay, thanks.
No more questions?
Then I think we'll round up there.
Yes. Thank you, very much for joining, to all of you, and we wish you all a great day. Thank you.
Thank you.
Thank you.