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Investing.com -- Fitness chain Sats Asa reported third-quarter revenues of NOK 1,293 million, falling 1% short of consensus expectations.
The company’s stock fell 5.5% following the earnings release.
The company’s revenue growth was driven by a 4% year-over-year increase in membership and a 5% rise in average revenue per member (ARPM).
EBITDA came in at NOK 502 million, 4% below both analyst and consensus forecasts, as higher club and marketing expenses related to the autumn campaign offset some of the operational leverage benefits.
EBITDA before IFRS 16 reached NOK 192 million, representing a 13% year-over-year increase, which supports progress toward the company’s mid-term NOK 1.1 billion EBITDA target.
Net profit stood at NOK 98 million with earnings per share of NOK 0.48, falling 11-17% below analyst and consensus estimates. This shortfall was primarily due to higher financial expenses under IFRS 16 and a slightly higher effective tax rate, while EBIT performance remained broadly in line with expectations.
The fitness chain generated operating cash flow of NOK 142 million with 74% cash conversion. Despite paying out NOK 127 million in dividends and spending NOK 40 million on share buybacks, the company maintained stable leverage at 1.3x net debt/EBITDA.
Sats continues to demonstrate solid operational and financial momentum, supported by its expanding member base, increasing workout frequency, and improving yields.
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