Sats ASA ($SATS)

Good morning, everyone, and welcome to this quarterly Q&A call. Sorry for the sound and sorry for being outdoor. The fire alarm just went off in our offices as we were about to start this call. So that's the background for this -- a little bit temporary location and sound. I hope that you hear us okay. And we will, of course, move into the meeting room as soon as we are allowed to get into the building again. But we see you, and hopefully, we can hear you. I can see some of you on the screen. And one might see on the screen is Sigurd, floor can you just give a thumbs up if the sound is okay? Yes. Perfect. Thank you. Then we are good. So we reported the first quarter result this morning. The highlights from the results you can see in the presentation. There are 2 points that I would like to highlight before we dive into the Q&A. Number one is that what we see this quarter is a combination of both increased activity levels, engagement and improved member satisfaction, which gives us strong confidence that our product offering is improving and it's received well. We also highlighted that we don't see any Quitters Day in such, meaning that activity levels keep quite stable throughout the quarter. We actually see that in March, we only had 1% lower unique visitors than in January, which is a different figure than I think many expect. And this translates then into a strong financial results, and you really see the operational leverage in our model in real. Looking at the Q1 number, revenues increased by 6%. EBITDA increased by 17% and EBIT increased by 22%, showing the operational leverage in practice. So that's a summary of the highlights of the quarter. And then I think we move directly into Q&A. Who wants to start? Siguard?

I can start with a question. Yes. It seems like you had a one-off in Denmark. Could you give some flavor on the one-off in Denmark?

So the one-off is related to [indiscernible]. We have somewhat lower energy costs in Denmark, and we also did the price adjustment 1 month earlier this year due to the VAT, which was set to start as of 1st of January. So we get slightly higher revenues since we get 1 month extra in the price adjustment that we did.

Perfect. And maybe also regarding the data breach. Could you elaborate how much you booked in Q1 and how much you expect for Q2?

Yes, we have not gone in detail on how much is booked in the different quarter. But as we also published in the notice from the pre-quarter call script, we said that the costs in -- the total cost of the data breach is below NOK 10 million, so it's not significant.

So a little bit on Sweden. I see that the EBITDA margin is slightly down and then country EBITDA flat year-over-year. Can you explain this as we've seen some positive development in Q2 to Q4 last year, but now it's slightly down. Can you explain this?

So for Sweden, we see an increase in revenues and the EBITDA in constant currencies are up by 8% in the quarter. I think on the cost side, we have additional costs related to the employee gathering also in Sweden, and Sweden has a significant part of the number of employees. So they take their fair share of that cost. And we also have increased number of classes in group training significantly also this quarter to make sure that we get the growth going forward, and there are some higher energy costs. So overall, I would say that this cost side sort of slightly higher than in a normal Q1 quarter. So 8% increase is in line with what we expected for Sweden.

Any other questions? Okay. If there is no more questions, we thank you all for joining the call. And again, sorry for this sound and background picture, but the fire alarm we had to respect. So we will see you from a meeting room next time. Thank you all for joining, and have a great day.

Thank you.