EQS Group-Ad-hoc: ASMALLWORLD AG / Key word(s): Forecast
ASMALLWORLD AG (SWX:ASWN) expects EBITDA for 2020 to be comparable to last year, despite challenging environment
Zurich, 05.11.2020 - Today, ASMALLWORLD AG announced its revenue and EBITDA guidance for 2020. Despite a challenging environment and global travel restrictions, the company expects sales of CHF 11.5-12.0M and its EBITDA to be CHF 1.30-1.50M, roughly in line with CHF 1.45M achieved in 2019. This resilient performance is founded on a diversified, digital business model and prompt adaptation to the current environment. The company continued to invest in its digital travel offering and expects to return to strong sales growth once global travel activity rebounds.
Today, ASMALLWORLD AG announced its revenue and EBITDA guidance for 2020. The company had previously refrained from giving any financial guidance for the year due to the uncertainty around the ongoing COVID-19 pandemic.
The disruptive nature of the global pandemic required ASMALLWORLD to adjust to this new environment by transitioning from offline to online events for its social network, further streamline its operations and adjust its cost structure.
Despite a slump in global travel activity, ASMALLWORLD expanded its digital travel business with the launch of the ASMALLWORLD Collection, the company's premium online hotel booking platform.
"We took a conscious decision to stay focused on our strategy and continued to invest in our long-term growth ambitions. The slow travel environment is causing us short-term pain but it also allowed us to hone our digital travel offering and we are now well-positioned to profit from an expected rebound in global travel activity," commented ASMALLWORLD CEO Jan Luescher.
ASMALLWORLD expects sales for the year to reach CHF 11.5-12.0M, or about 10% less than the CHF 12.9M achieved in 2019.
The ramifications of the pandemic led to many cancellations and a substantial reduction in bookings for the travel business. In addition, many in-person events had to be cancelled, including two flagship events. As a result, the Service segment is expected to experience a decline of 35% compared to 2019.
At the same time, ASMALLWORLD will expand the revenue from its Subscriptions business unit by an estimated 10% for 2020, demonstrating resilience in its core business despite a difficult environment.
As a result, ASMALLWORLD expects its EBITDA to be CHF 1.30-1.50M, roughly in line with CHF 1.45M in 2019.
The company believes that it is well positioned to accelerate its growth again as soon as global travel restrictions are lifted.
"We entered 2020 with a lot of confidence to deliver strong growth, both in terms of sales and EBITDA. Unfortunately, the global pandemic tarnished our high expectations and severely limited our ability to deliver on our ambitions for this year. However, we anticipate that global travel will resume in the second half of 2021 and strongly believe that ASMALLWORLD is now extremely well positioned to profit from such a rebound in travel activity," commented ASMALLWORLD CEO Jan Luescher.
This press release and further information can be found at www.asmallworldag.com.
Definition of EBITDA as alternative performance measure: Earnings before interest (including all financial income and expenses), taxes, depreciation, and amortization
The ASMALLWORLD Group
ASMALLWORLD is the world's leading travel & lifestyle community, focusing on experiences, the modern-day definition of luxury.
Centred around the ASMALLWORLD social network, the company operates a digital travel & lifestyle ecosystem which inspires members to travel better, experience more and make new connections.
Members of the ASMALLWORLD social network connect through its app and website, where they can meet other members, book hotels, receive travel and lifestyle inspiration, and enjoy a wealth of travel privileges.
Members also meet in person at over 1'000 global ASMALLWORLD events every year, ranging from casual get-togethers in major cities around the world to flagship weekend experiences hosted in iconic destinations such as Saint-Tropez and Gstaad.
Other businesses of the ASMALLWORLD travel & lifestyle ecosystem include:
ASMALLWORLD Collection, an online hotel booking engine focused on the world's best hotels, offering customers the exclusive "ASMALLWORLD Preferred Rate" with extraordinary benefits at no additional cost
ASMALLWORLD Private, a high-end travel agency offering personalised travel curation service
ASW Hospitality, a hotel management company that operates and manages the iconic North Is-land resort in the Seychelles
First Class & More, a subscription-based smart luxury travel service that allows members to enjoy luxury travel at insider prices
The World's Finest Clubs, the world's leading nightlife concierge offers its members VIP access to the most exclusive nightlife venues around the world
For more information, please visit:
End of ad hoc announcement
|Listed:||Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt, Stuttgart, Tradegate Exchange; SIX Swiss Exchange|
|EQS News ID:||1145944|
|End of Announcement||EQS Group News Service|
1145944 05-Nov-2020 CET/CEST