Asmallworld AG
Asmallworld AG
08/23/2024 | Press release | Distributed by Public on 08/22/2024 22:07
ASMALLWORLD 2024 H1 results: record half-year sales and net income increased
ASMALLWORLD AG / Key word(s): Half Year Results
23-Aug-2024 / 06:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
ASMALLWORLD 2024 H1 results: record half-year sales and net income increased
Zurich, 23.08.2024 - ASMALLWORLD AG announced its results for the first half of 2024, with sales reaching a record CHF 11.7 million, driven by sustained demand for ASW premium memberships and increasing demand for its travel services. Net income also increased, and EBITDA for the first half has already reached 90% of the full-year guidance. At the same time, the company reduced its debt by CHF 1 million, further strengthening its balance sheet and lowering interest costs.
During the first half of 2024, ASMALLWORLD achieved record sales of CHF 11.7 million, up from CHF 11.5 million in the same period last year. This increase was primarily driven by strong demand for ASMALLWORLD premium membership. Meanwhile, travel sales also saw a boost, with the ASW Collection, the company's online travel agency, experiencing a 29% increase in bookings. This underscores the advantages of the company's ongoing investment in travel-related services.
Net income increased by 2% to CHF 0.6 million, and EBITDA reached CHF 0.9 million, which represents 90% of the full-year guidance. At the same time, the company further reduced its debt by CHF 1.0 million and maintained a comfortable cash position of CHF 2.0 million.
The member base grew to 71,600, a 6% increase from June 2023, indicating ongoing interest in ASMALLWORLD's community.
"Our H1 results underline our ability to steadily grow the business, even during a period where we are investing heavily in the long-term growth of our business," comments ASMALLWORLD CEO Jan Luescher.
Changes to membership model and brand coming early November 2024
ASMALLWORLD is set to introduce a new membership model in early November 2024, with the aim of driving sustainable membership growth and creating more demand for its services. A key component of this change will be the introduction of a free membership tier, designed to make it easier for new members to join the community. This new tier provides an accessible entry point, with a clear path for members to upgrade to paid tiers as they engage more deeply with the community and its attractive offerings. These strategic changes are expected to broaden the membership base while preserving the premium offerings that current members value.
ASMALLWORLD is also refining its brand to strengthen its position in luxury travel. This effort includes a refined organisational purpose, a logo update and visual enhancements across all brand touchpoints. The goal is to more clearly position ASMALLWORLD as a luxury travel brand, especially in conjunction with the new membership model. The new brand will be introduced in early November, at the same time as the new membership model.
While these initiatives require short-term investments, they will ultimately result in a clearer brand profile, a larger membership base and stronger demand for ASMALLWORLD's service business, especially its travel services.
"We are excited that, after months of preparation, the introduction of our new membership model and our refined brand is finally within reach. This is a crucial step in the transformation of our business model and will set us up for success in the long run," comments ASMALLWORLD CEO Jan Luescher.
ASMALLWORLD travel services growing in scale
The ASMALLWORLD travel services have experienced significant growth in the first half of the year. The ASMALLWORLD Collection online bookings have seen a 29% growth in bookings, reflecting the strong demand for its curated selection of luxury hotels. At the same time, 120 new hotels were added to the offering, and the customer experience was improved by providing a more stable and user-friendly booking environment. With the arrival of the new membership model, the company expects to scale this business even further.
ASMALLWORLD Bespoke Travel, the company's travel curation service, formerly known as ASMALLWORLD Private, was rebranded to reflect the company's overall brand refinement efforts. The team of travel designers was increased, and new systems will be introduced during H2 to allow this team to grow further over the coming months. This will allow ASMALLWORLD's travel business to build more scale, receive higher commissions and ultimately become a more complete and profitable travel setup.
Debt reduced by 65% during the last 18 months
During 2023, ASMALLWORLD successfully reduced its debt from CHF 9.1 million to CHF 4.2 million. This momentum has carried over into the first half of 2024, with a further reduction of CHF 1.0 million, bringing the total debt down to CHF 3.2 million.
Overall, the company's debt was reduced by an impressive 65% during the last 18 months. This significant decrease in debt has strengthened the company's balance sheet and led to a reduction in annual interest expenses to the extent of CHF 0.2 million per year.
Guidance for the full year maintained
Given the encouraging results from the first six months of the year, the company maintains its guidance for the full year. Sales are expected to come in between CHF 23 and 25 million, and EBITDA is expected to reach between CHF 1.0 and 1.2 million. The member base should reach between 73,000 and 74,000 members by the end of the year.
Earnings call and further information
ASMALLWORLD CEO Jan Luescher will hold a web conference call later today, August 23rd, to provide additional details and commentary for the 2024 H1 results. The call will take place at 2 p.m. CET.
To participate in the call, simply join the call via the following link:
https://us02web.zoom.us/j/86592743521
The full 2024 H1 Financial Report, as well as the presentation for the 2024 H1 Earnings Call, are available for download on the ASMALLWORLD AG website at:
https://www.asmallworldag.com/financial-reports
This press release and further information can be found at www.asmallworldag.com.
Definition of EBITDA as an 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 that enables and 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, engage in online discussions, receive travel and lifestyle inspiration, and enjoy a wealth of travel privileges.
Members also meet in person at over 800 global ASMALLWORLD events every year, ranging from casual get-togethers in major cities around the world, access to exclusive launches, shows, galas, soirees, exhibitions, major global sporting events and larger flagship weekend experiences hosted in iconic destinations such as Saint-Tropez and Gstaad.
Other businesses in the ASMALLWORLD travel & lifestyle ecosystem include:
ASMALLWORLD Collection, a high-end online hotel booking engine focused on the world's most admired hotels, offering the unique "ASMALLWORLD VIP Rate," which allows customers to enjoy exclusive travel benefits at no extra cost.
ASMALLWORLD Bespoke Travel, a high-end travel agency offering personalised travel curation services.
ASMALLWORLD Hospitality, a hospitality consulting and management consultancy that supports owners and developers of hospitality assets throughout the different lifecycle stages of their assets, including acquisition, development, operations and exit.
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.
Jetbeds.com, a flight booking engine, focused on Business and First-Class flights.
The Solo Cruise Company, a luxury cruise agency focused exclusively on solo travellers.
For more information, please visit:
www.asmallworldhospitality.com
Contact:
ASMALLWORLD AG
Jan V. Luescher, CEO
Seidengasse 20
8001 Zurich
Switzerland
[email protected]
Disclaimer
The statements contained in this press release may constitute "forward-looking statements". Such can be identified, for example, by the use of the words "may," "will," "should," "plan," "expect," "anticipate," "estimate," "believe," "intend," "project," "target," "seek," or "aim," or the negative of these words or comparable expressions.
Forward-looking statements involve a number of known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Issuer or its industry to be materially different from any future results, level of activity, performance or achievements expressed or implied by such forward-looking statements.
The issuer undertakes no obligation to publicly update or revise any forward-looking statements contained herein, whether as a result of new information, future events or otherwise.
End of Inside Information