Stockholm-based Everysport Group AB, divided into the Everysport Media and Every Padel businesses, said in its year-end financial report that it had conducted a strategic review of the padel business to return to long-term growth as quickly as possible. This resulted in a net positive impact of SEK 10 million in Q4 of 2022. At the same time, Elite Prospects – a subscriber-based international hockey player database and transaction portal in the group’s Media segment – is moving in a positive direction with net annual growth in both user numbers and recurring revenue. With a clear growth plan for the Media business combined with implemented efficiency improvements, the group expects a gradual improvement in results in 2023. In connection with the annual report, Everysport also conducted a thorough analysis of the carrying amounts of the group’s fixed assets, including goodwill, which resulted in a non-cash impairment decision of SEK 12 million (€1.09m) attributable to the acquisition of Every Padel.
According to CEO Hannes Andersson, the review mentioned above of the Padel business positively impacted SEK 10 million (€104,410) on earnings in the quarter, and the total earnings improvement in the new FY is expected to be approximately SEK 13 million (€1.18m). “We are patiently waiting for the full results of the savings package and other efficiency improvements to be reflected in the group’s earnings.”
The group’s net sales in Q4 amounted to SEK 48.0 million (€4.34m), compared to SEK 59.5 million (€5.38m) in the same period last year. Adjusted operating profit (Ebitda) amounted to SEK 4.8 million (2022: SEK 8.3m), and adjusted operating profit after depreciation and amortization (Ebit) was SEK -8.3 million (-2.5m).
Every Padel’s net sales amounted to SEK 12.7 million (SEK 23.8m a year earlier), affected by a tougher competitive and market situation compared to the same period last year. Sales grew by 5 percent compared to the previous quarter in 2022.
Sales in the Everysport Media business area amounted to SEK 35.3 million (€3.19m) in the fourth quarter, slightly below SEK 35.7 million in the same period last year. Total B2B sales within the business area amounted to SEK 21.2 million (SEK 22.9m). Strategically important B2C sales increased by 10 percent to SEK 14.1 million (SEK 12.8m), partly due to the price increases implemented.
Net sales for the B2C segment amounted to SEK 25.1 million (€2.27m) compared to SEK 26.6 million in the same period last year. Every Padel saw a decrease in B2C sales of SEK 3.7 million (€335K), while the B2C segment within Media showed strong growth of 10 percent (SEK 1.3m). Adjusted Ebitda for Every Padel in the period is SEK 3.8 million (SEK 5.9m), while Ebitda was SEK -2.3 million (SEK 5.9m). The quarter was characterized by restructuring costs of SEK 6.1 million (€552K) related to the strategic review conducted in the fall of 2022.
The growth in the Media segment is attributable to the fact that subscription revenues continued to increase compared to the same quarter last year (+27%), in line with the company’s strategy to build a large share of recurring revenue. Elite Prospects accounted for most of the increase in subscription revenue. At the end of the reporting period, it had 17,852 paying subscribers. “During the quarter, we continued to strengthen our position in sports media, an industry that continues to evolve as sports activities are complemented by social and digital contexts,” Andersson commented. “After the pandemic, we continued to develop new rights, for example, for field hockey and padel with events, invitational tournaments and exhibitions. In this way, we complement our digital investments in each sport and create additional and recurring revenue streams.”
At the end of the reporting period, Everysport Group had equity of SEK 32.3 million (2021: SEK 71.9m) and an equity ratio of 14 percent (2021: 20%).
Work to ensure Every Padel’s long-term growth continues, and the group intends to continuously evaluate strategic initiatives aimed at further optimizing the portfolio, Andersson said. “As always, there are some caveats to the outlook due to the uncertainties in our environment, but we are optimistic about Everysport Group’s performance in 2023.”
