Everysport Group announces outcome of final phase of strategic review of Every Padel - positive net income effect of SEK 10.2 million
Everysport Group AB (publ) ("Everysport") has today entered into two additional agreements with the Group's landlords for the remaining padel facilities in Åby and Kista. The agreements entail settled rent liabilities and a reduced rent level for the facility in Kista. In total, the agreements entail a positive net effect and improvement on net income of SEK 10.2 million distributed over Q3/Q4 2023 and a facility operation back in financial balance. While the primary goal of the strategic review of Every Padel has thus been achieved, Everysport continues to discuss further measures to improve the conditions for the facility in Åby, which would further improve the Group's financial position and cash flow.
"We have worked intensively for a period with the strategic review in padel and are pleased to present positive news. The amortization of the lease liabilities entails a significant improvement in the Group's financial position and ensures a balanced facility operation. After today, Everysport is again well positioned to take advantage of new growth opportunities in sports-tech and sports data. The review of Every Padel continues to progress, albeit at a slower pace than before", says Hannes Andersson, CEO, Everysport Group.
To meet the changing market situation and enable long-term growth, Everysport initiated a strategic review of the Every Padel business area in 2022. During 2023, the Group has continuously executed the communicated plan and reduced the number of padel facilities to today only consist of the facilities in Åby, Gothenburg and Kista, Stockholm.
In the latest strategic step, Everysport has successfully completed negotiations that resulted in two additional agreements that entail a positive net effect and net profit improvement of SEK 10.2 million distributed in Q3/Q4 2023.
With the reduced rental cost for the facility in Kista, the Group's facility operations are back in financial balance and the goal of the strategic review is thus in practice fulfilled. In addition, active discussions are underway to further improve the contractual terms for the Åby facility. The development strengthens Everysport's financial position and cash flow, which enables increased investments in digital services linked to sports.
For more information, please contact:
Hannes Andersson, CEO, Everysport Group AB
Phone: +46 70 736 56 25
E-mail: hannes.andersson@everysport.com
About Everysport Group (publ)
Everysport Group is a Swedish sports tech and media Group that owns, operates, and develops digital platforms. The Group's best known brand is Elite Prospects, the world's largest ice hockey platform with approximately 20 thousand paying subscribers, over 300 thousand members and 1.5 million unique visitors per week. Everysport Group's headquarter is located in Stockholm, with a local presence in the US. The company is listed on the Spotlight Stock Market under the ticker EVERY.
This disclosure contains information that Everysport Group AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 07-11-2023 09:27 CET.