EQS-Adhoc ASMALLWORLD AG expects EBITDA for 2020 to be comparable to last year, despite challenging environment
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.