EQS-Adhoc ASMALLWORLD AG announces 2020 full year results at upper end of its guidance
EQS Group-Ad-hoc: ASMALLWORLD AG / Key word(s): Annual Results
ASMALLWORLD AG (SWX:ASWN) announces 2020 full year results at upper end of its guidance
Zurich, 18.03.2021 - ASMALLWORLD AG announced its full year results for 2020 which came in at the upper end of its previously communicated guidance. Despite a challenging market environment, the company managed to increase its EBITDA by 3%, from CHF 1.45M to CHF 1.49M. The operating cash flow increased by 67%, from CHF 0.4M to CHF 0.6M. Primary drivers for the positive result were strong sales from the company's Subscriptions segment and strict cost control measures across all businesses.
The COVID-19 pandemic created a difficult market environment for ASMALLWORLD in 2020 which resulted in lower demand for travel services and events. As a result, sales declined by 7%, from CHF 12.9M to CHF 12.0M. Despite the adverse market environment and a corresponding decline in sales, the company still managed to increase its EBITDA by 3%, from CHF 1.45M to CHF 1.49M. The overall EBITDA margin increased by 1.8% percentage points from 10.6% to 12.4%.
The company had previously issued a guidance of CHF 11.5-12.0M in sales and CHF 1.3-1.5M in EBITDA. The actual results came in at the upper end of this guidance.
ASMALLWORLD also increased its operating cash flow by 67%, from CHF 0.4M to CHF 0.6M, generating more cash from its business than in the previous year.
The improved profitability in the face of a challenging market environment demonstrated the resilience of the company's business model and supports a positive outlook for the company once travel and social distancing restrictions will be eased.
"2020 was a difficult year for any company in the travel and leisure space, but with clever sales efforts and a clear focus on cost control, we have managed to offset a short-term weakness in demand and ultimately even increased our EBITDA for the year. I believe this is an achievement we can be proud of and that will build confidence in our management team," comments ASMALLWORLD CEO Jan Luescher.