ASMALLWORLD AG Reports Mixed FY'24 Results

ASMALLWORLD AG has reported mixed financial results for FY'24, reflecting a strategic transformation. Sales reached CHF 20.9 million, below both market expectations and company guidance due to a delay in launching its new brand and free membership option. Despite this, the company's EBITDA exceeded estimates, registering CHF 1.4 million, partly due to a postponed marketing campaign.

The company registered a significant increase in membership, with 18,000 net additions, bringing the total to 88,200 members, surpassing expectations. This growth came as ASMALLWORLD transitioned to a model focusing on expanding its member base with free memberships, aiming to monetize later through luxury travel services.

Looking forward, ASMALLWORLD anticipates 5-10% sales growth and a 2-10% increase in EBITDA for FY'25, though this guidance falls short of previous estimates. Despite challenges, the company maintains a positive outlook, with a new target price set at CHF 2.80 per share.