2020

19.03.2020 – ASMALLWORLD AG

ASMALLWORLD AG announces 2019 full year results; revenues grew by 55% and profitability achieved ahead of schedule

ASMALLWORLD AG / Key word(s): Annual Results
ASMALLWORLD AG announces 2019 full year results; revenues grew by 55% and
profitability achieved ahead of schedule

19-March-2020 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

Press release

ASMALLWORLD AG (SWX:ASWN) announces 2019 full year results; revenues grew by
55% and profitability achieved ahead of schedule

Zurich, 19.03.2020 - ASMALLWORLD AG today announced its full year results
for 2019. The company looks back on a year of strong growth, with revenues
reaching CHF 13.7M, an increase of 55% compared to last year. The company
also managed to achieve profitability, ahead of its own expectations and
despite investments into its service expansion and acquisition costs for
LuxuryBARED. EBITDA increased to CHF 1.5M from CHF -2.3M in 2018. The
company's cash balance stood at CHF 6.9M at the end of the year compared to
CHF 6.1 at the end of 2018.

ASMALLWORLD Group's growth was strong in 2019. Revenues rose from CHF 8.8M
to CHF 13.7M, representing an increase of 55%. The company's initial revenue
guidance of CHF 12.0 to 12.5M at the beginning of the year was thus
significantly exceeded. The number of members grew by 21%, from 47,800 to
57,900, and the average revenue per user (ARPU) rose by 12%, from CHF 231 to
CHF 257.

The EBITDA margin improved from -26% in 2018 to +11% in 2019 and the
company's activities resulted in an EBITDA of CHF 1.5M for 2019, compared to
CHF -2.3M in 2018. This positive outcome was driven by growth across all
businesses, the absence of costs related to the company listing which
impacted the 2018 result as one-offs and the full consolidation of First
Class & More. The company presents a balance sheet with a cash position of
CHF 6.9M compared to 6.1M at the end of 2018.

"We look back on a great year with a lot of operational progress. The
continued expansion of our services and operational improvements across all
our businesses allowed us to achieve profitability for the group, ahead of
what we had initially planned," comments ASMALLWORLD CEO Jan Luescher.

Subscriptions segment grew by 43%

The Subscriptions segment increased its revenues by 43% to CHF 7.3 million,
compared to CHF 5.0 million in the previous year. The EBITDA margin improved
from -41% to 19%.

For the company's core business, the ASMALLWORLD Community, two new versions
of the ASMALLWORLD mobile app were launched for iOS and Android. These new
apps significantly enhanced the user experience with an exciting new look.
Redesigned from the ground up, all existing app functionality was refined
and improved, while new functionality like "Discovery Modes" was added to
further enrich the offering.

In addition, the ASMALLWORLD Explorer, a digital travel & lifestyle
magazine, was launched with its own original content, written by expert
writers on a daily basis. The Explorer will increase user engagement and
allows for a more content-driven member acquisition strategy.

The ASMALLWORLD premium memberships, Prestige and Signature, in partnership
with Miles & More, Etihad, and other international travel partners,
continued to sell well and grew slightly year on year. The memberships offer
up to 1,000,000 miles from Etihad Guest, or 250,000 miles from Miles & More,
which can be used for flight bookings and upgrades. Further, the memberships
offer additional travel privileges with hotels, car rental companies, and
airlines, as well as unlimited access to airport lounges and nightclubs.

First Class & More, the group's smart luxury travel business, continued to
expand sales in its core markets Germany, Austria and Switzerland with its
German language business. In addition, a new English language service was
launched mid-year which is slowly growing the customer base internationally,
outside its traditional core market.

The World's Finest Clubs, the world's leading nightlife concierge, kept its
membership base steady and just completed a major upgrade of its CRM system
to serve its customers even better in the future.

Services segment grew by 51%

The Services segment increased its revenue by 51% from CHF 3.8 million to
CHF 5.7 million in 2019. This growth is was primarily realised through the
contribution of First Class & More's service business, an increase of events
and event-sponsoring, and the expansion of the travel business. The EBITDA
margin improved from -6% to 1%.

The increase in the travel business was achieved through the acquisition and
integration of LuxuryBARED into the operations of ASMALLWORLD. The renamed
company offers highly personalised luxury travel arrangements for its
customers. In 2019 the service was relaunched as ASMALLWORLD Private,
offering its services to ASMALLWORLD members as well as to external
customers. The acquisition and the ramp-up of this business resulted in
one-off transaction costs and ongoing investments during the year.

The number of ASMALLWORLD events increased by 14% compared to the previous
year. RSVPs to events increased by a similar margin. Events are generally
offered to all community members and range from free get-togethers to large
weekend events with a price point of several thousand Swiss francs. The
proportion of paid events has also increased, resulting in additional
revenue for ASMALLWORLD from its event activities.

The company also celebrated the 10-year anniversary of its annual Winter
Weekend in Gstaad with a 3-day event at the prestigious Gstaad Palace. The
event attracted many international sponsors like Virgin Cruises and
contributed positively to the Services revenue growth.

Earnings call and further information

ASMALLWORLD AG will hold a conference call later today to provide additional
details and commentary for the 2019 results. The call starts at 3pm CET.

To participate in the call, please use the confirmation code 3595877 and the
following dial-in numbers:

Switzerland: +41 (0)43 550 0294

United Kingdom: +44 (0)208 089 2860

Germany: +49 32214219720

United States: +1 334-777-6978

The 2019 Annual Report as well as the presentation for the 2019 Earnings
Call are available for download on the ASMALLWORLD AG website at:
https://www.asmallworldag.com/financial-reports

This press release and further information can be found at
www.asmallworldag.com.

Definition of EBITDA as alternative performance measure: Earnings before
interest (including all financial income and expenses), taxes, depreciation
and amortization

The ASMALLWORLD Group

ASMALLWORLD is the world's leading travel & lifestyle community, focusing on
experiences: the modern-day definition of luxury.

Centred around the ASMALLWORLD social network, the company operates a
digital travel & lifestyle ecosystem which enables and inspires members to
travel better, experience more and make new connections.

Members of the ASMALLWORLD social network connect through its app and
website, where they can meet other members, engage in online discussions,
receive travel and lifestyle inspiration, and enjoy a wealth of travel
privileges.

Members also meet in person at over 1'000 global ASMALLWORLD events every
year, ranging from casual get-togethers in major cities around the world,
access to exclusive launches, shows, galas, soirees, exhibitions, major
global sporting events, and larger flagship weekend experiences hosted in
iconic destinations such as Saint-Tropez and Gstaad.

Other businesses of the ASMALLWORLD travel & lifestyle ecosystem include:

ASMALLWORLD Private, a high-end travel agency offering personalised travel
curation service

ASMALLWORLD Collection, an online hotel booking engine focused on the
world's most admired hotels, offering the unique "ASMALLWORLD Preferred
Rate" (expected to go live in Q1 2020)

ASW Hospitality, a hotel management company that operates and manages the
iconic North Is-land resort in the Seychelles

First Class & More, a subscription-based smart luxury travel service that
allows members to enjoy luxury travel at insider prices

The World's Finest Clubs, the world's leading nightlife concierge offers its
members VIP access to the most exclusive nightlife venues around the world

For more information, please visit:

www.asmallworldag.com

www.asw.com

www.first-class-and-more.de

www.first-class-and-more.com

www.asmallworldprivate.com

www.asmallworldcollection.com

www.finestclubs.com

www.asmallworldhospitality.com

www.north-island.com

Contact:

ASMALLWORLD AG
Jan Luescher, CEO
Bellerivestrasse 241
CH-8008 Zurich
press@asw.com


---------------------------------------------------------------------------

End of ad hoc announcement

---------------------------------------------------------------------------

close