ASMALLWORLD AG's Strategic Shift under New Leadership

ASMALLWORLD AG has unveiled its FY25 financials, marking a 9% decline in sales to CHF 19.1m owing to reduced event-related activities. Subscription sales, however, rose by 4%, indicating growth in paying members despite introduction of free entry memberships. The EBITDA was CHF 0.9m, in line with guidance but down from CHF 1.4m in 2024. ASMALLWORLD reduced costs by exiting non-core projects and streamlining operations, resulting in a CHF 0.4m one-off expense.

Strategically, the firm strengthened B2B ties, partnering with Cathay Pacific and Turkish Airlines, and collaborated with Klarna to integrate travel benefits. Additionally, ASMALLWORLD initiated a data and AI program to enhance operations and member engagement. Despite hosting more events and expanding its hotel platform, the company's debt significantly decreased by 25% to CHF 2.4m, creating a leaner balance sheet.

Outlook for FY26 is cautious, shifting from aggressive growth to profitability. A projected membership increase to 135-140k and stable EBITDA of CHF 0.9-1.1m underline this strategy. The new leadership aims for a sustainable turnaround with a BUY recommendation at CHF 2.00.