FINANCIAL HIGHLIGHTS Q3

  • Net revenue 1,671 (1,787) MSEK, a decline of 7 percent
  • Organic net revenue decline of 10 percent
  • EBIT 135 (250) MSEK, a decline of 46 percent
  • EBITDA 566 (660) MSEK, a decline of 14 percent
  • Adj EBITDA 593 (668) MSEK, a decline of 11 percent, Adj EBITDA margin of 36 (37) percent
  • Items affecting comparability impacting EBITDA of -27 (-8) MSEK, mainly costs for staff reduction
  • Capitalization of product development amounted to 184 (257) MSEK
  • Adjusted EBITDAC of 409 (412) MSEK, a decrease of 1 percent, Adj EBITDAC margin of 25 (23) percent
  • Net result of -5 (83) MSEK
  • Free cash flow last 12 months of 941 (983) MSEK
  • Total net debt, including cash earnout for next 12 months, of 4,905 (4,777) MSEK
  • Adjusted leverage ratio, pro forma was 1.7x (1.5x)
  • Adjusted leverage ratio, including cash earnout for next 12 months, pro forma was 1.9x (1.9x)
  • Cash position of 1,039 (1,350) MSEK and 2,563 (2,216) MSEK of undrawn credit facilities

“Stillfront’s net revenue declined by 7 percent year-over-year in the third quarter to 1,671 MSEK, while adjusted EBITDAC declined by 1 percent to 409 MSEK. Our adjusted EBITDAC margin amounted to 25 percent, up by 1.5 percentage points year-over-year, despite a lower revenue base. The development in the third quarter was impacted by a significant one-off event related to Sandbox Interactive’s hit franchise Albion Online, which negatively impacted net revenue and adjusted EBITDAC by approximately 80 MSEK and 50 MSEK respectively. We continue to generate strong cash flow across the group, and free cash flow for the last twelve months amounted to 941 MSEK. Going forward, we are seeing that the underlying market is normalizing compared to the past two years paired with more favorable performance marketing conditions. We expect a significant sequential organic growth improvement in the fourth quarter but given the impact from Albion Online and the lower run-rate towards the end of the third quarter, we now find it less likely than previously to return to organic growth before year-end.”

Jörgen Larsson, CEO, Stillfront Group

KEY FIGURES


2023202220232022Last 12 months2022
MSEKJul-SepJul-SepJan-SepJan-Sep
Jan-Dec
Bookings1,6641,7725,2195,2546,9797,014
Deferred revenue71622234344
Net revenue1,6711,7875,2415,2777,0227,058
EBIT135250624780695850
EBITDA5666601,8821,8902,5372,545
Items affecting comparability-27-8-59-33-76-50
Adjusted EBITDA5936681,9411,9232,6132,595
Adjusted EBITDA margin, %363737363737
Capitalization of product development184257601761836996
Adjusted EBITDAC4094121,3411,1621,7771,599
Adjusted EBITDAC margin, %252326222523
Profit before tax11163121539335752
Net result-5832344205547
Number of employees1,4371,6121,4371,6121,4371,589
Adjusted leverage ratio, pro forma, x1.681.511.681.511.681.46
Adjusted leverage ratio incl. NTM cash earnout payments, pro forma, x1.881.871.881.871.881.75
Earnings per share undiluted, SEK-0.010.16-0.010.730.411.15
Earnings per share diluted, SEK-0.010.16-0.010.730.411.15

INVITATION TO WEBCAST

The report will be presented in a live webcast at 10:00 a.m. CEST today. Jörgen Larsson, CEO, and Andreas Uddman, CFO, will present the results and answer questions. The conference will be held in English.

To participate via webcast:

If you wish to participate via webcast, please use the link below.
https://ir.financialhearings.com/stillfront-q3-2023

To participate via phone:

If you wish to participate via teleconference, please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://conference.financialhearings.com/teleconference/?id=200986

FORWARD-LOOKING STATEMENTS

Some statements herein are forward-looking that reflect Stillfront’s current views or expectations of future financial and operational performance. Because these forward-looking statements involve both known and unknown risks and uncertainties, actual results may differ materially from the information set forth in the forward-looking information. Such risks and uncertainties include but are not limited to general business, economic, competitive, technological, and legal uncertainties and/or risks. Forward-looking statements in this report apply only at the time of announcement of the report and are subject to change without notice. Stillfront undertakes no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise, other than as required by applicable law or stock market regulations.

For additional information, please contact:

Jörgen Larsson, CEO, Stillfront Group
Phone: +46 70 321 18 00
E-mail: jorgen@stillfront.com

About Stillfront

Stillfront is a global games company founded in 2010. We develop digital games for a diverse gaming audience and our broad games portfolio is enjoyed by more than 50 million people every month. Stillfront is focused on realizing synergies by connecting and empowering game teams globally through our Stillops platform. We are a fast-growing company and an active global strategic acquirer. Our 1,400+ professionals thrive in an organization that embodies the spirit of entrepreneurship. Stillfront shares (SF) are listed on Nasdaq Stockholm Large Cap. For further information, please visit: stillfront.com

This information is information that Stillfront Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2023-10-25 07:00 CEST.

Attachments

Stillfront Interim Report Q3 2023 (EN) FINAL

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