Change in consolidated net revenues, excluding the translation impact of changed currency exchange rates and acquisitions. Net revenues in acquired operations are considered as acquired growth during twelve months from the acquisition date.
In February 2023, Stillfront announced updated financial targets that include: 1) annual organic growth above addressed market, 2) annual adjusted EBITDAC margin of 26-29 percent, and 3) a leverage ratio below 2.0x (including cash earnouts next 12 months). Stillfront may, however, under certain circumstances decide to exceed the net debt/adjusted EBITDA ratio target during short time periods.
Stillfront’s updated financial targets will be followed up annually and are valid until further notice.
To support value creation, Stillfront aims to invest its profits and cash flows in organic growth initiatives and acquisitions and therefore, does not expect to pay dividends or buy back shares during 2021-2023.
Stillfront’s first day of trading on Nasdaq First North was December 8, 2015. The listing price was SEK 39 per share. Adjusted for the share split on 28 December 2020, the listing price was SEK 3.90 per share.
Stillfont’s games are mostly free-to-play games, which means that players can access the games for free. Players then have the choice to buy in-game currency (IGC), which can be used in the game to enhance the gaming experience. Such a transaction is referred to as a Deposit. Revenue is recognized by Stillfront when the player uses the IGC to acquire a virtual good in the game.
The share of the Deposit which has not been used in-game during the period is classified as Deferred revenue (i.e. advance payments from players). If a player does not use the IGC for an in-game transaction during a specific period of time, the player becomes classified as inactive and the value of the player’s remaining IGC is recognized as revenue. The length of the period is determined on a game-by-game basis.
The active portfolio, generating revenues every day, consists of more than 70 games divided into three categories: Strategy; Simulation, RPG & Action; and Casual & Mash-up. Most of our titles are long lifecycle games with a loyal player base and stable revenues.