Key figures and alternative performance measures
| ARPDAU | Average revenue per daily active user. Calculated as Bookings in the quarter divided by days in the quarter divided by average daily active users in the quarter. |
| Bookings | Revenue before changes in deferred revenue, including deposits from paying users, in-game advertising revenue and other game-related revenue. |
| Cash conversion ratio | Free cash flow for the last twelve months divided by EBITDA for the last twelve months. |
| DAU | Average daily active users. Calculated as the average daily active users each month of the quarter, divided by months in the quarter. |
| Operating profit (EBIT) | Profit before financial items and tax. |
| EBITDA | Operating profit before depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for items affecting comparability. |
| EBITDA margin | EBITDA as a percentage of Net revenue. Adjusted EBITDA margin is EBITDA margin adjusted for items affecting comparability. |
| Adjusted EBITDAC | EBITDA less capitalized product development, adjusted for items affecting comparability. |
| Adjusted EBITDAC margin | Adjusted EBITDAC as a percentage of Net revenue. |
| Free cash flow | Cash flow from operations minus acquisitions of intangible assets and repayment of lease liabilities. |
| Gross profit margin | Gross profit as a percentage of Net revenue, where Gross profit is defined as Net revenue minus Direct costs. |
| IAC, Items affecting comparability | Significant income statement items that are not included in the Group’s normal recurring operations and which distort the comparison between the periods. |
| Adjusted interest coverage ratio, pro forma | Adjusted EBITDA pro forma divided by net financial items excluding revaluation of provision for earnouts and interest on earnout consideration for the past twelve months. |
| Adjusted leverage ratio | Net debt in relation to the last twelve months’ Adjusted EBITDA. Adjusted leverage ratio, pro forma is calculated as Net debt in relation to the last twelve months’ Adjusted EBITDA pro forma. |
| Adjusted leverage ratio, including NTM cash earnout | Net debt, including cash earnout payments for the next twelve months, in relation to the last twelve months’ Adjusted EBITDA. Adjusted leverage ratio, including NTM cash earnout, pro forma is calculated as Net debt, including cash earnout payments for the next twelve months, in relation to the last twelve months’ Adjusted EBITDA pro forma. |
| MAU | Average monthly active users. Calculated as monthly active users each month of the quarter, divided by months in the quarter. |
| MPU | Average monthly paying users. Calculated as monthly paying users each month of the quarter, divided by months in the quarter. |
| Net debt | Interest-bearing liabilities, including the book value of equity swaps and currency derivatives, minus cash and cash equivalents. Provisions for earnouts are not considered interest-bearing in this context. |
| Organic growth | Change in consolidated net revenues, excluding the translation impact of changed currency exchange rates, acquisitions, divestments, de-consolidation of subsidiary and termination of games. Net revenues in acquired operations are considered as acquired growth during twelve months from the acquisition date. |
| Shareholders’ equity/share | Shareholders’ equity attributable to the parent company shareholders divided by the number of shares at the end of the period. |
| Tax rate | Tax rate is calculated as total tax for the period divided by profit before tax. Underlying tax rate is calculated as underlying tax divided by profit before tax excl. transaction costs, earnout interest, earnout revaluations and deconsolidation of subsidiary. |
| UAC | User acquisition cost. |
Operational Definitions
| Active LiveOps | Games outside of key franchises with more than 5% of Bookings invested in user acquisition. |
| Business area | Includes franchises and game teams that are managed by staff physically located within the same geographical area. A Business Area consists of 4 different types of game portfolios from which it receives bookings from: 1) Key game franchises, 2) Active LiveOps, 3) Legacy LiveOps, 4) External Partnerships. |
| Business Area Europe | Includes key game franchises: Albion, Big, Empire, Narrative, and Supremacy. Includes key franchise studios: Sandbox, New Moon, Goodgame (including OFM), Nanobit, Bytro/Dorado, and other studios Playa and eRepublik. |
| Business Area MENA & APAC | Includes key game franchises: Jawaker and Board. Includes key franchise studios: Jawaker, Moonfrog, and other studios 6waves, Imperia (including Game Labs and Everguild), and Babil. |
| Business Area North America | Includes key game franchises: Bitlife, Home Design Makeover, and Word. Includes key franchise studios: Candywriter, Storm8, Super Free, and other studios Simutronics/Kixeye. |
| External partnerships | Games where Stillfront does not have user data and does not act as the publisher. |
| Headquarters (HQ) | Group functions that deliver services to the group and are recharged to business areas and their subsidiaries via intercompany management fees based on allocation keys. |
| Key franchises | The games included as key game franchises have a set of definitions that define them, such as full-year bookings above 200 MSEK, consistency of core experience, technology, and game mechanics, and recognizable and evolving IP. |
| Legacy Live Ops | Games outside of key franchises with less than 5% of Bookings invested in user acquisition. |
| Shared services | Offers services to game teams and business areas for which they earn a service fee, based on usage, or make a margin on volume. Examples of such services are Marketing, Payments, Data & Analytics, IT & Tech, as well as Finance and HR. |
| Transferred games | Revenues from games whose management moved from one business area to another between the years and quarters being compared. |
The purpose of each key figure and alternative performance measure is described in the latest Annual Report.