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
| 2023 | 2022 | 2023 | 2022 | Last 12 months | 2022 | |
| MSEK | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Jan-Dec | |
| Bookings | 1,664 | 1,772 | 5,219 | 5,254 | 6,979 | 7,014 |
| Deferred revenue | 7 | 16 | 22 | 23 | 43 | 44 |
| Net revenue | 1,671 | 1,787 | 5,241 | 5,277 | 7,022 | 7,058 |
| EBIT | 135 | 250 | 624 | 780 | 695 | 850 |
| EBITDA | 566 | 660 | 1,882 | 1,890 | 2,537 | 2,545 |
| Items affecting comparability | -27 | -8 | -59 | -33 | -76 | -50 |
| Adjusted EBITDA | 593 | 668 | 1,941 | 1,923 | 2,613 | 2,595 |
| Adjusted EBITDA margin, % | 36 | 37 | 37 | 36 | 37 | 37 |
| Capitalization of product development | 184 | 257 | 601 | 761 | 836 | 996 |
| Adjusted EBITDAC | 409 | 412 | 1,341 | 1,162 | 1,777 | 1,599 |
| Adjusted EBITDAC margin, % | 25 | 23 | 26 | 22 | 25 | 23 |
| Profit before tax | 11 | 163 | 121 | 539 | 335 | 752 |
| Net result | -5 | 83 | 2 | 344 | 205 | 547 |
| Number of employees | 1,437 | 1,612 | 1,437 | 1,612 | 1,437 | 1,589 |
| Adjusted leverage ratio, pro forma, x | 1.68 | 1.51 | 1.68 | 1.51 | 1.68 | 1.46 |
| Adjusted leverage ratio incl. NTM cash earnout payments, pro forma, x | 1.88 | 1.87 | 1.88 | 1.87 | 1.88 | 1.75 |
| Earnings per share undiluted, SEK | -0.01 | 0.16 | -0.01 | 0.73 | 0.41 | 1.15 |
| Earnings per share diluted, SEK | -0.01 | 0.16 | -0.01 | 0.73 | 0.41 | 1.15 |
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.