Slide 1: Interim report Second quarter 2024
Interim report Second quarter 2024 July 30, 2024 PRESENTATION TITLE
Slide 2: Today's presenters
Today’s presenters Johannes Larcher Peter Messner CEO CFO Interim report second quarter 2024
Slide 3: Delivering the best financial performance in the history of the company
“Delivering the best financial performance in the history of the company” Interim report second quarter 2024
Slide 4: Combination of Publishing and Streaming businesses creates synergies and value
Combination of Publishing and Streaming businesses creates synergies and value Differentiated Content Lineup and Value Proposition for Consumers Publishing Streaming Enhanced Value Proposition for Authors Interim report second quarter 2024 4
Slide 5: Operational Highlights in Q2 2024
Operational Highlights in Q2 2024 ● Profitability improvements as a result of continued, disciplined strategy execution ○ Strong subscriber growth, exceeding 2.3 million paid subscribers ○ Improved content cost economics due to higher share of in-house publishers ● Continued platform evolvement and d
Slide 6: New plans and differentiated promotions in the Nordics
New plans and differentiated promotions in the Nordics Flex Student Forever Premium For Life ● 20 hours per month ● For students in Sweden, ● Limited campaign in Finland ● Unused hours automatically Denmark and Finland ● 50% discount on the Premium roll over to the next month ● 50% discount on the Pr
Slide 7: Group Financial Highlights Q2
Group Financial Highlights Q2 Net sales up 9% Gross Profit Margin up 5.0pp Comments MSEK Adjusted Margin (excl IAC) Q2 2024 compared with Q2 2023 ● Group net sales increased by 9% to 924 (851) MSEK ● Adjusted Gross Profit margin up 5.0pp to 44.2% (39.2%) ● Adjusted EBITDA of 128 (46) MSEK, with a marg
Slide 8: Streaming Performance Q2 2024
Streaming Performance Q2 2024 11% Increase in Average Subscribers ARPU at a high level Comments Average Subscribers (thousands) Q2 2024 compared with Q2 2023 ● Average number of subscribers increased by 230,000 SEK ○ Of which 81,000 in the Nordics ○ Storytel’s Non-Nordics Core markets* increased by
Slide 9: Streaming segment
Streaming segment Table is adjusted for IACs Streaming (MSEK) Q2-24 Q2-23 Change, % Jan-Jun 2024 Jan-Jun 2023 Change, % Comments Q2 2024 compared with Q2 2023 Net sales 834.1 773.9 8% 1,646.4 1,489.2 11% Cost of sales -487.3 -467.3 4% -960.4 -899.6 7% ● Net sales up 8% to 834 (774) MSEK Adj. Gross p
Slide 10: Publishing segment
Publishing segment Table is adjusted for IACs Publishing (MSEK) Q2-24 Q2-23 Change, % Jan-Jun 2024 Jan-Jun 2023 Change, % Comments Q2 2024 compared with Q2 2023 Net sales 262.8 227.2 16% 508.1 464.1 9% Cost of sales -180.5 -185.5 -3% -363.0 -359.4 1% ● Net sales up 16% to 263 (227) MSEK Adj. Gross p
Slide 11: Improved group operating profit
Improved group operating profit Comments Q2 2024 compared with Q2 2023 ● Net sales for the quarter grew by 9% to 924 Table is adjusted for IACs (851) MSEK MSEK Q2-24 Q2-23 Change, % Q1-24 Net sales 924.5 851.1 9% 891.9 ● Adjusted Gross profit up by 22% to 409 (334) MSEK; margin of 44.2% (39.2%) Cost o
Slide 12: Improved cash flow generation
Improved cash flow generation Comments Q2 2024 compared with Q2 2023 MSEK Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 ● Adjustments for non-cash items relate to EBITDA (incl. IAC) 110.3 50.9 -7.3 96.4 41.6 depreciation and amortization, FX Depreciation and amortisation -63.5 -74.5 -672.6 -81.4 -71.0 movements and
Slide 13: Solid financial position
Solid financial position MSEK Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Comments Intangible assets 1,905 1,939 1,902 2,643 2,669 Tangible assets 16 17 18 20 23 ● No major movements within assets, with Right-of-use assets 62 70 84 98 110 intangible assets stable at c. 1.9 bn SEK Non-current financial assets 70 66
Slide 14: Improved leverage ratio
Improved leverage ratio Comments Operational Cash Flow (MSEK) Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q2 2024 compared with Q2 2023 EBITDA excluding IAC 127.5 104.2 97.6 101.0 45.8 Operational Capex* -40.2 -31.1 -39.2 -35.8 -44.7 ● Operational Cash Flow significantly improved to 87 (1) MSEK, 9.4% of revenues O
Slide 15: Ready for the next phase after months of successful transformation
Ready for the next phase after 24 months of successful transformation and profitable growth strategy execution 13% Paid Subscriber Growth 18% Group Revenue Growth >2.3m 924 781 million MSEK ~2m Q2 ‘22 Q2 ‘23 Q2 ‘24 Q2 ‘22 Q2 ‘23 Q2 ‘24 ~10x Adj. Group EBITDA Increase Positive Group EBIT & Profit 47 12
Slide 16: Tracking well relative to our guidance
0.02670146557 Tracking well relative to our guidance FY23 YTD 24 2024 FY 2026 Mid term Result Result Guidance financial targets Group revenue 9.0% 10.3% ~10% ~10% growth Adjusted 8.1% 12.8% >13% >15% EBITDA margin Operational 3.5% 8.8% >8% >10% cash flow* Interim report second quarter 2024 * Operation
Slide 17: Q&A
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