Stillfront Group Ab · OMXSTO:SF
Stillfront Group Ab — Q2 2024 Earnings Presentation
13 slides from Stillfront Group Ab's earnings presentation, Jul 22, 2024
Slide 1: Stillfront Q2 2024 Interim Report
Stillfront Q2 2024 Interim Report
Slide 2: Strong margin development in second quarter
Strong margin development in second quarter • Net revenue of 1,744 MSEK in Q2, in line with Q1 and down by -4 Net revenue -3.8% YoY percent YoY • Gross profit margin of 80 percent, in line with Q1 and up by 2pp YoY • Adjusted EBITDAC margin at 29 percent, up by 8 pp QoQ driven by 1,744 MSEK lower us
Slide 3: Lower user acquisition costs in Q2
Lower user acquisition costs in Q2 Net revenue & UAC Net revenue & UAC (LTM) 1,812 0% 1,744 1,812 7,138 1,742 1,739 1,744 7,022 6,982 6,964 6,895 -4% 1,671 -0% 34% 31% 29% 29% 26% 26% 27% 25% 25% 24% Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 LTM Q3'23 LTM Q4'23 LTM Q1'24 LTM Q2'24 LTM Net Revenue (MSEK) U
Slide 4: Lower cost base drives strong margin development in Q2
Lower cost base drives strong margin development in Q2 Adj EBITDAC Adj EBITDAC (LTM) 516 1,780 1,777 • Adjusted EBITDAC margin 29 1,705 505 1,648 1,637 percent, up by 8 pp QoQ driven by lower UAC 409 • Gross margin improvement of 2 pp 365 358 YoY • Staff costs as a percentage of net 28% 29% revenue
Slide 5: DTC strategy drives continued gross margin improvements
Active portfolio Bookings Bookings by channel DTC strategy drives 1,698 1,661 1,632 1,586 1,627 continued gross margin 13% 13% 13% 14% 13% 26% 28% 29% 29% 33% improvements 61% 59% 58% 56% 53% • Bookings in active portfolio declined by -2 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 pe
Slide 6: Lower activity and user acquisition spend in Strategy
Product area: Strategy Bookings & UAC Strategy bookings by channel Lower activity and user 554 542 588 578 1% 2% 1% 2% 1% acquisition spend in 488 27% 34% 35% 38% 44% Strategy 23% 27% 32% 28% 72% 16% 64% 64% 61% 55% › Lower bookings in Strategy driven by Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'
Slide 7: Sunshine Island continues to deliver on growth plan
Product area: Sim, RPG & Action Bookings & UAC Sunshine Island bookings & Sunshine Island 467 475 UAC 421 384 401 78 continues to deliver on 62 growth plan 42% 47 47 40% 43 33% 25% 24% 22 › Sequential increase in bookings and users Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q4'23 Q1'24 Q2'24 driven by continued
Slide 8: Jawaker continues its strong performance
Product area: Casual & Mash-up Bookings & UAC Jawaker bookings by quarter Jawaker continues its 677 661 638 662 669 strong performance Stillfront acquisition 38% 33% 27% 28% 29% › Bookings were flat both sequentially and Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 YoY in Casual & Mashup Bookings (MSEK) UAC, % of
Slide 9: Strong free cash flow generation in quarter
Strong free cash flow generation in quarter MSEK Q2 2024 Q2 2023 Free cash flow & Capex LTM (MSEK) Cash flow from operations (before NWC) 482 501 1,878 Change in net working capital -48 66 1,777 Cash flow from operations (CFFO) 434 567 1,638 1,565 1,434 Cash flow from investment activities -668 -825
Slide 10: Leverage slightly above targets driven by share buybacks
Leverage slightly above targets driven by share buybacks Net debt & leverage ratio Maturity profile 874 1,039 895 1,222 807 877 725 517 515 496 528 2.15 1.91 1.88 1.95 1.84 4,404 4,388 4,507 4,115 4,115 2,528 1,000 1,000 682 Q2'23 LTM Q3'23 LTM Q4'23 LTM Q1'24 LTM Q2'24 LTM H1'24 H2'24 H1'25 H2'25 H
Slide 11: Share repurchase program
Share repurchase program • Stillfront’s cash flow generation and strong balance sheet enable us to launch another share repurchase program • The repurchased shares will be used to cover parts of the equity component of Stillfront’s earnout provisions for coming years and the total program amounts to
Slide 12: Strong margin development in second quarter, seasonally slower months ahead
Strong margin development in second quarter, seasonally slower months ahead • Strong profitability in the second quarter with adjusted EBITDAC margin of 29 percent • Seasonal effects have driven lower activity levels across our games towards the end of the second quarter, which are expected to conti
Slide 13: ID Stillfront
ID Stillfront