Stillfront Group Ab · OMXSTO:SF
Stillfront Group Ab — Q3 2017 Earnings Presentation
23 slides from Stillfront Group Ab's earnings presentation, Nov 14, 2017
Slide 1: Presentation Q3 Report
Presentation Q3 Report November 14, 2017
Slide 2: Stillfront Group in brief
Stillfront Group in brief A developer and publisher of games, with the aim of becoming the leading group of independent studio • Approximately 1 159k monthly active users (“MAUs”) and 235k daily active users (“DAUs”) with significant Growing global base loyalty and spending (core games excl. downloa
Slide 3: Selected highlights Q3 report
Selected highlights Q3 report Stillfront portfolio shows strengthand stability Investments have built a strong growth momentum ✓ Last 16 months of investments have 34 consecutive built strong momentum ATH Q revenues months of ATH ATH ✓ Number of core games has increased in LTM revenues margin of SEK
Slide 4: Contents
Business Overview Strategy Contents Financials Outlook 2017
Slide 5: The gaming market is exciting but contains some specific challenges
The gaming market is exciting but contains some specific challenges Balancing reward and risk… … is key • The largest entertainment market globally Stillfront’s reward/risk profile exceeding USD 100bn and still growing by Thrilling market ~7.2% p.a.1 • Dynamic with many new areas evolving Less volat
Slide 6: Stillfront is currently operated through eight autonomous game studios
Stillfront is currently operated through eight autonomous game studios … Professional central management Eight near-autonomous subsidiaries 4% (% share of Q3 2017 revenue) 24% 26% OFM 11% 3% 2% 9% 21% 15 core games as per Oct 31 2017 Across multiple distribution platforms Tablet Browser Mobile PC Co
Slide 7: With an increasing amount of core products and profits
… with an increasing amount of core products and profits Continuously evolving game portfolio with strong game build-up creates stable revenue base HEALTHY LEGACY CROSS PLATFORM MOBILE APPS DOWNLOADABLES 17% 29% 43% 11% Launch in 1988 & 1996 respectively Launch in Q2 2015 Launch in Q3 2016 L
Slide 8: Risk goes down and financials go up – our strategy kicks in
Risk goes down and financials go up – our strategy kicks in Significant development at decreased risk… …through increased diversification Revenue per game Q1 2016 Revenue per game Q3 2017 Achievements in the last sixteen months: Conflict of ManagerZone DragonRealms ✓ Diversified platform mix with mo
Slide 9: Traffic numbers
Traffic numbers DAU (’000) Comments 274% 68% • Continued high growth rates in Q3 • MAU quarterly average above 1 million for the first time 235 • Quarterly DAU growth higher than MAU growth – 140 improved engagement with our products 63 72 77 • Quarterly player growth driven by SIEGE: Titan Wars 201
Slide 10: Siege update
Siege update The extensive launch is well underway Massive initial Apple featuring • Massive featuring globally from Apple including top position in US app store • As of Sep 30, 1.7 million installs have been reached - a kick start to launch period • User Acquisitions has been made in several instan
Slide 11: Call of War update
Call of War update Expanding a brand in several dimensions perfectly in line with our PLEX strategy • Constantly new maps and game play improvements are deployed Events and Content • New formats of game play are added to enhance the experience, such as very popular Speed Rounds • Participating also
Slide 12: War and Peace update
War and Peace update Most promising new product soft launch so far • Different themes are compiled from creative processes, market intelligence and research • Themes are marketed and results are tracked Sophisticated theme selection • Different graphical assets are promoted per top themes • Iterated
Slide 13: Contents
Business Overview Strategy Contents Financials Outlook 2017
Slide 14: Business strategy based on three pillars
Business strategy based on three pillars The strategy pillars have different purposes Product strategy Growth strategy Market strategy 1 2 3 P Portfolio of studios & games H Hi Growth P Publishing by leveraging L Long life cycle games i Scalability, u & Engines for E scalability G Structure of organ
Slide 15: Contents
Business Overview Strategy Contents Financials Outlook 2017
Slide 16: Strong financials
Strong financials Net revenue growth (SEKm) • Q3 Revenues: 45.4 mSEK +22% • 22-24% Q-o-Q growth for 3 consecutive quarters +24% +22% • Growth last year mainly from • Successful development for Call of War • Good momentum at Simutronics 24,6 30,0 37,3 45,4 • Strong growth in Coldwood • Successful acq
Slide 17: Balance Sheet
Balance Sheet KS EK 2017-09-30 2016-12-31 2016-09-30 • Intangible assets mainly consists of Intangible non current assets 359 168 264 499 104 744 • capitalized product development (68 mSEK) Tangible non current assets 1 077 775 737 • acquired products (38 mSEK) • Goodwill (253 mSEK) Deferred tax ass
Slide 18: Contents
Business Overview Strategy Financials Outlook 2017 Contents
Slide 19: Stillfront is actively searching for stable and long-lived small-size games
Stillfront is actively searching for stable and long-lived small-size games Distribution of market players Comments • Stillfront is actively looking for small- Large-size studios size studios, typically with a few well established highly profitable games. The space within small-size studios Revenues
Slide 20: Case study organic growth: Call of War
Case study organic growth: Call of War Cash flow yielding new products… yielding further cash flow and investment capacity… Add-on investments of SEK ~7m, of which SEK ~3m is test campaigns UAC: SEK 21m, Live-team: SEK 3.5-4.5m, PPC: SEK 4.2m, Server: SEK 1.5m, Other/Central: SEK 1.5-2.5m Initial in
Slide 21: Case study acquired growth: eRepublik Labs
Case study acquired growth: eRepublik Labs Significant and immediate growth at decreased risk… …through instant increased portfolio of core products eRepublik • Strong publishing capabilities Labs • Focus on mobile, representing 83% of revenues and all new products • Highly skilled loyal team and ex
Slide 22: Outlook
Outlook Growth is highest priority 1. Growth in portfolio of products and studios 2. Further reward/risk balancing Strategic and tactical priorities 3. Increased diversity in platforms 4. Development of operational model for increased synergies and efficiency Several new products are being • Conflic
Slide 23: Thank you
Thank you