Stillfront Group Ab · OMXSTO:SF
Stillfront Group Ab — Q1 2020 Earnings Presentation
20 slides from Stillfront Group Ab's earnings presentation, 2020
Slide 1: A leading free-to-play powerhouse - Interim report First Quarter 2020
A leading free-to-play powerhouse Interim report First Quarter 2020
Slide 2: Today's presenters
TODAY´S PRESENTERS Jörgen Larsson Andreas Uddman CEO CFO jorgen@stillfront.com andreas@stillfront.com 2
Slide 3: Stillfront at a glance
STILLFRONT AT A GLANCE A leading free-to-play powerhouse of 14 gaming studios creating significant operational synergies 9.8 million 9.8 million MAUs and 2.2 million DAUs including Storm8 (one month), excluding Candywriter A diverse and evolving game portfolio Main markets by revenue are US, with tw
Slide 4: Global presence - 14 game studios
GLOBAL PRESENCE 14 GAME STUDIOS Europe 42% Asia 17% North Am 36% Africa 1% South Am 2% Oceania 2% Sales Offices 4 Note: Candywriter not included.
Slide 5: Net revenue, UAC development
NET REVENUE, UAC DEVELOPMENT Net Revenue, MSEK UAC, MSEK UAC, % of Net Revenue 2240 691 1967 1782 20% 551 21% 1579 20% 480 517 1428 20% 418 19% 22% 16% 24% 21% 26% 148 342 346 365 397 438 108 99 83 107 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 LTM LTM LTM LTM LTM Net revenue growth
Slide 6: Adj. EBIT development
ADJ. EBIT DEVELOPMENT Adj. EBIT, MSEK Adj. EBIT, % of Net Revenue 732 213 645 604 33% 167 175 177 31% 527 33% 441 34% 126 35% 34% 32% 33% 31% 30% Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 LTM LTM LTM LTM LTM Adj. EBIT growth of Adj. EBIT in relation to revenue • Adj. EBIT growth dr
Slide 7: Active portfolio: Total
ACTIVE PORTFOLIO: TOTAL MAU (‘000) +73% YoY MPU (‘000) 82% YoY DAU (‘000) +62% YoY Bookings (MSEK) +60% YoY ARPDAU (SEK) -3% YoY UAC (MSEK) +42% YoY 9785 UAC, % of Bookings 365 2214 664 504 537 22% 5669 5612 5795 232 450 5094 200 207 1363 1269 1262 1351 415 20% 187 16% 25% 21% 3,4 3,9 4,3 4,3 148 3,
Slide 8: Active portfolio: Strategy
ACTIVE PORTFOLIO: STRATEGY MAU (‘000) -8% YoY MPU (‘000) -2% YoY DAU (‘000) -10% YoY Bookings (MSEK) +10% YoY ARPDAU (SEK) +21% YoY UAC (MSEK) +14% YoY 3114 UAC, % of Bookings 2985 2853 2712 102 100 588 2482 94 93 96 544 322 318 531 299 491 496 288 279 17% 20% 19% 18% 15% 6,5 6,2 6,6 6,6 5,4 56 53 5
Slide 9: Active portfolio: Simulation, RPG & Action
ACTIVE PORTFOLIO: SIMULATION, RPG & ACTION MAU (‘000) +41% YoY MPU (‘000) +57% YoY DAU (‘000) +26% YoY Bookings (MSEK) +91% YoY ARPDAU (SEK) +50% YoY UAC (MSEK) +40% YoY UAC, % of Bookings 3604 153 3083 136 972 239 242 855 225 2555 2626 2612 114 775 771 22% 28% 725 17% 98 93 127 127 38% 33% 67 3,2 3
Slide 10: Active portfolio: Casual & Mash-up
ACTIVE PORTFOLIO: CASUAL & MASH-UP MAU (‘000) MPU (‘000) DAU (‘000) Bookings (MSEK) ARPDAU (SEK) UAC (MSEK) UAC, % of Bookings 9982 335 2132 105 105 16% 16% 3327 112 711 17 17 1,6 1,6 Q4'19 Q1'20 Mar'20 Q4'19 Q1'20 Mar'20 Q4'19 Q1'20 Mar'20 Q4'19 Q1'20 Mar'20 COMMENTS 7 100% • All 7 games only inclu
Slide 11: Candywriter - a US based mobile games developer
CANDYWRITER – A US BASED MOBILE GAMES DEVELOPER C A N D Y W R I T E R AT A G L A N C E KEY PERSONNEL • Founded 2006, Candywriter is a pioneering mobile games developer and publisher focusing on casual and mash-up games with longevity Kevin O´Neil Nadir Khan Gabrielle Bradford • Candywriter has creat
Slide 12: Strategic rationales and synergies
STRATEGIC RATIONALES AND SYNERGIES Build size, diversify portfolio High development and and broaden market synergy potential • Adds USD 26m in Net Revenue and USD 15m EBIT 2019 • Localization & culturalization opportunities: the game is currently only available in English • In total 42m cumulative d
Slide 13: Financial highlights first quarter
FINANCIAL HIGHLIGHTS FIRST QUARTER Revenue growth of 65% - further Cash generative business with a cash increased revenue diversification, conversion ratio of 0.73 in the quarter paired with Adj. EBIT margin of 31%. Moderate leverage, continuously 1.15x Debt financing secured in Q1 of 2.1bn SEK. 1 b
Slide 14: Income statement Q1 2020
INCOME STATEMENT Q1 2020 MSEK Q1 2020 Q1 2019 COMMENTS Net revenue 691 418 65% Gross Margin 2 p.p. lower driven by higher mobile OWC and Other Revenue 75 41 84% share of revenue, offset by other revenues and Total revenues 766 459 67% scalability of business model Platform Fees -189 -105 80% UAC inc
Slide 15: Balance sheet Q1 2020
BALANCE SHEET Q1 2020 COMMENTS MSEK Q1 2020 Q1 2019 31 Dec 2019 Intangible non-current assets 7 852 2 228 3 293 Intangible assets increased 42% since year-end 2019. Tangible non-current assets 106 59 76 Goodwill increased by 3 359 MSEK and Intangibles by 1 199 MSEK of which 1 063 SEK relate to PPA i
Slide 16: Cash flow Q1 2020
CASH FLOW Q1 2020 MSEK Q1 2020 Q1 2019 Q1 2020 LTM FY 2019 COMMENTS Cash flow as reported Cash flow from operations Cash flow from operations 163 103 544 484 • Healthy cash flow generation from operations of 120 MSEK, coupled with positive working capital effect of 43 MSEK Cash flow from investment
Slide 17: Pro forma income statement
PRO FORMA INCOME STATEMENT Q4 2019 P R E L I M I N A RY P R O F O R M A I N C O M E S TAT E M E N T F Y 2 0 1 9 COMMENTS The transaction of Candywriter is further IFRS Stillfront Group Storm8 Stillfront Group (as Candywriter Stillfront Group diversifying the Group. FY 2019 pro forma Unaudited SEKm (
Slide 18: COVID-19 / current update
COMMENT COVID-19 / CURRENT UPDATE Current observations May 6, 2020: • Accelerated gaming activity across the portfolio of games • A large inflow from newly registered users • High activity among existing user bases • Increased returns on our marketing campaigns • Marketing strategy is yielding very
Slide 19: Creating a leading free-to-play powerhouse
CREATING A LEADING FREE-TO-PLAY POWERHOUSE 1 Increased addressable market Mirroring the industry composition, solid presence in largest genres Mid Core and Casual group 14 36 Highly diversified portfolio Strategy Simulation, RPG and Action Casual & Mash-up studios games in active portfolio 2bn Reali
Slide 20: Stillfront Group
STILLFRONT GROUP