Stillfront Group Ab · OMXSTO:SF
Stillfront Group Ab — Q4 2023 Earnings Presentation
15 slides from Stillfront Group Ab's earnings presentation, 2023
Slide 1: Full-year report 2023
STILLFRONT GROUP Full-year report 2023
Slide 2: Return to organic bookings growth in November and December
STILLFRONT IN Q4 AND FULL-YE AR 2023 Return to organic bookings growth in November and December › Net revenue declined 2 percent year-over-year in the fourth quarter Games with a global footprint › Organic bookings declined by 2 percent, positive in November and December Europe 30% North Am 41% › Gr
Slide 3: Revenue development
Net Revenue, MSEK User acquisition cost, % of Net Revenue REVENUE DEVELOPMENT Net revenue & UAC Net revenue & UAC (LTM) Net revenue bridge -2% -1% 1,781 1,758 1,812 7,058 7,138 7,138 7,022 1,781 1,742 6,982 +1% 1,742 1,671 -3% -0% 31% 27% 26% 26% 25% 25% 25% 27% 25% 24% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23
Slide 4: Margin development
Adj. EBITDAC, MSEK Adj. EBITDAC margin, % MARGIN DEVELOPMENT Adj. EBITDA margin, % Adjusted EBITDAC Adjusted EBITDAC (LTM) › Adjusted EBITDAC margin 21 -17% +7% percent, down from 25 percent same period last year, driven by increased UAC 1,780 1,777 516 1,705 1,653 › YTD EBITDAC margin 24 percent, 1
Slide 5: DTC platforms continue to gain momentum
MARGIN DEVELOPMENT DTC platforms continue to gain momentum 469 › Direct-to-consumer (DTC) primarily 446 consist of bookings generated from 436 Stillfront’s own internal proprietary 400 payment platforms 364 › Payment processing fees significantly 339 lower in Stillfront’s proprietary channels 319 29
Slide 6: Improved market conditions and strong game performance in fourth quarter
PORTFOLIO HIGHLIGHTS Improved market conditions and strong game performance in fourth quarter Portfolio highlights › Better marketing conditions in line with historical seasonal trends paired with improved game KPIs drove significant scaling of key titles in November and December › Supremacy franchi
Slide 7: Launching and scaling new games for long-term growth
PORTFOLIO HIGHLIGHTS 50.0 Launching and scaling 45.0 40.0 Illustrative example of scaling of a new game* new games for long-term 35.0 30.0 25.0 growth 20.0 15.0 10.0 Day 181-365 gross profit Day 91-180 gross profit Day 31-90 gross profit 5.0 Day 8-30 gross profit › Stillfront spends user acquisition
Slide 8: Scaling Sunshine Island in the fourth quarter
PORTFOLIO HIGHLIGHTS Sunshine Island Scaling Sunshine Island in 500,000 7-day average bookings (SEK) the fourth quarter 400,000 › Sunshine Island is one of Stillfront’s most successful new game launches 300,000 › Sunshine Island accounted for more than 60 MSEK of user acquisition cost in quarter, dr
Slide 9: Active portfolio: total
ACTIVE PORTFOLIO: TOTAL Bookings (MSEK) -4% YoY MAU (‘000) -16% YoY MPU (‘000) -9% YoY Bookings by channel DAU (‘000) -18% YoY ARPDAU (SEK) +16% YoY 1,693 1,653 1,698 Advertising 1,586 1,627 60,909 60,502 1,231 1,240 1,237 57,971 13% 52,407 51,001 1,094 1,116 DTC 29% 1.6 1.6 1.7 1.7 1.9 3rd party 11
Slide 10: Active portfolio: total
ACTIVE PORTFOLIO: TOTAL Bookings (MSEK) ARPDAU (SEK) User acquisition cost (MSEK) › Strong sequential increase in bookings 8.8 and users in Strategy driven by successful 8.1 8.3 8.3 8.2 scaling of Supremacy franchise 554 586 586 542 588 191 › Scaling of Sunshine Island drives 145 significant UAC inc
Slide 11: Significant profitability improvements during 2023
MARGIN DEVELOPMENT & SYNERGIES Significant profitability improvements during 2023 +1.7pp +2.6pp 1,705 +1.8pp 1,599 -1.2pp -1.3pp • Lowered direct costs as a • UAC up by 1.2 pp as a • Staff & other opex up as a • Total investments in percentage of net revenue percentage of net revenue percentage of n
Slide 12: Strong cash generation enables growth initiatives
CASH FLOW HIGHLIGHTS Strong cash generation enables growth initiatives Q4, MSEK Q4 2023 Q4 2022 Cash flow from operations (before NWC) 357 474 Change in net working capital -10 10 Cash flow from operations (CFFO) 347 484 Strong scaling of games Cash flow from investment activities -211 -480 towards
Slide 13: Leverage within target and continued attractive maturity profile
BAL ANCE SHEET HIGHLIGHTS Leverage within target and continued attractive maturity profile 7,000 5.00 4.50 6,000 874 4.00 1,039 5,000 989 776 807 3.50 725 517 2,057 749 496 748 3.00 4,000 2.50 3,000 2.00 1.91 1.88 1.84 1.75 1.78 4,404 4,388 1.50 2,000 3,923 4,115 3,826 1.00 1,693 1,500 1,000 1,000 0
Slide 14: Significant sequential organic improvement in fourth quarter
SUMMARY AND OUTLOOK Significant sequential organic improvement in fourth quarter › Improved market conditions and promising game launches drove improvement in fourth quarter › Record levels of user acquisition spend resulted in a lower EBITDAC margin, while supporting our long- term growth opportuni
Slide 15: Stillfront Group
STILLFRONT GROUP