Stillfront Group Ab · OMXSTO:SF
Stillfront Group Ab — Q3 2019 Earnings Presentation
15 slides from Stillfront Group Ab's earnings presentation, Nov 7, 2019
Slide 1: Interim report July-September 2019
Interim report July-September 2019
Slide 2: Stillfront – a market leader in online strategy games
Stillfront – a market leader in online strategy games ST I L L F RO N T AT A G L A N C E G LO BA L P R E S E N C E • A global group of gaming studios in the free-to-play online strategy games genre Europe 44% • A diverse and evolving game portfolio with two common themes; loyal users and long lifecy
Slide 3: Financial and operational highlights Q3
FINANCIAL HIGHLIGHTS Q3 • Net revenue growth of 64% YoY • Strong organic growth • Adj. EBIT* margin of 34% as a result of strong monetization and efficient UA • UAC amounted to 83 MSEK or 16% in relation to net revenue O P E R AT I O N A L H I G H L I G H T S Q 3 • Kixeye part of the Group • Lower p
Slide 4: Portfolio update Q3
Portfolio update Q3 Diversified portfolio: largest game represents less than 15 percent of revenue 26% 17% 57% <1% EMPIRE BRAND BIG BRAND C O R E P RO D U C T S OT H E R • Four products: Empire, Four • Three products: Big Farm, Mobile • In total 29 products • Long tail products Kingdoms, Millennium,
Slide 5: Active User Base
Active User Base DAU ¹ Y-o-Y ’EMPIRE’ BRAND ’BIG’ BRAND CORE PRODUCTS (’000) 1411 1317 1309 +37% 1140 954 751 699 724 +180% 476 259 350 330 342 334 301 -14% 345 335 318 284 284 -18% Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 MAU ² 5874 5881 Y-o-Y (’000) COMMENTS Q3 2019 5342 +30% 4770 4098 • Sequential
Slide 6: Paying User Base
Paying User Base MPU ¹ Y-o-Y ’EMPIRE’ BRAND ’BIG’ BRAND CORE PRODUCTS (’000) 205 211 +38% 184 192 153 87 103 +174% 71 83 38 48 44 51 48 47 -3% 67 69 67 60 61 -9% Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 ARPMPU ² Y-o-Y (SEK) COMMENTS Q3 2019 +7% +30% +6% +21% 902 923 873 801 826 782 800 • Loyal paying
Slide 7: Kixeye part of the Group
Kixeye part of the Group Building for future growth F I RST Q UA RT E R I N T H E G RO U P K I X E Y E B LO C K B U ST E R I Ps • Sequential seasonality impact • Very low marketing spend – mainly due to operational development preparing for scaling up • Kixeye organisation ready for future growth •
Slide 8: Strong revenue growth and solid profitability
Strong revenue growth and solid profitability N E T R E V E N U E , UA C D E V E LO P M E N T COMMENTS Net Revenue, MSEK UAC, MSEK UAC, % of Net Revenue 517 1782 480 1579 Net revenue growth of 64% YoY 418 1428 – Strong organic growth in Nida Harb 3 and Big Farm: Mobile Harvest 366 1243 1325 315 – Me
Slide 9: Income statement Q3 2019
Income statement Q3 2019 COMMENTS MSEK 2019 2018 Jul-Sep Jul-Sep Deposits 509 MSEK IFRS effect -1 MSEK Net revenue 517 315 Other game related revenues 9 MSEK OWC 59 31 Gross Margin 74% Other revenue 1 4 Other operating expenses: 272 MSEK Total 577 350 • Payment providers, platform fees, royalties 13
Slide 10: Balance sheet 2019-09-30
Balance sheet 2019-09-30 MSEK 2019-09-30 2018-09-30 COMMENTS Intangible non-current assets 3,428 1,546 Intangible assets mainly consist of: Tangible non-current assets 61 8 Capitalized product development and acquired products 1,135 MSEK Deferred tax assets 33 14 Goodwill 2,293 MSEK Current receivab
Slide 11: Cash flow statement Q3 2019
Cash flow statement Q3 2019 CASH FLOW FROM OPERATIONS COMMENTS 2019 2018 2019 2018 Last 12 2018 Cash flow from operations for Q3 2019 amounted to 108 MSEK (121) Jul-Sep Jul-Sep Jan-Sep Jan-Sep Months Jan-Dec • Stable cash flow, however negative working capital movements and larger tax payments in th
Slide 12: Capital Markets Day 27 November 2019
Capital Markets Day 27 November 2019 Session 1 Session 2 13.30-14.00 Group Strategy 15.00-15.30 Dynamics of an evergreen game Jörgen Larsson, Founder & CEO Philip Knust, CPO 14.00-14.30 Entrepreneurship, Scale and Structure 15.30 Kixeye – Pioneers of the free-to-play industry Alexis Bonte, COO Clayt
Slide 13: Appendix
STILLFRONT GROUP Appendix
Slide 14: Reclassification and new definition
Reclassification and new definition COMMENTS 2019 2018 2019 2018 Last 12 2018 Jul-Sep Jul-Sep Jan- Jan- months Jan-Dec Reclassification of revaluation of provision for Earnouts From old to new EBIT Sep Sep Old EBIT 152 89 393 225 516 348 • Reclassification of revaluation for earnouts from Other Reve
Slide 15: Stillfront Group
STILLFRONT GROUP