Stillfront Group AB (publ) (SF) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome to the SILFRONT Q4 presentation. I am Alexis Pont, the CEO of SILFRONT. I am joined today by our CFO, Emilie Villatte, who joined us in December. I would like also to take the opportunity to thank Tim Holland for his work as interim CFO during 2025. As we summarize the first quarter of 2025, I am pleased to report that SILFRONT is delivering margin expansion despite revenue decline. We successfully expanded our adjusted EBITDA margin to 27%, up from 25% in Q4 last year, despite an organic revenue decline of 9%. This follows our cost savings efforts during the year, disciplined deployment of USC, alongside the continued rollout of our direct-to-consumer channel. Looking at our business areas, in Europe, we delivered a big franchise new game launch with early positive signs. and we divested our non-core narrative portfolio, which has been impacting our organic growth. In North America, the continued revenue decline reflects a deliberate strategy of prioritizing cash flow and efficiency over short-term volume. MENA and APAC delivered strong results with 7% organic growth. Now let's dive into the details. So first turning to Europe, Net revenue in BA Europe landed at 622 million SEC for the quarter. That represented an organic decline of 6%. The revenue performance in Europe has been heavily impacted by the narrative games portfolio. And in late December, we concluded divestment of the narrative franchise for a total consideration of $4 million. That reflects a four times ABTAC multiple for that portfolio. So excluding the narrative portfolio, organic growth for BA Europe was actually flat in the quarter. In December, I'm happy to announce the release of the new game, Big Farm Homestead. The game did not have material revenue impact in the quarte...