Storytel Interim Report Q4, 2023

STOCKHOLM, Feb. 15, 2024 /PRNewswire/ -- "Storytel continued its transformation journey and delivered yet another strong quarter to conclude 2023", says Johannes Larcher, CEO, Storytel.

Financial Highlights Q4

Fourth quarter 2023 compared to the fourth quarter 2022

• Streaming revenue up 16% to 858 (742) MSEK; or 14% at constant exchange rates (CER)
• Group revenue increased by 9% to 946 (867) MSEK
• Adjusted Gross profit up 20% to 387 (322) MSEK, equaling a margin of 40.9% (37.2%)
• Gross profit was down 24% to 246 (322) MSEK
• Adjusted EBITDA increased by 62% to 86 (53) MSEK, equaling a margin of 9.1% (6.1%)
• EBITDA was -12 (36) MSEK
• Adjusted Operating profit of -8 (-32) MSEK, and -680 (-50) MSEK including IACs
• Basic and diluted earnings per share amounted to -9.34 (-1.30) SEK
• Cash flow from operations before changes in working capital amounted to -25 (12) MSEK
• Operational cash flow amounted to 47 (12) MSEK

January - December 2023 compared to the period January - December 2022

• Streaming revenue grew 12% to 3,242 (2,888) MSEK; or 9% at constant exchange rates
• Group revenue increased by 9% to 3,489 (3,200) MSEK, or 10% when excluding Russia
• Adjusted EBITDA increased by 169% to 248 (92) MSEK, equaling a margin of 7.1% (2.9%)
• EBITDA was 150 (-68) MSEK
• Basic and diluted earnings per share amounted to -10.63 (-5.68) SEK
• Cash flow from operations before changes in working capital amounted to 96 (-116) MSEK
• Operational cash flow amounted to 90 (-139) MSEK

Other Highlights Q4

• Storytel recognized Items Affecting Comparability (IACs) of 672 MSEK, following the sharpened focus on profitability. Of these IACs, 465 MSEK relate to non-cash impairment charges on goodwill attributed to Audiobooks.com
• Storytel launched a strategic partnerships with the Dutch telecom operator KPN, which has already been driving meaningful subscriber acquisition in The Netherlands

Highlights after the end of the quarter

• Storytel announced an efficiency optimization initiative that will be implemented during the first quarter of 2024, including a 13% reduction in workforce
• Storytel upgraded its mid-term targets to reach group revenues of around 4.5 BSEK in 2026 with a streaming revenue CAGR of 10-12%, an adjusted EBITDA margin of above 15%, and an operational cash flow of above 10% of revenue
• In 2024, Storytel expects to deliver group revenue growth around 10% with an adjusted EBITDA margin of above 12% and operational cash flow above 7% of revenue
• Storytel Books and Nextory reached an agreement to distribute Storytel Books' titles on Nextory's platform as of 1 February 2024
• Storytel extended the existing revolving credit facility (RCF) until 2 April 2025 and reduced the facility to 750 MSEK, at otherwise unchanged terms

Table 1 Key Performance Indicators

TSEK	Q4 2022	Q1 2023	Q2 2023	Q3 2023	Q4 2023		YTD 2022	YTD 2023
Streaming Total
Revenue	742,283	742,081	798,881	842,407	858,209		2,887,763	3,241,579
Revenue excl Russia	742,374	742,081	798,881	842,407	858,209		2,848,329	3,241,579
Adjusted Gross profit	304,594	317,067	344,949	366,414	373,795		1,210,037	1,402,226
Adjusted Gross margin	41.0 %	42.7 %	43.2 %	43.5 %	43.6 %		41.9 %	43.3 %
Gross profit	304,594	317,067	344,949	366,414	246,503		1,174,469	1,274,934
Avg. Paying Subscribers (thousands)	2,036'	2,041'	2,055'	2,144'	2,201'		2,046'	2,111'
ARPU (SEK/month)	122	121	130	131	130		118	128
Streaming Nordics1
Revenue	498,336	496,630	543,765	571,625	573,674		1,919,046	2,185,694
Adjusted Gross profit	184,767	200,992	227,364	241,027	243,380		740,789	912,764
Adjusted Gross margin	37.1 %	40.5 %	41.8 %	42.2 %	42.4 %		38.6 %	41.8 %
Gross profit	184,767	200,992	227,364	241,027	186,564		717,199	855,947
Avg. Paying Subscribers (thousands)	1,132'	1,125'	1,122'	1,169'	1,183'		1,100'	1,150'
ARPU (SEK/month)	147	147	162	163	162		145	158
Streaming Non-Nordics
Revenue	243,947	245,451	255,117	270,782	284,535		968,717	1,055,885
Revenue excl Russia	244,038	245,451	255,117	270,782	284,535		929,284	1,055,885
Adjusted Gross profit	119,828	116,075	117,585	125,387	130,415		469,248	489,462
Adjusted Gross margin	49.1 %	47.3 %	46.1 %	46.3 %	45.8 %		48.4 %	46.4 %
Gross profit	119,828	116,075	117,585	125,387	59,939		457,271	418,986
Avg. Paying Subscribers (thousands)	904'	916'	933'	975'	1,018'		946'	961'
ARPU (SEK/month)	90	89	91	93	93		85	92
Books
Revenue	193,069	130,083	128,668	139,970	170,946		646,572	569,667
Adjusted Gross profit	85,141	68,472	67,525	65,098	94,799		329,641	295,894
Adjusted Gross margin	44.1 %	52.6 %	52.5 %	46.5 %	55.5 %		51.0 %	51.9 %
Gross profit	85,141	68,472	67,525	65,098	85,015		329,641	286,110
Group total2
Revenue	866,663	796,293	851,070	895,758	946,099		3,200,382	3,489,220
Adjusted Gross profit	322,377	315,501	333,183	351,869	387,221		1,248,713	1,388,954
Adjusted Gross margin	37.2 %	39.6 %	39.1 %	39.3 %	40.9 %		39.0 %	39.8 %
Gross profit	322,377	315,501	333,183	351,869	245,593		1,213,145	1,247,326

1) Streaming revenue includes all of Storytel Norway's revenue.

2) In the consolidated accounts, Storytel Norway is reported in accordance with the equity method. As a result, the Streaming revenue listed in Table 1 is higher than in the consolidated statement of accounts in order to provide a more accurate figure for average revenue per subscriber. Please see Note 5 for additional details.

FNCA Sweden AB is the Company's Certified Adviser.

The information was provided, through the agency of the above contact person, at the time stated in this press release, by Cision.

For more information, please contact:
Mattias Frithiof, Head of Investor Relations, Storytel Group
Tel: [phone]
Email: [e-mail]

Malin Lindborn, Head of Communications, Storytel Group
Tel: [phone]
Email: [e-mail]

About Storytel
Storytel is one of the world's largest audiobook and e-book streaming services and offers more than one million titles on a global scale. Our vision is to make the world a more empathetic and creative place, with great stories to be shared and enjoyed by anyone, anywhere and anytime.

The streaming business within the Storytel Group is conducted under the brands Storytel, Mofibo and Audiobooks.com. The publishing business is managed by Storytel Books, and by the audiobook publisher StorySide. The Storytel Group operates in over 25 markets, with focus on ten core markets: the five Nordic countries, the Netherlands, Turkey, Poland, Bulgaria, and the USA. The headquarters are located in Stockholm, Sweden.

The following files are available for download:

https://mb.cision.com/Public/11546/3928898/8a8e21977b576421.pdf

Year-end report 2023 - Storytel AB publ - Feb 15 2024

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