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
 

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: +46 76 535 26 74
Email: mattias.frithiof@storytel.com

Malin Lindborn, Head of Communications, Storytel Group
Tel: +46 735 33 17 70
Email: malin.lindborn@storytel.com

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.

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