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Regulatory press release

Interim Report Q2, 2023

Strong 15% streaming revenue growth

“The second quarter marked the fifth consecutive quarter of positive Group EBITDA and underlines the improvements that have been made. Storytel Streaming saw extended organic revenue growth, increased ARPU, solid subscriber growth and subscriber engagement as well as stable and healthy churn levels. Our disciplined approach is laying the foundation for continued profitable growth, supported by near-term operational improvements across our business. In the quarter, we demonstrated continued progress through new Partnership agreements, improved Content economics, and the concluded successful implementation of new service tiers and price levels in the Nordics”, says Johannes Larcher, CEO, Storytel.

Financial Highlights Q2

  • Streaming revenue up 13% from Q2 2022 to 799 (704) MSEK, 15% excluding Russia
  • Group net sales increased by 9% from Q2 2022 to 851 (781) MSEK, 11%
    excluding Russia
  • Gross profit of 333 (290) MSEK, equaling a margin of 39.1% (37.2%)
  • EBITDA of 40 (-6) MSEK equaling a margin of 4.6% (-0.7%). Adjusted for items affecting comparability, EBITDA last year amounted to 13 MSEK
  • Basic and diluted earnings per share amounted to -0.41 (-0.80) SEK
  • Cash flow from operations before changes in working capital amounted to 24 (-55) MSEK
  • Operational cash flow amounted to -5 (-49) MSEK

Other Highlights Q2

  • Storytel Awards surpasses the milestone of 200,000 votes – audiobook fan engagement soaring to record levels
  • Significant multi-year agreement with Bulgaria’s largest telco A1 Bulgaria. The deal makes Storytel part of exclusive selection of premium services on A1 Bulgaria’s platform, reaching more than 4 million potential customers
  • Storytel acquired the rights to the Finnish bestselling Koskinen crime series
  • Storytel held a Capital Markets Day and presented mid-term financial targets together with the strategic direction to further strengthen its leading position
  • Storytel entered into a strategic partnership with ElevenLabs and announced the upcoming launch of a new VoiceSwitcher feature

Highlights after the End of the Quarter

  • Storytel entered into a strategic partnership with Telenor-owned CBB Mobil, a Danish provider of communications and entertainment services, to accelerate growth in Denmark
  • Storytel launched the first version of its new VoiceSwitcher feature together with ElevenLabs, available in all markets on selected books in the English language

Table 1: Key Performance Indicators

TSEK Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023
Streaming Total
Revenue 704,454 742,426 742,283 742,081 798,881
Revenue excl Russia 693,464 732,837 742,374 742,081 798,881
Gross profit 278,554 307,463 304,594 317,067 344,949
Gross margin 39.5% 41.4% 41.0% 42.7% 43.2%
Avg. Paying Subscribers 2,031,000 2,064,000 2,036,000 2,041,000 2,055,000
ARPU (SEK/month) 116 120 122 121 130
Streaming Nordics1
Revenue 469,390 492,765 498,336 496,630 543,765
Gross profit 177,354 189,289 184,767 200,992 227,364
Gross margin 37.8% 38.4% 37.1% 40.5% 41.8%
Avg. Paying Subscribers 1,078,000 1,129,000 1,132,000 1,125,000 1,122,000
ARPU (SEK/month) 145 145 147 147 162
Streaming Non-Nordics
Revenue 235,064 249,662 243,947 245,451 255,117
Revenue excl Russia 224,074 240,073 244,038 245,451 255,117
Gross profit 101,190 118,173 119,828 116,075 117,585
Gross margin 43.0% 47.3% 49.1% 47.3% 46.1%
Avg. Paying Subscribers 953,000 935,000 904,000 916,000 933,000
ARPU (SEK/month) 82 89 90 89 91
Books
Revenue 156,999 147,199 193,069 130,083 128,668
Gross profit 78,185 81,916 85,141 68,472 67,525
Gross margin 49.8% 55.6% 44.1% 52.6% 52.5%
Group total2
Revenue 780,730 805,819 866,663 796,293 851,070
Gross profit 290,363 311,907 322,377 315,501 333,183
Gross margin 37.2% 38.7% 37.2% 39.6% 39.1%

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.

 

The full report can be found as an attachment.

 

For more information, please contact:

Niklas Alm, Interim Head of Investor Relations,

Tel: +46 70 824 40 88, Email: niklas.alm@storytel.com

 

This information is such that Storytel AB (publ) is obliged to disclose in accordance with the EU Market Abuse Regulation (EU nr 596/2014). The information was provided, through the agency of the above contact person, at the time stated in this press release, by Cision.

FNCA Sweden AB is the company’s certified adviser.

 

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. The headquarters is located in Stockholm, Sweden.