Interim Report January - September 2023
“Storytel updates its 2023 guidance on the back of strong operational and financial performance during the quarter”, says Johannes Larcher, CEO, Storytel.
Financial Highlights Q3
Third quarter 2023 compared to the third quarter 2022
- Streaming revenue up 13% to 842 (742) MSEK, 15% excluding Russia
- Group net sales increased by 11% to 896 (806) MSEK, 12% excluding Russia
- Gross profit up 13% to 352 (312) MSEK, equaling a margin of 39.3% (38.7%)
- EBITDA increased by 55% to 92 (59) MSEK, equaling a margin of 10.3% (7.3%)
- Operating profit of 15 (-21) MSEK
- Basic and diluted earnings per share amounted to -0.06 (-0.04) SEK
- Cash flow from operations before changes in working capital amounted to 79 (60) MSEK
- Operational cash flow amounted to 56 (20) MSEK
January - September 2023 compared to the period January - September 2022
- Streaming revenue grew 11% to 2,383 (2,145) MSEK, 13% excluding Russia
- Group net sales increased by 9% to 2,543 (2,334) MSEK, 11% excluding Russia
- Gross profit up 12% to 1,001 (891) MSEK, equaling a margin of 39.3% (38.2%)
- EBITDA increased to 161.8 (-94.9) MSEK, equaling a margin of 6.4% (-4.1%)
- Basic and diluted earnings per share amounted to -1.29 (-4.27) SEK
- Cash flow from operations before changes in working capital amounted to 121 (-130) MSEK
- Operational cash flow amounted to 43 (-151) MSEK
Other Highlights Q3
- Storytel increases the guidance on full-year 2023 adjusted EBITDA margin to be well above 6.4%, and on operational cash flow (adjusted EBITDA less operational capex) to be at least 80 MSEK. Guidance regarding organic streaming revenue growth remains in line with the previous year and is unchanged at 11% for 2023.
- The partnership with Yettel in Bulgaria (3+ million addressable users) launched in September and is already showing promising signs from a paybase growth perspective.
- Storytel’s agreement with LG Uplus South Korea (20+ million addressable users), one of South Korea’s largest telcos, communicated in September will help unlock new opportunities in one of our expansion markets.
Table 1 Key Performance Indicators
| TSEK | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | YTD 2022 | YTD 2023 | |
| Streaming Total | ||||||||
| Revenue | 742,426 | 742,283 | 742,081 | 798,881 | 842,407 | 2,145,480 | 2,383,369 | |
| Revenue excl Russia | 732,837 | 742,374 | 742,081 | 798,881 | 842,407 | 2,105,955 | 2,383,369 | |
| Gross profit | 307,463 | 304,594 | 317,067 | 344,949 | 366,414 | 869,875 | 1,028,431 | |
| Gross margin | 41.4% | 41.0% | 42.7% | 43.2% | 43.5% | 40.5% | 43.2% | |
| Avg. Paying Subscribers (thousands) | 2,064’ | 2,036’ | 2,041’ | 2,055’ | 2,144’ | 2,048’ | 2,080’ | |
| ARPU (SEK/month) | 120 | 122 | 121 | 130 | 131 | 116 | 127 | |
| Streaming Nordics1 | ||||||||
| Revenue | 492,765 | 498,336 | 496,630 | 543,765 | 571,625 | 1,420,710 | 1,612,020 | |
| Gross profit | 189,289 | 184,767 | 200,992 | 227,364 | 241,027 | 532,432 | 669,384 | |
| Gross margin | 38.4% | 37.1% | 40.5% | 41.8% | 42.2% | 37.5% | 41.5% | |
| Avg. Paying Subscribers (thousands) | 1,129’ | 1,132’ | 1,125’ | 1,122’ | 1,169’ | 1,089’ | 1,139’ | |
| ARPU (SEK/month) | 145 | 147 | 147 | 162 | 163 | 145 | 157 | |
| Streaming Non-Nordics | ||||||||
| Revenue | 249,662 | 243,947 | 245,451 | 255,117 | 270,782 | 724,770 | 771,350 | |
| Revenue excl Russia | 240,073 | 244,038 | 245,451 | 255,117 | 270,782 | 685,245 | 771,350 | |
| Gross profit | 118,173 | 119,828 | 116,075 | 117,585 | 125,387 | 337,443 | 359,047 | |
| Gross margin | 47.3% | 49.1% | 47.3% | 46.1% | 46.3% | 46.6% | 46.5% | |
| Avg. Paying Subscribers (thousands) | 935’ | 904’ | 916’ | 933’ | 975’ | 959’ | 941’ | |
| ARPU (SEK/month) | 89 | 90 | 89 | 91 | 93 | 84 | 91 | |
| Books | ||||||||
| Revenue | 147,199 | 193,069 | 130,083 | 128 668 | 139 970 | 453 503 | 398 721 | |
| Gross profit | 81,916 | 85,141 | 68,472 | 67 525 | 65 098 | 244 500 | 201 095 | |
| Gross margin | 55.6% | 44.1% | 52.6% | 52,5% | 46,5% | 53,9% | 50,4% | |
| Group total2 | ||||||||
| Revenue | 805,819 | 866,663 | 796,293 | 851,070 | 895,758 | 2,333,719 | 2,543,121 | |
| Gross profit | 311,907 | 322,377 | 315,501 | 333,183 | 351,869 | 890,768 | 1,000,553 | |
| Gross margin | 38.7% | 37.2% | 39.6% | 39.1% | 39.3% | 38.2% | 39.3% |
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.
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.
For more information, please contact:
Mattias Frithiof, Head of Investor Relations, Storytel Group
Tel: +46 76 535 26 74
Email: [email protected]
Malin Lindborn, Head of Communications, Storytel Group
Tel: +46 735 33 17 70
Email: [email protected]
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.