Storytel’s strong growth continues
Storytel averaged 621,200 paying subscribers during Q2, 2018, an increase of nearly 200,000 customers compared to Q2, 2017, which is slightly higher than the company’s previously released prognosis. Streaming revenues for the period totaled circa 239 MSEK, which corresponds to 43% in annual revenue growth, slightly more than three million SEK higher than expected.
“During the past twelve months we’ve launched Storytel in six new markets, and correspondingly grown outside of Sweden by nearly 140,000 paying subscribers. This is proof that our international expansion, featuring local teams and a clear focus on content and marketing, has been effective,” says CEO Jonas Tellander.
The company’s average number of Swedish subscribers in Q2, 2018 was 314,700 –– an increase of nearly 60,000 subscribers (up 23%) from Q2, 2017, which is just above the forecast. Swedish streaming revenues totaled approximately 126 MSEK in Q2, 2018, also just above the forecast.
The average number of non-Swedish subscribers in Q2, 2018 totaled 306,500, beating expectations thanks to an increase of nearly 140,000 paying customers (up 83%) compared to Q2, 2017. Streaming revenues from outside of Sweden equaled approximately 113 MSEK during Q2, 2018, just more than two million SEK above forecast.
Revenues outside of Sweden in Q2, 2018 contributed about 47% of total streaming income, compared to 39% in Q2, 2017.
| Currency: thousand SEK | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 |
| Streaming Total | ||||||
| Revenue | 155 660 | 167 008 | 197 881 | 209 225 | 222 133 | 239 139 |
| Contribution Profit1 | 32 133 | 27 847 | 27 784 | 30 277 | 24 079 | |
| Contribution Margin | 20,6% | 16,7% | 14,0% | 14,5% | 10,8% | |
| Paying Subscribers | 381 200 | 423 200 | 503 900 | 533 400 | 577 900 | 621 200 |
| ARPU2 (SEK/Month) | 136 | 132 | 131 | 131 | 128 | 128 |
| Streaming Sweden | ||||||
| Revenue | 96 177 | 101 365 | 113 709 | 118 038 | 122 046 | 125 759 |
| Contribution Profit | 32 678 | 31 257 | 32 872 | 38 501 | 43 067 | |
| Contribution Margin | 34,0% | 30,8% | 28,9% | 32,6% | 35,3% | |
| Paying Subscribers | 241 400 | 255 800 | 282 300 | 292 700 | 305 100 | 314 700 |
| ARPU (SEK/Month) | 133 | 132 | 134 | 134 | 133 | 133 |
| Streaming International3 | ||||||
| Revenue | 59 483 | 65 643 | 84 172 | 91 187 | 100 087 | 113 380 |
| Contribution Profit | -545 | -3 410 | -5 088 | −8 224 | -18 988 | |
| Contribution Margin | -0,9% | -5,2% | -6,0% | −9,0% | -19,0% | |
| Paying Subscribers | 139 800 | 167 400 | 221 600 | 240 700 | 272 800 | 306 500 |
| ARPU (SEK/Month) | 142 | 131 | 127 | 126 | 122 | 123 |
| Print Publishing4 | ||||||
| Revenue | 104 137 | 111 969 | 132 619 | 173 832 | 106 312 | |
| Contribution Profit5 | 37 543 | 37 840 | 47 905 | 66 854 | 39 223 | |
| Contribution Margin | 36,1% | 33,8% | 36,1% | 38,5% | 36,9% |
2 Contribution Profit is defined as streaming revenue minus costs for content (licensed content and in-house productions) and marketing.
3 ARPU = Average Revenue Per User (Subscriber) per month
4 Storytel Norway included in figures @ 100%. In the consolidated group accounts Norway is reported according to the principle of proportional consolidation.
5 Print Publishing refers to physical books. People’s Press is included in the group from Q2, 2017 –– in this table it is included in each quarter, in an attempt to show comparisons. In Group Accounts all acquisitions are included from the acquisition date. Internal transactions have been redacted. Barnens bokklubb not included in table.
6 Contribution Profit is defined as revenue minus cost per sold unit, distribution costs, and sales and marketing costs.
For more information, please contact:
Jonas Tellander, CEO and Founder, Storytel
cell: +46 (0)70-261 61 36 mail: jonas@storytel.com
About Storytel
The Storytel group is comprised of two divisions, Streaming and Publishing. The Streaming division currently offers a subscription service for audio books and e-books under the brand names Storytel and Mofibo in Sweden, Norway, Denmark, Finland, Iceland, The Netherlands, Poland, Russia, Spain, India, the United Arab Emirates, Turkey and Italy. The Streaming division also publishes audio books and Storytel Originals, mainly through the audio-book publisher Storyside. The Publishing division is comprised of the publishers Norstedts, Massolit, Kontentan, Telegram, the Danish People’s Press, Storytel Publishing, Rabén & Sjögren and B. Wahlströms, as well as Norstedts Kartor.
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