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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