Stillfront Group AB: Stillfront Year End Report 2017

Press Release, Feb 22, 2018

Year End Report January-December 2017

STILLFRONT GROUP AB (PUBL)

The Year January - December 2017

• The scope of this year end report is Stillfront Group excluding Goodgame Studios. Goodgame Studios will be consolidated from January 2018. A pro forma income statement and balance sheet for the new group structure is presented in the investor presentation published on the company's website.
• Net revenues amounted to 166.0 MSEK (2016: 94.8 MSEK), which is an increase of 75% compared to the full year 2016.
• EBITDA excluding effects of revaluations of conditional contingent considerations amounted to 52.3 MSEK (34.3 MSEK), which is an increase of 53%. EBITDA including effects of revaluations of conditional contingent considerations amounted to 135.3 MSEK (34.3). Further, EBITDA has increased due to a written-off debt and has been charged with acquisition costs, costs pertaining to improved IT infrastructure at Bytro, conversion to IFRS, acquisitions and move to Nasdaq First North Premier however with no net effect on the profit and loss.
• Operating result after financial items amounted to 92.6 MSEK (23.4 MSEK). The increase is mainly caused by the revaluation of the conditional contingent considerations. The net result for the year amounted to 91.4 MSEK (21.0 MSEK).
• Net result per share before dilution amounted to 14.35 SEK (2.89 SEK). Net result per share after dilution amounted to 14.15 SEK (2.86 SEK).
• As of December 31, cash and cash equivalents amounted to 65.9 MSEK (35.8).
• The board proposes that the annual profit be appropriated by profit carried forward.
• Stillfront issued a bond loan amounting to MSEK 110 within a frame of MSEK 500 in May.
• The acquisition of eRepublik Labs Limited was announced May 30 and completed June 27.
• The trade in the Stillfront share was moved to First North Premier in June.
• An asset acquisition of Online Fussball Manager was made in July.
• Acquisition agreement for Altigi GmbH was entered in December. The acquisition was completed in January 2018.

The Quarter October - December 2017

• Net revenues amounted to 53.2 MSEK (corresponding period 2016: 24.6 MSEK), which is an increase of 116% compared to the fourth quarter 2016.
• EBITDA amounted to 15.4 MSEK (6.8) excluding effects of revaluations of conditional contingent considerations. EBITDA including effects of revaluations of conditional contingent considerations amounted to 98.4 MSEK (6.8 MSEK).
• Operating result after financial items amounted to 81.3 MSEK (1.2 MSEK). The increase is mainly caused by the revaluation of the conditional contingent considerations. The net result amounted to 82.7 MSEK (7.7 MSEK).
• Earnings per share before dilution amounted to 12.83 SEK (1.39 SEK). Earnings per share after dilution amounted to 12.64 SEK (1.37 SEK).
• Acquisition agreement for Altigi GmbH was entered in December. The acquisition was completed in January 2018.

Events after the end of the year

• The acquisition of Altigi GmbH was completed in January 2018, whereby 16,868,623 shares were issued and a bond issue of 390 MSEK was performed.

Successful 2017 with Strong Growth, Good Margins and Bright Outlooks for 2018

"2017 has been a very successful year for Stillfront Group. Stillfront increased sales by 75% and EBITDA by 53%. The confidence in our strategy was confirmed by the successful bond issues of 500 MSEK. Further, our share is now traded on First North Premier. eRepublik Labs was acquired during the spring and has developed exceptionally well. We concluded 2017 by entering an agreement to acquire Goodgame Studios - one of Europe's leading players in our segment free-to-play. We are now well equipped for 2018," says Jörgen Larsson, CEO Stillfront Group.

Key figures, The Group

Investor Presentation

An Investor Presentation is available at Stillfront's website with the address:
stillfront.com/site/investor-relations/financial-reports/

IMPORTANT NOTICE: This Year End Report is a non-official translation from Swedish of the Bokslutskommuniké issued by Stillfront Group AB (publ) February 22, 2018. This translation is solely provided as convenience. Should there be any ambiguity between the Swedish and the English text, the Swedish text will prevail.

For further information, please contact

Jörgen Larsson, CEO
+46-70-321 18 00
jorgen@stillfront.com

Sten Wranne, CFO
+46-70-585 12 58
sten@stillfront.com

ABOUT STILLFRONT

Stillfront is a group of independent creators, publishers and distributors of digital games - with a vision to become the leading group of indie game creators and publishers. Stillfront operates through nine near-autonomous subsidiaries: Bytro Labs in Germany, Coldwood Interactive in Sweden, Power Challenge in the UK and Sweden, Dorado Online Games in Malta, Simutronics in the United States, Babil Games in UAE and Jordan, eRepublik in Ireland and Romania, OFM Studios in Germany and Goodgame Studios in Germany. Stillfront's games are distributed globally. The main markets are Germany, the United States, France, UK and MENA. For further information, please visit www.stillfront.com.

SELECTED GAMES

Stillfront's portfolio includes games across multiple platforms. Unravel is a widely acclaimed console game developed by Coldwood in collaboration with Electronic Arts. Supremacy 1914 and Call of War are high-immersion war strategy games developed by Bytro Labs. ManagerZone is a sports management strategy game launched in 2001. DragonRealms and GemStone IV are MUD-style games with a very loyal player base. Siege: Titan Wars(TM) is a popular mobile game developed by Simutronics. Tank Storm and Admiral are mobile strategy games with very strong player bases, which are published by Babil Games. World at War: WW2 and War and Peace: Civil War are a successful mobile strategy games developed and published by eRepublik Labs. Online Fussball Manager is a leading sports management game. Empire and BigFarm are major IPs operated by Goodgame Studios.

Nasdaq First North Ticker Symbol: SF
Certified Adviser: Avanza Bank, phone +46 8 4094 2120

This information is information that Stillfront Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07.30 CET on Feb 22, 2018.

^[1] EBITDA 2017 excluding effects of revaluations of conditional contingent considerations