Year-End Report 2018

“Our strong fourth quarter performance concluded a transforming year for Stillfront and our shareholders. Net revenue grew by 29% YoY, in the fourth quarter, on the strength of our development in Core products. The top line growth we delivered generated increased profitability, reflecting the scalability in our business model.”

Altigi GmbH (Goodgame Studios), has been consolidated into Stillfront Group as a reverse acquisition from January 1, 2018. Therefore, the 2018 financials reflect the new business combination whereas the 2017 financial numbers refer to Altigi GmbH only. The proforma numbers for 2017 represent the acquisition as if it had been completed January 1, 2017, unless stated otherwise.

HIGHLIGHTS FOURTH QUARTER

  • Net revenue for the fourth quarter amounted to 366 MSEK (corresponding period previous year 231 MSEK), an increase of 58% compared to the fourth quarter last year. On a proforma basis, net revenue increased by 29%. 
  • Adjusted EBITDA (EBITDA excluding items affecting comparability) amounted to 160 MSEK (35), an increase of 357%. On a proforma basis, adjusted EBITDA increased by 215%.
  • Adjusted EBIT (EBIT excluding items affecting comparability) amounted to 128 MSEK (14), an increase of 814% compared to the fourth quarter last year. On a proforma basis, adjusted EBIT increased by 540%. 
  • Items affecting comparability amounted to -5 MSEK (-66).  
  • EBIT amounted to 123 MSEK (-52), an increase of 175 MSEK compared to the same quarter last year. 
  • The net result for the quarter amounted to 26 MSEK (-36). The net result for the quarter included non-recurring financial cost of 36 MSEK, relating to the refinancing activities during the fourth quarter, and non-recurring tax costs of 12 MSEK, for revaluation of tax losses. 
  • The net result per share undiluted amounted to 1.02 SEK (-2.15). The net result per share diluted amounted to 1.02 SEK (-2.15). The corresponding numbers excluding non-recurring financial costs and non-recurring tax costs were 3.05 SEK and 3.04 SEK, respectively.   
  • Net debt amounted to 521 MSEK and the proforma adjusted leverage ratio was 0.9x. 
  • The Board of Directors proposes no dividend for 2018 in order to maintain a high degree of financial flexibility for future potential acquisitions.

HIGHLIGHTS FULL-YEAR 2018

  • Net revenue for 2018 amounted to 1 325 MSEK (in comparison with 2017, 913 MSEK), an increase of 45% compared to 2017. On a proforma basis, net revenue increased by 23%. 
  • Adjusted EBITDA (EBITDA excluding items affecting comparability) amounted to 490 MSEK (313), an increase of 57%. On a proforma basis, adjusted EBITDA increased by 34%.
  • Adjusted EBIT (EBIT excluding items affecting comparability) amounted to 364 MSEK (228), an increase of 60% compared to 2017. On a proforma basis, adjusted EBIT increased by 44%. 
  • Items affecting comparability amounted to -16 MSEK (-112 proforma).  
  • EBIT amounted to 348 MSEK (116), an increase of 200% compared to 2017.
  • The net result for 2018 amounted to 157 MSEK (75). The net result per share undiluted amounted to 6.72 SEK (4.47). The net result per share diluted amounted to 6.68 SEK (4.47). The corresponding numbers excluding non-recurring financial costs and non-recurring tax costs were 204 MSEK, 8.78 SEK and 8.73 SEK, respectively.

KEY FIGURES, GROUP

MSEK 2018 
Oct-Dec
2017
Oct-Dec
Chg% 2018
Jan-Dec
2017
Jan-Dec
Chg%
Net Revenues 366 231 58 1 325 913 45
Adjusted EBITDA* 160 35 357 490 313 57
Adjusted EBITDA margin*, % 44 15 n/a 37 34 n/a
Adjusted EBIT* 128 14 814 364 228 60
Adjusted EBIT margin*, % 35 6 n/a 27 25 n/a
Items affecting comparability -5 -66 n/a -16 -112 n/a
EBIT 123 -52 n/a 348 116 200
EBIT margin, % 34 -23 n/a 26 13 n/a
Profit before tax 73 -52 n/a 265 116 129
Net Result 26 -36 n/a 157 75 109
Net result per share undiluted, SEK 1.02 -2.15 n/a 6.72 4.47 50
Net result per share diluted, SEK 1.02 -2.15 n/a 6.68 4.47 49

* Adjusted EBIT and EBITDA are defined as EBIT and EBITDA excluding items affecting comparability

PROFORMA KEY FIGURES, GROUP

MSEK 2018 
Oct-Dec
2017
Oct-Dec
Chg% 2018
Jan-Dec
2017
Jan-Dec
Chg%
Net Revenues 366 284 29 1 325 1 079 23
Adjusted EBITDA* 160 51 215 490 362 34
Adjusted EBITDA margin*, % 44 18 37 34
Adjusted EBIT* 128 20 540 364 253 44
Adjusted EBIT margin*, % 35 7 27 23

* Adjusted EBIT and EBITDA are defined as EBIT and EBITDA excluding items affecting comparability.

INVITATION TO Q4 PRESENTATION

A presentation of the report will be held today at 10.00 CET via telephone conference or audiocast where Jörgen Larsson, CEO and Sten Wranne, CFO, are to comment on the report. 

The conference will be held in English.

TO PARTICIPATE VIA WEBCAST, PLEASE VISIT:

https://tv.streamfabriken.com/stillfront-q4-2018

TO PARTICIPATE VIA TELEPHONE:

SE: +46 8 505 583 52  
UK: +44 33 330 092 69
US: +1 64 672 249 04
 

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 below, on February 22, 2019 at 07.00 CET.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Jörgen Larsson, CEO                                      Sten Wranne, CFO

Tel: 070-32118 00, jorgen@stillfront.com        Tel: 0705-851258, sten@stillfront.com

This interim report is a non-official translation from Swedish of the Bokslutskommuniké issued February 22, 2019. In the event of discrepancies between the language versions the Swedish wording will prevail.

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 eleven near-autonomous subsidiaries: 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, Bytro Labs, OFM Studios, Goodgame Studios and Playa Games in Germany and Imperia Online, Bulgaria. 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 and Unravel Two are widely acclaimed console games 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. Nida Harb III 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 successful mobile strategy games developed and published by eRepublik Labs. Online Fussball Manager is a leading sports management game. Empire and Big Farm are major brands operated by Goodgame Studios. Imperia Online, is an MMO strategy game published on both browser and mobile platforms by Imperia Online.

Certified Adviser: 

FNCA, Phone: +46 8 528 00 399, E-mail: info@fnca.se