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Interim Report January - September 2023

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“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: mattias.frithiof@storytel.com

Malin Lindborn, Head of Communications, Storytel Group
Tel: +46 735 33 17 70
Email: malin.lindborn@storytel.com

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.

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