Storytel’s subscriber growth in line with forecast for the first quarter 2020 – streaming revenues increase by 45%
Storytel had an average of 1,154,800 paying subscribers in the first quarter of 2020, which is an increase of 71,400 customers compared to the fourth quarter of 2019, and in line with the forecast of 1,154,000 paying subscribers that was previously estimated. Streaming revenues for the first quarter of 2020 came in at 429 MSEK, compared to the forecast of 438 MSEK. Annual revenue growth amounts to 45%.
The average number of paying subscribers for the first quarter of 2020 in the Nordic segment was 785,800, which corresponds to 3,800 paying subscribers above forecast. Streaming revenues in the Nordics came in at 350 MSEK, compared to a forecast of 357 MSEK.
- Storytel saw a very strong influx of customers during the quarter and more than a doubling during the last two weeks of March – a level of intake that is unprecedented in Storytel history. In these straining times for the global community, we clearly see that people actively seek audiobook experiences for companionship, entertainment and knowledge, says Jonas Tellander, CEO of Storytel.
The average number of subscribers in the Non-Nordic segment for the first quarter of 2020 totalled 369,000, an increase of 43,200 paying subscribers compared to the fourth quarter of 2019 and slightly below the communicated forecast of 372,000 for first quarter 2020. Streaming revenues for the Non-Nordic segment totalled 79 MSEK in the first quarter of 2020 corresponding to an annual revenue growth of 111%.
- To meet the highly increased consumer interest in audiobooks, and in order to give more opportunities for relaxation and entertainment to them in straining times, Storytel has extended the free trial period from 14 to 30 days. That means that part of the powerful customer influx effect we experience will manifest itself in the upcoming months, giving Storytel's subscriber growth a flying start in the second quarter, says Jonas Tellander.
Table 1: Key performance indicators for Streaming
|
Currency: SEK 000’s |
Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | Q1 2020 | Q1 2020 |
| Streaming Total | Actual | Forecast1 | ||||
| Revenue | 295,994 | 320,034 | 399,178 | 421,454 | 429,251 | 438,000 |
| Contribution Profit2 | 31,372 | 29,407 | 53,043 | 58,977 | ||
| Contribution Margin | 10.6% | 9.2% | 13.3% | 14.0% | ||
| Avg. Paying Subscribers | 834,300 | 887,500 | 1,014,400 | 1,083,400 | 1,154,800 | 1,154,000 |
| ARPU3 (SEK/Month) | 118 | 120 | 131 | 130 | 124 | 127 |
| Streaming Nordics4 | ||||||
| Revenue | 258,288 | 276,347 | 340,315 | 352,222 | 349,768 | 357,000 |
| Contribution Profit2 | 75,329 | 70,443 | 109,563 | 115,689 | ||
| Contribution Margin | 29.2% | 25.5% | 32.2% | 32.8% | ||
| Avg. Paying Subscribers | 645,500 | 669,200 | 736,000 | 757,600 | 785,800 | 782,000 |
| ARPU3 (SEK/Month) | 133 | 138 | 154 | 155 | 148 | 152 |
| Streaming Non-Nordics | ||||||
| Revenue | 37,706 | 43,687 | 58,863 | 69,233 | 79,484 | 81,000 |
| Contribution Profit2 | −43,957 | -41,036 | -56,521 | -56,713 | ||
| Contribution Margin | −116.6% | -93.9% | -96.0% | -81.9% | ||
| Avg. Paying Subscribers | 188,800 | 218,300 | 278,400 | 325,800 | 369,000 | 372,000 |
| ARPU3 (SEK/Month) | 67 | 67 | 70 | 71 | 72 | 73 |
1 “Forecast” means an approximation based on information available at the time the report was prepared.
2 Contribution Profit is defined as streaming revenue minus royalties to third-party publishers and rights holders, in-house production costs, transaction costs and marketing costs. Storytel Reader and Ztory is not included in Streaming.
3 ARPU = Average Revenue Per User (Subscriber) per month.
4 Storytel Norway is included in the figures @ 100%. In the consolidated group accounts, Norway is reported in accordance with the principle of proportional consolidation.
For more information, please contact:
Jörgen Gullbrandson, Interim CFO, Storytel: +46 73 378 01 75
Dan Panas, Head of Communications, Storytel: +46 70 186 52 90
FNCA Sweden AB is the company's certified adviser. FNCA can be reached at info@fnca.se and +46 8 528 00 399.
This information is such that Storytel AB (publ) is obliged to disclose in accordance with the EU Market Abuse Regulation. The information was provided, through the agency of the above contact person, at the time stated in this press release.