Storytel’s third-quarter 2018 earnings outpace expectations
During the third quarter of 2018, Storytel averaged 720,900 paying subscribers, an increase of nearly 100,000 paying subscribers compared to the preceding quarter, slightly below the previously presented forecast of 725,000 paying subscribers. Despite this, streaming revenues for the third quarter of 2018 exceeded expectations and totaled approximately 280 MSEK, compared with forecasted 275.5 MSEK, and amounting to 42.3% in annual income growth. The increase was fuelled by a higher ARPU and favorable currency exchange rates.
In Sweden the subscriber-base averaged 336,200 users during the third quarter of 2018, on average 2,800 fewer subscribers than expected, yet still a robust increase over the second quarter this year. Swedish streaming revenue totaled approximately 136 MSEK during Q3, 2018, above expectations by one million SEK and put Storytel Sweden’s yearly turnover at more than 500 million SEK (rolling 12 months).
Storytel CEO Jonas Tellander says, “Based on this week’s decision from the EU, we expect the value-added tax rate on our service to be lowered from 25% to 6%, which will allow a more attractive offer to customers. By the end of the year we’ll also be announcing Storytel’s family solution, with user experiences for the whole family.”
The international subscriber-base during the third quarter of 2018 totaled 384,700, slightly lower than previously presented forecast, yet still an increase of approximately 78,200 paying subscribers compared to Q2, 2018. International streaming revenue totaled approximately 144 MSEK during the third quarter of 2018, which was 3.5 MSEK higher than the forecast. This growth was mainly thanks to strong summer performances in higher-priced markets, as well as favorable currency exchange-rates.
“Our international expansion is clearly succeeding, and is becoming an increasingly important part of our growth curve. One of our goals for the year was to increase our international streaming revenues to over 50% of total streaming revenues. We reached this goal in the third quarter –– slightly more than 51% of our total streaming revenues come from markets outside of Sweden, as compared to 43% during the third quarter of 2017,” says CEO Jonas Tellander.
Key numbers for Streaming and Print Publishing
| Currency: thousand SEK | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 |
| Streaming Total | ||||||
| Revenue | 167 008 | 197 881 | 209 225 | 222 133 | 239 139 | 280 000 |
| Contribution Profit1 | 27 847 | 27 784 | 30 277 | 24 079 | 25 045 | |
| Contribution Margin | 16,7% | 14,0% | 14,5% | 10,8% | 10,5% | |
| Paying Subscribers | 423 200 | 503 900 | 533 400 | 577 900 | 621 200 | 720 900 |
| ARPU2 (SEK/Month) | 132 | 131 | 131 | 128 | 128 | 129 |
| Streaming Sweden | ||||||
| Revenue | 101 365 | 113 709 | 118 038 | 122 046 | 125 759 | 135 986 |
| Contribution Profit | 31 257 | 32 872 | 38 501 | 43 067 | 35 763 | |
| Contribution Margin | 30,8% | 28,9% | 32,6% | 35,3% | 28,4% | |
| Paying Subscribers | 255 800 | 282 300 | 292 700 | 305 100 | 314 700 | 336 200 |
| ARPU (SEK/Month) | 132 | 134 | 134 | 133 | 133 | 135 |
| Streaming International3 | ||||||
| Revenue | 65 643 | 84 172 | 91 187 | 100 087 | 113 380 | 144 000 |
| Contribution Profit | -3 410 | -5 088 | -8 224 | -18 988 | -10 718 | |
| Contribution Margin | -5,2% | -6,0% | -9,0% | -19,0% | -9,5% | |
| Paying Subscribers | 167 400 | 221 600 | 240 700 | 272 800 | 306 500 | 384 700 |
| ARPU (SEK/Month) | 131 | 127 | 126 | 122 | 123 | 125 |
1. Contribution Profit is defined as streaming revenue minus costs for content (licensed content and in-house productions) and marketing. Storytel Reader is not included in Streaming.
2. ARPU = Average Revenue Per User (Subscriber) per month
3. Storytel Norway included in figures @ 100%. In the consolidated group accounts Norway is reported according to the principle of proportional consolidation.
For more information, please contact:
Jonas Tellander, CEO: +46 70 261 61 36
About Storytel
The Storytel group consists 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 consists of the publishers Norstedts, Massolit, Printz Publishing, the Danish People’s Press, Storytel Publishing, Rabén & Sjögren and B. Wahlströms, as well as Norstedts Kartor.
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