Click here to watch the quarterly video with CEO Jonas Tellander and CFO Sofie Zettergren. For the full report see attached pdf.
Highlights in this report
- Subscriber base up 44% Y/Y to 768,700 on average in Q4 2018 (533,400).
- Streaming sales up 39% Y/Y to 291 MSEK in Q4 2018 (209 MSEK)
- Streaming sales surpassed target of 1,000 MSEK in 2018
- Storytel launched in Mexico and Bulgaria, now present in 15 markets.
- Changed listing venue from Spotlight to Nasdaq First North Growth Markets
- Successful Storytel Family launch boosted subscriber base growth in Sweden
- Forecast growth in subscriber base to on average 835,000 in Q1 2019 (+44% Y/Y)
Key performance indicators for Streaming and Print Publishing
| Currency: thousand SEK | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | Q1 2019 |
| Streaming Total | Forecast1 | |||||
| Revenue | 209,225 | 222,133 | 239,139 | 279,979 | 291,315 | 297,000 |
| Contribution Profit2 | 30,277 | 24,079 | 25,045 | 22,063 | 30,444 | |
| Contribution Margin | 14.5% | 10.8% | 10.5% | 7.9% | 10.5% | |
| Paying Subscribers | 533,400 | 577,900 | 621,200 | 720,900 | 768,700 | 835,000 |
| ARPU3 (SEK/Month) | 131 | 128 | 128 | 129 | 126 | 119 |
| Streaming Sweden | ||||||
| Revenue | 118,038 | 122,046 | 125,759 | 135,986 | 139,977 | 138,000 |
| Contribution Profit | 38,501 | 43,067 | 35,763 | 40,888 | 49,190 | |
| Contribution Margin | 32.6% | 35.3% | 28.4% | 30.1% | 35.1% | |
| Paying Subscribers | 292,700 | 305,100 | 314,700 | 336,200 | 345,200 | 362,000 |
| ARPU (SEK/Month) | 134 | 133 | 133 | 135 | 135 | 127 |
| Streaming International4 | ||||||
| Revenue | 91,187 | 100,087 | 113,380 | 143,993 | 151,338 | 159,000 |
| Contribution Profit | -8,224 | -18,988 | -10,718 | -18,826 | -18,746 | |
| Contribution Margin | -9.0% | -19.0% | -9.5% | -13.1% | -12.4% | |
| Paying Subscribers | 240,700 | 272,800 | 306,500 | 384,700 | 423,500 | 473,000 |
| ARPU (SEK/Month) | 126 | 122 | 123 | 125 | 119 | 112 |
| Print Publishing5 | ||||||
| Revenue | 173,832 | 106,312 | 115,898 | 116,252 | 170,435 | |
| Contribution Profit6 | 66,854 | 39,223 | 41,889 | 40,140 | 54,681 | |
| Contribution Margin | 38.5% | 36.9% | 36.1% | 34.5% | 32.1% |
1 Forecast is an approximation based on information available at the time of reporting.
2 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.
3 ARPU = Average Revenue Per User (Subscriber) per month. In Q1 2019, Storytel released Family subscription and a discounted campaign has been run, lowering the ARPU. The lowering ARPU is also explained by Q1 having 2 fewer days (90) and growth in low priced markets.
4 Storytel Norway included in figures @ 100%. In the consolidated group accounts Norway is reported according to the principle of proportional consolidation.
5 Print Publishing refers to physical books. Internal transactions have been redacted, hence sales through Storytel is not included.
6 Contribution Profit is defined as revenue minus cost per sold unit, distribution costs, and sales and marketing costs.
Summary of the period
Figures in brackets relates to the same period last year, if not otherwise stated.
Fourth quarter (October – December 2018) in summary
Net turnover increased 19.6% to 436,621 (365 055) TSEK.
Earnings per share, after taxes, in Q4 2018 totalled -0.61 (-0,21) SEK.
Full Year (January – December 2018) in summary
Net turnover increased 24.7% to 1,459,952 (1 170 861) TSEK.
Earnings per share, after taxes, in 2018 totalled -4.02 (-1,46) SEK
Forthcoming reports
- Full extended Year-End Report 2018 15 April 2019
- Interim Report Jan – March 2019 14 May 2019
- Interim Report Jan – June 2019 13 August 2019
- Interim Report Jan – Sep 2019 12 Nov 2019
Annual Meeting of Shareholders
The annual meeting of shareholders will be on 15 May 2019, in Stockholm, Sweden. The annual accounts, and annual group accounts, will be made available on 15 April 2019.
Dividends
The Board of Directors suggests no dividends be paid for the 2018 financial year.
FNCA Sweden AB is the company’s certified adviser. FNCA can be reached at info@fnca.se or 08-528 00 399.
Stockholm, 25 February 2019
For more information, please contact:
Jonas Tellander, CEO: +46 70 261 61 36
Sofie Zettergren, CFO: +46 70 509 98 08
This information is information that Storytel 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 the time set out in this press release.
About Storytel
Storytel was founded in 2005 by Jonas Tellander and Jon Hauksson. In 2009 Storytel participated in TV-show Draknästet asking for capital, and in 2016 Storytel acquired Norstedts Förlagsgrupp. These two events marked important milestones for the company, from the struggles of a startup in the midst of a financial crisis, to the successful acquisition of Sweden’s perhaps most prestigious publishing house, the home of Astrid Lindgren and Stieg Larsson. Storytel’s journey as a public company began in June 2015 on Spotlight at a market capitalization of 600 MSEK. In December 2018 Storytel moved its listing to Nasdaq First North Growth Markets at a market capitalization of approximately 6 BSEK.
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, Italy, Mexico and Bulgaria. 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