Storytel has implemented changes in its reporting of EBITDA and adjusted EBITDA which are both important alternative performance measures for the company. The changes will be applied starting with the interim report for the first quarter 2024 and are reflected in an amended guidance for 2024.
EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization, has been changed to fully include the operational profits, and losses, from associated companies relating to Storytel’s share in the joint venture with Cappelen Damm in Norway.
Adjusted EBITDA, which the company defines as EBITDA excluding any items affecting comparability, has been changed to fully exclude the non-cash expenses, and reversals of expenses, arising from share-based incentive schemes. The company has recognized historic, and routinely expects, future fluctuations in its expenses for share-based payments as a result of revised estimates of warrants and RSUs that are expected to vest for the various incentive schemes. The company has therefore concluded that the non-cash expenses, and reversals of expenses, arising from share-based incentive schemes should be treated as an item affecting comparability going forward.
Details on share-based payments and their valuation and estimation process can be found in the Annual and Sustainability Report 2023, in note 1 on page 64, and in note 9 on pages 76 to 78.
Furthermore, Storytel has made a change in the treatment of the foreign exchange effects which are now reported as “other operating gains and losses” rather than in each function. This change affect the second and third quarter 2023 and have no impact on EBITDA.
If the same changes in reporting of EBITDA and adjusted EBITDA had been applied in 2023, Storytel’s adjusted EBITDA margin would have been one percentage point higher (see table below). The company also reflects the changes through an amended 2024 guidance for its adjusted EBITDA margin to be “above 13 percent”, and its operational cash flow to be “above 8 percent”. The amended guidance is solely attributable to the changed calculation of adjusted EBITDA.
| Before the change | After the change | Difference (percentage points) | ||||
| 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | |
| EBITDA margin, % | -2.1% | 4.3% | -2.2% | 4.7% | -0.03p | 0.42p |
| Adjusted EBITDA margin, % | 2.9% | 7.1% | 2.8% | 8.1% | -0.08p | 1.00p |
All changes are designed to provide more accurate and relevant EBITDA and adjusted EBITDA measures and to facilitate reliable and representative comparability over time. The changes will be applied starting with the interim report for the first quarter 2024, to be published on 7 May.
For comparison purposes, restated quarterly comparative figures for 2023 and for the full year of 2022 have been made available and can be downloaded from the company’s website: www.storytelgroup.com/en/newsroom/press-releases/