Storytel had an average of 1,256,500 paying subscribers in the second quarter of 2020, which is an increase of 101,800 customers compared to the first quarter of 2020, and slightly exceeds the forecast of 1,250,000 paying subscribers that was previously estimated. The annual subscriber growth in the second quarter of 2020 was 369,000 customers compared to the second quarter of 2019. Streaming revenues for the second quarter of 2020 came in at 459 MSEK, compared to the forecasted 458 MSEK. Annual revenue growth amounts to 43%.
The average number of paying Storytel subscribers in the second quarter of 2020 in the Nordic segment was 832,800, which corresponds to 6,800 paying subscribers above forecast and a customer base increase of 163,600 subscribers compared to the second quarter of 2019. Streaming revenues in the Nordics came in at 366 MSEK, which was in line with forecast. The ARPU for the Nordic segment decreased slightly, but was also in line with forecast.
In the Non-Nordic segment, the average number of subscribers grew by 94% compared to the second quarter of 2019 and totalled 423,700, which corresponds to an annual growth of 205,400 paying subscribers and an increase of 54 700 customers compared to the first quarter of 2020. This was thus in line with the forecast of 424,000 subscribers for the second quarter of 2020. Streaming revenues for the Non-Nordic segment totalled 93 MSEK in the second quarter of 2020, corresponding to an annual revenue growth of 113%.
“Storytel saw a continued strong influx of customers during the quarter – not least in the Nordic markets where the audiobook wave originally started and where the competition is tougher. The service is attractive and appreciated by the customers in all stages of our development – from when we enter and build new markets from the ground up, to aggressive and forward-leaning strategic investments in content, user experience and production that consolidate and strengthen our position, says Storytel’s CEO Jonas Tellander.
“By exceeding the forecast for the period, Storytel is entering into the third quarter with strength and speed, a quarter that from a business perspective is the strongest period of the year for our industry. We are also very grateful and proud of the role we have received as the eye of the storm for many people who are seeking relaxation, inspiration, escapism or entertainment in these trying times for the world”, says Jonas Tellander.
Table 1: Key Performing Indicators for Streaming
| Currency: SEK 000’s | Q2 2019 | Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q2 2020 |
| Streaming Total | Actual | Forecast1 | ||||
| Revenue | 320 034 | 399 178 | 421 454 | 429 251 | 459 115 | 458 000 |
| Contribution Profit2, 6 | 29 407 | 53 043 | 58 977 | 92 611 | ||
| Contribution Margin | 9,2% | 13,3% | 14,0% | 21,6% | ||
| Avg. Paying Subscribers3 | 887 500 | 1 014 400 | 1 083 400 | 1 154 800 | 1 256 500 | 1 250 000 |
| ARPU4 (SEK/Month) | 120 | 131 | 130 | 124 | 122 | 122 |
| Streaming Nordics5 | ||||||
| Revenue | 276 347 | 340 315 | 352 222 | 349 768 | 366 322 | 366 000 |
| Contribution Profit2, 6 | 70 443 | 109 563 | 115,689 | 113 476 | ||
| Contribution Margin | 25,5% | 32,2% | 32,8% | 32,4% | ||
| Avg. Paying Subscribers3 | 669 200 | 736 000 | 757 600 | 785 800 | 832 800 | 826 000 |
| ARPU4 (SEK/Month) | 138 | 154 | 155 | 148 | 147 | 148 |
| Streaming Non-Nordics | ||||||
| Revenue | 43 687 | 58 863 | 69 233 | 79 484 | 92 793 | 92 000 |
| Contribution Profit2, 6 | -41 036 | -56 521 | -56 713 | -20 866 | ||
| Contribution Margin | -93,9% | -96,0% | -81,9% | -26,3% | ||
| Avg. Paying Subscribers3 | 218 300 | 278 400 | 325 800 | 369 000 | 423 700 | 424 000 |
| ARPU4 (SEK/Month) | 67 | 70 | 71 | 72 | 73 | 72 |
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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, external production costs, transaction/payment costs and marketing costs. Storytel Reader and Ztory are not included in Streaming.
3 Avg. Paying Subscribers means the average number of paying Storytel subscribers during the quarter. Stand-alone customers from Ztory are not included. For Family subscriptions, each standard stream (not so-called Kids Mode) is considered one paying customer.
4 ARPU = Average Revenue Per User (Subscriber) per month.
5 Storytel Norway is included in the figures @ 100%. In the consolidated accounts, Norway is reported in accordance with the principle of proportional consolidation.
6 Starting in Q1 2020 Storytel has chosen to voluntarily apply the capitalisation model instead of the expensing model regarding internally developed intangible assets. In this table, the development of our digital catalogue will be capitalised and no longer be treated as an expense as of Q1 2020. Before Q1 2020 the result is shown using the expensing model.
FNCA Sweden AB is the company’s certified adviser. FNCA can be reached at info@fnca.se and +46 8 528 00 399.
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
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.