During the fourth quarter of 2018, Storytel had on average 768,700 paying subscribers, an increase of nearly 48,000 subscribers compared to the third quarter of 2018, and somewhat higher than the published forecast of 765,000 paying subscribers. Streaming revenue for the fourth quarter of 2018 also beat expectations at app. 291.3 MSEK (as compared to the forecast of 290 MSEK), indicating a 39.2% annual growth rate.
During the fourth quarter of 2018, the average number of Swedish subscribers totalled 345,000, or 4,200 more than forecast. In addition, revenue forecasts were surpassed by approximately 2.5 MSEK, and Swedish streaming revenue totalled 140 MSEK during the fourth quarter of 2018. The increase of subscribers in Sweden was partially spurred on by the introduction of the Family Subscription which was introduced in December. In total, the Swedish subscriber base increased by 52,500 subscribers during 2018, in line with Storytel’s goals for the year.
“After a well-executed effort involving a large proportion of the organisation, we’ve now developed our version of a family subscription plan, which has initially been very well received by our customers. With individual accounts and a special focus on children through our Kids Mode, we’ve developed a solution which we believe fits the entire family. A few weeks after its introduction, we can already see a large number of customers upgrading to the new plan, and we look forward to seeing how it progresses throughout 2019 as we introduce the plan to markets outside of Sweden, Norway, Denmark, Finland and Iceland,” says CEO Jonas Tellander.
During the fourth quarter of 2018, the average number of international subscribers was 423,500, slightly lower than the forecast though still in line with expectations, and representing an increase of 39,000 paying subscribers compared to the third quarter of 2018. International streaming revenue totalled approximately 151 MSEK during the fourth quarter of 2018, about one million SEK lower than forecast. During 2018, the total number of international subscribers increased by 182,000.
“During 2018 our annual subscriber growth rate outside of Sweden was 76%, in line with our goals. Our international expansion the last few years has been fairly aggressive, and during the quarter we launched in two new markets Mexico and Bulgaria, all according to our plan of opening in six new markets last year,” says CEO Jonas Tellander.
Key numbers for Streaming
| Currency: thousand SEK | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 |
| Streaming Total | ||||||
| Revenue | 197 881 | 209 225 | 222 133 | 239 139 | 279 979 | 291 315 |
| Contribution Profit1 | 27 784 | 30 277 | 24 079 | 25 045 | 22 063 | |
| Contribution Margin | 14,0% | 14,5% | 10,8% | 10,5% | 7,9% | |
| Paying Subscribers | 503 900 | 533 400 | 577 900 | 621 200 | 720 900 | 768 700 |
| ARPU2 (SEK/Month) | 131 | 131 | 128 | 128 | 129 | 126 |
| Streaming Sweden | ||||||
| Revenue | 113 709 | 118 038 | 122 046 | 125 759 | 135 986 | 139 977 |
| Contribution Profit | 32 872 | 38 501 | 43 067 | 35 763 | 40 888 | |
| Contribution Margin | 28,9% | 32,6% | 35,3% | 28,4% | 30,1% | |
| Paying Subscribers | 282 300 | 292 700 | 305 100 | 314 700 | 336 200 | 345 200 |
| ARPU (SEK/Month) | 134 | 134 | 133 | 133 | 135 | 135 |
| Streaming International3 | ||||||
| Revenue | 84 172 | 91 187 | 100 087 | 113 380 | 143 993 | 151 338 |
| Contribution Profit | -5 088 | -8 224 | -18 988 | -10 718 | -18 826 | |
| Contribution Margin | -6,0% | -9,0% | -19,0% | -9,5% | -13,1% | |
| Paying Subscribers | 221 600 | 240 700 | 272 800 | 306 500 | 384 700 | 423 500 |
| ARPU (SEK/Month) | 127 | 126 | 122 | 123 | 125 | 119 |
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
FNCA Sweden AB is the company’s certified adviser. FNCA can be reached at info@fnca.se or 08-528 00 399.
This information is such information that Storytel AB (publ) is obliged to make public in accordance with EU:s market regulation (marknadsmissbruksförordning). The information was made public by above contact person on January 8th, 2018 at 08:15 CET.
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, 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.