Sweden · Delayed Price · Currency is SEK Stillfront Group AB Earnings Call Transcripts
Fiscal Year 2026
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Key franchises grew 12% organically, led by Big Farm's 88% surge, while overall revenue declined 14% year-on-year due to FX and portfolio divestment. Adjusted EBITDA margin fell to 23% amid higher UA spend, but debt reduction and refinancing strengthened the financial position.
Fiscal Year 2025
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Margin expansion achieved with a 27% adjusted EBITA margin despite a 9% organic revenue decline. Cost savings, DTC channel growth, and divestment of non-core assets improved profitability and cash flow. Strategic focus shifts to key franchises for future growth.
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Group revenue declined due to North America, but profitability improved with higher EBITDA margins and gross margin. Europe returned to growth, MENA and APAC delivered strong results, and cost optimization was completed early. New game launches and disciplined investment are expected to support future growth.
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Net revenue declined 11.3% organically, but free cash flow remained strong at SEK 1,089 million LTM. Cost savings and increased DTC share improved gross margin to 82%, with significant organic growth expected in H2, driven by new game launches and franchise investments.
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Q1 saw a 12% organic revenue decline due to reduced UA spend, but EBITDA grew 12% year-over-year and free cash flow remained strong. Strategic review and cost optimization are underway, with major product launches and growth expected in H2.
Fiscal Year 2024
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Strong cash flow and improved margins offset a 5% organic revenue decline, driven by cost optimization and a focus on key franchises. Europe remains stable, North America is under turnaround, and MENA/APAC shows robust growth with high margins.
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Q3 saw net revenue down 4.6% year-on-year but stable gross margins and strong free cash flow, with DTC channels and cost optimization offsetting higher user acquisition costs. Segment performance was mixed, with notable growth in Jawaker and Super Free, while Storm8 struggled. Leverage and debt continued to decline, and a new share buyback was announced.
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Margins reached a three-year high in Q2, with EBITDA at 29% and gross margin at 80%, despite a 4% revenue decline. Operational leverage and cost optimization drove strong free cash flow, while segment performance was mixed due to seasonality and strategic focus on high-value users.