In This Article:
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Net Revenue: Down by 5% year-on-year organically in Q4.
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Cash Flow: Up by 170% on a quarterly basis; SEK1.05 billion for the full year 2024.
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Adjusted EBITDAC: Improved quarter-on-quarter and significantly compared to Q4 2023.
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Direct-to-Consumer Bookings: Represents more than a third of total bookings.
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Cash Flow from Operations: SEK491 million in Q4; SEK1 billion in free cash flow over the last 12 months.
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Product Development Investment: SEK138 million or 8.3% of net revenues in Q4.
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Debt Reduction: Paid off almost SEK230 million of debt in Q4.
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Leverage Ratio: Around 2.2 times.
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Cash Position: Almost SEK1 billion of cash on the balance sheet.
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Key Game Franchises: 72% of bookings with 2% growth in 2024.
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Active LiveOps Games: Negative organic growth of 8% in 2024.
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Legacy LiveOps Games: Negative organic growth of 20% in 2024.
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Europe Business Area: Stable business with solid margins; 84% of revenues from key franchises.
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North America Business Area: Turnaround case with 5% EBITDAC margin.
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MENA and APAC Business Area: Strong growth with 48% EBITDAC margin.
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Annualized Cost Savings: SEK50 million achieved through studio consolidation.
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Stillfront Group AB (STLFF) reported strong cash flows in Q4, with a 170% increase on a quarterly basis, totaling SEK1.05 billion for the full year of 2024.
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The company improved its adjusted EBITDAC quarter-on-quarter and significantly compared to Q4 2023, driven by lower fixed costs and strategic investment focus.
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Direct-to-Consumer bookings grew solidly year-on-year, now representing more than a third of total bookings, surpassing any individual app store.
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The company has successfully restructured its organization, reducing management layers and focusing on key game franchises to drive organic growth.
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Stillfront Group AB (STLFF) has strengthened its debt portfolio by issuing a new bond and negotiating a new RCF, improving its maturity profile and financial flexibility.
Negative Points
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Net revenue was down by 5% year-on-year organically in Q4, indicating challenges in achieving organic growth.
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The company faced difficulties in user acquisition (UA) placement for certain games, requiring frequent shifts in investment.
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There was a decline in monthly active users (MAU) and daily active users (DAU), although offset by higher average revenue per daily active user (ARPDAU).
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The North American segment is underperforming, with a need for turnaround due to low margins and dependency on UA.
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The Home Design Makeover franchise faces product challenges and high dependency on UA investments, requiring significant improvements.