Storytel in line with forecast first quarter 2019

Storytel had an average of 834,300 paying subscribers in the first quarter of 2019, which is an increase of 65,600 customers compared to the fourth quarter of 2018 and in line with the forecast of 835,000 paying subscribers that was previously estimated. Streaming revenues for the first quarter of 2019 came in at 296 MSEK, compared to a forecast of 297 MSEK. Annual revenue growth thus corresponds to 39%.

The average number of paying subscribers for the first quarter of 2019 in Sweden was 363,200, which corresponds to 1,200 paying subscribers above forecast. Storytel’s family subscriptions have performed above expectations, which has led to more subscribers than forecast but a lower ARPU. Streaming revenues in Sweden came in at 136.9 MSEK, compared to a forecast of 138 MSEK.

“We have enjoyed a large influx of customers in Sweden in the quarter and our new family subscription has been well received. We are determined to keep constantly developing the user experience and as things stand we have excellent momentum throughout the organisation to add extra focus on this development,” says Jonas Tellander, CEO of Storytel.

The average number of subscribers abroad for the first quarter of 2019 totalled 471,100, an  increase of 47,600 paying subscribers compared to the fourth quarter of 2018, and is slightly lower than the communicated forecast of 473,000 for first quarter 2019. Annual subscriber growth was 73%. Streaming revenues abroad totalled around 159.1 MSEK in the first quarter of 2019, in line with forecast.

Just over a week ago, Storytel launched in its 16th country: Singapore. As previously announced, Storytel will also launch its service in Germany and Brazil in 2019.

“We are witnessing fantastic growth with almost 50,000 customers abroad and we continue to increase the inflow to the service quarter on quarter. The next milestone is to reach one million paying subscribers and it is our international markets that hold the key here,” says Jonas Tellander.

Key performance indicators  for Storytel Streaming

Currency: thousand SEK        Q1 2018        Q2 2018        Q3 2018        Q4 2018        Q1 2019
Streaming Total
Revenue 222,133 239,139 279,979 291,315 295,994
Contribution Profit1 24,079 25,045 22,063 30,444
Contribution Margin 10.8% 10.5% 7.9% 10.5%
Paying Subscribers 577,900 621,200 720,900 768,700 834,300
ARPU2 (SEK/Month) 128 128 129 126 118
 
Streaming Sweden
Revenue 122,046 125,759 135,986 139,977 136,861
Contribution Profit 43,067 35,763 40,888 49,190
Contribution Margin 35.3% 28.4% 30.1% 35.1%
Paying Subscribers 305,100 314,700 336,200 345,200 363,200
ARPU (SEK/Month) 133 133 135 135 126
 
Streaming International3
Revenue 100,087 113,380 143,993 151,338 159,133
Contribution Profit -18,988 -10,718 -18,826 -18,746
Contribution Margin -19.0% -9.5% -13.1% -12.4%
Paying Subscribers 272,800 306,500 384,700 423,500 471,100
ARPU (SEK/Month) 122 123 125 119 113

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. In Q1 2019, Storytel released Family subscription and a discounted campaign has been run, lowering the ARPU. The lowering ARPU is also explained by Q1 having fewer days (90)  and growth in low priced markets.

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 and Founder, Storytel: +46 70 261 61 36

Dan Panas, Head of Communications, Storytel: +46,701,865,290

FNCA Sweden AB is the company’s certified adviser. FNCA can be reached at info@fnca.se and +46 8 528 00 399.

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.


About Storytel

Storytel is Northern Europe’s leading audiobook and e-book streaming service and offers unlimited listening and reading of more than 200 000 titles on a global scale. Our vision is to make the world a more empathetic place with great stories to be shared and enjoyed by anyone, anywhere and anytime. Storytel is a digital platform provider as well as a comprehensive publishing group. The streaming business area offers subscriptions for audiobooks and e-books under the Storytel and Mofibo brands. Storytel’s publishing business area is carried out through the publishing houses Norstedts, Massolit, StorySide, Printz Publishing, People’s Press, Rabén & Sjögren, B.Wahlströms and Norstedts Kartor. Ztory – a subscribed digital read-all-you-can streaming service for newspapers and magazines, is part of Storytel since January 2019. Storytel operates in 16 markets around the globe and is headquartered in Stockholm, Sweden.