Storytel’s subscriber growth in line with forecast for the first quarter 2020 – streaming revenues increase by 45%

Storytel had an average of 1,154,800 paying subscribers in the first quarter of 2020, which is an increase of 71,400 customers compared to the fourth quarter of 2019, and in line with the forecast of 1,154,000 paying subscribers that was previously estimated. Streaming revenues for the first quarter of 2020 came in at 429 MSEK, compared to the forecast of 438 MSEK. Annual revenue growth amounts to 45%.

The average number of paying subscribers for the first quarter of 2020 in the Nordic segment was 785,800, which corresponds to 3,800 paying subscribers above forecast. Streaming revenues in the Nordics came in at 350 MSEK, compared to a forecast of 357 MSEK.

– Storytel saw a very strong  influx of customers during the quarter and more than a doubling during the last two weeks of March –  a level of intake that is unprecedented in Storytel history. In these straining times for the global community, we clearly see that people actively seek audiobook experiences for companionship, entertainment and knowledge, says Jonas Tellander, CEO of Storytel.

The average number of subscribers in the Non-Nordic segment for the first quarter of 2020 totalled 369,000, an increase of 43,200 paying subscribers compared to the fourth quarter of 2019 and slightly below the communicated forecast of 372,000 for first quarter 2020. Streaming revenues for the Non-Nordic segment totalled 79 MSEK in the first quarter of 2020 corresponding to an annual revenue growth of 111%.

 

– To meet the highly increased consumer interest in audiobooks, and in order to give more opportunities for relaxation and entertainment to them in straining times, Storytel has extended the free trial period from 14 to 30 days. That means that part of the powerful customer influx effect we experience will manifest itself in the upcoming months, giving Storytel’s subscriber growth a flying start in the second quarter, says Jonas Tellander.
 

Table 1: Key performance indicators for Streaming

Currency: SEK 000’s

Q1 2019 Q2 2019  Q3 2019  Q4 2019 Q1 2020 Q1 2020
Streaming Total  Actual Forecast1
Revenue 295,994 320,034 399,178 421,454 429,251 438,000
Contribution Profit2 31,372 29,407 53,043 58,977
Contribution Margin 10.6% 9.2% 13.3% 14.0%
Avg. Paying Subscribers 834,300 887,500 1,014,400 1,083,400 1,154,800 1,154,000
ARPU3 (SEK/Month) 118 120 131 130 124 127
Streaming Nordics4
Revenue 258,288 276,347 340,315 352,222 349,768 357,000
Contribution Profit2 75,329 70,443 109,563 115,689
Contribution Margin 29.2% 25.5% 32.2% 32.8%
Avg. Paying Subscribers 645,500 669,200 736,000 757,600 785,800 782,000
ARPU3 (SEK/Month) 133 138 154 155 148 152
Streaming Non-Nordics
Revenue 37,706 43,687 58,863 69,233 79,484 81,000
Contribution Profit2 ?43,957 -41,036 -56,521 -56,713
Contribution Margin ?116.6% -93.9% -96.0% -81.9%
Avg. Paying Subscribers 188,800 218,300 278,400 325,800 369,000 372,000
ARPU3 (SEK/Month) 67 67 70 71 72 73

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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, in-house production costs, transaction costs and marketing costs. Storytel Reader and Ztory is not included in Streaming. 

3 ARPU = Average Revenue Per User (Subscriber) per month. 

4 Storytel Norway is included in the figures @ 100%. In the consolidated group accounts, Norway is reported in accordance with the principle of proportional consolidation.

 

 

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 

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.