Year-End Report 2018 Storytel AB (publ) 1 January 2018 – 31 December 2018

Click here to watch the quarterly video with CEO Jonas Tellander and CFO Sofie Zettergren. For the full report see attached pdf.

Highlights in this report

  • Subscriber base up 44% Y/Y to 768,700 on average in Q4 2018 (533,400).
  • Streaming sales up 39% Y/Y to 291 MSEK in Q4 2018 (209 MSEK)
  • Streaming sales surpassed target of 1,000 MSEK in 2018
  • Storytel launched in Mexico and Bulgaria, now present in 15 markets.
  • Changed listing venue from Spotlight to Nasdaq First North Growth Markets
  • Successful Storytel Family launch boosted subscriber base growth in Sweden
  • Forecast growth in subscriber base to on average 835,000 in Q1 2019 (+44% Y/Y)

Key performance indicators  for Streaming and Print Publishing

Currency: thousand SEK         Q4 2017         Q1 2018         Q2 2018        Q3 2018         Q4 2018         Q1 2019
Streaming Total Forecast1
Revenue 209,225 222,133 239,139 279,979 291,315 297,000
Contribution Profit2 30,277 24,079 25,045 22,063 30,444
Contribution Margin 14.5% 10.8% 10.5% 7.9% 10.5%
Paying Subscribers 533,400 577,900 621,200 720,900 768,700 835,000
ARPU3 (SEK/Month) 131 128 128 129 126 119
Streaming Sweden
Revenue 118,038 122,046 125,759 135,986 139,977 138,000
Contribution Profit 38,501 43,067 35,763 40,888 49,190
Contribution Margin 32.6% 35.3% 28.4% 30.1% 35.1%
Paying Subscribers 292,700 305,100 314,700 336,200 345,200 362,000
ARPU (SEK/Month) 134 133 133 135 135 127
Streaming International4
Revenue 91,187 100,087 113,380 143,993 151,338 159,000
Contribution Profit -8,224 -18,988 -10,718 -18,826 -18,746
Contribution Margin -9.0% -19.0% -9.5% -13.1% -12.4%
Paying Subscribers 240,700 272,800 306,500 384,700 423,500 473,000
ARPU (SEK/Month) 126 122 123 125 119 112
Print Publishing5
Revenue 173,832 106,312 115,898 116,252 170,435
Contribution Profit6 66,854 39,223 41,889 40,140 54,681
Contribution Margin 38.5% 36.9% 36.1% 34.5% 32.1%

1 Forecast is an approximation based on information available at the time of reporting.
2 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.
3 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 2 fewer days (90)  and growth in low priced markets.
4 Storytel Norway included in figures @ 100%. In the consolidated group accounts Norway is reported according to the principle of proportional consolidation.
5 Print Publishing refers to physical books. Internal transactions have been redacted, hence sales through Storytel is not included.
6 Contribution Profit is defined as revenue minus cost per sold unit, distribution costs, and sales and marketing costs. 

Summary of the period

Figures in brackets relates to the same period last year, if not otherwise stated. 

Fourth quarter (October  – December 2018) in summary

Net turnover increased 19.6% to 436,621 (365 055) TSEK.

Earnings per share, after taxes, in Q4 2018 totalled -0.61 (-0,21) SEK.

Full Year (January – December 2018) in summary

Net turnover increased 24.7% to 1,459,952 (1 170 861) TSEK.

Earnings per share, after taxes, in 2018 totalled -4.02 (-1,46) SEK 

Forthcoming reports

  • Full extended Year-End Report 2018 15 April 2019
  • Interim Report Jan – March 2019 14 May 2019
  • Interim Report Jan – June 2019 13 August 2019
  • Interim Report Jan – Sep 2019 12 Nov 2019

Annual Meeting of Shareholders

The annual meeting of shareholders will be on 15 May 2019, in Stockholm, Sweden. The annual accounts, and annual group accounts, will be made available on 15 April 2019.

Dividends

The Board of Directors suggests no dividends be paid for the 2018 financial year.

FNCA Sweden AB is the company’s certified adviser. FNCA can be reached at info@fnca.se or 08-528 00 399. 

Stockholm, 25 February 2019

For more information, please contact:

Jonas Tellander, CEO: +46 70 261 61 36
Sofie Zettergren, CFO: +46 70 509 98 08

This information is information that Storytel AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at the time set out in this press release.  

About Storytel

Storytel was founded in 2005 by Jonas Tellander and Jon Hauksson. In 2009 Storytel participated in TV-show Draknästet asking for capital, and in 2016 Storytel acquired Norstedts Förlagsgrupp. These two events marked important milestones for the company, from the struggles of a startup in the midst of a financial crisis, to the successful acquisition of Sweden’s perhaps most prestigious publishing house, the home of Astrid Lindgren and Stieg Larsson. Storytel’s journey as a public company began in June 2015 on Spotlight at a market capitalization of 600 MSEK. In December 2018 Storytel moved its listing to Nasdaq First North Growth Markets at a market capitalization of approximately 6 BSEK.

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