Storytel sharpens its focus on profitability and will improve cash flow generation beyond the previously outlined guidance at the Capital Markets Day inJune 2023 . An efficiency optimization initiative will be implemented during the first quarter of 2024, including a 13% reduction in workforce.
- As a result of increased emphasis on profitability and reduced growth investments in certain markets, related assets will not generate as much cash flow as previously planned. For that reason a non-cash write down of 632 MSEK will be recorded in the fourth quarter of 2023. 465 MSEK of the write down relates to an impairment of goodwill attributed to Audiobooks.com, with the remaining write downs mainly concentrated on content assets in the expansion markets.
Storytel saw a strong final quarter of 2023, with preliminary streaming revenues of 858 MSEK, representing a growth of 16% or 14% at constant exchange rates. Preliminary total group revenues increased by 9% to 946 MSEK. Preliminary group adjusted EBITDA, excluding restructuring charges and write downs, was 86 MSEK with a margin of 9.1% in the quarter, and 248 MSEK with a margin of 7.1% for the full year - well above the previous guidance.
- In 2024,
Storytel expects to deliver group revenue growth around 10% with an adjusted EBITDA margin of above 12% and operational cash flow above 7% of revenue.
- With an improved outlook,
Storytel upgrades its 2026 mid-term financial targets and aims at reaching group revenues of around 4.5 BSEK with a streaming revenue CAGR of 10-12%, an adjusted EBITDA margin of above 15% and an operational cash flow above 10% of revenue.
"Our sharpened focus on profitability and continued growth in our 10 core markets, bolstered by our strong operational and financial performance in 2023, enables us to update
Efficiency optimization initiative
Today,
The efficiency optimization initiative includes a reduction of the workforce by approximately 80 team members, or 13%, compared to
Fourth quarter trading update
In total,
Preliminary, adjusted EBITDA in the fourth quarter was up 62% to 86 MSEK, representing a margin of 9.1%. Including IACs of 98 MSEK, EBITDA was -12 MSEK. The preliminary adjusted EBITDA for the full year of 2023 was 248 MSEK, a growth of 170% and representing a margin of 7.1% - well above the guidance of 6.4%.
Preliminary operational cash flow was 46 MSEK in the quarter and 89 MSEK for the full year - above the guidance of at least 80 MSEK. During the quarter,
Consolidated Income statement (preliminary and unaudited numbers)
Currency: MSEK
Group | FY 22 adj. | FY 23 | IACs | FY 23 adj. | YoY Change | |
Revenue | 3,200 | 3,489 | - | 3,489 | 9% | |
Operating profit | -240 | -742 | 672 | -71 | n/a | |
EBITDA | 92 | 150 | 98 | 248 | 170% | |
Group | Q4 22 adj. | Q3 23 | Q4 23 | IACs | Q4 23 adj. | YoY Change |
Revenue | 867 | 896 | 946 | - | 946 | 9% |
Operating profit | -32 | 15 | -680 | 672 | -8 | n/a |
EBITDA | 53 | 92 | -12 | 98 | 86 | 62% |
Streaming Total | Q4 22 | Q3 23 | Q4 23 | YoY Change | ||
Revenue | 742 | 842 | 858 | 16% | ||
ARPU (SEK kr) | 122 | 131 | 130 | 7% | ||
Avg. Paybase | 2,036,000 | 2,144,000 | 2,203,000 | 8% | ||
Streaming Nordic | Q4 22 | Q3 23 | Q4 23 | YoY Change | ||
Revenue | 498 | 572 | 574 | 15% | ||
ARPU (SEK kr) | 147 | 163 | 162 | 10% | ||
Avg. Paybase | 1,132,000 | 1,169,000 | 1,184,000 | 5% |
Guidance for 2024
In 2024,
2026 mid-term financial targets
With a sharpened focus on profitable growth, and its ten core markets - the five Nordic countries,
Investors, analysts and media are invited to an audiocast with teleconference at
The audiocast can be followed live on this link:
https://ir.financialhearings.com/press-conf-jan-2024
If you wish to participate via teleconference, please register on the link below:
https://conference.financialhearings.com/teleconference/?id=5008750
After registration, you will be provided with a phone number and a conference ID to access the conference. You will be able to ask questions via the teleconference.
This constitutes inside information that
For more information, please contact:
Tel: +46 76 535 26 74
Email: mattias.frithiof@storytel.com
Malin Lindborn, Head of Communications,
Tel: +46 735 33 17 70
Email: malin.lindborn@storytel.com
About
The streaming business within the
https://news.cision.com/storytel/r/storytel-sharpens-focus-on-profitability-on-the-back-of-strong-q4-2023-earnings-and-upgrades-mid-ter,c3914405
https://mb.cision.com/Public/11546/3914405/aa77d35227e1442a.pdf
(c) 2024 Cision. All rights reserved., source