Q2 2024 Storytel AB (publ) Earnings Call Transcript
Key Points
- Storytel AB (LTS:0GBU) achieved the best quarterly financial performance in its history, marking the end of a successful two-year transformation process.
- The company crossed the 2.3 million paid subscriber milestone, with significant growth in both the Nordics and non-Nordics core segments.
- Gross profit margin improved by 5 percentage points year-over-year to 44.2%, driven by increased popularity of in-house content and cost management.
- Adjusted EBITDA reached SEK128 million, a 2.8x increase from Q2 2023, with an EBITDA margin of almost 14%.
- Storytel AB (LTS:0GBU) introduced innovative subscription plans like the Flex Plan and Student Forever, which have been well-received and are expected to drive subscriber acquisition and retention.
- ARPU experienced a minor decrease of 2% year-over-year, indicating potential pricing pressure.
- Revenue from the Rest of the World region decreased slightly by 2%, with a subscriber decrease of 3%.
- The company faces a competitive market, particularly in Poland, where it is not the market leader.
- Operational cash flow, while improved, was still negative at SEK32 million for the period, including a SEK50 million repayment of a term loan.
- The introduction of 6,000 podcasts in Sweden is a strategic experiment, and its impact on the core audiobook business remains uncertain.
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Welcome to Storytel Group's Earnings Call for the Second Quarter of 2024. My name is Johannes Larcher and I am Storytel's CEO. I am joined today by Peter Messner, our CFO.
We are very pleased with our performance in Q2. Thanks to the continued hard work by our entire team, we were able to achieve the best quarterly financial performance in the history of Storytel and we are very proud to deliver these results at the end of a two-year transformation process that was intense and challenging, but ultimately successful.
As a group, we are today very well positioned financially, operationally, strategically and organizationally for the opportunities that lie ahead in the fast growing audiobook sector and the new challenges that no doubt will also be part of our future.
Behind our success over the past 24 months lies our hybrid strategy that combines publishing and streaming. We are convinced that this hybrid group strategy of being both publishers and direct-to-consumer distributors of
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