Q3 2024 Storytel AB (publ) Earnings Call Transcript
Key Points
- Storytel AB (LTS:0GBU) reported its best quarterly financial performance ever with record high revenues of 954 million SEK and an adjusted EBIT margin of 18.7%.
- The company saw a 10% growth in its paying subscriber base, reaching over 2.3 million subscribers, with 40% of this growth driven by the core Nordic markets.
- The Finnish market experienced a 30% year-on-year growth in subscribers, attributed to successful campaigns like Premium For Life.
- Adjusted gross profit margin improved by 4.6 percentage points year-on-year to 45.7%, driven by increased consumption of high-quality content from internal publishers.
- Operational cash flow was strong at 146 million SEK, reflecting disciplined strategy execution and cost efficiency measures.
- The average revenue per user (ARPU) decreased by 2% year-on-year organically, and by 4.4% when including adverse currency exchange effects.
- The non-Nordic core region's subscriber intake was slower than expected, partly due to price increases in markets like the Netherlands and Poland.
- The company faces challenges in balancing subscriber growth with profitability, particularly in managing customer lifetime value against subscriber acquisition costs.
- There is uncertainty regarding the impact of new market entrants like Spotify in the Netherlands, which could affect subscriber growth and market share.
- Despite strong financial performance, the company is cautious about future pricing strategies and market competition, which could impact growth projections.
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Hi and good morning, everyone and welcome to Storytell Group's earnings call for the third quarter of 2024.
I am Boon to and I've been here as the CEO of Startle Group since October 1st. Joining me today is Peter Messner our co, I'm really glad to be here today. I've been working at Storytell now for four weeks and it has been really exciting.
I've spent my time on meeting our brilliant team and getting to know our business and I would say that I'm really eager to get an even deeper understanding, especially when it comes to our customers and users in the different markets as well as our products.
I have spent over 25 years in the media industry, working with media groups like Bonnier and A and mainly during all those years, I've been focused on driving growth for strong consumer brands with an emphasis on subscription based models, combining content with excellent tech.
And this is actually where I have my big passion. So someone called me a subscriber Hunter and that's actually spot on. So
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