Full Year 2024 Stillfront Group AB (publ) Earnings Call Transcript
Key Points
- Stillfront Group AB (STLFF) reported strong cash flows in Q4, with a 170% increase on a quarterly basis, totaling SEK1.05 billion for the full year of 2024.
- The company improved its adjusted EBITDAC quarter-on-quarter and significantly compared to Q4 2023, driven by lower fixed costs and strategic investment focus.
- Direct-to-Consumer bookings grew solidly year-on-year, now representing more than a third of total bookings, surpassing any individual app store.
- The company has successfully restructured its organization, reducing management layers and focusing on key game franchises to drive organic growth.
- Stillfront Group AB (STLFF) has strengthened its debt portfolio by issuing a new bond and negotiating a new RCF, improving its maturity profile and financial flexibility.
- Net revenue was down by 5% year-on-year organically in Q4, indicating challenges in achieving organic growth.
- The company faced difficulties in user acquisition (UA) placement for certain games, requiring frequent shifts in investment.
- There was a decline in monthly active users (MAU) and daily active users (DAU), although offset by higher average revenue per daily active user (ARPDAU).
- The North American segment is underperforming, with a need for turnaround due to low margins and dependency on UA.
- The Home Design Makeover franchise faces product challenges and high dependency on UA investments, requiring significant improvements.
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Good morning, and welcome to the Stillfront Q4 report. I am Alexis Bonte, the Group President and Interim CEO of Stillfront, and I will be joined later by Andreas Uddman, who's our Group CFO.
We had strong cash flows and adjusted EBITDAC in the fourth quarter. This in spite of net revenue being down by 5% year-on-year organically. Cash flow was up by 170% year-on-year -- sorry, on a quarterly basis. And for the full year of 2024, it totaled SEK1.05 billion. So very strong cash flows in the fourth quarter in spite of the organic growth being slightly lower than we would have liked.
We had, overall, a normal Q4 in terms of UA, but I mean really overall, because it was harder to place it for certain games, and we had to shift around the investments more than usual during the quarter. So lots of kind of moving UA from game to game depending on the results that we saw. So normal overall but challenging in terms of placing it depending on the games.
We
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