Q2 2025 Stillfront Group AB (publ) Earnings Call Transcript
Key Points
- Stillfront Group AB (STLFF) announced a new game, Supremacy: Warhammer 40,000, which is expected to enhance their Supremacy franchise.
- The company has successfully expanded key franchises like Supremacy: WW3 and Ludo Club, showing growth in the quarter.
- Direct-to-consumer (DTC) efforts have significantly improved gross profit margins, with DTC share increasing from 26% in 2023 to 39% in Q2 2025.
- Free cash flow remained strong, with SEK1,089 million reported, marking the third consecutive quarter of over SEK1 billion in LTM free cash flow.
- Cost-saving initiatives have been effective, particularly in North America, contributing to an increase in gross margin from 80% to 82% year-over-year.
- Net revenue declined by 11.3% organically to SEK1,436 million, impacted by currency headwinds of 6.3%.
- Organic decline in Europe was 14.5% year-on-year, attributed to tough comparables and underperformance in the narrative segment.
- North America saw an 18% year-on-year revenue decline on an organic basis, despite restructuring efforts.
- Adjusted EBITDAC decreased from SEK505 million in Q2 2024 to SEK374 million in Q2 2025, partly due to foreign exchange headwinds.
- The Word franchise experienced a negative 9% EBITDAC margin in 2024, prompting a strategic move to Moonfrog in MENA and APAC.
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Hello. Good morning. I am Alexis Bonte, the CEO of Stillfront. I am joined here today by Tim Holland, who is our interim CFO. Thank you for joining our call today.
Without further ado, I will jump into our key franchise activities in Q2 of 2025. So we announced during the quarter a very exciting new game, which is the Supremacy: Warhammer 40,000 game. This is part of our Supremacy franchise, and we're doing this game with a major, major IP that is really beloved.
We think this is a great fit for our grand strategy type of game that we have within Supremacy. We're very excited about this game. We have also made good progress with Big Farm Homestead within the Big franchise, which has entered its technical launch phase.
We are also having successful expansion of key franchises with Supremacy: WW3 and Ludo Club scaling and growing well in the quarter. We've also significantly strengthened the setup at our Candywriter Studio. That's the studio that works on
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