Full Year 2025 Stillfront Group AB (publ) Earnings Call Transcript
Key Points
- Stillfront Group AB (STLFF) successfully expanded its adjusted EBITDAC margin to 27%, up from 25% in Q4 last year, despite a 9% organic revenue decline.
- The company reported strong performance in the MENA and APAC regions with 7% organic growth, driven by the Jawaker and Board franchises.
- Direct-to-consumer (DTC) channels have significantly improved, with DTC revenue now accounting for 45% of bookings, up from 34% in Q4 last year.
- The company achieved a significant reduction in net debt, decreasing from SEK6.1 billion to SEK5 billion, reflecting a commitment to deleverage the balance sheet.
- Stillfront Group AB (STLFF) reported a robust free cash flow of SEK922 million for the full year 2025, demonstrating strong cash generation capabilities.
- Stillfront Group AB (STLFF) experienced an organic revenue decline of 9% year-over-year for the fourth quarter.
- The North American segment saw a significant organic revenue decline of 31.3%, driven by a focus on profitability over short-term revenue growth.
- The Supremacy Warhammer 40,000 game launch was delayed due to not meeting quality thresholds, impacting potential revenue.
- The company took a non-cash goodwill impairment of nearly SEK2.3 billion related to writedowns in Europe and North America.
- User acquisition costs increased to 37% of net revenue, up from 31% last year, reflecting higher investment in user acquisition.
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Good morning and welcome to the Stillfront Q4 presentation. I am Alexis Bonte, the CEO of Stillfron. I am joined today by our CFO Emily Villatte, who joins us in December. I would like also to take the opportunity to thank Tim Holland for his work as interim CFO during 2025.
As we summarize the first quarter of 2025, I am pleased to report that Stillfront is delivering marginal expansion despite revenue decline. We successfully expanded our adjusted EBITDAC margin to 27%, up from 25% in Q4 last year, despite an organic revenue decline of 9%. This follows our cost savings efforts during the year, disciplined deployment of USC alongside the continued rollout of our direct to consumer channel.
Looking at our business areas, in Europe, we delivered a Big franchise new game launch with early positive signs, and we divested our non-core narrative portfolio, which has been impacting our organic growth.
In North America, the continued revenue decline reflects a
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