Stillfront Group AB (STLFF) Q4 2024 Earnings Call Transcript

2025-02-08 21:05:21 ET

Stillfront Group AB (STLFF)

Q4 2024 Earnings Conference Call

February 5, 2025 4:00 AM ET

Company Participants

Alexis Bonte - Group President and Interim Chief Executive Officer

Andreas Uddman - President Finance and Global Functions, Group Chief Financial Officer

Conference Call Participants

Nick Dempsey - Barclays

Martin Arnell - DNB Markets

Rasmus Engberg - Kepler Cheuvreux

Presentation

Alexis Bonte

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 improved our adjusted EBITDAC quarter-on-quarter, but also significantly compared to Q4 of '23. This was driven mostly by lower fixed costs, lower UAC in the Strategy product area and lower capitalization as we focus our product investments on our key franchises. In the quarter, the overall decline in MAU and DAU was offset by higher ARPDAU.

We also had solid growth in our direct-to-consumer year-on-year. This is something, as you know, that we've been focusing quite a lot on, and it now represents more than one-third of our total bookings, and that is more than any individual app store, just to give you an idea of the size of it. And ad bookings were stable. We've been trying to kind of push out bookings more, but it is a difficult environment at the moment to increase ad bookings, but that's something that we're looking into for the future....

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