Storytel Group (STORY) CMD 2025 summary

Strategic direction and growth plans

• Aims to surpass 3 million subscribers by 2028, focusing on high-value customers in the Nordics and accelerating growth in core and new European markets, including entry into 6–8 new markets with a shortlist totaling around 70 million people.

• Pursues over 10% annual total revenue growth in constant currencies, driven by high single-digit organic growth and selective M&A in both streaming and publishing.

• Four key growth drivers: strong content offering, efficient MarTech, new market expansion, and strategic acquisitions.

• Expanding product and content leadership to new audiences, with increased focus on non-fiction, English-language content, and ebooks.

• Committed to maintaining leverage below 1.5x, prioritizing organic growth, core market acquisitions, and new market entries.

Financial guidance and targets

• 2025 guidance: revenue growth of 7–10% in constant currency, adjusted EBITDA margin of 17.5–19%, and subscriber base projected to grow by 10–11%.

• 2028 targets: over 10% total revenue CAGR (CER), EBITDA margin above 20%, and net debt/EBITDA below 1.5x.

• Operational CapEx to remain below 5% of revenue, with further efficiency gains expected in content production and platform investments.

• Group marketing spend to decrease to 12–13% of sales by 2028, with operational capex also declining as a percentage of sales.

• Dividend policy ensures flexible capital allocation and return of excess liquidity to shareholders as cash flow grows.

Business model, competitive advantages, and innovation

• Integrated model combining publishing and streaming, leveraging local content and strong author relationships to drive engagement and retention.

• 75% of net sales from streaming, 25% from publishing, with publishing revenues reaching SEK 1 billion.

• AI and data-driven marketing, product innovation (e.g., simultaneous listening/reading, AI narration, immersive experiences), and robust MarTech infrastructure underpin growth and efficiency.

• Exclusive content and Storytel Originals are major intake and retention drivers, with Originals consumed nine times more than average audiobooks.

• Local presence and brand strength in core markets, with a focus on defending strongholds in the Nordics and aggressive growth in high-potential markets like Poland, Bulgaria, Turkey, and the Netherlands.