Storytel Group (STORY) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered robust financial results with 7% group revenue growth to 953 MSEK, strong momentum in both streaming and publishing, and over 2.5 million paying subscribers.

• Gross profit increased 12% to 423 MSEK, adjusted EBITDA surged 44% to 150 MSEK, and net profit reached 19 MSEK, reversing a prior loss.

• The acquisition of Bokfabriken enhanced the content offering and contributed to sales growth.

• Continued focus on high-quality content, innovation, audience segmentation, and AI initiatives.

• The Board proposed a one-off dividend of SEK 1.00 per share, totaling approximately 77.2 MSEK.

Financial highlights

• Group net sales rose 7% year-over-year to 953 MSEK, with streaming up 6% to 862 MSEK and publishing up 16% to 283 MSEK.

• Gross profit margin improved to 44.4%, and adjusted EBITDA margin rose to 15.7% from 11.7% last year.

• Operating profit (EBIT) was 55 MSEK, up from -24 MSEK; EBITDA was 135 MSEK (+164%).

• Cash flow from operations before working capital changes improved to 88 MSEK from 28 MSEK year-over-year.

• Cash and cash equivalents at period end were 534 MSEK, up from 352 MSEK.

Outlook and guidance

• Management expects continued organic growth and improved profitability, with further strategic updates at the upcoming Capital Market Day.

• Strategic focus remains on premium content, innovation, and leveraging AI for efficiency and customer experience.

• Strong financial position provides flexibility for future initiatives.