Storytel Group (STORY) Q2 2024 earnings summary

Executive summary

• Achieved record financial performance in Q2 2024, with adjusted EBITDA of 128 MSEK and operating profit of 62 MSEK, marking the end of a two-year transformation and disciplined growth strategy.

• Group net sales grew 9% year-over-year to 924 MSEK, with adjusted EBITDA up 178% and positive group EBIT and profit for the quarter.

• Paid subscribers surpassed 2.3 million, up 13–15% year-over-year, with high engagement and low churn.

• Transitioned to two business segments (Streaming and Publishing) and updated segment reporting to align with strategy.

• CEO transition announced, with Bodil Ericsson Torp to take over in October 2024.

Financial highlights

• Net sales up 9% year-over-year to SEK 924 million; streaming revenue up 8%, publishing revenue up 16%.

• Adjusted gross profit margin improved by 5 percentage points to 44.2%; adjusted EBITDA reached SEK 128 million (13.8% margin), up 178%.

• Adjusted operating profit improved from -SEK 25 million to +SEK 62 million year-over-year.

• Operational cash flow (EBITDA minus CapEx) was SEK 87 million; cash flow from operations before working capital changes was 106.5 MSEK, up 337%.

• Net profit for Q2 was 32.4 MSEK, compared to a loss of -30.7 MSEK in Q2 2023; EPS was 0.38 SEK.

Outlook and guidance

• 2024 guidance unchanged: expect ~10% group revenue growth, >13% adjusted EBITDA margin, and operational cash flow above 8% of revenue.

• Midterm outlook to 2026: group revenue target of SEK 4.5 billion, streaming business to grow 10–12% annually, EBITDA margin to exceed 15% and reach 20% steady state, operational cash flow >10% of revenue.