Storytel Group (STORY) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly revenue exceeding SEK 1 billion in Q4 2024, up 9% year-over-year, driven by strong growth in both streaming and publishing segments, confirming successful execution of a profitable growth strategy.

• Total paid subscriber base grew 11% year-over-year to over 2.44 million, with all-time low paid churn and strong engagement, especially in non-Nordic core regions.

• Surpassed full-year guidance on organic revenue growth (9%), adjusted EBITDA margin (15.8%), and operational cash flow (12.1% of revenue).

• Publishing segment delivered all-time high results, supported by robust physical and digital sales, successful content launches, and acquisition of rights to popular children's characters.

Financial highlights

• Q4 2024 group revenue rose 9% to 1,028 MSEK, with adjusted gross profit margin reaching an all-time high of 46.4%.

• Adjusted EBITDA margin increased to 18.6% for Q4 and 15.8% for the full year; adjusted EBITDA more than doubled to SEK 602 million for 2024.

• Net interest-bearing debt reduced to SEK 27 million, with a leverage ratio of 0.05, making the group nearly debt-free.

• Cash and cash equivalents at year-end were SEK 623 million.

• Cash flow from operating activities after changes in working capital was SEK 272 million in Q4, exceeding the full year 2023.

Outlook and guidance

• Expectation of continued organic growth and improved profitability in 2025, with updated strategic direction and new midterm financial targets for 2028 to be announced in spring 2025.

• No firm 2025 guidance provided due to ongoing strategic review, but internal commitment to increased marketing investments where beneficial.

• Mid-term targets include net sales around 4,500 MSEK and EBITDA margin above 15% by 2026.