Stillfront Q2 2016 Presentation

Key insights

7 takeaways

01
Stillfront's net revenue for H1 2016 rose 114% versus H1 2015, reaching record levels, with an EBITDA margin of 44.5% excluding investments.See it on page 14
02
By Q2 2016 the company had doubled its core brand portfolio to six, which it credits with improving profitability and reducing risk.See it on page 5
03
Its central thesis is that a diversified portfolio of long-lifecycle games, built on scalable development engines, low marginal costs and cross-platform capability, stabilizes revenue while capturing high-margin growth.See it on page 10
04
Growth in the period was driven by the launch of Call of War and strong royalty income from Unravel, which remains a significant asset.See it on page 14
05
The acquisition of Simutronics added a fifth studio to the group and widened its mobile strategy footprint.See it on page 19
06
The long-term target is net revenue above SEK 300 million by 2020, to be reached through scaling the brand portfolio, with a clear roadmap for expansion through 2020.See it on page 9
07
Strategic priorities are a larger share of self-published titles, better marketing ROI under disciplined user acquisition costs, and preparation for a possible move to a main market listing, backed by a solid cash position.See it on page 7

Summary

Stillfront Group’s Q2 2016 presentation outlines a growth strategy centered on a diversified portfolio of long-lifecycle games, scalable development engines, and a mix of organic growth and strategic acquisitions. The primary thesis posits that managing a portfolio of core brands—supported by low marginal costs and cross-platform capabilities—effectively stabilizes revenue while capturing high-margin growth. By the second quarter of 2016, the company successfully doubled its core brand portfolio to six, significantly improving profitability and risk management through a systematic approach to game development and publishing.

Financial performance for the period reflects strong momentum, with net revenues reaching record levels and an EBITDA margin of 44.5% (excluding investments). The company reported a 114% increase in net revenue for the first half of 2016 compared to the same period in 2015. Key drivers included the successful launch of Call of War and strong royalty contributions from Unravel, which continues to be a significant asset. The acquisition of Simutronics further bolstered the group’s capabilities, adding a fifth studio and expanding its mobile strategy footprint.

The company’s outlook for 2016 and beyond focuses on scaling its brand portfolio, with a target of exceeding SEK 300 million in net revenue by 2020. Strategic priorities include increasing the share of self-published titles, optimizing marketing return on investment, and preparing for a potential move to a main market listing. By leveraging high-performance game engines and maintaining a disciplined approach to user acquisition costs, the group aims to sustain its trajectory of high profitability and low volatility, supported by a solid cash position and a clear roadmap for portfolio expansion through 2020.