Stillfront Group Q2 2017 Presentation

Key insights

7 takeaways

01
Stillfront Group achieved 37.3 million SEK in net revenue for Q2 2017, marking a 24% increase over the previous quarter.See it on page 3
02
The company maintains a rolling 12-month EBITDA of 31 million SEK, with operational profitability consistently between 25% and 35%.See it on page 11
03
Mobile platforms now account for 46% of run-rate revenues, contributing to a 53% CAGR recorded between 2012 and 2016.See it on page 6
04
The group secured a 500 million SEK corporate bond frame to fund its strategy of systematic M&A and studio consolidation.See it on page 19
05
The current portfolio consists of seven studios across seven countries, supporting a user base of approximately 1 million monthly active users.See it on page 2
06
The business model focuses on acquiring and managing long-life games to mitigate the volatility of the industry's blockbuster-driven market.See it on page 5
07
Future growth is centered on the launch of new core products like 'Siege' and the integration of recent acquisitions such as eRepublik Labs.See it on page 15

Summary

Stillfront Group, a developer and publisher of free-to-play strategy games, aims to become a leading group of independent studios by combining the agility of small indie developers with the stability of a professional public structure. The company focuses on acquiring and managing a diversified portfolio of long-life games, targeting a low-risk segment of the global gaming market. By maintaining a mix of mobile, browser, and downloadable titles, the group seeks to mitigate the volatility typically associated with the industry’s blockbuster-driven model.

Financial performance as of Q2 2017 demonstrates significant growth, with net revenues reaching 37.3 million SEK, representing a 24% increase over the previous quarter. The company reported a rolling 12-month EBITDA of 31 million SEK, maintaining solid operational profitability between 25% and 35%. This growth is supported by a 53% CAGR from 2012 to 2016 and a strategic shift toward mobile platforms, which now account for 46% of run-rate revenues. The group’s portfolio includes seven studios across seven countries, serving approximately 1 million monthly active users.

The business strategy relies on three pillars: maintaining a portfolio of long-life games, scaling through systematic M&A, and expanding third-party publishing. To fuel this expansion, the company successfully issued a corporate bond with a 500 million SEK frame, providing the capital necessary to consolidate smaller studios. Recent acquisitions, such as eRepublik Labs, have been integrated to provide immediate revenue growth and increased diversification. Looking forward, the company prioritizes organic growth, the launch of new core products like "Siege," and the continued development of its operational model to enhance synergies and efficiency across its decentralized studio network.