Stillfront Q3 2018 Interim Report

Key insights

6 takeaways

01
Stillfront Group achieved a 25% year-over-year increase in proforma net revenue while maintaining a strong adjusted EBIT margin of 28% during Q3 2018.See it on page 8
02
The company reached 4.1 million monthly active users and 1.0 million daily active users across its network of ten global studios.See it on page 5
03
Average revenue per monthly paying user hit a record 664 SEK, bolstered by the performance of Nida Harb III in the MENA region.See it on page 6
04
Stillfront secured a new financing package consisting of a 600 million SEK senior unsecured bond and additional bank facilities to support future M&A and organic growth.See it on page 11
05
The company successfully integrated the acquisition of Imperia Online and transitioned several legacy Flash-based products to HTML5.See it on page 12
06
Growth in the 'Big' brand and other core products successfully offset a decline in deposits from the 'Empire' brand.See it on page 4

Summary

Stillfront Group’s third-quarter 2018 interim report highlights the company’s position as a market leader in free-to-play browser and mobile strategy games. The primary objective of the period was to maintain high profitability and organic growth while integrating new acquisitions. The company reported a 25% year-over-year increase in proforma net revenue and maintained a strong adjusted EBIT margin of 28%. These financial results were achieved despite seasonal fluctuations in gaming activity, which the company mitigated through a diversified portfolio of established blockbuster intellectual properties and growing mid-sized titles.

The operational scope of the company spans a global network of ten studios across Europe, the Middle East, and the United States, employing 460 professionals. During the third quarter, the company reached 4.1 million monthly active users and 1.0 million daily active users. Key operational developments included the acquisition of Imperia Online, which added two titles to the core portfolio, and the successful transition of several legacy Flash-based products to HTML5. The company also secured a new financing package, including a 600 million SEK senior unsecured bond and additional bank facilities, to support future growth and provide greater financial flexibility.

Performance metrics indicate that while the "Empire" brand experienced a decline in deposits, this was offset by significant growth in the "Big" brand and other core products. The average revenue per monthly paying user reached an all-time high of 664 SEK, driven largely by the success of Nida Harb III in the MENA region. Looking forward, the company intends to continue its dual-track growth strategy, focusing on organic development through engine extensions and cross-platform capabilities, alongside an active mergers and acquisitions agenda to expand its genre reach and market presence.