Stillfront Group Interim Report Q3 2019

Key insights

7 takeaways

01
Stillfront Group achieved a 64% year-over-year increase in net revenue for Q3 2019, reaching 517 MSEK.See it on page 9
02
The company maintained a 34% adjusted EBIT margin, resulting in 136 MSEK in EBIT for the quarter.See it on page 9
03
Growth was driven by organic performance in titles like Big Farm: Mobile Harvest and Nida Harb 3, alongside the strategic acquisition of studio Kixeye.See it on page 3
04
As of Q3 2019, the group supported 5.3 million monthly active users and 1.3 million daily active users across its portfolio of over 40 products.See it on page 5
05
The company reached record levels in its paying user base and average revenue per paying user despite a seasonal decline in overall user activity.See it on page 5
06
With a cash position of 385 MSEK and a pro forma adjusted leverage ratio of 0.9x, the group is positioned for further internal development and acquisitions.See it on page 10
07
The quarter marked the global launch of Empire: Age of Knights, reinforcing the company's focus on long-lifecycle, free-to-play strategy games.See it on page 4

Summary

Stillfront Group’s Q3 2019 interim report highlights a period of significant expansion and strong financial performance for the Stockholm-based gaming conglomerate. The company, which specializes in free-to-play online strategy games, reported a 64% year-over-year increase in net revenue. This growth was driven by a combination of organic success in titles like Big Farm: Mobile Harvest and Nida Harb 3, alongside the strategic integration of the newly acquired studio Kixeye. The group maintained a robust adjusted EBIT margin of 34%, reflecting disciplined user acquisition spending and effective monetization strategies across its diverse portfolio of over 40 products.

The operational scope of the group spans a global network of twelve studios, with a primary market presence in the United States, Germany, the Middle East and North Africa, France, and the United Kingdom. As of the third quarter of 2019, the group supported 5.3 million monthly active users and 1.3 million daily active users. Despite a slight seasonal decline in user activity during the quarter, the company achieved record levels in its paying user base and average revenue per paying user.

Financial management remained a core focus, with the group reporting 517 MSEK in net revenue and 136 MSEK in EBIT for the quarter. The report also details a reclassification of financial metrics, specifically regarding the treatment of earnout provisions, to provide a clearer view of adjusted EBIT. With a solid cash position of 385 MSEK and a pro forma adjusted leverage ratio of 0.9x, the group positioned itself for continued growth through both internal development and potential future acquisitions. The quarter concluded with the global launch of Empire: Age of Knights, signaling a continued commitment to its long-lifecycle, strategy-focused business model.