Stillfront First Quarter 2020 Interim Report

Key insights

7 takeaways

01
Stillfront Group reported strong Q1 2020 financial growth with net revenue reaching 691 million SEK, a 65% increase year-over-year.See it on page 13
02
Adjusted EBIT grew by 69% year-over-year to 213 million SEK, supported by disciplined user acquisition and organic portfolio performance.See it on page 6
03
Operational metrics saw significant expansion, with monthly active users (MAU) up 73% and daily active users (DAU) up 62% compared to the previous year.See it on page 5
04
The company maintained a healthy financial position with a 0.73 cash conversion ratio, a 2.1 billion SEK debt facility, and a moderate leverage ratio of 1.15x.See it on page 13
05
Strategic growth was driven by the successful integration of Kixeye and Storm8, alongside the acquisition of Candywriter to diversify the casual and mash-up gaming portfolio.See it on page 18
06
The COVID-19 pandemic acted as a catalyst for increased gaming activity, leading to higher returns on marketing campaigns and positive momentum heading into Q2 2020.See it on page 18
07
The group operates a diverse portfolio of 36 active games across 14 studios located in Europe, North America, Asia, Africa, and Oceania.See it on page 4

Summary

The Stillfront Group’s first-quarter 2020 interim report details the company’s performance as a global free-to-play gaming powerhouse. The primary objective of the report is to demonstrate the group’s financial growth, operational expansion, and successful integration of acquired studios, specifically Kixeye and Storm8. By maintaining a diverse portfolio of 36 active games across mid-core and casual genres, the company aims to leverage long-lifecycle titles and loyal user bases to drive sustainable revenue and earnings growth.

Financial performance in the first quarter of 2020 was robust, characterized by a 65% year-over-year increase in net revenue to 691 million SEK. Adjusted EBIT grew by 69% compared to the same period in the previous year, reaching 213 million SEK. This growth was supported by disciplined user acquisition spending and solid organic performance across the portfolio. The group maintained a healthy cash conversion ratio of 0.73 and secured a 2.1 billion SEK debt financing facility, keeping leverage at a moderate 1.15x. Operational metrics also showed significant gains, with monthly active users (MAU) rising 73% and daily active users (DAU) increasing 62% year-over-year.

The report covers the group’s global operations, which include 14 studios across Europe, North America, Asia, Africa, and Oceania. The methodology relies on internal financial reporting and consolidated data from its subsidiaries. Looking forward, the company highlights the acquisition of Candywriter as a strategic move to further diversify its casual and mash-up game offerings. Additionally, the report notes that the COVID-19 pandemic has acted as a catalyst for increased gaming activity, resulting in higher returns on marketing campaigns and strong momentum heading into the second quarter of 2020.