Stillfront Interim Report: Second Quarter 2021

Stillfront’s second quarter 2021 report details the financial and operational performance of its global free-to-play gaming portfolio. The company, which operates 20 studios and maintains a significant presence in North America, Europe, and Asia, reported net revenue of 1,382 MSEK, representing a 16% year-over-year increase. This growth was primarily driven by acquired studios, as the company faced a challenging organic growth rate of -17% compared to the exceptional user inflow experienced during the same period in 2020.

The portfolio, which includes 56 active games, saw significant expansion in user metrics, with monthly active users reaching 67 million and daily active users hitting 13 million. Profitability remained robust, with an adjusted EBIT margin of 35% for the quarter. This performance was supported by a strategic reduction in user acquisition spending across the portfolio and an increased share of advertising revenue. While the company noted softer performance in some titles due to decreased marketing investment, other assets like BitLife and Albion Online demonstrated strong engagement and revenue generation.

Financially, the company maintained a strong position with 850 MSEK in cash and a successful 1,500 MSEK bond issuance during the quarter. The leverage ratio remained near the 1.5x target, providing flexibility for future growth. Looking ahead to the third quarter of 2021, the company anticipates continued year-over-year revenue growth between 24% and 29%, despite ongoing seasonal effects and difficult comparisons to pandemic-era user cohorts. The company remains focused on its long-term strategy of integrating acquired studios and leveraging its internal operational platform to return to organic growth in the latter half of the year.