Stillfront Interim Report: Q1 2022

Key insights

7 takeaways

01
Stillfront reported a 27% year-over-year increase in net revenue for Q1 2022, bolstered by the integration of 6waves and strong organic performance.See it on page 4
02
Mobile gaming now accounts for 78% of total bookings, supported by the addition of nine new titles to the company's active portfolio during the quarter.See it on page 5
03
User engagement metrics saw significant growth, with monthly active users rising 74% to 69 million and daily active users increasing by 76% year-over-year.See it on page 6
04
The company maintained a 30% adjusted EBIT margin despite record-high investments in user acquisition and a 29% increase in monthly paying users.See it on page 4
05
Strategy games served as the primary growth engine for the quarter, delivering a 59% quarter-over-quarter increase in bookings.See it on page 6
06
Financial stability remains high with a cash conversion rate of 0.52 and a leverage ratio maintained well below internal targets.See it on page 8
07
Management projects mid-single-digit organic growth for the full 2022 fiscal year, supported by ongoing investments in the 'Stillops' platform and new game development.See it on page 9

Summary

Stillfront’s Q1 2022 interim report details a period of significant expansion and operational growth, characterized by a 27% year-over-year increase in net revenue. This growth was driven by a combination of strategic acquisitions—notably the integration of 6waves—and strong organic performance across the company’s diversified portfolio. The firm successfully added nine new titles to its active portfolio during the quarter, reinforcing its presence in the mobile gaming sector, which now accounts for 78% of total bookings.

Key performance indicators reflect a robust scaling of the user base, with monthly active users reaching 69 million, a 74% increase compared to the previous year. Daily active users and monthly paying users also saw substantial growth of 76% and 29%, respectively. Despite record-high investments in user acquisition, the company maintained a healthy adjusted EBIT margin of 30%. Financial stability remains a core focus, evidenced by a strong cash conversion rate of 0.52 and a leverage ratio that remains well below internal targets, supported by a diversified financing platform.

The company’s strategy centers on leveraging its "Stillops" platform to generate cross-group synergies while maintaining a balanced portfolio across strategy, simulation, RPG, and casual genres. Strategy games emerged as a primary growth engine, with bookings in this segment rising 59% quarter-over-quarter. Looking ahead, the company maintains a positive outlook, projecting mid-single-digit organic growth for the full 2022 fiscal year. The firm continues to prioritize investments in new game development and marketing capabilities to sustain its competitive position in the global mobile gaming market.