Stillfront Interim Report Q3 2023

Stillfront’s third-quarter 2023 performance reflects a period of soft revenue growth balanced by disciplined cost management and robust cash generation. The company reported a 7% year-over-year decline in net revenue, largely attributed to a significant one-off event involving a DDoS attack on the title Albion Online, which resulted in an 80 million SEK sequential revenue decline. Despite these topline pressures, the company maintained high profitability, with the adjusted EBITDAC margin increasing to 25% from 23% in the same period last year.

Operational efficiency remained a primary focus throughout the quarter, characterized by a workforce reduction of approximately 60 full-time equivalents and a 3-percentage-point decrease in capitalized product development. These cost-optimization efforts, combined with successful live operations in franchises like BitLife, supported a strong free cash flow of 941 million SEK over the trailing twelve months. While user metrics experienced downward pressure—partly due to the discontinuation of specific legacy projects and seasonal trends—average revenue per daily active user (ARPDAU) rose by 18% year-over-year, signaling improved monetization effectiveness.

The company maintains a global operational footprint, with revenue distributed across North America (41%), Europe (28%), Asia (25%), and smaller contributions from Africa, South America, and Oceania. Looking ahead, the organization anticipates a significant sequential organic improvement in the fourth quarter, supported by a pipeline of new game launches from studios such as 6waves and Game Labs, alongside continued strategic initiatives to increase direct-to-consumer channel engagement. The balance sheet remains stable, with net debt reduced by 225 million SEK quarter-over-quarter, providing a solid foundation for upcoming product investments and operational scaling.