Stillfront and Goodgame Studios: Investor Presentation

Stillfront Group operates as a diversified gaming conglomerate focused on the acquisition and integration of independent, profitable studios to drive long-term value. By combining a decentralized management structure with a systematic approach to mergers and acquisitions, the company balances operational autonomy with centralized expertise in performance marketing and monetization. This strategy aims to maintain a robust portfolio of long-lived intellectual properties, such as Empire and Big Farm, which provide the consistent cash flow necessary to fund new mobile and browser-based game launches.

Financial performance remains a central pillar of this growth model, evidenced by a combined entity generating over EUR 80 million in revenue with an adjusted EBIT margin of approximately 29% during the first nine months of 2017. The organization targets sustained profitability, aiming for EBIT margins exceeding 30% while maintaining a disciplined capital structure with a net debt-to-EBITDA ratio below 1.5x. These targets are supported by the integration of Goodgame Studios, whose sophisticated web distribution networks and data-driven marketing capabilities enhance the monetization potential of the broader portfolio.

While the company benefits from stable, long-term titles, historical data from 2014 through 2017 reveals inherent fluctuations in player engagement and monetization cycles. Specifically, metrics regarding Pay Active Users across core titles demonstrate the volatility typical of the global gaming market. By leveraging synergies between autonomous studios and shared operational infrastructure, the company seeks to mitigate these risks, ensuring that the combined entity remains well-positioned to capitalize on global market growth while delivering consistent returns to investors.