Year-End Report 2024: Stillfront Group

Key insights

7 takeaways

01
Stillfront Group achieved a 170% YoY increase in free cash flow to 1,050 MSEK, significantly strengthening its liquidity position.See it on page 9
02
Adjusted EBITDAC rose to 410 MSEK with a 25% margin, driven by reduced fixed costs and lower user-acquisition spending.See it on page 4
03
Gross profit margin improved to 79% in Q4, supported by a 5 percentage point increase in direct-to-consumer (DTC) bookings and an 18% YoY rise in ARPDAU.See it on page 2
04
Net revenue for Q4 was 1,660 MSEK, representing a 5% YoY decline, while total portfolio bookings fell 4% YoY due to decreased activity in strategy titles.See it on page 2
05
The company consolidated six studios in 2024, generating 50 MSEK in annual run-rate savings with an additional 200–250 MSEK in savings projected by Q4 2025.See it on page 20
06
Stillfront reorganized into three franchise-centric business areas to reduce operational duplication and accelerate decision-making.See it on page 12
07
The company maintains a stable debt profile with a leverage ratio near 2.1 and net debt of 957 MSEK.See it on page 10

Summary

The report presents Stillfront Group’s financial and operational performance for 2024, emphasizing a shift toward streamlined operations and franchise-centric growth. Net revenue reached 1 660 MSEK in Q4, a 5% YoY decline, yet gross profit margin improved to 79%, driven by a higher share of direct-to-consumer (DTC) bookings and favorable mix effects. Adjusted EBITDAC rose to 410 MSEK, reflecting a 25% margin and cost efficiencies from lower fixed and user-acquisition costs. Free cash flow surged 170% YoY to 1 050 MSEK, underscoring stronger liquidity.

Bookings across the portfolio grew 4% QoQ but fell 4% YoY, largely due to reduced player activity in strategy titles. The DTC channel gained 5 pp of bookings, boosting gross margin and contributing to an 18% YoY rise in ARPDAU. User-acquisition spend fell by 1 pp YoY, while staff costs stabilized around 24% of revenue. The company’s debt profile remained manageable with a leverage ratio near 2.1 and net debt of 957 MSEK.

Strategically, Stillfront reorganized into three business areas focused on key franchises, reducing duplication and accelerating decision-making. Studio rationalizations consolidated six studios in 2024, yielding annual run-rate savings of 50 MSEK and projected additional 200–250 MSEK by Q4 2025. The new operating model prioritizes organic growth through high-value franchises, reduced reliance on performance marketing, and enhanced operational efficiency across shared services.