Stillfront Group Interim Report Q3 2024

Stillfront Group’s performance in the third quarter of 2024 reflects a period of strategic transition characterized by revenue contraction and a concerted effort to improve operational efficiency. Net revenue for the quarter reached 1,595 MSEK, representing a 5% decline attributed to unfavorable currency fluctuations and a marginal organic growth rate of -0.8%. Despite these top-line pressures, the company achieved an 80% gross margin, a 2 percentage point improvement driven by a pivot toward direct-to-consumer channels and a refined focus on core gaming franchises.

Financial stability remains a primary objective, as evidenced by the generation of 298 MSEK in free cash flow, which has been utilized to facilitate debt amortization and share buybacks. However, the broader financial landscape shows signs of strain, with adjusted EBITDA falling 9% to 517 MSEK and an adjusted leverage ratio rising to 2.08x. While the company reported an operating result of 139 MSEK for the quarter, the cumulative net loss for the first nine months of 2024 underscores the challenges inherent in the current market environment.

To address these headwinds, the organization has initiated a comprehensive restructuring plan, including a reorganization into three distinct business areas under the leadership of interim CEO Alexis Bonte. This transformation is designed to streamline operations and is projected to yield 200–250 MSEK in annualized cost savings by the end of 2025. By prioritizing portfolio optimization and cost discipline, the company aims to stabilize its financial position and enhance long-term profitability within the global gaming sector.