Stillfront Year-End Report 2015: Presentation

Key insights

7 takeaways

01
Stillfront's 2015 net revenue rose 96.3% to 57.1 million SEK, and EBITDA margin improved by 15 percentage points.See it on page 28
02
A 64.2 million SEK share issue lifted cash reserves to 73.5 million SEK, strengthening the balance sheet ahead of the IPO-funded growth push.See it on page 33
03
Revenue is concentrated in long-lifecycle titles: Call of War alone generated 51% of Q4 2015 revenue.See it on page 11
04
The company released the award-winning title Unravel in 2015, adding to its portfolio.See it on page 2
05
Its business model is scalable with low marginal cost, using proprietary game engines for cross-platform development and avoiding dependence on any single platform.See it on page 18
06
Management is decentralized and opportunistic, which the company says limits operational risk and supports recurring revenue streams.See it on page 26
07
Stillfront targets net revenue above 300 million SEK by 2020, to be pursued through strategic acquisitions, greater IP ownership, new game development and IPO proceeds.See it on page 23

Summary

Stillfront Group achieved substantial financial expansion during the 2015 fiscal year, characterized by a 96.3% increase in net revenue to 57.1 million SEK. This growth was underpinned by a 15 percentage point improvement in EBITDA margins and a strengthened balance sheet, bolstered by a 64.2 million SEK share issue that raised total cash reserves to 73.5 million SEK. The company’s performance was driven primarily by a portfolio of long-lifecycle titles, with the game Call of War contributing 51% of revenue in the fourth quarter, alongside the successful release of the award-winning title Unravel.

The core business strategy relies on a scalable, low-marginal-cost model that utilizes proprietary game engines to facilitate cross-platform development. By avoiding platform dependency and focusing on decentralized, opportunistic management, the firm minimizes operational risk while fostering recurring revenue streams. This approach allows for efficient content production and high scalability across its diverse game portfolio, ensuring that development efforts remain aligned with market demand while maintaining a favorable risk-reward profile.

Looking toward the future, the company aims to leverage its robust financial position and IPO proceeds to accelerate growth through strategic acquisitions, increased intellectual property ownership, and sustained investment in new game development. With a clear objective to surpass 300 million SEK in net revenue by 2020, the organization remains committed to its decentralized operational structure. By prioritizing organic growth and disciplined capital allocation, the firm is positioned to capitalize on its existing technical infrastructure to expand its footprint within the global gaming market.