Stillfront Year-End Report 2017

Stillfront Group’s 2017 year-end report outlines the company’s position as a market leader in free-to-play browser and mobile strategy games. The primary thesis centers on a data-driven, decentralized business model that prioritizes long game life cycles, high-margin user acquisition, and strategic acquisitions to achieve predictable, scalable growth. By leveraging a portfolio of established blockbuster intellectual properties alongside smaller, growing titles, the company aims to minimize volatility and maximize return on investment across its global operations.

Key financial performance indicators for 2017 demonstrate significant expansion, with net revenues reaching 166 million SEK, representing a 75% increase over the previous year. The group reported an EBITDA of 52.3 million SEK, a 53% increase year-over-year. Operational success was driven by the successful launches of titles such as War and Peace and Nida Harb III, alongside the strategic acquisition of Goodgame Studios. Pro forma figures for the combined entity indicate a robust revenue base of 1,083 million SEK and an adjusted EBITDA margin of 34%. The company maintains a strong user base of 5.1 million monthly active users, with primary markets located in the United States, Germany, the UK, the Middle East, and France.

The methodology relies on rigorous performance marketing, where marketing spend is recovered within approximately six months, followed by long-term, high-margin profitability. The company employs a systematic approach to product development, utilizing cross-platform extensions and brand expansion to increase player engagement. Looking toward 2018, the group’s strategic priorities include accelerating organic growth, realizing synergies from the Goodgame integration, and maintaining a disciplined acquisition strategy. The company has set long-term financial targets, including organic growth exceeding market averages, an EBIT margin above 30%, and a net debt-to-EBITDA ratio below 1.5x, while preparing for a potential listing on the Nasdaq Stockholm main market.