Year-End Report 2019: Stillfront Group

Key insights

6 takeaways

01
Stillfront Group achieved a 48% increase in net revenue in 2019, rising to 1,967 million SEK from 1,325 million SEK in 2018.See it on page 1
02
The company maintained strong profitability with an adjusted EBITDA of 768 million SEK and an adjusted EBIT margin of 33%.See it on page 1
03
To fund expansion, the group raised 1.3 billion SEK through a directed share issue and 500 million SEK via a bond issuance, resulting in an adjusted leverage ratio of 0.91x.See it on page 6
04
Management opted against a 2019 dividend payout to prioritize reinvestment into organic development and strategic acquisitions.See it on page 9
05
The 2019 growth strategy was bolstered by the acquisition of Kixeye, which expanded the group's market presence and operational capabilities.See it on page 16
06
Following the 2019 fiscal year, the company acquired Storm8 as part of a long-term objective to triple total revenues within five years.See it on page 2

Summary

Stillfront Group achieved significant financial expansion throughout 2019, characterized by a 48 percent increase in net revenue to 1,967 million SEK, compared to 1,325 million SEK in the previous year. This growth trajectory was supported by a robust adjusted EBIT margin of 33 percent and an adjusted EBITDA of 768 million SEK. The company’s performance was underpinned by a balanced portfolio of Big and Core category titles, alongside the strategic integration of Kixeye, which broadened the group’s market presence and operational capabilities.

The organization maintained a disciplined financial position, ending the year with an adjusted leverage ratio of 0.91x. To facilitate this aggressive growth strategy, the company successfully executed a 1.3 billion SEK directed share issue and a 500 million SEK bond issuance. Management prioritized the reinvestment of these capital inflows into organic development and further acquisitions, ultimately deciding against a dividend payout for the 2019 fiscal year to ensure continued expansion.

Looking toward the future, the acquisition of Storm8, announced shortly after the close of the year, serves as a cornerstone for the company’s long-term objective of tripling revenues within a five-year timeframe. By focusing on both internal product development and external acquisitions, the group aims to capture a larger share of the global gaming market. This strategic approach reflects a commitment to scaling operations while maintaining the financial stability necessary to navigate the competitive landscape of the digital entertainment industry.