Stillfront Group Year-End Report 2019: Investor Presentation

Key insights

6 takeaways

01
Stillfront Group achieved significant 2019 financial growth, reporting a 48% increase in annual revenue and a 63% rise in adjusted EBIT.See it on page 9
02
The company maintained strong profitability with an adjusted EBIT margin of 33% and a net result of 341 million SEK, more than double the previous year's figure.See it on page 9
03
Revenue is well-diversified geographically and by title, with 48% from Europe, 29% from North America, 18% from Asia, and no single game contributing more than 15% of total revenue.See it on page 2
04
Operational efficiency remained high, with user acquisition costs held to 20% of net revenue while core titles like Empire and Big Farm drove performance.See it on page 6
05
The company successfully integrated the acquisition of Kixeye and announced plans to acquire Storm8 as part of a strategy to expand its genre presence.See it on page 14
06
Stillfront operates via a decentralized model across 12 global studios and approximately 700 employees, supported by a conservative leverage ratio and access to both equity and debt capital markets.See it on page 2

Summary

Stillfront Group’s 2019 year-end investor presentation outlines the company’s performance as a global free-to-play gaming powerhouse. The report highlights a period of significant financial expansion, characterized by a 48% increase in full-year revenue and a 63% growth in adjusted EBIT. The company’s primary objective remains scaling its diversified portfolio of long-lifecycle games while maintaining a disciplined approach to user acquisition and operational efficiency.

Key financial findings for 2019 include an adjusted EBIT margin of 33% and a net result of 341 million SEK, more than doubling the previous year’s performance. The company’s revenue is geographically diverse, with 48% originating from Europe, 29% from North America, and 18% from Asia. The portfolio is balanced, with no single game accounting for more than 15% of total revenue. Operational success was driven by strong performance in core titles such as Empire and Big Farm, alongside the integration of acquisitions like Kixeye. User acquisition costs remained efficient, representing 20% of net revenue for the full year.

The report details a robust financial platform, noting a conservative leverage ratio and successful access to capital markets through both equity and debt financing. With a workforce of approximately 700 professionals across twelve global studios, the company emphasizes a decentralized organizational model that fosters talent retention and studio autonomy. Looking forward, the company intends to continue its growth trajectory by broadening its genre presence, leveraging synergies across its studio network, and pursuing further strategic acquisitions, exemplified by the planned integration of Storm8. The document concludes that the company is well-positioned to capitalize on industry convergence through its scalable business model and proven track record of organic and acquisitive growth.