Stillfront Year-End Report 2021

Key insights

6 takeaways

01
Stillfront ended 2021 with full-year net revenue of 5,455 MSEK and annual bookings of 5,440 MSEK, supported by a portfolio of 64 titles.See it on page 1
02
Adjusted EBITDA reached 2,124 MSEK for the year, with a 39% adjusted EBITDA margin in the fourth quarter.See it on page 6
03
Organic growth declined 5% in Q4, a notable slowdown despite the strong full-year profitability.See it on page 2
04
Free cash flow was 953 MSEK for 2021, giving the company a strong cash position.See it on page 8
05
Growth was driven by an aggressive acquisition strategy, including Super Free Games, Moonfrog Labs, Game Labs, Jawaker FZ LLC, 6waves, and the Iron Throne asset, funded partly by debt and a 2 billion SEK rights issue.See it on page 19
06
The Board proposed no dividend for 2021, reinvesting all profits into growth, and the company projects mid-single-digit organic growth for 2022.See it on page 12

Summary

Stillfront Group achieved significant financial expansion throughout 2021, characterized by a robust portfolio of 64 titles and a strategic focus on scaling through both organic development and high-value acquisitions. The company reported full-year net revenue of 5,455 MSEK and annual bookings totaling 5,440 MSEK. Profitability remained a core strength, evidenced by an adjusted EBITDA of 2,124 MSEK and an adjusted EBITDA margin of 39% in the final quarter. Despite a 5% decline in organic growth during the fourth quarter, the company maintained a strong cash position, generating 953 MSEK in free cash flow for the year.

The company’s growth trajectory was heavily influenced by an aggressive acquisition strategy, including the integration of Super Free Games, Moonfrog Labs, Game Labs, and Jawaker FZ LLC. These investments, alongside the purchase of 6waves and the Iron Throne asset, underscore a commitment to diversifying the company’s geographic footprint and genre expertise. To facilitate these capital-intensive initiatives and bolster the balance sheet, the organization utilized a combination of debt financing and a 2 billion SEK rights issue. Consequently, the Board of Directors opted to reinvest all profits into future growth, proposing no dividend for the 2021 fiscal year.

Looking ahead, the company maintains a positive outlook, projecting mid-single-digit organic growth for 2022. By balancing record investments in game development with disciplined financial management, the organization aims to sustain its competitive position within the global gaming market. The overarching strategy remains centered on leveraging a decentralized studio model to drive long-term value, ensuring that the company is well-positioned to navigate the evolving demands of the digital entertainment industry.