Stillfront Group withholds dividends for 2023 in full-year financial report | Pocket Gamer.biz

Global games studio Stillfront Group has unveiled its full-year financial report for 2023 which shows that net revenue amounted to 1,742 (1,781) MSEK (~$165 million), reflecting a decrease of 2%. There’s also a 3% decline in organic net revenue and a 2% decline in organic bookings.

““Stillfront’s bookings returned to positive organic growth for the months of November and December in the fourth quarter, said CEO Jörgen Larsson. “The recovery in organic performance was driven by significant scaling of new and existing games, in particular the successful launch of Sunshine Island.” However, despite this turnaround the company will not be paying dividends at this time.

The company’s report also shows that EBIT reached 130 (70) MSEK (~$15.5 million), marking an 84 per cent increase. EBITDA on the other hand, amounted to 531 (655) MSEK (~49.9 million) which is a 19 percent decrease. Adjusted EBITDA stood at 569 (672) MSEK (~53.5 million), reflecting a decline of 15 per cent, with an adjusted EBITDA margin of 33 (38) per cent.

A favorable performance

Items affecting comparability had a -37 (-17) MSEK (~$4.3 million) impact on EBITDA, primarily due to cost optimisations. Product development capitalization totaled 204 (235) MSEK (~$27.7 million to $23.7 million) while adjusted EBITDAC amounted to 365 (437) MSEK (~$49.9 million to $53.5 million), reflecting a 17 percent decline, with an Adj EBITDAC margin of 21 (25) percent.

“It is encouraging to see a more normalized market with favorable performance marketing conditions and stronger seasonality than we have experienced during the past years,” Larsson added.

The net outcome stood at 10 (203) MSEK (~$23.7 million). And over the past 12 months, free cash flow reached 833 (974) MSEK (~$97.9 million to $112.7 million). Total net debt, inclusive of cash earnout for the subsequent 12 months was 4,611 (4,575) MSEK (~$533.1 million) while the adjusted leverage ratio, on a pro forma basis, was 1.6x (1.5x). The cash position stood at 807 (989) MSEK (~$94.9 million to $115.6 million) with 2,432 (2,401) MSEK (~$285.7 million) of undrawn credit facilities.

“For the full quarter, Stillfront’s organic bookings were down by -2 percent and organic net revenue was down by -3 percent. Record levels of marketing investments resulted in a lower EBITDAC margin in the quarter, while supporting our long-term growth opportunities. With continued high marketing investments during the start of the year, we expect the year-over-year organic growth rate to continue to improve with our addressed market in 2024,” Larsson concluded.