Audio streamer Storytel's shares slump 20% after forecast cut
06/08/2021 09:20
STOCKHOLM, Aug 6 (Reuters) - Shares in Storytel STORYb.ST
plunged by 20% on Friday after the Swedish audiobook streaming
group cut its revenue and subscriber guidance, taking a hit from
higher marketing spend and worse than expected performance in
Spain and Latin America.
Storytel now expects to increase its subscriber base to
between 1.95 million and 2 million by the end of the year, down
from a previous forecast of between 2.1 million and 2.2 million
subscribers. The company had a little more than 1.6 million
subscribers at the end of the second quarter
It cut its streaming revenue forecast to between 2.25
billion and 2.3 billion Swedish crowns ($261 million to $267
million) from 2.4 million to 2.5 billion crowns and said it
expects a negative EBITDA margin of 6-8%, against its previous
forecast of 0% to -5%. urn:newsml:reuters.com:*:nFWN2PC1VD
Storytel, which offers listening and reading of more than
500,000 titles across 25 markets, said strong growth in the
Nordics was offset by slower than expected growth in Latin
America and Spain.
The company has raised prices in countries such as the
Netherlands and Belgium but lowered them in Spain, citing
reduced purchasing power.
The EBITDA margin forecast dipped because of increased
marketing investment to build awareness in markets such as
Poland, the Netherlands and Finland.
"Our mid-term target for 2023, 30-35% annual revenue growth,
remains our target as our underlying business is growing solidly
at 20-25% and we believe there are ample opportunities for us to
generate additional growth via new market launches, partnerships
and M&A," CEO Jonas Tellander said in a statement.
Storytel shares were trading at 170.50 crowns at 0800 GMT,
down 20.1%.
($1 = 8.6211 Swedish crowns)
(Reporting by Simon Johnson
Editing by David Goodman)
((simon.c.johnson@thomsonreuters.com; +46 70 721 1045; Reuters
Messaging: simon.c.johnson.reuters.com@reuters.net))