Brief: Storytel Sharpens Focus On Profitability On The Back Of Strong Q4 2023 Earnings

Storytel AB (publ)

24/01/2024 07:37

Jan 24 (Reuters) - Storytel AB (publ)  STORYb.ST :
    * STORYTEL SHARPENS FOCUS ON PROFITABILITY ON THE BACK OF
STRONG
Q4 2023 EARNINGS AND UPGRADES MID-TERM FINANCIAL TARGETS -
ANNOUNCES EFFICIENCY INITIATIVE AND WRITE-DOWNS
    * EFFICIENCY OPTIMIZATION INITIATIVE WILL BE IMPLEMENTED
DURING Q1
OF 2024, INCLUDING A 13% REDUCTION IN WORKFORCE.
    * NON-CASH WRITE DOWN OF 632MSEKWILL BE RECORDED IN Q4 OF
2023.
    * 465 MSEK OF WRITE DOWN RELATES TO AN IMPAIRMENT OF
GOODWILL
ATTRIBUTED TO AUDIOBOOKS.COM
    * STORYTEL SAW A STRONG FINAL QUARTER OF 2023, WITH
PRELIMINARY
STREAMING REVENUES OF 858 MSEK
    * IN 2024, STORYTEL EXPECTS TO DELIVER GROUP REVENUE GROWTH
AROUND
10% WITH AN ADJUSTED EBITDA MARGIN OF ABOVE 12%
    * 2026 MID-TERM FINANCIAL TARGETS :STORYTEL AIMS AT REACHING
GROUP
REVENUES OF AROUND 4.5 BSEK IN 2026 WITH A STREAMING REVENUE
CAGR OF 10-12%
    * IN 2024, STORYTEL EXPECTS OPERATIONAL CASH FLOW ABOVE 7%
OF
REVENUE.
    * 2026 MID-TERM FINANCIAL TARGETS: ADJUSTED EBITDA MARGIN OF
ABOVE
15%
    * 2026 MID-TERM FINANCIAL TARGETS: OPERATIONAL CASH FLOW
ABOVE 10%
OF REVENUE
    * OPTIMIZATION INITIATIVE INCLUDES REDUCTION OF WORKFORCE BY
APPROXIMATELY 80 TEAM MEMBERS, OR 13%, VERSUS DEC 2023
    * TARGETS ASSUME ORGANIC GROWTH AND DO NOT CONSIDER, FOR
EXAMPLE,
ANY POTENTIAL ACQUISITIONS

Source text for Eikon:  ID:nWkr66XfJW 
Further company coverage:  STORYb.ST 

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