Storytel's strong Q2 on 'successful' price hikes boosts shares

Storytel AB (publ)

01/08/2023 09:33

** Storytel  STORYb.ST  shares rise 7%, with an analyst
pointing to "strong numbers" for Q2 after the Swedish audio- and
e-book streaming services provider successfully raised prices
without negatively impacting its churn rate
    ** This development "is promising for continued improvement
in group profitability," Pareto analyst Stefan Ward says
    ** Storytel's average revenue per user (ARPU) in its biggest
segment, the Nordics, has increased to SEK 162 ($15.33) in Q2
from SEK 147 in Q1
    ** Moreover, the analyst adds the cash flow generation is
"satisfying", as it lowers Storytel's perceived risk profile
    ** Cash flow was negative SEK 5 million in Q2 versus
negative SEK 49 million a year ago, the company says
    ** The shares are up 7.2% to SEK 38.70 per share at 0828
GMT, after rising as much as 14.8% in the morning trade
        ** Including today's rise, the stock has fallen around
12.5% year to date
  
    ** Ward says that given the pressure on the shares and the
conservative valuation, the over-10% "pop" of the stock on the
report "is not a overreaction" 


($1 = 10.5641 Swedish crowns)

 (Reporting by Agata Rybska)
 ((agata.rybska@thomsonreuters))