Storytel jumps 30% after positive Q3 cash flow, margin outlook hike

Storytel AB (publ)

03/11/2022 09:14

** Shares in Storytel  STORYb.ST  soar 30% after the Swedish
audio and e-book streaming group raised its FY EBITDA margin
target and posted first positive cash flow in six years
    ** "Storytel's strategic shift appears to unfold ahead of
plan," DNB Markets says, highlighting the company's adj. EBITDA
of SEK 59 million ($5.28 million) that came 26% ahead of the
broker's estimate
    ** The company sees positive FY EBITDA margin of 2.5% to
3.5% vs previous guidance of between -3% and 0% 
    ** DNB flags the company posted its first positive quarterly
FCF since its Nordic launch in 2016, saying this "eases rights
issue concerns"
    ** Although the market is increasingly focused on Storytel's
profitability, the outlook for Q4 streaming revenues of SEK 740
mln "re-establishes its guidance credibility", DNB says
    ** "We think today's results warrant a relief as we should
now enter profitable growth which could ease balance sheet
concerns," the broker says
    ** The stock is down around 70% YTD, after plunging in
February when CEO Jonas Tellander announced his departure
($1 = 11.1815 Swedish crowns)
 (Reporting by Louise Breusch Rasmussen)
 ((Louisebreusch.rasmussen@thomsonreuters.com))