Storytel shines as stable Q1 numbers offer risk relief
03/05/2023 09:29
** Shares of Sweden's Storytel STORYb.ST rise 9% in high
volumes after the audio- and e-book streaming services company
delivered stable Q1 results, with analysts pointing to a reduced
financial risk profile of the business
** "View the reaction as a relief reaction," Pareto analyst
Stefan Wård says on the share reaction on Wednesday, adding that
Storytel "looks to be in good shape for seasonally important Q2
and Q3"
** The company reported a gross margin in streaming of
42.7%, slightly up from 40.6% year ago, with the analyst noting
that this shows the unit's economics are "holding up well"
** Wård points out that Storytel's churn rate has not
escalated, as it showed a marginal increase in subscriber base,
and its price levels remained stable
** "Overall group performance highlights meaningful tangible
improvements in terms of profitability and financial position vs
a year ago," Kepler Cheuvreux analyst Mathias Lundberg says
** About 1.2 million shares of the company have traded so
far on Wednesday, about 962.0% of their 30-day moving average
full-day volume
(Reporting by Agata Rybska)
((Agata.rybska@thomsonreuters.com))