Sweden's Storytel tops core profit forecast, shares rise (updated)
03/11/2022 09:24
(Adds details on results, CEO comments, shares)
STOCKHOLM, Nov 3 (Reuters) - Swedish audiobook streaming
group Storytel STORYb.ST swung to a larger-than-expected core
profit in the third quarter, helped by cost cuts and growth
across its markets, sending its shares up 28% on Thursday.
Earnings before interest, tax, depreciation and amortisation
(EBITDA) reached 59.2 million Swedish crowns ($5.3 million),
compared with a loss of 6 million crowns in the same period last
year, and beating expectations of 35.5 million crowns.
The improvement was mainly driven by a shift to focus on
profitable growth, the acquisition of Audiobooks.com, and a
restructuring in the first half of the year, the company said.
"We have a subscriber base that is extremely loyal ... more
than 50% of our subscribers have been with us for more than
three years," Chief Executive Johannes Larcher said in an
interview.
"We are focused on our core markets in the Nordics, the
Netherlands, Poland, Bulgaria and the United States," he said.
Streaming revenue in the quarter rose 27% to 742 million
crowns.
However, total third-quarter revenue came in below
expectations as phasing out its Russian business and third-party
distribution issues hit sales volume.
Quarterly net sales rose 18% to 806 million crowns from 681
million a year earlier. Analysts had expected 829 million
crowns, according to data from Refinitiv.
($1 = 11.1237 Swedish crowns)
(Reporting by Supantha Mukherjee in Stockholm; Editing by
Niklas Pollard and Mark Potter)
((supantha.mukherjee@thomsonreuters.com; +46 70 721 1004;
Reuters Messaging:
supantha.mukherjee.thomsonreuters.com@reuters.net))