Storytel AB (publ)
LSE:0GBU
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Storytel AB (publ)
LSE:0GBU
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SE |
Storytel AB (publ)
Storytel is a digital reading company that sells subscriptions for audiobooks and ebooks. Customers use its app to stream or download books from a large library, and in some markets the company also sells books through its publishing business and related services. Its main customers are individual readers and listeners who want convenient access to books on phones, tablets, or computers. Storytel makes money mostly from subscription fees, with some additional revenue from publishing and content licensing. The company sits between publishers and readers, packaging licensed books into an easy-to-use digital service. What makes Storytel different is that it is built around recurring subscriptions rather than one-time book sales. That gives it a steady, app-based relationship with customers and makes its business similar to a media service more than a traditional bookstore.
Storytel is a digital reading company that sells subscriptions for audiobooks and ebooks. Customers use its app to stream or download books from a large library, and in some markets the company also sells books through its publishing business and related services.
Its main customers are individual readers and listeners who want convenient access to books on phones, tablets, or computers. Storytel makes money mostly from subscription fees, with some additional revenue from publishing and content licensing. The company sits between publishers and readers, packaging licensed books into an easy-to-use digital service.
What makes Storytel different is that it is built around recurring subscriptions rather than one-time book sales. That gives it a steady, app-based relationship with customers and makes its business similar to a media service more than a traditional bookstore.
Strong Revenue Growth: Storytel reported group net sales of SEK 953 million in Q1, up 7.4% year-over-year, with both Streaming and Publishing contributing solidly.
Profitability Improvement: Adjusted EBITDA rose over 40% to SEK 150 million, with the margin rising to 15.7% from 11.7% last year, driven by higher gross margin and cost discipline.
Subscriber Milestone: Paying subscribers averaged 2.5 million in the quarter, an 11% increase year-over-year.
Publishing Outperformance: Publishing segment revenues grew 16% to SEK 283 million, while EBITDA rose 24% to SEK 66 million.
Lower Subscriber Acquisition Cost: Subscriber acquisition costs declined year-over-year due to more effective marketing.
Cash Flow Strength: Cash flow from operating activities before working capital was SEK 88 million, up from SEK 28 million last year.
Leverage Reduction: Leverage ratio improved significantly to 0.18 from 1.0 a year ago.
Guidance Pending: No formal 2025 outlook was provided; updates expected at the Capital Markets Day on May 15.
