PRESS RELEASE
August 28, 2018
Interim Report January-June 2018
STILLFRONT GROUP AB (PUBL)
The Quarter April - June 2018
Altigi GmbH has been consolidated into Stillfront Group as of January 1, 2018. Thus the 2018 numbers reflect the new business combination. 2017 numbers pertain to Altigi GmbH, unless stated otherwise. The acquisition is described in Note 3.
- Net revenues amounted to 329.3 MSEK (corresponding period 2017: 224.9 MSEK), an increase of 46.4%. Net revenues of Stillfront Group (excluding Altigi GmbH) the second quarter 2017 amounted to 37.3 MSEK, thus the second quarter of 2018 had a net revenue increase of 783% as compared to net revenues in the second quarter 2017. Net revenues proforma, as if the Altigi/Stillfront acquisition was made January 1, 2017, increased 25.6% as compared to the second quarter 2017.
- EBITDA adjusted for items affecting comparability of net -9.9 MSEK (refer to Note 5) amounted to 103.6 MSEK (95.3), an increase of 8.6%.
- EBIT adjusted for items affecting comparability of net -9.9 MSEK amounted to 73.0 MSEK (74.0).
- Operating result after financial items amounted to 51.8 MSEK (66.1). The net result for the quarter amounted to 30.6 MSEK (44.7).
- Net result per share undiluted amounted to 1.26 SEK (2.66 SEK). Net result per share diluted amounted to 1.25 SEK (2.66 SEK).
- Net debt amounted to 410.9 MSEK and the adjusted leverage ratio was 1.18
- Several of the game launches made in the end of 2017 have performed very well. Big Farm Mobile Harvest, Nida Harb III: Empire of Steel and War and Peace: Civil War have performed well during the interim period, in particular strong growth in Nida Harb III, which now is the third largest title in the group.
- Major product launches during the quarter have been Empire: Millennium Wars (web) and Unravel Two.
The Interim Period january - June 2018
- Net revenues amounted to 644.1 MSEK (corresponding period 2017: 475.4 MSEK), which is an increase of 35.5%. Net revenues of Stillfront Group (excluding Altigi GmbH) the first half 2017 amounted to 67.3 MSEK, thus the first half year of 2018 had a net revenue increase of 857% as compared to net revenues in the first half year 2017. Net revenues proforma increased 18.7% as compared to the corresponding period 2017,
- EBITDA adjusted for items affecting comparability of -11.6 MSEK (refer to Note 5) amounted to 209.8 MSEK (194.3), which is an increase of 8.0%.
- EBIT adjusted for items affecting comparability of -11.6 MSEK amounted to 148.0 MSEK (151.6).
- Operating result after financial items amounted to 119.5 MSEK (107.1). The net result for the period amounted to 76.4 MSEK (70.9).
- Net result per share undiluted for the interim period amounted to 3.31 SEK (4.22 SEK). Net result per share diluted amounted to 3.29 SEK (4.22 SEK).
- The acquisition of Altigi GmbH was completed in January 2018, whereby 16,868,623 shares were issued and a bond issue of 390 MSEK was performed. From an accounting perspective the acquisition has been reported as a reverse acquisition, where Altigi GmbH is the accounting acquirer and Stillfront Group AB is the legal acquirer. This means that comparative periods up to December 31, 2017 refer to Altigi GmbH.
Events After the Interim Period
- The games BIG COMPANY: Skytopia, Vietnam War: Platoons and Battle Star Arena were announced in July.
Building momentum
"I am very pleased with the development of Stillfront. The acquisition of Goodgame Studios has strengthened our market position and portfolio. Exciting game releases during late 2017 are now delivering results, especially with Big Farm Mobile Harvest, War and Peace: Civil War and Nida Harb III. Nida Harb III has proven to be a great success and is currently the group's third best grossing game.
We continue to release new titles and have a strong pipeline, based on established brands and proven engines which provides us with a favourable risk/reward, and is a balanced and capital efficient way of expanding our portfolio. I am confident that we are on the right path towards becoming the leading group in our niche," says Jörgen Larsson, CEO Stillfront Group.
Key figures, The Group
| KSEK | 2018 APR-JUN | 2017 APR-JUN | 2018 JAN-JUN | 2017 JAN-JUN | LATEST 12 MONTHS | 2017 JAN-DEC |
| Net Revenues | 329 277 | 224 904 | 644 088 | 475 385 | 1 081 384 | 912 681 |
| Increase in revenues | 46.4% | - | 35.5% | - | - | - |
| EBITDA adjusted* | 103 569 | 95 348 | 209 829 | 194 292 | 349 588 | 312 788 |
| EBITDA margin adjusted* | 31.5% | 42.4% | 32.6% | 40.9% | 32.3% | 34.3% |
| Increase in EBITDA adjusted* | 8.6% | - | 8.0% | - | - | - |
| EBIT adjusted* | 72 998 | 73 998 | 147 983 | 151 607 | 245 196 | 227 558 |
| Items affecting comparability | -9 871 | -7 919 | -11 586 | -44 501 | -78 776 | -111 691 |
| EBIT margin adjusted* | 22.2% | 32.9% | 23.0% | 31.9% | 22.7% | 24.9% |
| Operating result after financial items | 51 789 | 66 079 | 119 519 | 107 108 | 149 312 | 115 639 |
| Net Result | 30 616 | 44 741 | 76 418 | 70 933 | 102 234 | 75 487 |
| Net result per share undiluted, SEK | 1.26 | 2.66 | 3.31 | 4.22 | 3.50 | 4.49 |
| Net result per share diluted, SEK | 1.25 | 2.66 | 3.29 | 4.22 | 3.48 | 4.49 |
| * excluding items affecting comparability | ||||||
PROFORMA KEY FIGURES, GROUP
The below table summarises key pro forma financials for the new group as if the Altigi/Stillfront acquisition was made January 1, 2017.
| KSEK | 2018 APR-JUN | 2017 APR-JUN | 2018 JAN-JUN | 2017 JAN-JUN | LATEST 12 MONTHS | 2017 JAN-DEC |
| Net Revenues | 329 277 | 262 215 | 644 088 | 542 700 | 1 180 055 | 1 078 667 |
| Growth in revenues | 25.6% | - | 18.7% | - | - | - |
| EBITDA adjusted* | 103 569 | 105 363 | 209 829 | 211 969 | 362 914 | 365 053 |
| EBITDA margin adjusted* | 31.5% | 40.2% | 32.6% | 39.1% | 30.8% | 33.8% |
| * excluding items affecting comparability | ||||||
Investor Presentation
An Investor Presentation is available at Stillfront's website with the address:
stillfront.com/site/investor-relations/financial-reports/
FOR FURTHER INFORMATION, PLEASE CONTACT:
Jörgen Larsson, CEO
Phone: +46 703 211 800
jorgen@stillfront.com
Sten Wranne, CFO
Phone: +46 705 851 258
sten@stillfront.com
About Stillfront
Stillfront is a group of independent creators, publishers and distributors of digital games - with a vision t become the leading group of indie game creators and publishers. Stillfront operates through nine near- autonomous subsidiaries: Bytro Labs in Germany, Coldwood Interactive in Sweden, Power Challenge in the UK and Sweden, Dorado Online Games in Malta, Simutronics in the United States, Babil Games in UAE and Jordan, eRepublik in Ireland and Romania, OFM Studios in Germany and Goodgame Studios in Germany. Stillfront's games are distributed globally. The main markets are Germany, the United States, France, UK and MENA. For further information, please visit www.stillfront.com.
Selected games
Stillfront's portfolio includes games across multiple platforms. Unravel is a widely acclaimed console game developed by Coldwood in collaboration with Electronic Arts. Supremacy 1914 and Call of War are high- immersion war strategy games developed by Bytro Labs. ManagerZone is a sports management strategy game launched in 2001. DragonRealms and GemStone IV are MUD-style games with a very loyal player base. Siege: Titan Wars(TM) is a popular mobile game developed by Simutronics. Nida Harb 3 and Admiral are mobile strategy games with very strong player bases, which are published by Babil Games. World at War: WW2 and War and Peace: Civil War are a successful mobile strategy games developed and published by eRepublik Labs. Online Fussball Manager is a leading sports management game. Empire and BigFarm are major IPs operated by Goodgame Studios.
Nasdaq First North Ticker Symbol: SF
Certified Adviser: Avanza Bank, phone +46 8 409 421 20
This information is information that Stillfront Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07.00 CEST on August 28, 2018.
Stillfront 2018Q2 ENG SF Q2'18 Report Presentation_556rrsg_v39