This article first appeared on GuruFocus .
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Revenue Growth:8% in constant currency.
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EBITDA Margin:Improved to 17% from 14% in Q1 last year.
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Net Cash Position:SEK220 million at the end of the period.
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Subscriber Growth:Added 72,000 paying subscribers, totaling 2.74 million, up 8% year-on-year.
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Publishing External Revenue Growth:9% in constant currency.
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Gross Margin:Expanded to over 45%.
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Q1 EBITDA Growth:24% increase.
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Net Profit:SEK86 million.
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Cash Flow from Operations:SEK135 million before working capital.
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Annualized EBITDA:SEK780 million, up 25% year-on-year, with a margin above 19%.
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Streaming Segment Organic Growth:7.4% in constant currencies.
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Operating Profit Improvement:50% increase for the streaming segment.
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Net Cash Flow:SEK29 million for the period.
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Equity to Assets Ratio:Improved to 57%, up 10 percentage points from a year ago.
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Release Date: April 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Storytel AB ( FRA:DST ) reported a strong start to 2026 with an 8% revenue growth in constant currency.
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The company achieved a significant EBITDA margin expansion to 17%, up from 14% in Q1 of the previous year.
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Storytel AB ( FRA:DST ) added 72,000 paying subscribers, marking an 8% year-on-year increase, with a total of 2.74 million subscribers.
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The European segment crossed the 1 million subscriber mark for the first time, indicating strong growth in new markets.
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The company ended the quarter with a net cash position of SEK220 million, showcasing a strengthened financial position.
Negative Points
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Storytel AB ( FRA:DST ) faced material currency headwinds, which impacted reported net sales growth, limiting it to 3%.
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The Average Revenue Per User (ARPU) declined by 5.5% due to foreign exchange headwinds, particularly from the North American market.
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Despite strong subscriber growth, the Americas segment experienced significant FX-related revenue headwinds due to a weaker dollar.
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The company's ARPU pressure is expected to continue as growth in lower ARPU regions like Europe and America increases.
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There is a potential risk of cannibalization in mature markets due to vertical integration and prioritization of in-house publishing.
Q & A Highlights
Q: Why did Storytel change the subscriber count from average to end of quarter subscribers, and has the ARPU calculation changed? A: Stefan Ward, Chief Financial Officer, explained that the end of period subscriber count provides a better snapshot of the business at the end of each quarter. The ARPU calculation remains unchanged.
Q: Can you elaborate on the types of M&A targets Storytel is interested in? A: Bodil Eriksson Torp, Chief Executive Officer, stated that Storytel is primarily looking at opportunities in the publishing sector within Europe, but they are also considering streaming and tech businesses. The focus is on scaling their proven Nordic business model.
Q: How does Storytel balance growth and maintaining strong EBITDA margins? A: Stefan Ward emphasized that while they aim to improve growth rates, it will not come at the expense of margins. The focus is on driving growth with good profitability, maintaining at least the current level of profitability.
Q: What is driving the strong gross margin improvement in publishing, and is it sustainable? A: Stefan Ward noted that the improvement is broad-based and sustainable, driven by strong external sales and normal business operations, rather than one-off events.
Q: How is AI being utilized at Storytel, and what impact does it have on costs and operations? A: Bodil Eriksson Torp highlighted that AI is used extensively across the company to enhance customer experience and operational efficiency. AI is seen as a tool for both improving customer retention and reducing operational costs.
Q: How has the competitive landscape in the Nordics changed with Spotify's entry? A: Stefan Ward mentioned that there has been no material change in the competitive environment. Despite intense competition, Storytel continues to see strong subscriber intake and reduced churn.
Q: What are Storytel's plans for accelerating growth in the Americas? A: Stefan Ward explained that while FX headwinds have impacted growth, Storytel plans to increase its focus on the Americas, leveraging its strong relationships with publishers and exploring new strategies to drive growth.
Q: How does the market in the Americas differ from Europe and the Nordics, and what is Storytel's strategy there? A: Stefan Ward noted that the Americas market is primarily credit-based, similar to Audible, but is evolving. Storytel has strong publisher relationships and plans to capitalize on structural changes in the market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
