Stillfront Group generated 1.812 billion Swedish kronor ($174.447 million) in Q2 2023, representing a slight increase from 1.811 billion kronor ($174.350 million) in the same period of 2022, according to the company’s latest quarterly report.
The company generated EBITDA of 695 million kronor ($66,865,533), representing a 10% year-on-year increase from 632 million kronor ($60,840,251). The company is operating at an adjusted EBITDA margin of 39%, compared to 35% in Q2 2022, suggesting that the company is becoming increasingly healthy and is well-placed for further growth.
“In the second quarter of 2023, we continued to deliver on our communicated agenda from our capital markets day in February with a focus on growing profitability and cash flows,” said CEO Jörgen Larsson. “Stillfront’s net revenue was stable year-over year at 1,812 MSEK in the quarter, while Adjusted EBITDAC (Earnings Before Interest, Taxes, Depreciation, Amortisation and Coronavirus) grew by 32 percent to 516 MSEK and Adjusted EBITDA by 11 percent to 708 MSEK, corresponding to all-time highs for both metrics.
The increased profitability was driven by an increasing share of direct-to-consumer bookings, continued cost optimization, and lower levels of user acquisition and capitalised development costs. We continued to generate strong cash flow across the group and free cash flow in the second quarter increased by 51 percent year-over-year to 363 MSEK.”
Success across markets
Stillfront Group achieved 58 million monthly active users in Q2 2023 across the 71 games in its active portfolio, with 51% of bookings coming from its top five franchises alone.
Bookings across the company’s active portfolio hit 1.698 billion kronor, ($163.384 million), with casual and mash up games accounting for 677 million kronor ($65,142,036) marking it as a particular success for the company. However, this revenue shrank 7% year-on-year.
Simulation, RPG, and action games in the company’s portfolio accounted for 467 million kronor ($44,935,496), however the genres saw combined revenue growth of 22%, the only genres not to decline. This suggests that the company’s games in these genres are growing increasingly popular with users, although they have yet to reach the same heights as other genres.
North America proved to be a particularly lucrative market for the company, accounting for 51% of the company’s sales. This was followed by 27% in Asia and 26% in Europe.
We listed Stillfront Group as one of the top 50 mobile game makers of 2022. We’ll be unveiling our list for 2023 in the coming months.
