The following is a summary of the Stillfront Group AB (STLFF) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Stillfront Group had a minor year-over-year decline in net revenue and EBITDAC margin for Q4, but the annual financial results showed growth.

• Gross profit margin saw a 2% increase to 78%, and the EBITDAC margin increased by 1.8% to 24.4% for the year.

• Free cash flow decreased significantly due to higher interest rates, lower financial net, and costs from cost optimization projects.

• The company has an objective to lower the CapEx to 10%.

• The group managed to reduce its absolute net debt by almost SEK 300 million.

• EBITDAC improved over SEK 100 million in absolute terms.

Business Progress:

• Stillfront showed organic growth in November and December due to a substantial User Acquisition push for Sunshine Island.

• The company plans to focus on valuable customers and has seen a 16% increase in daily active user revenue.

• Direct-to-consumer selling led to a 2.3% rise in gross profit margin.

• Further investment is planned in cloud infrastructure, franchises, and to improve EBITDAC.

• Despite market changes, Stillfront diversified their marketing channels and maintained a broad product portfolio.

• The company is dedicated to improving organic growth rates next year, with a continuous focus on their flagship product, Sunshine Island.

• A strategic approach to cost reduction helped reduce direct costs and improve EBITDAC growth. Stillfront Group will continue cost optimization efforts and aim to limit total investments.

More details: STILLFRONT GROUP AB IR

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