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1. Company Snapshot

1.a. Company Description

Storytel AB (publ) provides audiobooks and e-books streaming services.The company offers a subscription service for audiobooks and e-books under the Storytel and Mofibo brands, as well as through Audiobooks.com.It also publishes audiobooks primarily through the publisher, Storyside.


The company is headquartered in Stockholm, Sweden.

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1.b. Last Insights on STORY

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1.c. Company Highlights

2. Storytel's Q4 2025 Earnings: A Strong Finish to a Record Year

Storytel Group reported a robust set of financial results for the fourth quarter and full-year 2025, with revenue growth, expanding margins, and a significant increase in net profit. The company's revenue grew by 12% in constant currencies, driven by a 9% increase in subscribers to 2.7 million at the end of the year. Earnings per share were SEK 4.53, significantly beating estimates of SEK 0.75. The EBITDA margin reached 20%, with net profit of SEK 300 million, boosted by a one-off positive tax impact of SEK 195 million. The company's cash flow generation remained strong, with cash flow from operations increasing by 10% in Q4.

Publication Date: Mar -09

📋 Highlights
  • Subscriber Growth:: 9% Q4 increase, reaching 2.7 million paying subscribers by year-end 2025.
  • EBITDA Performance:: 15% Q4 EBITDA growth with a 20% margin, and full-year EBITDA up 26% to 18.8% margin
  • Profitability Boost:: Net profit surged to SEK 300 million, driven by a SEK 195 million one-off tax benefit.
  • Cash Flow Strength:: 10% Q4 and 26% full-year increase in operating cash flow before working capital changes.
  • Non-Nordic Expansion:: Higher gross margins and 18% external revenue growth in publishing segment despite lower Nordics churn.

Operational Highlights

The company's operational performance was also strong, with a significant increase in subscribers and revenue growth across regions. Bodil Torp, CEO, emphasized the importance of delivering strong customer value, highlighting the company's efforts to increase customer experience through new features. As she noted, "The company aims to intensify its investments in local relevant content and user experience to build resilience and increase engagement and satisfaction and engagement for its customers."

Segment Performance

The publishing segment delivered strong results, with external revenue growth of 18% in constant currency and expanding profitability. The company's streaming business also performed well, with subscriber additions of 50,000 in Q4 and 200,000 for the full year. Stefan Wård, Group CFO, highlighted that the company hasn't seen an increase in churn rates in the Nordics since Spotify's launch, and instead, Spotify appears to be attracting new consumers to the audiobook market.

Valuation and Outlook

With a P/E Ratio of 10.01 and an EV/EBITDA of around 10.36, the company's valuation appears reasonable given its growth prospects. Analysts estimate next year's revenue growth at 7.8%. The company's guidance for 2026 is based on its existing model and subscriber growth estimates, with a focus on driving top-line growth while protecting profitability. The company's dividend policy is also expected to be maintained, with a potential increase in dividend by a similar amount in 2027 and 2028.

Key Metrics

The company's key metrics, including ROE of 31.96% and ROIC of 20.24%, indicate a strong return on equity and invested capital. The Net Debt to EBITDA ratio is negative, indicating a net cash position. These metrics suggest that the company is well-positioned for future growth.

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.59%)

6. Segments

Streaming Nordics

Expected Growth: 10%

Storytel AB's Streaming Nordics segment growth is driven by increasing demand for digital audiobooks, strategic partnerships, and expansion into new markets. The company's strong content offerings, user-friendly platform, and competitive pricing also contribute to its growth. Additionally, the rise of smart speakers and voice assistants has increased audiobook consumption, further fueling growth.

Streaming Non-Nordics

Expected Growth: 8%

Strong demand for audiobooks, increasing adoption in emerging markets, and successful marketing efforts contribute to the 8% growth in Streaming Non-Nordics for Storytel AB. Additionally, the company's expanding content library, strategic partnerships, and user-friendly platform experience also drive growth in this segment.

Books

Expected Growth: 7%

Storytel AB's 7% growth is driven by increasing demand for audiobooks, expansion into new markets, and strategic partnerships. The rise of mobile listening, improved content offerings, and user-friendly platforms also contribute to growth. Additionally, the company's focus on emerging markets, such as Latin America and Asia, provides further opportunities for expansion.

Group-Wide Items and Eliminations

Expected Growth: 5%

Storytel AB's 5% growth in Group-Wide Items and Eliminations is driven by increasing subscription revenue, expanded content offerings, and strategic partnerships. Additionally, cost savings from operational efficiencies and effective marketing strategies contribute to the growth. The company's focus on emerging markets and diversification of revenue streams also support the upward trend.

Other Adjustments

Expected Growth: 6%

Storytel AB's 6% growth is driven by increasing demand for audiobooks, strategic partnerships, and expansion into new markets. The company's focus on content diversification, user engagement, and subscription-based model also contribute to its growth. Additionally, investments in technology and marketing efforts have improved customer acquisition and retention, further fueling growth.

7. Detailed Products

Audiobooks

Storytel offers a vast library of audiobooks in multiple languages, allowing users to access a wide range of genres and titles.

E-books

Storytel provides access to a vast collection of e-books, including bestsellers and classics, for users to read on their devices.

Original Content

Storytel produces exclusive original content, including audiobooks and podcasts, featuring popular authors and celebrities.

Subscription Service

Storytel offers a subscription-based service, allowing users to access a vast library of content for a flat monthly fee.

Publishing Services

Storytel provides publishing services, allowing authors and publishers to distribute their content to a wide audience.

8. Storytel AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Storytel AB (publ) operates in the digital audiobook subscription market, which is still a growing market. However, there are substitutes such as e-books, physical books, and other forms of entertainment that could potentially threaten Storytel's market share.

Bargaining Power Of Customers

Storytel AB (publ) has a large customer base, and individual customers do not have significant bargaining power. However, if a large group of customers were to switch to a competitor, it could have a significant impact on Storytel's revenue.

Bargaining Power Of Suppliers

Storytel AB (publ) relies on publishers and authors to provide content for its platform. While there are many publishers and authors, some larger publishers may have more bargaining power due to their large catalogs of content.

Threat Of New Entrants

The digital audiobook subscription market is still growing, and there are low barriers to entry. New entrants could potentially disrupt the market and gain market share from Storytel AB (publ).

Intensity Of Rivalry

The digital audiobook subscription market is highly competitive, with several major players competing for market share. Storytel AB (publ) faces intense competition from companies such as Audible, Scribd, and Google Play Books.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.04%
Debt Cost 7.77%
Equity Weight 58.96%
Equity Cost 11.52%
WACC 9.98%
Leverage 69.60%

11. Quality Control: Storytel AB (publ) passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Alma Media

A-Score: 5.7/10

Value: 3.2

Growth: 4.4

Quality: 7.9

Yield: 6.9

Momentum: 6.5

Volatility: 5.0

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TX Group

A-Score: 5.2/10

Value: 7.3

Growth: 2.6

Quality: 4.2

Yield: 5.0

Momentum: 6.0

Volatility: 6.0

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Bloomsbury Publishing

A-Score: 5.0/10

Value: 4.8

Growth: 7.4

Quality: 7.0

Yield: 5.6

Momentum: 1.0

Volatility: 4.3

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Storytel

A-Score: 4.5/10

Value: 4.2

Growth: 6.7

Quality: 7.2

Yield: 0.6

Momentum: 6.5

Volatility: 1.7

1-Year Total Return ->

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Future

A-Score: 4.4/10

Value: 8.9

Growth: 5.8

Quality: 6.7

Yield: 0.6

Momentum: 1.5

Volatility: 2.7

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Polaris Media

A-Score: 3.8/10

Value: 4.2

Growth: 5.9

Quality: 4.5

Yield: 5.6

Momentum: 0.0

Volatility: 2.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

76.0$

Current Price

76$

Potential

-0.00%

Expected Cash-Flows