FULLTEXT DEL 1 AV 1

Kvartalsrapport Q1 2023

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2
Highlights

Q1 Financial Highlights

• Streaming revenue up 6% from Q1 2022 to 742 (699) MSEK, 9% excluding Russia
• Group net sales increased by 7% from Q1 2022 to 796 (747) MSEK, 10%
excluding Russia

• Gross profit of 316 (288) MSEK, equaling a 39.6 margin (38.6) %

• EBITDA of 30 (-149) MSEK equaling a margin of 3.8 (-19.9) %
• Basic and diluted earnings per share amounted to -0.81 (-3.43) SEK
• Cash flow from operations before changes in working capital amounted to
18 (-135) MSEK

• Operational cash flow amounted to -8 MSEK versus -122 MSEK

Q1 Other Highlights
• Anna Etzler appointed SVP Operations
• Oleg Nesterenko appointed Chief Marketing Officer
• Peter Messner appointed Chief Financial Officer
• The Finnish audiobook service Suomalainen Plus merges its subscriber base
with Storytel Finland

Highlights after the End of the Quarter

• Significant multi-year agreement with Bulgaria’s largest telco A1 Bulgaria. The deal makes Story-
tel part of exclusive selection of premium services on A1 Bulgaria’s platform, reaching more than
4 million potential customers

• Storytel Awards surpasses the milestone of 200,000 votes – audiobook fan
engagement soaring to record levels

• Storytel announced that the company will hold a Capital Markets Day on
June 13, 2023

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3
CEO-statement
Creating the foundation for sustainable and profitable growth
The first quarter of 2023 saw continued progress in the execution of our profitable growth strategy as
we extended our focus on improving operational and financial performance over time.
The first quarter marked the fourth consecutive
quarter of positive Group EBITDA. Storytel
Streaming saw continued organic streaming rev-
enue growth, increased ARPU, strong subscriber
engagement as well as stable churn levels. Lay-
ing the foundation for further profitable growth
in 2023 and beyond, we continued to drive near-
term operational improvement programs across
all parts of our business delivering progress with
renegotiated and new signed Partnerships, im-
proved Content economics, and the introduction
of new service tiers and price levels in the Nor-
dics. We are now in the final phase of complet-
ing our strategic plan and mid-term financial tar-
gets, which will be presented at our Capital Mar-
kets Day in Stockholm on June 13.

Our financial development
Streaming revenue excluding Russia increased
by 9%, and amounted to 742 MSEK, driven by a
solid performance in the Nordic region. ARPU
grew with 6% to 121 SEK. Group Net Sales for
the quarter grew 10% excluding Russia and to-
taled 796 MSEK. The gross margin was 39.6%, an
increase by 1.0 percentage point versus the
same quarter last year, and by 2.4 percentage
points versus Q4 2022. The EBITDA margin im-
proved to 3.8%, compared to a negative margin
of 4.4% in Q1 2022, adjusted for items affecting
comparability last year.

Cash flow from operations before changes in
working capital generated a total of 18 (-135)
MSEK and operational cash flow amounted to -8
MSEK versus -122 MSEK last year. The improve-
ment was derived from the strategic shift to fo-
cus on profitable growth.

Unlocking large untapped potential
As a market leader in the Nordics and several
other countries, we enjoy strong consumer
trust, and our reputation is synonymous with
quality. While we continue to grow our sub-
scriber base, we are increasingly focused on
attracting and retaining the most valuable cus-
tomers with high levels of loyalty, high ARPU,
and long lifetime value.

In the context of this shift away from exclusively
prioritizing growth of our subscriber base to cap-
ture a larger share of the sector’s value, we re-
cently completed the rollout of our new multi-
tiered product offering in Finland, Sweden and
Denmark. With this, we’ve expanded our ad-
dressable market and provide an attractive op-
tion for every type of listener. Early indications
from the launch are positive, and we’re encour-
aged by the impact on SAC, ARPU and Churn.
Unlimited remains the most popular subscrip-
tion among customers in Sweden, Denmark and
Finland.

Promising start for the new
Partnerships Team
In the fourth quarter last year, we announced
the formation of our new Partnerships team,
which is dedicated to bringing more listeners
through partners such as mobile app stores,
OEMs, telcos, financial services and e-commerce
players. This quarter saw the successful launch
of our service on Google CarPlay and Apple
CarPlay, in line with our target to make Storytel
available on all relevant audio devices and plat-
forms popular with our customers.

In the first quarter, we announced the agree-
ment with Suomalainen Plus, the audiobook op-
erations of the bookstore chain Suomalainen Kir-
jakauppa, merging its subscriber base with
Storytel Finland. The agreement strengthens our
position in the Finnish market.

In April, we closed a significant multi-year agree-
ment with Bulgaria’s largest telco, A1 Bulgaria, a
part of the A1 Group that currently has over 26
million users across seven European countries.
This agreement allows Storytel Bulgaria access
to 4 million potential customers.

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4
The Road to Success requires great
Content
Storyside, our internal audiobook publisher, con-
tinues to prove itself as a strong driver of sub-
scriber acquisition. During the quarter, almost
12% of new Storytel subscribers in Sweden, Den-
mark and Finland selected a Storyside title as
their first book for listening. We’ve recently
completed the renegotiation of several of our
largest content distribution agreements in our
core markets, improving the cost efficiency of
these contracts. To further decrease content
cost is an important lever to grow our EBITDA
over time.

Near term guidance
Our full-year guidance from February remains
unchanged with organic streaming revenue
growth in line with the previous year (excluding
Audiobooks.com and Russia), an increased
EBITDA margin (adjusted for last year’s items af-
fecting comparability) versus 2022 and at least a
break-even operational cash flow (EBITDA – op-
erational capex).

Finally, I want to take this opportunity to wel-
come all of you to Storytel’s Capital Markets
Day, which will be held on June 13 in Stockholm,
Sweden. At the event, we will provide an update
on Storytel’s position and operations as well as
our strategy and financial targets.

I look forward to seeing you in June.

Stockholm in May

Johannes Larcher, CEO

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5
Table 1: Key Performance Indicators
TSEK Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
Streaming Total1
Revenue 698,599 704,454 742,426 742,283 742,081
Revenue excl Russia 679,654 693,464 732,837 742,374 742,081
Gross profit 283,868 278,554 307,463 304,594 317,067
Gross margin 40.6% 39.5% 41.4% 41.0% 42.7%
Avg. Paying Subscribers 2,051,000 2,031,000 2,064,000 2,036,000 2,041,000
ARPU (SEK/month) 114 116 120 122 121

Streaming Nordics1
Revenue 458,555 469,390 492,765 498,336 496,630
Gross profit 165,788 177,354 189,289 184,767 200,992
Gross margin 36.2% 37.8% 38.4% 37.1% 40.5%
Avg. Paying Subscribers 1,061,000 1,078,000 1,129,000 1,132,000 1,125,000
ARPU (SEK/month) 144 145 145 147 147

Streaming Non-Nordics
Revenue 240,044 235,064 249,662 243,947 245,451
Revenue excl Russia 221,099 224,074 240,073 244,038 245,451
Gross profit 118,080 101,190 118,173 119,828 116,075
Gross margin 49.2% 43.0% 47.3% 49.1% 47.3%
Avg. Paying Subscribers 990,000 953,000 935,000 904,000 916,000
ARPU (SEK/month) 81 82 89 90 89

Books
Revenue 149,305 156,999 147,199 193,069 130,083
Gross profit 84,399 78,185 81,916 85,141 68,472
Gross margin 56.5% 49.8% 55.6% 44.1% 52.6%

Group total2
Revenue 747,170 780,730 805,819 866,663 796,293
Gross profit 288,498 290,363 311,907 322,377 315,501
Gross margin 38.6% 37.2% 38.7% 37.2% 39.6%

Revenue Growth YoY Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
Streaming Total1
Revenue 35.1% 29.2% 27.3% 22.7% 6.2%
Revenue excl Russia 35.3% 31.0% 29.5% 27.0% 9.2%
Revenue – CER 32.6% 25.6% 22.0% 16.6% 2.9%

Streaming Nordics1
Revenue 14.1% 10.9% 10.2% 8.6% 8.3%
Revenue – CER 11.0% 8.5% 6.9% 4.8% 6.8%

Streaming Non-Nordics
Revenue 108.3% 92.5% 83.7% 67.0% 2.3%
Revenue excl Russia 120.3% 111.6% 102.2% 94.5% 11.0%
Revenue – CER 107.9% 85.1% 71.7% 53.5% -4.7%

Books
Revenue 19.3% 4.7% -18.3% -5.5% -12.9%
Revenue – CER 17.8% 3.6% -19.4% -7.0% -14.6%

1 Storytel Norway is included in the figures @ 100%.
2 In the consolidated accounts, Norway is reported in accordance with the equity method. As a result, the Streaming revenue lis ted in Table 1 is higher than in the consoli-
dated statement of accounts in order to provide a more accurate figure for average revenue per subscriber. Please see Note 5 for additional details.

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6
Developments during the quarter, Group
Comparative figures pertain to Q1 2022
Net sales
Net sales for the period increased by 7% com-
pared to the comparative period and totaled
796.3 (747.2) MSEK. This increase is primarily
driven by solid growth in the Streaming segment
across Storytel’s top markets, especially the Nor-
dic region, while the Books segment saw a de-
crease versus the last quarter due to seasonality.
Average paying streaming subscribers increased
by over 5,000 during the quarter and amounted
to 2,041,000 with an average ARPU of 121 (114)
SEK. The decrease in the subscriber base versus
the same quarter last year is explained by an in-
tensified focus on quality and lifetime value.
Gross profit
Cost of sales for the period totaled -480.8
(-458.7) MSEK. Gross profit amounted to 315.5
(288.5) MSEK, which equals a gross margin of
39.6% (38.6%). The gross margin increased by 1
percentage point versus the same quarter last
year, and by 2.4 percentage points versus the
fourth quarter of 2022. The improvement was
mainly explained by positive development from
the streaming business in the Nordic region.
EBITDA
EBITDA for the period totaled 30.5 (-148.5)
MSEK, which equals an EBITDA margin of 3.8%
(-19.9%). The first quarter last year contained
items affecting comparability of 116 MSEK,
adjusted for this, the EBITDA last year amounted
to -32.8 MSEK. The significant improvement is
driven by the strategic shift to focus on profita-
ble growth.
Operating profit
Operating profit for the quarter totaled -48.0
(-226.9) MSEK. The comparable quarter included
items affecting comparability totaling -133.5
MSEK. The improvement was to a large extent
derived from the above outlined strategic shift
to focus on profitable growth.
Sales and marketing expenses decreased by 30%
to -205.7 (-294.5) MSEK. The comparable quar-
ter included items affecting comparability total-
ing -19.5 MSEK.
Technology and development expenses totaled -
69.5 (-96.3) MSEK, which includes continuous in-
vestments in the platform, striving to increase
subscriber engagement. The comparable quarter
included items affecting comparability totaling
-43.3 MSEK.
General and administrative expenses totaled
-97.1 (-129.7) MSEK. The comparable quarter in-
cluded items affecting comparability totaling
-59.7 MSEK.
Group total Q1 2023 Q1 2022
Net sales 796.3 747.2
Cost of sales -480.8 -458.7
Gross profit 315.5 288.5
Selling and marketing
expenses -205.7 -294.5
Technology and development ex-
penses -69.5 -96.3
Administrative expenses -97.1 -129.7
Other operating income 5.3 6.0
Profit from participations in asso-
ciates 3.5 -0.9
Operating profit/loss -48.0 -226.9
Net financial items -16.2 -6.4
Profit before tax -64.3 -233.3

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7
Net profit
Profit before tax for the period amounted to
-64.3 (-233.3) MSEK.

Net financial items for the period totaled -16.2
(-6.4) MSEK. The amount includes an
unrealized negative FX effect from a USD de-
nominated commitment derived from the acqui-
sition of Audiobooks.com, amounting to -3.4
MSEK. Excluding this, the underlying cost has in-
creased due to higher interest rates.

Taxes for the quarter amounted to 2.5 (0.9)
MSEK.

Net profit for the quarter amounted to
-61.7 (-232.5) MSEK.
Earnings per share for the period totaled
-0.81 (-3.43) SEK, before and after dilution.
Cash flow
Cash flow from operating activities before
changes in working capital was 17.8 (-135.2)
MSEK, with the improvement driven by the stra-
tegic shift to focus on profitable growth. The
change in working capital was 3.9 (45.0) MSEK,
resulting in cash flow from operating activities of
21.7 (-90.2) MSEK for the period. Cash flow from
investing activities was -47.8 (-950.7). Cash flow
from financing activities was -212.3 (571.8)
MSEK. Total cash flow for the period was -238.4
(-469.1) MSEK.

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8
Other information
Financial position, equity & liquidity (com-
pared to March 31, 2022)
At the end of the period, the Group had 540.4
(447.6) MSEK in cash and cash equivalents. The
equity-to-asset ratio at the end of the period
was 52.1% (42.3%).
Total equity for the quarter was 2,122.3
(1,705.7) MSEK.
Non-current liabilities totaled 991.9 (888.7)
MSEK. The company has a revolving credit facil-
ity (RCF) of 850 MSEK, of which 700 MSEK is uti-
lized, whereof 100 MSEK has been utilized in Q1,
2023. Current liabilities amounted to 949.5
(1,438.1) MSEK. A bridge loan facility of 500
MSEK utilized in connection with the acquisition
of Audiobooks.com has been replaced with a
200 MSEK term loan during the quarter.
Total available liquidity (cash and cash equiva-
lents and unutilized RCF) totalled 690.4 MSEK at
the end of the period.
Parent Company
Storytel AB is the Group’s Parent Company and
responsible for Group-wide management, ad-
ministration and financing.
Net sales for the Parent Company amounted to
8.8 (5.8) MSEK. Profit before tax amounted to -
5.2 (1.4) MSEK, and profit/loss for the period
amounted to -5.2 (1.4) MSEK. Total equity
amounted to 4,204.0 (3,821.6) MSEK. The con-
densed income statement and balance sheet for
the Parent Company are presented on page 21.
Investigation in Turkey
The Turkish Competition Authority has notified
Storytel Turkey Yayincilik Hizmetleri A.S. (“Story-
tel Turkey”) that it has opened an investigation
into Storytel Turkey on the basis of a complaint
from a third party in Turkey. Storytel is cooper-
ating with the Turkish Competition Authority,
but it is too early to determine or predict the
outcome of the investigation.
Risks and uncertainty factors
The Group is subject to significant risks and un-
certainties. As noted in the 2022 Annual Report,
these factors include the prevailing economic
and business environments in each of the
Group’s markets; commercial risks related to ex-
pansion into new territories; political and legisla-
tive risks related to changes in rules and regula-
tions in the various territories in which the
Group operates; exposure to foreign exchange
rate movements; changes in the ability to access
capital markets; and the emergence of new
technologies and competitors. More recently,
we have seen inflationary pressures that could
affect the purchasing power of our consumers,
and thus in the long term also their willingness
and ability to remain as subscribers. Further-
more, given the developments in Ukraine, Story-
tel announced in the first quarter of 2022 its in-
tention to pause its operations in Russia. This
has been implemented, and the operations were
phased out during the third quarter of 2022. As
of March 31, 2022, there is no significant bal-
ance sheet exposure related to Russia.

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9
Guidance
Storytel’s full-year guidance from
February remains unchanged:
• Organic streaming revenue growth in
line with previous year
(excluding Audiobooks.com and Russia)

• Increased EBITDA margin
(adjusted for items affecting comparability)
versus 2022

• At least a break-even operational cash flow
(EBITDA - operational capex).

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10
Financial Statements Summary
Group
Condensed Income Statement

TSEK Q1 2023 Q1 2022 Q1–Q4 2022
Net sales 796,293 747,170 3,200,382
Cost of sales -480,792 -458,672 -1,987,237
Gross profit 315,501 288,498 1,213,145

Sales and marketing expenses -205,725 -294,480 -942,799
Technology and development expenses -69,465 -96,342 -322,699
General and administrative expenses -97,144 -129,684 -370,020
Other operating income 5,335 5,958 34,424
Result from participations in associates 3,450 -869 -1,070
Operating profit/loss -48,048 -226,919 -389,019

Net financial items -16,223 -6,413 5,347
Profit/loss before taxes -64,271 -233,332 -383,672

Tax 2,530 876 3,402
Profit/loss for the period -61,741 -232,456 -380,270

Profit for the period attributable to:

Parent Company shareholder

-62,789

-233,940

-382,957
Non-controlling interest 1,048 1,484 2,687

Earnings per share, SEK
Group total, basic -0.81 -3.43 -5.51
Group total, diluted -0.81 -3.43 -5.51

Statement of comprehensive income
Profit/loss for the period, after tax -61,741 -232,456 -380,270

Other comprehensive income
Items that will be reclassified to profit/loss
(after tax)
Translation difference -9,034 17,370 160,132
Items that will not be reclassified to
profit/loss (after tax)
Revaluation of defined-benefit pension
plans -3,483 - 106,538
Revaluation of hedging instruments - 8,580 8,580

Total other comprehensive income for the
period, after tax -12,517 25,950 275,250

Total comprehensive income for the pe-
riod, after tax -74,258 -206,506 -105,020

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Total comprehensive income for the pe-
riod attributable to:
Parent Company shareholder -75,306 -207,990 -107,707
Non-controlling interest 1,048 1,484 2,687

Group
Condensed Consolidated Statement of Financial Position

TSEK 3/31/2023 3/31/2022 12/31/2022
Intangible assets 2,583,751 2,537,076 2,622,416
Tangible assets 26,981 29,954 28,990
Right-of-use assets 115,459 122,350 112,355
Non-current financial assets 75,123 93,642 87,690
Inventory 103,443 82,968 102,107
Current receivables 618,497 718,905 658,581
Cash and cash equivalents 540,432 447,627 776,341
Total assets 4,063,686 4,032,522 4,388,480

Equity 2,122,316 1,705,678 2,192,950
Non-current liabilities 991,883 888,707 866,369
Current liabilities 949,487 1,438,136 1,329,161
Total equity and liabilities 4,063,686 4,032,522 4,388,480

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Condensed Statement of Changes in Equity

TSEK Q1 2023 Q1 2022 Q1–Q4 2022
Opening equity for the period 2,192,950 1,910,603 1,910,603
Profit/loss for the period -61,741 -232,456 -380,270
Non-controlling interest - - -6,449
Other total comprehensive income for the year:
Translation difference -9,034 17,370 162,820
Revaluation of defined-benefit pension plans -3,483 - 106,538
Hedge accounting - 8,580 8,580
Transfer of cash flow hedge to business
combinations - 1,451 1,451
Transactions with owners:
Share issue -1,074 - 391,068
Share based incentive programs 4,698 129 -1,391

Closing equity for the period 2,122,316 1,705,678 2,192,950

Group
Condensed Cash Flow Statement

TSEK Q1 2023 Q1 2022 Q1-Q4 2022
Profit/loss after financial items -64,271 -233,332 -383,672
Where of interest paid -14,438 -8,822 -28,761
Adjustments for non-cash items 84,245 101,010 288,614
Taxes paid -2,207 -2,853 -22,517
Cash flow from operations before changes in work-
ing capital 17,767 -135,175 -117,575

Change in working capital 3,905 44,996 17,130
Cash flow from operating activities 21,672 -90,179 -100,445

Cash flow from investing activities -47,809 -950,680 -1,141,390
Cash flow from financing activities -212,281 571,758 1,085,350
Cash flow for the period -238,418 -469,101 -156,485

Available funds at the beginning of period 776,341 905,882 905,882
Cash flow for the period -238,418 -469,101 -156,485
Translation differences in available funds 2,509 10,846 26,944
Available funds at end of period 540,432 447,627 776,341

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Note 1 Accounting and Valuation Principles
This interim report includes the Swedish Parent Company Storytel AB (publ), CIN 556575-2960, and its
subsidiaries. Storytel is one of the world's largest streaming services for audiobooks and e-books and has
more than 700,000 titles in the service globally. Our vision is to make the world a more empathetic and
creative place through fantastic stories that can be shared and appreciated by anyone, anywhere and at
any time. The Streaming operations within Storytel Group take place under the brands Storytel, Mofibo
and Audiobooks.com. The publishing business is managed by Storytel Books and the audiobook publisher
Storyside. Storytel Group is present in over 25 markets. The Parent Company is a limited liability company
with its registered office in Stockholm, Sweden. The address of the head office is Tryckerigatan 4, 111 28
Stockholm, Sweden.
Storytel applies the International Financial Reporting Standards (IFRS) as they have been adopted by the
EU. This consolidated interim report was prepared in accordance with IAS 34 Interim Financial Reporting,
recommendation RFR 1 issued by the Swedish Financial Reporting Board, and the Annual Accounts Act
(1995:1554), where applicable.
The interim report for the Parent Company was prepared in accordance with Chapter 9 of the Annual Ac-
counts Act (Interim Report) and recommendation RFR 2 issued by the Swedish Financial Reporting Board.
The same accounting principles, bases for calculation and assessments were applied to the Group and the
Parent Company as in the most recent annual report. A detailed description of the Group’s other applied
accounting principles and new and pending standards is included in the most recently published Annual
Report. During 2022, Turkey was defined as a hyperinflationary economy and as such the Group applies
IAS 29 related to its entity in Turkey.
There are no new IFRS standards or amendments of existing IFRS standards during 2023 that have had a
material impact on the performance and financial position of Storytel. Disclosures pursuant to IAS 34.16A
are also presented in the financial statements and related notes in the interim disclosures on pages 10-12,
which is an integral part of this financial statement.
All amounts in this statement are stated in thousands of Swedish krona (TSEK) unless otherwise specified.
Differences in rounding may occur.

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Note 2 Significant estimates and judgements
When preparing the financial statements, the company’s management and the Board must make certain
assessments and assumptions that affect the carrying amounts of asset and liability items and income and
expense items, respectively, as well as other information provided. The assessments are based on experi-
ences and assumptions that the management and the Board deem to be reasonable given the prevailing
circumstances. Actual outcome may then differ from these assessments if other conditions arise. The esti-
mates and assumptions are evaluated on an ongoing basis and are not considered to entail any material
risk of significant adjustments in the reported values of assets and liabilities during subsequent periods.
Changes in estimates are reported in the period in which the change is made if the change has only af-
fected this period, or in the period in which the change is made and future periods if the change affects
both the current period and future periods. For other significant estimates and judgements, please refer
to the most recent annual report.

Note 3 Definitions and key ratios including
alternative performance measures
Storytel reports a number of different items and financial key ratios in its consolidated financial state-
ments. The key ratios aim to make it easier for investors and other stakeholders to analyze and under-
stand Storytel's operations and development in the same way that the business and its development are
monitored by management. Of these measures, some are defined in IFRS, while others are defined in nei-
ther the financial framework nor other legislation. For key ratios that are not defined in IFRS, this report
presents their purpose and how they relate to the financial statements presented in accordance with
IFRS. For definitions of financial measures and key ratios used, please see below.

Note 4 Transactions with related parties
In general, there were no significant changes in the scope or type of transactions with related parties to
the Group other than those presented in the most recent Annual Report. Transactions with associated
companies take place on market terms.

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Note 5 Business segments
The Group, for accounting and follow-up, has divided its operations into three segments: Streaming Nor-
dics, Streaming Non-Nordics and Books. The division is based partly on the type of business conducted
(Streaming versus Books) and the geographical division for the streaming business (Nordics versus Non-
Nordics). The acquired company Audiobooks.com is included in the business segment Streaming Non-
Nordics.

Jan-Mar 2023 Streaming
Nordics
Streaming Non-
Nordics Books Total
segment
Group-wide
items and
eliminations
Other
adjustments
Group to-
tal
Revenue from external
customers

496,630

245,451

130,083

872,163

-90,555

14,684

796,293
Internal revenue - - 48,062 48,062 -48,062 - -
Cost of sales -295,638 -129,375 -109,672 -534,685 58,305 -4,411 -480,792
Gross profit 200,992 116,075 68,472 385,540 -80,312 10,273 315,501

The costs listed under Gross profit are not allocated to segments but are reported for the Group as a
whole. Internal revenue for the Books segment that relates to sales from streaming is already included as
a cost reduction in the segment reporting for the Streaming segments. Revenue and Cost of sales from
Storytel AS are included in the Streaming Nordics segment. These are subsequently eliminated in the col-
umn Group-wide items and eliminations, and the license fee from Storytel AS is also added back.

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Group total Jan-Mar 2023
Gross profit 315,501
Selling and marketing expenses -205,725
Technology and development expenses -69,465
Administrative expenses -97,144
Other operating income 5,335
Profit from participations in associates 3,450
Operating profit/loss -48,048
Net financial items -16,223
Profit/loss before tax -64,271

The costs listed under Gross profit are not allocated to segments but are reported for the Group as a
whole. Internal revenue for the Books segment, which relates to sales from streaming, is already included
as a cost reduction in the segment reporting for the Streaming segments. Revenue and Cost of sales for
Storytel AS are included in the Streaming Nordics segment. These are subsequently eliminated in the col-
umn for Group-wide items and eliminations, and the license fee from Storytel AS is also added back.

Group total Jan-Mar 2022
Gross profit 288,498
Selling and marketing expenses -294,480
Technology and development expenses -96,342
Administrative expenses -129,684
Other operating income 5,958
Profit from participations in associates -869
Operating profit/loss -226,919
Net financial items -6,413
Profit/loss before tax -233,332
Jan-Mar 2022 Streaming
Nordics
Streaming Non-
Nordics Books Total
segment
Group-wide
items and
eliminations
Other
adjustments
Group to-
tal
Revenue from
external customers 458,555 240,044 149,305 847,904 -87,603 -13,131 747,170
Internal revenue - - 38,108 38,108 - 38,108 - -
Cost of sales -292,767 -121,964 -103,014 -517,745 66,884 -7,811 -458,672
Gross profit 165,788 118,080 84,399 368,267 -58,827 -20,942 288,498

===== SIDA 17 =====

Note 6 Revenue from contracts with customers
Jan-Mar 2023 Books Streaming Other Group total
Type of product or service
Revenue from subscriptions of streaming service - 651,526 - 651,526
Revenue from publishing activities 130,083 - - 130,083
Other - - 14,684 14,684
Revenue from contracts with customers 130,083 651,526 14,684 796,293

Jan-Mar 2022 Books Streaming Other Group total
Type of product or service
Revenue from subscriptions of streaming service - 591,630 - 591,630
Revenue from publishing activities 149,305 - - 149,305
Other - - 6,235 6,235
Revenue from contracts with customers 149,305 591,630 6,235 747,170

===== SIDA 18 =====

Note 7 Financial instruments
Valuation hierarchy
The levels of the valuation hierarchy are described as follows:
Level 1 – Listed prices (unadjusted) in active markets for identical assets and liabilities.
Level 2 – Observable input data for the asset or liability other than quoted prices included in Level 1,
either directly (i.e., price quotations) or indirectly (i.e., derived from price quotations).
Level 3 - Asset or liability input data that is not based on observable market data (i.e., non-observable in-
put data).
Acquisition option
Storytel's acquisition option refers to the future acquisition of the remaining 10,2 % shares in Earselect
AB, which will result in an additional transferred consideration of 8,237 TSEK, after the consideration paid
in the quarter, see note 8. The acquisition option is reported at fair value in the statement of financial po-
sition, measured in accordance with IFRS 9 and categorized in accordance with Level 3 of the IFRS 13 fair
value hierarchy. Since the price of the option is not dependent on any conditions beyond the time aspect,
and since the discounting effect attributable to the time value at the time of acquisition was insignificant,
no discounting has taken place, and the carrying amount is considered to correspond to the fair value of
the acquisition option.
Contingent consideration
The contingent consideration related to the acquisition of Aula is reported at fair value in accordance with
Level 3 of the valuation hierarchy. The fair value is estimated by using a valuation model that discounts
the present value of expected outgoing cash flows by a risk-adjusted discount rate. Expected cash flows
are determined using probable scenarios based on expected financial outcome and future financial fore-
casts. The most significant input factors used to measure fair value are the risk-adjusted discount rate of
12.6% and the forecast future development of profitability, growth in net sales, and the level of digital
sales. Given that the contingent additional consideration at the balance sheet date can amount to at the
most TSEK 761 no changes in input factors are judged to result in any material impact on the fair value of
the item in the balance sheet or income. During the period, unrealized gains or losses for the contingent
consideration held as at the balance sheet date are not material. This amount is included in other operat-
ing expenses in the consolidated statement of income. The discounting effect is recognized in net financial
income.

Financial liabilities valued at fair value Jan-Mar 2023 Jan-Mar 2022 Jan-Dec 2022
Opening balance 13,124 23,095 23,095
Consideration paid -4,275 - -
Change in value recognized in profit/loss - - 48
Change in value recognized in OCI - financial derivative - -8,580 -8,580
Transfer of cash flow hedge to business combinations - -1,451 -1,451
Closing balance 8,849 13,064 13,124

===== SIDA 19 =====

Other receivables and liabilities
For current receivables and liabilities, such as accounts receivable and trade payables, and for non-current
liabilities with variable interest rates, the carrying amount is considered to be a good approximation of
the fair value.

===== SIDA 20 =====

Note 8 Business combinations
The purchase price allocation for Audiobooks.com, acquired in January 2022, has now been finalied. No
adjustment has been made in the period.
A consideration for Storytel’s acquisition option in Earselect has been paid during the quarter with 4,275
TSEK.

===== SIDA 21 =====

Parent Company
Condensed Income Statement

TSEK Q1 2023 Q1 2022 Q1-Q4 2022
Net sales 8,820 5,845 43,096
Cost of revenue - - -
Gross profit 8,820 5,845 43,096

Administrative expenses -8,000 -13,384 -54,223
Other operating income - - 224
Profit from participation in group
company - - 15,608
Operating profit 820 -7,539 4,705

Net financial items -5,999 8,919 -5,258
Profit/loss before taxes -5,179 1,380 -553

Tax - - -1,437
Profit/loss for period -5,179 1,380 -1,990

Parent Company´s condensed
statement of comprehensive income

Profit for the period
Other comprehensive income, after tax

-5,179 1,380 -1,990

Total comprehensive income for
the period

-5,179 1,380 -1,990

Condensed Balance Sheet

TSEK 31 Mar 2023 31 Mar 2022 31 Dec 2022
Non-current financial assets 4,848,935 4,048,445 4,848,935
Current receivables 211,143 655,918 228,412
Cash and cash equivalents 197,432 82,001 365,813
Total assets 5,257,510 4,786,364 5,443,160

Equity 4,203,990 3,821,603 4,210,537
Non-current liabilities 748,416 447,933 598,416
Current liabilities 305,104 516,828 634,207
Total equity and liabilities 5,257,510 4,786,364 5,443,160

===== SIDA 22 =====

Number of shares and share capital as of March 31, 2023
There were 77,073,120 (68,281,911) registered shares in issuance at the end of the period, divided be-
tween 635 Class A shares and 77,072,485 Class B shares. Share capital totaled 38,536,560 (34,140,956)
SEK as of Dec 31, 2022. There were 73,002,135 registered shares on average in Q4 2022 divided between
635 Class A shares and 73,001,500 Class B shares. The shareholder structure is presented at investors.sto-
rytel.com.
Auditor's review
This Q1 report has not been reviewed by the auditors of the company.
Information about Nasdaq First North Growth Market
Nasdaq First North Growth Market (“First North”) is an alternative marketplace operated by the constitu-
ent exchanges of Nasdaq Stockholm. It does not have the same legal status as a regulated marketplace.
Companies quoted on First North are subject to First North’s rules rather than the legal requirements set
for trading on a regulated marketplace. An investment in a company trading on First North implies higher
risk than an investment in a listed company. Companies must apply to the exchange and gain approval
before trading on First North may commence. A Certified Adviser guides the company through the listing
process and ensures that the company continuously satisfies First North’s standards. Information about
Nasdaq First North Growth Market.

Financial calendar
Annual General Meeting 2023 May 4, 2023
Capital Markets Day June 13, 2023
Interim Report January–June 2023 August 1, 2023
Interim Report January–September 2023 October 31, 2023
Year-End Report January–December 2023 February 15, 2024

===== SIDA 23 =====

Definitions and key ratios including alternative
performance measures
Net sales Operating main income, invoiced costs, incidental revenue and revenue
adjustments.
Net sales growth rate, % Net sales for the current year divided by the previous year’s net sales.
Net sales growth rate, %,
CER
Net sales for the current year divided by the previous year’s net sales
where the current year’s net sales are calculated at the exchange rates
prevailing in the previous year.
Gross profit Profit after cost of sales.
Gross profit % Operating profit as a percentage of net sales.
Gross margin Operating profit as a percentage of net sales.
Operating profit (EBIT) Profit before interest and tax.
Operating margin (EBIT mar-
gin)
Operating profit as a percentage of net sales.
Profit/loss before taxes Profit after financial income and expenses, before tax.
Profit margin (%) Profit after tax as a percentage of net sales.
Equity-to-assets ratio (%) Adjusted equity (equity and untaxed reserves less deferred tax, includ-
ing non-controlling interests) as a percentage of the balance sheet total.
Equity The net assets of the business, i.e., the difference between assets and
liabilities, including non-controlling interests.
Balance sheet total The company’s total assets.
FTE Full-Time Equivalents.
Number of employees Average number of employees during the financial year.
ARPU Average Revenue Per User (subscriber) per month.
Average paying
subscribers
The average number of paying Storytel subscribers during the quarter.
For Family subscriptions, each standard stream (not so-called Kids
Mode) is considered one paying subscriber.
CER Constant Exchange Rates.
EBITDA Earnings before interest, taxes, depreciation and amortization.
EBITDA margin EBITDA as percentage of Net Sales.
Equity-to-asset ratio Adjusted equity (equity including non-controlling interest and untaxed
reserves less deferred tax) as a percentage of the balance sheet total.
Revenue – Books
(Table 1)
Physical books and digital sales through channels other than Storytel.
Internal revenue from Storytel has been eliminated. All publishing

===== SIDA 24 =====

houses in the Group, both those located in Sweden and those located
internationally, are included.
Revenue – Streaming
(Table 1)
ARPU * Paying Subscribers.
Items affecting
comparability (IAC)
Items affecting comparability include certain items of a significant char-
acter that distort comparisons over time. These have been defined as:
• Costs in connection with acquisitions
• Restructuring costs
• Costs related to operationalizing the pause and eventual wind
down in Russia

===== SIDA 25 =====

This information is information that Storytel AB (publ) is obliged to make public pursuant to the EU Mar-
ket Abuse Regulation. The information was submitted for publication at 8:00 a.m. CEST on May 3, 2023.

Stockholm, May 3, 2023
Johannes Larcher
CEO

===== SIDA 26 =====

Contacts
Storytel AB (publicly traded)

• Mailing address: Box 24167, 104 51 Stockholm
• Office: Tryckerigatan 4/Norra Riddarholmshamnen 1, 111 28 Stockholm
• CIN: 556575-2960
• Email: investorrelations@storytel.com
• Website: www.storytel.com, https://investors.storytel.com

For more information, please contact:
Niklas Alm, Head of Investor Relations
Cell: +46 70 824 40 88
Email: niklas.alm@storytel.com

Dan Panas, Senior Director Corporate Communications
Cell: +46 70 186 52 90
Email: dan.panas@storytel.com