Kvartalsrapport Q3 2024

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===== SIDA 1 =====

“Inthethirdquarter, StorytelGroupdeliveredrecord-highrevenue,adjustedEBITDA,andcashflowasthecompanycontinuedtoexecuteitsprofitablegrowthstrategy.”
HighlightsUnlessotherwisespecified, numbersarefor Q32024andarecomparedtoQ32023● Grouprevenueup7%to954(896) MSEK, and8%at constant exchangerates(CER)● Streamingrevenueup5%, and8%at constant exchangerates(CER)● Publishingrevenueup13%withanincreaseindigital salesof 18%andprint salesof 6%● AdjustedGrossprofit up18%to436(368) MSEK, equalingamarginof 45.7%(41.1%)● AdjustedEBITDAincreasedby77%to178(101) MSEK, equalingamarginof 18.7%(11.3%)
● TheGroupupdatesits2024guidanceonadjustedEBITDAmargintobearound15%(from13%), onoperational cashflowtobeat least 10%(from8%), andonorganicrevenuegrowthtobearound8%(from10%)
● Bodil ErikssonTorpassumedtheroleof CEOof Storytel Groupasof October 1, 2024
Financial summary
MSEK Q32024 Q32023 Change
Jan-Sep2024
Jan-Sep2023 ChangeGroupRevenue¹ 954 896 7% 2,770 2,543 9%StreamingRevenue² 852 809 5% 2,498 2,299 9%PublishingRevenue³ 285 252 13% 793 716 11%AdjustedGrossprofit 436 368 18% 1,229 1,019 21%Grossprofit 434 368 18% 1,223 1,019 20%AdjustedGrossmargin% 45.7 41.1 4.6p 44.4 40.1 4.3pAdjustedOperatingprofit 105 20 n.a 199 -49 n.aOperatingprofit 87 15 n.a 110 -62 n.aAdjustedEBITDA 178 101 77% 410 186 121%AdjustedEBITDAmargin% 18.7 11.3 7.4p 14.8 7.3 7.5pEBITDA 161 96 67% 322 172 87%Basicanddilutedearningsper share(SEK) 0.67 -0.06 n.a 0.72 -1.29 n.aCashflowfromoperationsbeforechangesinworkingcapital 148 79 88% 283 121 134%Net cashflow 140 14 n.a 11 -250 n.aOperational cashflow 146 65 n.a 306 67 n.aNet Interest-BearingDebt (NIBD) 202 308 -35% 202 308 -35%NIBD/adjustedEBITDAratio 0.4 1.5 -73% 0.4 1.5 -73%
¹ Theadjustmentsfromsegment level togrouplevel are1) RemovingStorytel Norwayat 50%, 2) Removinginternal publishingrevenuefromNetSalesandaddinginternal publishingrevenueascost reductionwithinCost of Sales, 3) AddingCostsrelatedtocentral groupoverheadfunctions4) Addingresult fromNorwayinaccordancewiththeequitymethod. SeeNote5tothefinancial statementsfor additional details.² Streamingrevenueincludes50%of Storytel Norway’srevenueinlinewithStorytelsownership.

===== SIDA 2 =====

³ Publishingrevenueincludesbothexternal andgroup-internal revenue.
CEO-statement“LookingforwardtocontinuingtostrengthenStorytel'sexcellentpositioninthemarket”I ambothexcitedandhonoredtostepintotheroleof CEOat Storytel Group. AsI start thisnewchapter, I want toacknowledgetheteam'ssuccessful executionof thecompany’sprofitablegrowthstrategyunder theleadershipof mypredecessor JohannesLarcher - andI’mlookingforwardtocontinuingtostrengthenStorytel'sexcellent positioninthemarket. Under myleadership, wewill continuetomovetheworldthroughastory, explorenewpossibilities, andpushtheboundariesof what canbeachieved-all inorder todeliver incremental valuetoourcustomersandstakeholders.
Strongoperatingperformance
Inthethirdquarter, Storytel Groupcontinuedtodeliver onitsprofitablegrowthstrategy, resultinginrecord-highgrouprevenue, adjustedEBITDA,andcashflow. Thestrongoperatingperformanceresultedinanadjustedoperatingprofit of 105MSEK, excludingitemsaffectingcomparability,equalingamarginof over 11percent.
Revenuegrowthreached7percent inthethirdquarter. Theslower growthratewasprimarilyduetoastronger SwedishKrona. Revenuegrowthatconstant exchangerates(CER) was8percent. Atthesametime, adjustedcost of salesdecreasedby2percent andadjustedoperatingexpensesby5percent. TheGroup’sadjustedEBITDAincreasedsignificantlyby77percentyear-on-year to178MSEKinthethirdquarter,thankstocontinuedrevenuegrowthandstrictcost management. Thismarksthehighest levelinStorytel'shistory, equal toamarginof 18.7percent. TheGroup’soperational cashflowamountedto146MSEK, representing15.3percent of total revenues.
Inthequarter, theStreamingsegment grewthesubscriber baseby10percent year-on-year,whilerevenuegrowthwas42MSEK, equal to5percent or 8percent withCER. ARPUdecreased
by4percent duetocurrencyheadwindsandahigher proportionof newsubscribersinlowerpricedtiers. InthefiveNordiccoremarketsoverall revenuegrowthreached3percent, or 5percent withCER. InthefiveNon-Nordicscoremarkets, priceincreasesoffset currencyheadwindsandrevenuesgrewby16percent, or19percent withCER.
ThePublishingsegment showedastrongincreaseinrevenues, by33MSEKto285MSEK.Thisrepresentsgrowthof 13percent, drivenbystronggrowthindigital salesof 18percent whilesalesof printedbooksincreased6percent, duetostrongbookreleases.
Solidhealthofthesubscriberbase
Thesummer highseasonmarkedsteadyprogressfor theStreamingbusiness, withnotableachievementsinbothintakeandcustomer retention. Paidchurnstayedat recordlowlevels, alsodrivenbysummer campaignsintheNordicsthat introducednewsubscriptiontierswithflexiblepricingoptions, offeringconsumersmorepersonalizedchoicesallowingthemtoselect aplanthat best suitstheir needs.
TheseeffortsweresupportedbyimprovedCRMpracticesthat havebecomeaneffective
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===== SIDA 3 =====

acquisitionenginethroughinitiativessuchaswinbackandcompleteregistrationwhilealsoincreasingcustomer loyalty. Asaresult, Storytelhasnot onlyexpandeditssubscriber basebutalsocontinuestohaveastronghealthof thebase. Finland, inparticular, sawoutstandingsuccesswiththe“Premiumfor Life” campaignthissummer, resultinginsignificantlyreducedchurnandstrongsubscriber growthof 30percent year-on-year.
Increasedconsumptionfrominternalpublishers
Astheowner of someof themost prestigiouspublishinghousesintheNordicregion, StorytelGroupisuniquelypositionedtoblendthebest ofpublishingandstreamingintoanattractiveconsumer offeringandtodeliver high-qualitycontent acrossawiderangeof genres.Consumptionof titlesfromtheGroup’sinternalpublisherscontinuestoshowsteadygrowth,underscoringthequalityof thecontent lineup.
Inthethirdquarter, theStorytel original fromDanishbestsellingauthor NisJakobattractedconsumersinbothDenmarkandSwedenwithhisRedRevengeseries, whiletheintensetruestoryInSicknessandinHealthdrewsignificantaudiencesinFinland.
Norstedtshadasuccessful summer releasewithEmelieSchepp'sthriller Hundradagar i juli,whichtoppedall bestseller listsinSweden. AtGummerus, Anni Kytömäki'sMirabilisledtheFinnishfictioncategory, whileG.T. Karber'sMurha! contributedsignificantlytothegrowthofnon-fiction. InDenmark, People’spartneredwithMofibotolaunchSofieSarenbrant andCarinaBergfeldt'sFødselsdagen, whichwasofferedexclusivelyonMofiboduringafour-weekperiod.
InSeptember, Swedishcrimeauthor SammyJeridi signedamulti-bookdeal withNorstedtsandStorytel, showcasingthedynamicsynergiesbetweenthestreamingplatformandpublishinghouseswithintheGroup, followingDeniseRudberg, toenter intosuchanagreement.
Wellpositionedforthefuture
Thestrategicshift towardsincreasedefficienciesandprofitablegrowth, initiatedin2022andreinforcedin2024, hasledtosignificantlyhigherprofitabilitywhilemaintainingsolidgrowth. Withthecontinuedstrongcompetition, particularlyinour coreNordicmarkets, wehaveappliedadisciplinedapproachtomarketingspend.Therefore, our full-year revenuegrowthguidancehasbeenrevisedtoaround8percent.
At thesametime, wewill beclosetoor reachthepreviouslyoutlined2026mid-termtargetsofadjustedEBITDAmarginabove15percent, andoperational cashflowabove10percent ofrevenues, alreadyin2024- morethantwoyearsaheadof plan. Thisachievement significantlystrengthensthecompany’sfinancial positionandopensupseveral strategicopportunities.
I’mfilledwithexcitement for what liesahead. Thededicationof theteam, theboard, our authors,partnersandconsumersarethedrivingforcetoour success. Together withour passionateteamIlookforwardtocreatinganevenbrighter futurefor Storytel Group.
Bodil ErikssonTorp, CEO
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===== SIDA 4 =====

GroupperformanceAdjustedgroupperformance
MSEK Q32024 Q32023 Change
Jan-Sep2024
Jan-Sep2023 ChangeNet sales 954.0 895.8 7% 2,770.4 2,543.1 9%Cost of sales -518.5 -528.0 -2% -1,541.3 -1,524.2 1%Adj. Grossprofit 435.5 367.8 18% 1,229.1 1,018.9 21%Sellingandmarketingexpenses -197.7 -191.4 3% -625.3 -614.1 2%Technologyanddevelopment expenses -53.6 -61.7 -13% -168.5 -195.2 -14%Administrativeexpenses -72.7 -105.2 -31% -229.7 -283.9 -19%Other operatingitems -9.2 5.3 n.a. -6.0 15.3 n.aProfit fromparticipationsinassociates 2.6 4.8 -45% -0.8 10.3 n.aAdj. Operatingprofit/loss 105.1 19.6 436% 198.8 -48.6 n.a.Addbackdepr. 73.3 81.4 -10% 211.3 234.4 -10%Adj. EBITDA 178.4 101.0 77% 410.1 185.8 121%Adj. GM% 45.7 41.1 4.6p 44.4 40.1 4.3pAdj. EBITDA% 18.7 11.3 7.4p 14.8 7.3 7.5p
DevelopmentsQ32024
Comparativefiguresinbracketspertaintothethirdquarter 2023. AdjustedfiguresexcludeItemsaffectingcomparability(IACs); seenote7for further details.
NetsalesGroupnet salesfor thequarter increasedby7%to954.0(895.8) MSEK. Thisisthehighest levelof salesachievedinaquarter. TheincreaseisdrivenbysolidgrowthinboththeStreamingandthePublishingsegments.Astronger SwedishKronahadanegativeeffectonthegrowthrate. Groupsalesgrowthwas8%at constant exchangeratesintheperiod.
GrossprofitCost of salesfor theperioddecreasedto-520.2(-528.0) MSEKandgrossprofit increasedby18%amountingto433.9(367.8) MSEK.
AdjustedGrossprofit increasedby18%to435.5(367.8) MSEK, whichequalsamarginof 45.7%(41.1%), up4.6percentagepointsfromlast year.Thesignificant improvement isdrivenbyacombinationof growthinrevenueandareductionof costsfromtheefficiencymeasurescarriedout sinceQ32023.
EBITDAInthethirdquarter thefull effect of thecostefficiencymeasurescarriedout sinceQ32023becamevisible. Adjustedoperatingcostdecreased5.1%whichsupportedprofitability.EBITDAfor thequarter increased67%to160.6(96.4) MSEK. Duringthequarter, StorytelrecognizedItemsAffectingComparability(IACs)of -17.8(-4.6) MSEK, all affectingEBITDA.AdjustedEBITDAfor thequarter increased77%to178.4(101.0) MSEK, whichequalsamarginof18.7%(11.3%), thehighest level ever achieved.
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===== SIDA 5 =====

OperatingprofitOperatingprofit (EBIT) for thequarter totaled87.3(15.0) MSEK. Adjustedoperatingprofit forthequarter increased436%andtotaled105.1(19.6) MSEK. whichisequal toamarginof11.0%.Adjustedsellingandmarketingexpensesincreased3%to-197.7(-191.4) MSEK.Marketingefficiencycontinuedtoimprovebutthecost istoalargeextent drivenbycustomeracquisitioninitiatives. Asapercentageofrevenuesmarketingcostscontinuedtodecline.Adjustedtechnologyanddevelopment expensesdecreasedby13%to-53.6(-61.7) MSEKandadjustedgeneral andadministrativeexpensesdecreasedby31%to-72.7(-105.2) MSEK.Other operatingitemsincludecurrencyeffectswithinoperatingexpenseswhichincreasedduetoastronger Swedishkrona.
NetprofitProfit beforetaxfor thequarter amountedto61.5(0.7) MSEK. Net financial itemsfor thequartertotaled-25.9(-14.3) MSEK. Theamount includes-7.4(-14.0) MSEKof net interest costs, aswell as-17.4(1.6) of currencyeffects, mainlyfromaUSDdenominatedcommitment derivedfromtheacquisitionof Audiobooks.com.Taxesfor thequarter amountedto-6.4(-2.6)MSEK. Net profit for thequarter amountedto55.1(-2.0) MSEK.Earningsper sharefor thequarter totaled0.67(-0.06) SEK, beforeandafter dilution.
CashflowCashflowfromoperationsbeforechangesinworkingcapital amountedto148.2(78.9) MSEK.Thisisthestrongest cashflowsofar inaquarterinthecompany’shistory.Thechangeinworkingcapital was44.7(41.0)MSEK, resultingincashflowfromoperatingactivitiesof 192.9(119.9) MSEKfor thequarter.Changesinworkingcapital wereduetoseasonalityinaccruedexpenses.Cashflowfrominvestingactivitieswas-43.6(-46.4) MSEK, of which-32.5(-35.8) MSEKrelatetoOperational Capex. Cashflowfromfinancingactivitieswas-9.3(-59.4) MSEK. Thecomparablequarter includesa50MSEKrepayment ontheprevioustermloanwhichhasbeenfullyrepaid.Total cashflowfor thequarter was140.0(14.1)MSEK.
DevelopmentJanuary-September 2024ComparativefiguresinbracketspertaintotheperiodJanuary-September 2023. AdjustedfiguresexcludeItemsaffectingcomparability(IACs); seenote7for further details.
NetsalesGroupnet salesfor theperiodincreasedby9%to2,770.4(2,543.1) MSEK. TheincreaseisdrivenbysolidgrowthbothintheStreamingandPublishingsegments.Groupsalesgrowthwas9%at constantexchangeratesintheperiod.
GrossprofitReportedcost of salesfor theperiodincreasedto-1,547.5(-1,524.2) MSEKandGrossprofitamountedto1,222.9(1,018.9) MSEK.Adjustedcost of salesincreasedby1%to-1,541.3(-1,524.2) MSEKandtheadjustedgrossprofit increased21%to1,229.1(1,018.9) MSEK.Thisequalsamarginof 44.4%(40.1%), anincreaseby4.3percentagepoints.
EBITDAEBITDAfor theperiodincreased87%to321.8(172.0) MSEK. Duringtheperiod, StorytelrecognizedItemsAffectingComparability(IACs)of -88.3(-13.8) MSEK.AdjustedEBITDAfor theperiodincreased121%to410.1(185.8) MSEKwhichequalsamarginof14.8%(7.3%). Thesignificant improvement isdrivenbyacombinationof revenuegrowthandareductionof costsasaresult of thecostefficiencymeasurescarriedout sinceQ32023.
OperatingprofitOperatingprofit (EBIT) for theperiodtotaled110.4(-62.4) MSEK. Adjustedoperatingprofitwas198.8(-48.6) MSEK, equal toamarginof7.2%.Adjustedsellingandmarketingexpensesincreased2%to-625.3(-614.1) MSEK. Thecostistoalargeextent drivenbycustomeracquisitioninitiatives. Asapercentageofrevenues, marketingexpenseshavedecreasedduetocontinuedmarketingefficiency.Adjustedtechnologyanddevelopment expensesdecreasedby14%andtotaled-168.5(-195.2)MSEKandadjustedgeneral andadministrativeexpensesdecreased19%andtotaled-229.7(-283.8) MSEK.
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===== SIDA 6 =====

NetprofitProfit beforetaxfor theperiodamountedto77.0(-81.6) MSEK. Net financial itemsfor theperiodtotaled-33.5(-19.2) MSEK. Theamount includes-31.3(-44.4) MSEKinnet interest costs, and-0.6(1.6) MSEKcurrencyeffectsmainlyfromaUSDdenominatedcommitment derivedfromtheacquisitionof Audiobooks.com.Taxesfor theperiodamountedto-12.7(-12.9)MSEK. Net profit for theperiodamountedto64.3(-94.4) MSEK.Earningsper sharefor theperiodtotaled0.72(-1.29) SEK, beforeandafter dilution.
CashflowCashflowfromoperatingactivitiesbeforechangesinworkingcapital was282.6(121.0) MSEK.
Thechangeinworkingcapital was-11.0(57.1) MSEK, andwasduetothediscontinuedsalesof theStorytel Reader, aswell asanincreaseininventory, account receivablesandroyaltyaccrualsdrivenbyhigher sales. Theresultingcashflowfromoperatingactivitieswas271.6(178.0) MSEKfor theperiod.Cashflowfrominvestingactivitieswas-126.4(-146.3) MSEK, of which103.8(-118.9) MSEKrelatetoOperational Capex.Cashflowfromfinancingactivitieswas-134.1(-282.1) MSEK. Thecurrent periodincludestherepayment of a100MSEKtermloan. Thecomparableperiodincludestherepayment of a500MSEKbridgeloanandutilizationof a200MSEKbanktermloanand100MSEKRCF. Attheendof September 2023, 50MSEKof thebanktermloanwasamortized.Total cashflowfor theperiodwas11.2(-250.5)MSEK.
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===== SIDA 7 =====

Segmentperformance:Streaming
Thecompanyreportssegment financialsfor itstwobusinessareas: StreamingandPublishing. TheStreamingsegment consistsof all audiobookandebookstreamingservicesoperatedunder thebrandsStorytel, Mofibo, andAudiobooks.com. KPIsarepresentedonaregional level: Nordics(Sweden, Denmark,Norway, Finland, andIceland), Non-NordicsCore(theNetherlands, Poland, Bulgaria, Turkey, andall of theoperationsof Audiobooks.com), andRest of World(all remaining, former expansion, markets).
Streamingperformance
MSEK Q32024 Q32023 Change
Jan-Sep2024
Jan-Sep2023 ChangeNet sales 851.7 809.4 5% 2,498.1 2,298.6 9%Cost of sales -497.3 -489.1 2% -1,457.7 -1,388.6 5%Adj. Grossprofit 354.4 320.3 11% 1,040.4 910.0 14%Sellingandmarketingexpenses -186.9 -183.0 2% -590.4 -568.8 4%Technologyanddevelopment expenses -46.7 -54.4 -14% -160.6 -174.2 -8%Administrativeexpenses -20.5 -50.4 -59% -64.4 -112.2 -43%Other operatingitems -10.6 4.5 n.a. -13.2 9.4 -240%Adj. Operatingprofit/loss 89.7 37.0 142% 211.7 64.1 231%Addbackdepr. 31.6 40.7 -22% 91.7 118.1 -22%Adj. EBITDA 121.2 77.7 56% 303.4 182.2 67%Adj. GM% 41.6 39.6 2.0p 41.6 39.6 2.0pAdj. EBITDA% 14.2 9.6 4.6p 12.1 7.9 4.2p
IntheStreamingsegment’saccounts, net salesinclude50%of Storytel Norway’srevenueinlinewithStorytelsownership. Intheconsolidatedaccounts, Storytel Norwayisreportedinaccordancewiththeequitymethod. Internal costsareincludedinCost of sales. Asaresult, thetableshowshigher net salesandcoststhanintheconsolidatedaccounts. SeeNote5foradditional details.
Boththequarter andthefirst ninemonthsof theyear deliveredsignificantlyimprovedprofitabilityduetoareductionof expensesonthebackofthecost efficiencymeasurescarriedout inQ12024andarecordlevel of net sales.
NetsalesandgrossprofitStreamingnet salesfor thequarter increasedby5%fromthecomparativequarter to851.7(809.4) MSEK. Astronger SwedishkronaweightedonthegrowthratewhichwithCERwouldhavebeen8%.All coremarkets, theNordicsandtheNon-Nordics, contributedwithparticularlystronggrowthintheNon-Nordicmarketswhererevenuesincreased16%, and19%inCER.Net salesfor theperiodincreased9%to2,498.1(2,298.6) MSEKwithNon-NordicsCoreexperiencingthefastest growthwith17%.Thegrowthinsaleswasdrivenbyahighernumber of subscriberswhichincreased10%inthequarter and11%intheperiod. ARPUdecreasedby4%inthequarter andby2%intheperiod.Withadjustedcost of salesincreasingslowerthannet sales, adjustedgrossprofit developed
favorablywitha11%growthto354.4(320.3)MSEKinthequarter. For theperiodadjustedGrossprofit grew14%to1040.4(910.0) MSEK.Theadjustedgrossprofit marginwas41.6%(39.6%) for boththequarter andfor theperiod.
EBITDAandoperatingprofitAdjustedEBITDAinthequarter increased56%to121.2(77.7) MSEKand67%for theperiodto303.4(182.2) MSEKrepresentingamarginof14.2%(9.6%) and12.1%(7.9%), respectively.Adjustedoperatingprofit increased142%to89.7(37.0) MSEKinthequarter and231%to211.7(64.1) MSEKintheperiod.
BusinessdevelopmentsThesummer highseasonmarkedsteadyprogresswithachievementsinintakeandcustomer retention. Churndroppedtorecordlowlevels, mainlyduetotheNordicsintroducingnewsubscriptiontierswithflexiblepricingoptions.TheseeffortsweresupportedbyimprovedCRMpractices, effectivelydrivingacquisitionthroughwinbackandcompleteregistration, whilealsoincreasingcustomer loyalty.
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===== SIDA 8 =====

Streaminggeographicalperformancesplit
Streamingsubscriberdevelopment
1 
Revenueincludes100%of Storytel Norway’srevenuetoprovideamoreaccuratefigurefor averagerevenueper subscriber (ARPU). IntheStreamingsegment’saccounts, revenueincludes50%of Storytel Norway’srevenueinlinewithStorytelsownership. Intheconsolidatedaccounts, Storytel Norwayisreportedinaccordancewiththeequitymethod. Asaresult, theStreamingKPI Tableshowshigher revenuethanintheStreamingsegment’sandconsolidatedaccounts. PleaseseeNote5for additional details. 
8
TSEK Q32023 Q42023 Q12024 Q22024 Q32024
Jan-Sep2023
Jan-Sep2024All MarketsRevenue
1 
842,407 858,210 836,858 868,286 888,882 2,383,369 2,594,025AdjustedGrossprofit 324,479 346,265 337,277 350,704 358,490 918,635 1,046,470AdjustedGrossmargin 38.5% 40.3% 40.3% 40.4% 40.3% 38.5% 40.3%Avg. PayingSubscribers 2,144,000 2,201,000 2,255,000 2,285,000 2,366,000 2,080,000 2,303,000ARPU(SEK/month) 131 130 124 127 125 127 125
NordicsRevenue
1 
571,625 573,674 559,172 570,427 585,986 1,611,973 1,715,585AdjustedGrossprofit 201,695 212,663 209,998 212,530 217,304 566,886 639,832AdjustedGrossmargin 35.3% 37.1% 37.6% 37.3% 37.1% 35.2% 37.3%Avg. PayingSubscribers 1,169,000 1,183,000 1,188,000 1,203,000 1,262,000 1,139,000 1,218,000ARPU(SEK/month) 163 162 157 158 155 157 157
Non-NordicsCoreRevenue 226,582 242,052 235,201 256,608 262,251 641,908 754,061AdjustedGrossprofit 106,570 118,718 112,259 123,632 126,139 305,577 362,030AdjustedGrossmargin 47.0% 49.0% 47.7% 48.2% 48.1% 47.6% 48.0%Avg. PayingSubscribers 786,000 829,000 880,000 896,000 915,000 748,000 897,000ARPU(SEK/month) 96 97 89 95 96 95 93
Rest of WorldRevenue 44,200 42,483 42,486 41,250 40,644 129,489 124,380AdjustedGrossprofit 16,213 14,883 15,020 14,542 15,047 46,172 44,608AdjustedGrossmargin 36.7% 35.0% 35.4% 35.3% 37.0% 35.7% 35.9%Avg. PayingSubscribers 189,000 189,000 187,000 186,000 189,000 193,000 188,000ARPU(SEK/month) 78 75 76 74 72 75 74

===== SIDA 9 =====

Segmentperformance:Publishing
Thecompanyreportssegment financialsfor itstwobusinessareas: StreamingandPublishing. ThePublishingsegment consistsof all publishinghouseswithinStorytel Group: NorstedtsPublishingGroup,Lind&Co, Gummerus, andPeople’s, aswell asour global digital audiopublisher Storyside. ThePublishingsegment alsoincludesexternal salesfromcontent productions.
PublishingPerformance
MSEK Q32024 Q32023 Change
Jan-Sep2024
Jan-Sep2023 ChangeNet sales 285.0 251.6 13% 793.1 715.7 11%Cost of sales -186.6 -186.9 0% -549.7 -546.3 1%Adj. Grossprofit 98.4 64.7 52% 243.5 169.4 44%Sellingandmarketingexpenses -16.2 -14.9 9% -50.5 -62.7 -20%Technologyanddevelopment expenses -6.9 -7.3 -5% -18.4 -20.9 -12%Administrativeexpenses -29.5 -23.8 24% -91.5 -93.9 -3%Other operatingitems 1.5 0.8 n.a. 7.2 5.9 21%Adj. Operatingprofit/loss 47.2 19.6 141% 90.2 -2.2 n.a.Addbackdepr. 39.9 39.3 1% 114.3 114.9 -1%Adj. EBITDA 87.0 58.9 48% 204.5 112.7 82%Adj. GM% 34.5 25.7 8.8p 30.7 23.7 7.0pAdj. EBITDA% 30.5 23.4 7.1p 25.8 15.7 10.1p
InthePublishingsegment’saccounts, group-internal salesareincludedinnet sales. Asaresult, thetableshowshigher netsalesthanintheconsolidatedaccounts. SeeNote5for additional details.
Thequarter andfirst ninemonthsof theyeardeliveredsignificantlyimprovedprofitability.Revenuesgrewduetoastronggrowthof digitalsalesandoperatingexpensesdecreasedonthebackof thecost efficiencymeasurescarriedoutsinceQ32023.
Our publishinghousesreleasedseveral titlesthattoppedbestseller lists. Asaresult, consumptiononStorytel’sandMofibo’splatformsof titlesfrominternal publishersreachedrecordlevels.
NetsalesandgrossprofitNet salesinthequarter increasedby13%to285.0(251.6) MSEK, whichwasdrivenbythe18%growthindigital salesparticularlyfromtheStorytel, MofiboandNextoryplatforms. Salesofprintedbooksincreased6%inthequarter, duetoseveral strongbookreleases.
Similarly, net salesfor theperioddevelopedstronglyandincreased11%to793.1(715.7)MSEK. Theagreement withNextory, whichcameintoeffect graduallyinthelater part of thefirstquarter, hassupportedgrowthindigital sales.Net salesof printedbookswasflat for theperiod.
Adjustedcost of salesgrewsignificantlyslowerthannet sales, supportinganexpansionof theadjustedgrossprofit inthequarter with52%to98.4(64.7) MSEK, representingaGrossmarginof 34.5%(25.7%). IntheperiodadjustedGross
profit grew44%to243.5(169.4) MSEKrepresentingaGrossmarginof 30.7%(23.7%).
EBITDAandoperatingprofitAdjustedEBITDAinthequarter improved48%to87.0(58.9) MSEK, and82%to204.5(112.7)MSEKfor theperiod, representingamarginof30.5%(23.4%) inthequarter and25.8%(15.7%)duringtheperiod, respectively.
Adjustedoperatingprofit increasedby141%to47.2(19.6) MSEKandto90.2(-2.2) MSEKfor theperiod.
BusinessdevelopmentsConsumptionof titlesfromtheGroup’sinternalpublisherscontinuestoshowsteadygrowth,underscoringthequalityof thecontent lineup.
InSeptember, Swedishcrimeauthor SammyJeridi signedamulti-bookdeal withNorstedtsandStorytel, showcasingthesynergieswithintheGroup. Jeridi isoneof several authors,followingDeniseRudberg, toenter intoanagreement withNorstedtsandStorytel,highlightingtheattractionof our combinedpublishingandstreamingbusiness.
9

===== SIDA 10 =====

Otherinformation
Financialposition,equity&liquidity(comparedtoSeptember30,2023)At theendof theperiod, theGrouphad448.2(540.6) MSEKincashandcashequivalents. Theequity-to-asset ratioat theendof theperiodwas43.9%(51.9%).
Total equityat theendof theperiodwas1,330.0(2,099.8) MSEK.
Total non-current liabilitiesamountedto165.6(946.9) MSEKandtotal current liabilitiesamountedto1,536.4(1,002.2) MSEK.
Out of thetotal current liabilities, 650MSEKrelatetotheutilizedpart of the750MSEKRCF.Duringtheperiod, 100MSEKof atermloanwasamortizedandisnowfullyrepaid.
InOctober, theRCFwasextendeduntil 2April2026at largelyunchangedtermswhiletheframeworkwasreducedto700MSEK.
Total availableliquidity(cashandcashequivalentsandunutilizedRCF) totalled548.2MSEKat theendof theperiod.
Net interest-bearingdebt (NIBD) was201.8(308.4) MSEKwithaNIBD/adjustedEBITDAratioof 0.4(1.5) at theendof theperiod.
FulltimeemployeesTheaveragenumber of employees(FTE) duringthethirdquarter was523. Duringthethirdquarter 2023, theaveragenumber of FTEwas659.
ParentcompanyStorytel ABistheGroup’sParent Companyandresponsiblefor Group-widemanagement,administrationandfinancing.Net salesfor theParent Companyamountedto12.3(9.7) MSEKinthequarter, profit beforetaxamountedto-9.6(-10.8) MSEK, andprofit/lossamountedto-9.6(-10.8) MSEK. Total equityamountedto4,173.3(4,196.8) MSEK. Thecondensedincomestatement andbalancesheetfor theParent Companyarepresentedinthefinancial statementsfor theParent Companybelow.
RisksanduncertaintyfactorsTheGroupissubject tosignificant risksanduncertainties. Themost relevant riskfactorsaredescribedintheAnnual andSustainabilityReport 2023andincludeoperational, strategic,legal &compliance, cyber, andfinancial risks.Geopolitical concernsaswell astheongoingwarinUkraineandthewar betweenIsrael andHamasaddsuncertaintyfromaglobal,macroeconomicperspective. Storytel previouslyannouncedandphasedout itsoperationsinRussiabythethirdquarter of 2022, andasofSeptember 30, 2024, despiteprevailinguncertainties, thegroupisnot awareof anyremainingmaterial balancesheet exposure. Thegroup’soperationsandexposureinIsrael arenotmaterial.
10

===== SIDA 11 =====

SignificanteventsduringtheperiodOnSeptember 23, Storytel enteredamulti-market partnershipwithwellnessplatformWellhubinseveral markets; Brazil, Mexico, Chile,Argentina, Spain, Italy, Germany, IrelandandUK.
SignificanteventsaftertheperiodOnOctober 1, Bodil ErikssonTorpassumedtheroleof CEOof Storytel Group.
InOctober, theGroup’sRevolvingCredit Facility(RCF) wasextendeduntil 2April 2026at largelyunchangedtermswhiletheframeworkwasreducedto700MSEK.
For moreinformationandafull list ofannouncements, pleasevisit:www.storytelgroup.com/en/newsroom/
Updatedfull-year2024guidanceFollowingtheresult inthefirst threequartersoftheyear, Storytel Group’sfull-year 2024guidancehasbeenupdatedasfollows:
● Organicgrouprevenuegrowthof around8percent, changedfromaround10percent
● Around15percent EBITDAmargin(adjustedfor itemsaffectingcomparability), changedfromabove13percent
● AnOperational CashFlow(adjustedEBITDAlessOperational Capex) above10percent of revenues, changedfromabove8percent
Mid-termfinancialtargetsDuringJanuary2024, Storytel Group’sBoardofDirectorsdecidedonthebelowmid-termfinancial targets.
Revenue● Total net salestoreacharound4,500MSEKin2026throughorganicgrowth.● Organicaverageannual streamingrevenuegrowthof 10to12percent.EBITDAmargin● EBITDAmarginabove15percent in2026,withalong-termambitionof 20percent orhigher.Operational CashFlow● Operational CashFlowabove10percent in2026.
Giventheperformancein2024, theGroupexpectstobeclosetoor reachitsmid-termtargetsonadjustedEBITDAmarginandoperational cashflowalreadyin2024, andwewill further assessanyneedtoupdatethemid-termtargets.
11

===== SIDA 12 =====

NumberofsharesandsharecapitalasofSeptember30,2024Therewere77,128,993(77,073,120) registeredsharesinissuanceat theendof theperiod,dividedbetween635ClassAsharesand77,128,358ClassBshares. Sharecapital totaled38,564,496.50(38,536,560.00) SEKasofSeptember 30, 2024.Theshareholder structureispresentedat:https://www.storytelgroup.com/en/investor-relations/shareholder-structure/
Auditor'sreviewThisinterimreport hasnot beenauditedorreviewedbytheauditorsof thecompany.
InformationaboutNasdaqFirstNorthGrowthMarketNasdaqFirst NorthGrowthMarket (“First North”)isanalternativemarketplaceoperatedbytheconstituent exchangesof NasdaqStockholm. Itdoesnot havethesamelegal statusasaregulatedmarketplace. CompaniesquotedonFirst Northaresubject toFirst North’srulesrather thanthelegal requirementsset for tradingonaregulatedmarketplace. Aninvestment inacompanytradingonFirst Northimplieshigherriskthananinvestment inalistedcompany.Companiesmust applytotheexchangeandgainapproval beforetradingonFirst Northmaycommence. ACertifiedAdviser guidesthecompanythroughthelistingprocessandensuresthat thecompanycontinuouslysatisfiesFirst North’sstandards.
FinancialcalendarYear-EndReport January–December 2024 February12, 2025InterimReport January–March2025 April 29, 2025Annual General Meeting May6, 2025(Tobeheldat Tryckerigatan4, Stockholm)InterimReport January–June2025 July29, 2025InterimReport January–September 2025 October 28, 2025Year-EndReport January–December 2025 February10, 2026
Formoreinformation
MattiasFrithiof, Headof Investor RelationsCell: +46765352674Email: mattias.frithiof@storytel.com, investorrelations@storytel.comWeb: www.storytelgroup.com, www.storytel.com
Storytel AB(publiclytraded)Mailingaddress: Box24167, 10451StockholmOffice: Tryckerigatan4, 11128StockholmCIN: 556575-2960
12

===== SIDA 13 =====

Signaturesandassurance
TheBoardof DirectorsandtheChief ExecutiveOfficer offer their assurancethat thisinterimreportprovidesatrueandfair viewof theGroup’sandtheParent Company’soperations, financial positionandoperational performance.
Stockholm, October 29, 2024
HélèneBarnekow UlrikaDanielssonChair of theBoard Boardmember
Alexander Lindholm JoakimRubinBoardmember Boardmember
JonasSjögren JonasTellanderBoardmember Boardmember
ErikTidén FilippaWallestamBoardmember Boardmember
Bodil ErikssonTorpCEO
Theinformationinthisreport constitutesinsideinformationthat Storytel AB(publ) isobligedtodiscloseinaccordancewiththeEUMarket AbuseRegulation(EUnr 596/2014). Theinformationwasprovided,throughtheagencyof thebelowcontact persons, at 8:00a.m. CETonOctober 29, 2024.
13

===== SIDA 14 =====

GroupfinancialstatementsCondensedconsolidatedinterimstatementsofcomprehensiveincome
TSEK Q32024 Q32023 Jan-Sep2024 Jan-Sep2023
Jan-Dec2023
Net sales 954,022 895,758 2,770,395 2,543,121 3,489,220Cost of sales -520,168 -527,980 -1,547,461 -1,524,176 -2,241,895
Grossprofit 433,853 367,778 1,222,934 1,018,944 1,247,326Sellingandmarketingexpenses -197,859 -191,377 -635,052 -614,119 -845,177Technologyanddevelopment expenses -53,911 -61,726 -193,679 -195,170 -303,017Administrativeexpenses -87,990 -109,753 -266,613 -297,648 -869,234Other operatingitems -9,394 5,296 -16,346 15,345 13,147Result fromparticipationinassociates 2,628 4,805 -797 10,271 14,608
Operatingprofit/loss 87,328 15,023 110,448 -62,378 -742,348Net financial items -25,870 -14,346 -33,465 -19,200 -65,122
Profit/lossbeforetaxes 61,458 676 76,983 -81,577 -807,470Tax -6,351 -2,644 -12,720 -12,862 -6,053
Profit/lossfor theperiod 55,107 -1,968 64,262 -94,440 -813,523
Profit for theperiodattributableto:Parent Companyshareholder 51,362 -4,675 55,761 -99,186 -819,186Non-controllinginterest 3,746 2,707 8,501 4,746 5,663
Earningsper share, SEKGrouptotal, basic 0.67 -0.06 0.72 -1.29 -10.63Grouptotal, diluted 0.67 -0.06 0.72 -1.29 -10.63
Statement of comprehensiveincomeProfit/lossfor theperiod, after tax 55,107 -1,968 64,262 -94,440 -813,523
Other comprehensiveincomeItemsthat will bereclassifiedtoprofit/loss(after tax)Translationdifference -28,002 -9,862 4,359 49,390 -42,667Itemsthat will not bereclassifiedtoprofit/loss(after tax)Revaluationof defined-benefit pensionplans -12,281 10,998 -16,175 7,515 -8,744Adjustment of hyperinflationaryeconomies - - 507 - 506
Total other comprehensiveincomefor theperiod, after tax
-40,169 1,135 -11,195 56,904 -50,906
Total comprehensiveincomefor theperiod,after tax
14,938 -833 53,067 -37,536 -864,429
Total comprehensiveincomefor theperiodattributableto:Parent Companyshareholder 11,192 -3,540 44,566 -42,282 -870,092Non-controllinginterest 3,746 2,707 8,501 4,746 5,663
14

===== SIDA 15 =====

Condensedconsolidatedinterimstatementsoffinancialposition
TSEK 30Sep2024 30Sep2023 31Dec2023
Intangibleassets 1,837,895 2,642,746 1,902,303Tangibleassets 15,152 19,563 17,818Right-of-useassets 76,988 97,697 84,119Non-current financial assets 68,641 80,691* 76,376Inventory 57,348 89,090 59,808Tradereceivables 210,392 152,360 193,999Other current receivables 317,389 426,135* 370,086Cashandcashequivalents 448,163 540,614 436,143
Total assets 3,031,967 4,048,896* 3,140,651
Equity 1,330,003 2,099,803* 1,273,182Non-current liabilities 165,553 946,889 173,966Tradepayables 229,366 253,103 274,658Other current liabilities 1,307,045 749,101 1,418,844
Total equityandliabilities 3,031,967 4,048,896* 3,140,651
*Restatedamount, seeNote1
15

===== SIDA 16 =====

Condensedconsolidatedinterimstatementofchangesinequity
30Sep2024 Equityattributabletoshareholdersinparent company
TSEK
Sharecapital
Oth. cap.contri-butions
Translationdifference
Retainedearnings
Total
Non-controllinginterests
Totalequity
Openingequityasof 1/1/2024 38,554 3,578,102 114,445 -2,523,263 1,207,838 65,345 1,273,183
Profit for theyear - - - 55,761 55,761 8,501 64,262Other total comprehensiveincomefortheyear
- - 4,359 -15,554 -11,195 - -11,195
Total comprehensiveincomefor theyear
- - 4,359 40,207 44,566 8,501 53,067
TransactionswiththeGroup'sowners
Dividendtominorityowners - - - - - -7,500 -7,500Share-relatedcompensations - - - 11,253 11,253 - 11,253
Closingequityasat 9/30/2024 38,554 3,578,102 118,804 -2,471,803 1,263,657 66,346 1,330,003
30Sep2023 Equityattributabletoshareholdersinparent company
TSEK
Sharecapital
Oth. cap.contri-butions
Translationdifference
Retainedearnings
Total
Non-controllinginterests
Totalequity
Openingequityasof 1/1/2023 38,537 3,578,102 157,112 -1,712,040* 2,061,711* 70,074 2,131,785*
Profit for theyear - - - -99,186 -99,186 4,746 -94,441Other total comprehensiveincomefortheyear
- - 49,390 7,515 56,904 - 56,904
Total comprehensiveincomefor theyear
- - 49,390 -91,671 -42,282 4,746 -37,536
TransactionswiththeGroup'sowners
Dividendtominorityowners - - - - - -8,146 -8,146Issueexpenses - - - -1,074 -1,074 - -1,074Share-relatedcompensations - - - 14,774 14,774 - 14,774
Closingequityasat 9/30/2023 38,537 3,578,102 206,502 -1,790,011* 2,033,129* 66,674 2,099,803*
*Restatedamount, seeNote1
16

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

Condensedconsolidatedinterimstatementsofcashflows
TSEK Q32024 Q32023 Jan-Sep2024 Jan-Sep2023
Jan-Dec2023
Profit/lossafter financial items 61,458 676 76,983 -81,577 -807,470whereof interest paid -7,441 -13,998 -31,345 -44,350 -55,627Adjustmentsfor non-cashitems 96,458 88,236 228,380 225,448 941,327Taxespaid -9,734 -10,020 -22,758 -22,915 -31,914
Cashflowfromoperationsbeforechangesinworkingcapital
148,182 78,892 282,605 120,956 101,942
Changeininventory -734 5,345 387 13,609 27,656Changeinoperatingreceivables -12,533 -13,745 30,853 55,436 60,138Changeinoperatingliabilities 57,978 49,412 -42,219 -11,996 58,734
Changeinworkingcapital 44,711 41,013 -10,979 57,050 146,528
Cashflowfromoperatingactivities 192,893 119,905 271,626 178,006 248,470
Operational Capex -32,482 -35,834 -103,798 -118,860 -158,075
Cashflowfromother investingactivities -11,140 -10,532 -22,563 -27,483 -35,224
External borrowings - - - -201,752 300,000
Repayment of debt - -50,000 -100,000 -50,000 -650,000
Cashflowfromother financingactivities -9,280 -9,436 -34,061 -30,393 -43,698
Cashflowfor theperiod 139,991 14,103 11,204 -250,483 -338,527
Availablefundsat thebeginningof period 314,753 531,326 436,143 776,341 776,341
Cashflowfor theperiod 139,991 14,103 11,204 -250,483 -338,527
Translationdifferencesinavailablefunds -6,580 -4,814 816 14,756 -1,671
Availablefundsat endof period 448,163 540,614 448,163 540,614 436,143
17

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

Notestothecondensedconsolidatedinterimfinancialstatements
Note1Accountingandvaluationprinciples
Thisinterimreport includestheSwedishParent CompanyStorytel AB(publ), CIN556575-2960, anditssubsidiaries. Storytel isoneof theworld'slargest streamingservicesfor audiobooksande-booksandoffersmorethan1,400,000titlesgloballywithapresenceinover 25markets. Our visionistomaketheworldamoreempatheticandcreativeplacethroughfantasticstoriesthat canbesharedandappreciatedbyanyone, anywhereandat anytime. TheStreamingoperationswithinStorytel Grouparecarriedoutunder thebrandsStorytel, MofiboandAudiobooks.com. ThepublishingbusinessismanagedbyStorytelBooksandtheaudiobookpublisher Storyside. TheParent CompanyisalimitedliabilitycompanywithitsregisteredofficeinStockholm, Sweden. Theheadofficeisat Tryckerigatan4, 11128Stockholm, Sweden.Storytel appliestheInternational Financial ReportingStandards(IFRS) astheyhavebeenadoptedbytheEU. Thisconsolidatedinterimreport waspreparedinaccordancewithIAS34InterimFinancial Reporting,recommendationRFR1issuedbytheSwedishFinancial ReportingBoard, andtheAnnual AccountsAct(1995:1554), whereapplicable.Theinterimreport for theParent CompanywaspreparedinaccordancewithChapter 9of theAnnualAccountsAct (InterimReport) andrecommendationRFR2issuedbytheSwedishFinancial ReportingBoard. Thesameaccountingprinciples, basesfor calculationandassessmentswereappliedtotheGroupandtheParent Companyasinthemost recent annual report. Adetaileddescriptionof theGroup’sotherappliedaccountingprinciplesandnewandpendingstandardsisincludedinthemost recentlypublishedannual report.TherearenonewIFRSstandardsor amendmentsof existingIFRSstandardsduring2023and2024thathavehadamaterial impact ontheperformanceandfinancial positionof Storytel. Disclosurespursuant toIAS34.16Aarealsopresentedinthefinancial statementsaswell asrelatednotes, andareanintegral partof thisfinancial statement.
Duringtheyear 2023, theinterpretationandthepreviouslyappliedaccountingof Storytel'sagreementswithcertainpublishershavebeenreviewed. Thisreviewhasinducedachange, meaningthat anyrelatedcost will nolonger berecognizedbasedonthelengthof Storytel'scustomer contractsbut insteadwill bereportedintheperiodthecost isincurred. Thechangedoesnot affect Storytel'searningsor cashflowsover time. Comparativefigureshavebeenrecalculatedasshowninthetablesbelow.
Profit/lossstatement
TSEK
Reported2022
Adjustment
Adjusted2022Net sales 3,200,382 - 3,200,382Cost of sales -1,987,237 - -1,987,237Grossprofit -1,213,145 - -1,213,145Operatingexpenses -1,602,164 -11,484 -1,613,648Operatingprofit/loss -389,019 -11,484 -400,503Net financial items 5,347 - 5,347Profit/lossbeforetaxes -383,672 -11,484 -395,156Tax 3,402 - 3,402Profit/lossfor theperiod -380,270 -11,484 -391,754
18

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

Condensedconsolidatedstatementoffinancialposition
TSEK
31Dec2021reported
Adjustment
31Dec2021adjusted
31Dec2022reported
Adjustment
31Dec2022adjustedIntangibleassets 1,063,145 1,063,145 2,622,416 2,622,416Tangibleassets 27,675 27,675 25,985 25,985Right-of-useassets 131,421 131,421 115,360 115,360Non-current financial assets 46,114 -4,886 41,228 87,690 82,804Inventory 65,663 65,663 102,107 102,107Current receivables 768,820 -44,795 724,025 658,581 -11,484 602,302Cashandcashequivalents 905,882 905,882 776,341 776,341Total assets 3,008,720 -49,681 2,959,039 4,388,480 -11,484 4,327,314
Equity 1,910,603 -49,681 1,860,922 2,192,950 -11,484 2,131,785Non-current liabilities 246,642 246,642 831,307 831,307Current liabilities 841,475 841,475 1,364,223 1,364,223Total equityandliabilities 3,008,720 -49,681 2,959,039 4,388,480 -11,484 4,327,314
All amountsinthisstatement areinthousandsof Swedishkrona(TSEK) unlessotherwisespecified.Differencesinroundingmayoccur.
Note2Significant estimatesandjudgements
Whenpreparingthefinancial statements, thecompany’smanagement andtheBoardmust makecertainassessmentsandassumptionsthat affect thecarryingamountsof asset andliabilityitemsandincomeandexpenseitems, respectively, aswell asother informationprovided. Theassessmentsarebasedonexperiencesandassumptionsthat themanagement andtheBoarddeemtobereasonablegiventheprevailingcircumstances. Actual outcomemaythendiffer fromtheseassessmentsif other conditionsarise.Theestimatesandassumptionsareevaluatedonanongoingbasisandarenot consideredtoentail anymaterial riskof significant adjustmentsinthereportedvaluesof assetsandliabilitiesduringsubsequentperiods. Changesinestimatesarereportedintheperiodinwhichthechangeismadeif thechangehasonlyaffectedthisperiod, or intheperiodinwhichthechangeismadeandfutureperiodsif thechangeaffectsboththecurrent periodandfutureperiods. For other significant estimatesandjudgements, pleaserefer tothemost recent annual report.
Note3Definitionsandkeyratiosincludingalternativeperformancemeasures
Storytel reportsanumber of different itemsandfinancial keyratiosinitsconsolidatedfinancial statements.Thekeyratiosaimtomakeit easier for investorsandother stakeholderstoanalyzeandunderstandStorytel'soperationsanddevelopment inthesamewaythat thebusinessanditsdevelopment aremonitoredbymanagement. Of thesemeasures, somearedefinedinIFRS, whileothersaredefinedinneither thefinancial frameworknor other legislation. For keyratiosthat arenot definedinIFRS, thisreportpresentstheir purposeandhowtheyrelatetothefinancial statementspresentedinaccordancewithIFRS.For definitionsof financial measuresandkeyratiosused, pleaseseefurther below.
Note4TransactionswithrelatedpartiesIngeneral, therewerenosignificant changesinthescopeor typeof transactionswithrelatedpartiestotheGroupother thanthosepresentedinthemost recent Annual Report. Anytransactionswithassociatedcompaniestakeplaceonmarket terms.
19

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

Note5BusinesssegmentsTheGroupreportssegment financialsfor itstwobusinessareas: Streaming, andPublishing. Streamingconsistsof all streamingservicesoperatedunder thebrandsStorytel, Mofibo, andAudiobooks.com. Thesegment includes50%of thejoint ventureinStorytel AS(“Storytel Norway”) incomeandexpenses, torepresent afair pictureof itscontributiontotheStreamingsegment. Publishingconsistsof all publishinghouseswithintheStortel Group. Costsrelatedtocentral groupoverheadfunctions(suchasFinance, HR,Legal etc.) andother group-wideitemsandeliminationsarereportedseparatelytobridgethesegmentfinancialstototal groupresult.Bothsegmentsincludeinternal transactionsthat areeliminatedtoreachthetotal groupresult. Thesetransactionsincludeinternal salesbetweenthesegments, wheremainlythePublishingsegment reportsinternal salestotheStreamingsegment. Furthermore, Storytel AS(“Storytel Norway”) salesandexpensesintheStreamingsegment areeliminatedintheGroup-wideitemsandeliminationcolumnandthenet resultfromthejoint ventureisreportedasResult fromparticipationinassociates.
Q32024(TSEK) Streaming Publishing
Group-wideitemsandeliminations
Grouptotal
Net sales 851,709 285,014 -182,701 954,022whereof external sales 851,709 154,064 -51,751 954,022Cost of sales -498,928 -186,673 165,433 -520,168
Grossprofit 352,780 98,341 -17,268 433,853Adj. Grossprofit 354,409 98,402 -17,269 435,542
Sellingandmarketingexpenses -187,136 -16,236 5,513 -197,859Technologyanddevelopment expenses -47,006 -6,905 - -53,911Administrativeexpenses -23,887 -29,660 -34,443 -87,990Other operatingitems -10,621 1,460 -233 -9,394Result fromparticipationinassociates - - 2,628 2,628
Operatingprofit/loss 84,131 46,999 -43,802 87,328Adj. Operatingprofit/loss 89,673 47,182 -31,772 105,083
Addbackdepr. 31,572 39,850 1,866 73,288
EBITDA 115,703 86,849 -41,936 160,616Adj. EBITDA 121,245 87,032 -29,907 178,370
20

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

Q32023(TSEK) Streaming Publishing
Group-wideitemsandeliminations
Grouptotal
Net sales 809,351 251,582 -165,175 895,758whereof external sales 809,351 138,200 -51,793 895,758Cost of sales -489,069 -186,879 147,968 -527,980
Grossprofit 320,282 64,703 -17,207 367,778Adj. Grossprofit 320,282 64,703 -17,207 367,778
Sellingandmarketingexpenses -182,960 -14,866 6,449 -191,377Technologyanddevelopment expenses -54,434 -7,292 - -61,726Administrativeexpenses -50,372 -23,792 -35,589 -109,753Other operatingitems 4,499 819 -22 5,296Result fromparticipationinassociates - - 4,805 4,805
Operatingprofit/loss 37,015 19,572 -41,564 15,023Adj. Operatingprofit/loss 37,015 19,569 -36,988 19,596
Addbackdepr. 40,715 39,330 1,380 81,425
EBITDA 77,730 58,902 -40,184 96,448Adj. EBITDA 77,730 58,902 -35,610 101,022
Jan-Sep2024(TSEK) Streaming Publishing
Group-wideitemsandeliminations
Grouptotal
Net sales 2,498,079 793,112 -520,796 2,770,395whereof external sales 2,498,079 423,566 -151,250 2,770,395Cost of sales -1,459,297 -554,234 466,070 -1,547,461
Grossprofit 1,038,781 238,877 -54,724 1,222,934Adj. Grossprofit 1,040,393 243,456 -54,724 1,229,125
Sellingandmarketingexpenses -600,070 -50,496 15,514 -635,052Technologyanddevelopment expenses -185,753 -18,415 10,489 -193,679Administrativeexpenses -71,758 -92,625 -102,230 -266,613Other operatingitems -13,185 7,182 -10,343 -16,346Result fromparticipationinassociates - - -797 -797
Operatingprofit/loss 168,014 84,522 -142,088 110,448Adj. Operatingprofit/loss 211,745 90,238 -103,223 198,760
Addbackdepr. 91,672 114,252 5,412 211,336
EBITDA 259,686 198,774 -136,676 321,784Adj. EBITDA 303,418 204,489 -97,810 410,097
21

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

Jan-Sep2023(TSEK) Streaming Publishing
Group-wideitemsandeliminations
Grouptotal
Net sales 2,298,586 715,657 -471,122 2,543,121whereof external sales 2,298,586 388,843 -144,308 2,543,121Cost of sales -1,388,623 -546,265 410,712 -1,524,176
Grossprofit 909,964 169,392 -60,412 1,018,944Adj. Grossprofit 909,964 169,392 -60,412 1,018,944
Sellingandmarketingexpenses -568,839 -62,739 17,459 -614,119Technologyanddevelopment expenses -174,229 -20,942 1 -195,170Administrativeexpenses -112,231 -93,873 -91,544 -297,648Other operatingitems 9,385 5,926 34 15,345Result fromparticipationinassociates - - 10,271 10,271
Operatingprofit/loss 64,050 -2,235 -124,193 -62,378Adj. Operatingprofit/loss 64,050 -2,235 -110,382 -48,567
Addbackdepr. 118,130 114,889 1,385 234,404
EBITDA 182,180 112,654 -122,808 172,026Adj. EBITDA 182,180 112,654 -108,997 185,837
Note6Revenuefromcontractswithcustomers
Q32024(TSEK) Streaming Publishing Grouptotal
Typeof product or serviceRevenuefromsubscriptionsof streamingservice 785,379 - 785,379Revenuefrompublishingactivities - 154,064 154,064Other 14,578 - 14,578Revenuefromcontractswithcustomers 799,958 154,064 954,022
Q32023(TSEK) Streaming Publishing Grouptotal
Typeof product or serviceRevenuefromsubscriptionsof streamingservice 738,821 - 738,821Revenuefrompublishingactivities - 138,200 138,200Other 18,737 - 18,737Revenuefromcontractswithcustomers 757,558 138,200 895,758
Jan-Sep2024(TSEK) Streaming Publishing Grouptotal
Typeof product or serviceRevenuefromsubscriptionsof streamingservice 2,291,527 - 2,291,527Revenuefrompublishingactivities - 423,566 423,566Other 55,302 - 55,302Revenuefromcontractswithcustomers 2,346,829 423,566 2,770,395
22

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

Jan-Sep2023(TSEK) Streaming Publishing Grouptotal
Typeof product or serviceRevenuefromsubscriptionsof streamingservice 2,096,573 - 2,096,573Revenuefrompublishingactivities - 388,843 388,843Other 57,705 - 57,705Revenuefromcontractswithcustomers 2,154,278 388,843 2,543,121
Note7Itemsaffectingcomparability(IACs)
Itemsaffectingcomparability(IACs) includeitemsof asignificant character that distort comparisonsovertime, suchascostsrelatedtoacquisitions, divestments, andmarket exits; restructuringcosts; significantimpairmentsandwrite-downs; aswell asexpenses, or reversalsof expenses, arisingfromthegroup’sshare-basedincentiveschemes.DuringQ32024, IACstotaling-1.2MSEKrelatetothegroup’sshare-basedincentiveschemes, IACstotaling-0.2MSEKrelatetothediscontinuedoperationsof theBrazilianstreamingcompanyStorytel BrasilDistribuiçãodeAudiolivrosLtda, and-13.2MSEKrelatetorestructuringchargesfromorganizationalchanges. Afurther -1.6MSEKof content writedowns, and-1.5MSEKof other, includinglegal fees. Duringthecomparableperiod, IACstotaling-4.6MSEKrelatetothegroup’sshare-basedincentiveschemes.Duringthefirst ninemonthsof theyear, IACstotaling-17.5MSEKrelatetothegroup’sshare-basedincentiveschemes, IACstotaling-9.8MSEKrelatetothedivestment of theFinnishpublisher Aula&Coanddiscontinuedoperationsof theStorytel Brasil DistribuiçãodeAudiolivrosLtda, andIACstotaling-57.7MSEKrelatetorestructuringchargesfromorganizational changes. Afurther -1.6MSEKof content writedownsand-1.7MSEKof other, includinglegal fees. Duringthecomparableperiod, IACstotaling-13.8MSEKrelatetothegroup’sshare-basedincentiveschemes.
TSEK Q32024 Q32023 Jan-Sep2024 Jan-Sep2023
Jan-Dec2023
Share-basedincentiveschemes -1,180 -4,574 -17,507 -13,811 -20,333
Divestment/Discontinuedoperations -217 - -9,830 - -9,000
Organizational changes -13,182 - -57,681 - -21,899
Writedowns -1,629 - -1,629 - -631,741
Changesinaccountingpolicies - - - - -8,932
Other -1,547 - -1,665 - -
EBIT -17,754 -4,574 -88,312 -13,811 -691,902
Addbackdepr. - - - - 573,162
EBITDA -17,754 -4,574 -88,312 -13,811 -118,741
23

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

Note8Financial instruments
ValuationhierarchyThelevelsof thevaluationhierarchyaredescribedasfollows:Level 1–Listedprices(unadjusted) inactivemarketsfor identical assetsandliabilities.Level 2–Observableinput datafor theasset or liabilityother thanquotedpricesincludedinLevel 1, eitherdirectly(i.e., pricequotations) or indirectly(i.e., derivedfrompricequotations).Level 3–Asset or liabilityinput datathat isnot basedonobservablemarket data(i.e., non-observableinput data).Acquisitionoption
Storytel'sacquisitionoption(put/call option) referstothefutureacquisitionof theremaining6.7%sharesinEarselect AB, whichwill result inanadditional transferredconsiderationof 4,045TSEK, after theconsiderationpaidintheperiod, seenote9. Theacquisitionoptionisreportedat fair valueinthestatementof financial position, measuredinaccordancewithIFRS9andcategorizedinaccordancewithLevel 3oftheIFRS13fair valuehierarchy. Sincethepriceof theoptionisnot dependent onanyconditionsbeyondthetimeaspect, andsincethediscountingeffect attributabletothetimevalueisinsignificant, nodiscountinghastakenplace, andthecarryingamount isconsideredtocorrespondtothefair valueof theacquisitionoption.
Financial liabilitiesvaluedat fair value(TSEK) Jan-Sep2024 Jan-Sep2023 Jan-Dec2023
Openingbalance 8,634 13,124 13,124Considerationpaid -4,067 -4,275 -4,530Reversedduetodivestment -522 - -Changeinvaluerecognizedinprofit/loss - - 40Closingbalance 4,045 8,849 8,634
Other receivablesandliabilitiesFor current receivablesandliabilities, suchasaccountsreceivableandtradepayables, andfor non-currentliabilitieswithvariableinterest rates, thecarryingamount isconsideredtobeagoodapproximationof thefair value.
Note9Businesscombinations
Aconsiderationof 4,067TSEKfor Storytel’sacquisitionoptioninEarselect waspaidduringtheperiod.Storytel obtainedafurther 6.6%ownershipandownedat theendof theperiod93.3%of Earselect.
Note10Net interest-bearingdebt (NIBD)
Net Interest-BearingDebt (NIBD) isdefinedastotal interest-bearingliabilities(excludingleaseliabilities)plusdividendpayables, lesscashandcashequivalentsandinterest-bearingassets.
TSEK 30Sep2024 30Sep2023 31Dec2023Interest-bearingliabilitieswithinCurrent liabilities 650,000 150,000 749,238Interest-bearingliabilitieswithinNon-current liabilities - 699,052 -Cashandcashequivalents 448,163 540,614 436,143Total Net Interest-BearingDebt (NIBD) 201,837 308,438 313,124
24

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

Condensedparentcompanyinterimstatementsofcomprehensiveincome
TSEK Q32024 Q32023
Jan-Sep2024
Jan-Sep2023
Jan-Dec2023Net sales 12,337 9,671 37,004 29,013 46,142Grossprofit 12,337 9,671 37,004 29,013 46,142
Administrativeexpenses -17,341 -14,512 -44,433 -30,822 -41,973Other operatingitems 1 - -38 46 18Operatingprofit -5,003 -4,841 -7,467 -1,763 4,187
Net financial items -4,629 -5,996 -16,709 -12,289 -19,276Profit/lossbeforetaxes -9,631 -10,837 -24,175 -14,053 -15,089
Tax - - - - -Profit/lossfor period -9,631 -10,837 -24,175 -14,053 -15,089
Parent Company´scondensedstatement of comprehensiveincomeProfit for theperiod -9,631 -10,837 -24,175 -14,053 -15,089
Total comprehensiveincomefortheperiod
-9,631 -10,837 -24,175 -14,053 -15,089
Condensedparentcompanyinterimstatementsoffinancialposition
TSEK 30Sep2024 30Sep2023 31Dec2023Non-current financial assets 4,589,744 4,858,935 4,916,244Current receivables 524,343 226,011 102,977Cashandcashequivalents  92,530 85,342 40,992Total assets 5,206,617 5,170,289 5,060,213
Equity  4,173,298 4,196,817 4,195,738Non-current liabilities - 699,052 -Current liabilities 1,033,319 274,420 864,476Total equityandliabilities 5,206,617 5,170,289 5,060,213
25

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

Definitionsandkeyratiosincludingalternativeperformancemeasures
26
Net sales Operatingmainincome, invoicedcosts, incidental revenueandrevenueadjustments.
Net salesgrowthrate, % Net salesfor thecurrent year dividedbythepreviousyear’snet sales.
Net salesgrowthrate, %, CER
Net salesgrowthrate, wherethecurrent year’snet salesarecalculatedat theexchangeratesprevailinginthepreviousyear.
Grossprofit Profit after cost of sales.
Grossprofit %, Grossmargin Grossprofit asapercentageof net sales.
Operatingprofit (EBIT) Profit beforeinterest andtax.
Operatingmargin(EBITmargin) Operatingprofit asapercentageof net sales.
Profit/lossbeforetaxes Profit after financial incomeandexpenses, beforetax.Profit margin(%) Profit after taxasapercentageof net sales.
Equity-to-assetsratio(%)
Adjustedequity(includingnon-controllinginterests) asapercentageof thebalancesheet total.
Equity
Thenet assetsof thebusiness, i.e., thedifferencebetweenassetsandliabilities,includingnon-controllinginterests.
Balancesheet total Thecompany’stotal assets.FTE Full-TimeEquivalents.
Number of employees Averagenumber of employeesduringthefinancial year.ARPU AverageRevenuePer User (subscriber) per month.
Averagepayingsubscribers
Theaveragenumber of payingsubscribersduringtheperiod. For Familysubscriptions, eachstandardstream(not so-calledKidsMode) isconsideredonepayingsubscriber.
CER Constant ExchangeRates.EBITDA Earningsbeforeinterest, taxes, depreciationandamortization.EBITDAmargin EBITDAaspercentageof Net Sales.
Revenue(StreamingSegment)
Salesfromaudiobookande-bookstreamingservicesonall Storytel platforms,considering50%of Storytel Norway’srevenueinlinewithStorytelsownership.Revenue(StreamingKPI) ARPUtimes(Avg.) PayingSubscribers. Seealsofootnote4onpage8.
Revenue(PublishingSegment)
Physical booksanddigital salesfromall publishinghousesinthegroup, includinggroup-internal revenuefromStorytel. For theconsolidatedgroupaccounts, internalpublishingrevenueiseliminated. Seealsofootnote1onpage1.
Itemsaffectingcomparability(IAC)
IACsincludeitemsof asignificant character that distort comparisonsover time, suchascostsrelatedtoacquisitions, divestments, andmarket exits; restructuringcosts;significant impairmentsandwrite-downs; expenses, or reversalsof expenses, arisingfromthegroup’sshare-basedincentiveschemes.Adjustedgrossprofit, expenses,EBITDA, andoperatingprofit
Adjustedkeyfigures- grossprofit, expenses, EBITDA, andoperatingprofit - reflecttheunderlyingkeyfigurewhenexcludingitemsaffectingcomparability.
Operational Capex Investmentsintoproduct &techandaudiobookproductions.
Operational CashFlow AdjustedEBITDAlessOperational Capex.
Net Interest-BearingDebt (NIBD)
Net Interest-BearingDebt (NIBD) isdefinedastotal interest-bearingliabilities(excludingleaseliabilities) plusdividendpayables, lesscashandcashequivalentsandinterest-bearingassets.NIBD/adjustedEBITDAratio NIBDdividedbyadjustedEBITDAfor thelast twelvemonths.