Interim report January - September 2018

Highlights from q3 2018 report

Subscriber base up 43% Y/Y to 720 900 in average in Q3, 2018.

Streaming sales up 41% Y/Y to 280 MSEK in Q3, 2018, on track to reach 1 000 MSEK in 2018

Subscriber base up 43% Y/Y to 720 900.

Streaming sales up 41% Y/Y to 280 MSEK, on track to reach 1 000 MSEK in 2018

International streaming sales now 51% of total Streaming sales

Opened up an office in Bangkok to serve the Asian Region which Storytel will enter in 2019

Successfully completed a share issue amounting to 500 MSEK

Norstedts Förlagsgrupp AB acquired Printz Publishing with authorships such as Jojo Moyes. The acquisition was completed Oct 1st and will be consolidated from the completion date

Key numbers for Streaming and Print Publishing

Currency:                                    Q4
thousand SEK  Q3  Q4  Q1  Q2  Q3 Forecast
2017 2017 2018 2018 2018 1
Streaming
Total
Revenue 197 881 209 225 222 133 239 139 279 979 290 000
Contribution 27 784 30 277 24 079 25 045 22 063
Profit2
Contribution 14,0% 14,5% 10,8% 10,5% 7,9%
Margin
Paying 503 900 533 400 577 900 621 200 720 900 765 000
Subscribers
ARPU (SEK/Month 131 131 128 128 129 126
)3
 
Streaming
Sweden
Revenue 113 709 118 038 122 046 125 759 135 986 137 500
Contribution 32 872 38 501 43 067 35 763 40 888
Profit
Contribution 28,9% 32,6% 35,3% 28,4% 30,1%
Margin
Paying 282 300 292 700 305 100 314 700 336 200 341 000
Subscribers
ARPU 134 134 133 133 135 134
(SEK/Month)
 
Streaming
International4
Revenue 84 172 91 187 100 087 113 380 143 993 152 500
Contribution -5 088 -8 224 -18 988 -10 718 -18 826
Profit
Contribution -6,0% -9,0% -19,0% -9,5% -13,1%
Margin
Paying 221 600 240 700 272 800 306 500 384 700 424 000
Subscribers
ARPU 127 126 122 123 125 120
(SEK/Month)
 
Print
Publishing5
Revenue 132 619 173 832 106 312 115 898 116 252
Contribution 47 905 66 854 39 223 41 889 40 140
Profit6
Contribution 36,1% 38,5% 36,9% 36,1% 34,5%
Margin

1 Forecast is an approximation based on information available at time of reporting.

2 Contribution Profit is defined as streaming revenue minus costs for content (licensed content and in-house productions) and marketing. Storytel Reader is not included in Streaming.

3 ARPU = Average Revenue Per User (Subscriber) per month

4 Storytel Norway included in figures @100%. In the consolidated group accounts Norway is reported according to the principle of proportional consolidation.

5 Print Publishing refers to physical books. Internal transactions have been redacted. Barnens bokklubb not included in table.

6 Contribution Profit is defined as revenue minus cost per sold unit, distribution costs, and sales and marketing costs.

The year-end report for January - December will be released on February 25th, 2019

This information is such information that Storytel AB (publ) is obliged to make public in accordance with EU:s market regulation (marknadsmissbruksförordning). The information was made public by above contact person on November 15th, 2018, 8.20 CET.

For more information, please contact:

Jonas Tellander, CEO: +46 70 261 61 36

Sofie Zettergren, CFO: +46 70 509 98 08

About Storytel

The Storytel group is comprised of two divisions, Streaming and Publishing. The Streaming division currently offers a subscription service for audio books and e-books under the brand names Storytel and Mofibo in Sweden, Norway, Denmark, Finland, Iceland, The Netherlands, Poland, Russia, Spain, India, the United Arab Emirates, Turkey and Italy. The Streaming division also publishes audio books and Storytel Originals, mainly through the audio-book publisher Storyside. The Publishing division is comprised of the publishers Norstedts, Massolit, Printz Publishing, Kontentan, Telegram, the Danish People's Press, Storytel Publishing, Rabén & Sjögren and B. Wahlströms, as well as Norstedts Kartor.