Stillfront

Financial highlights Q4 2024

• Net revenue of 1,660 (1,742) MSEK, declined 5 percent
• Organic net revenue declined 5 percent
• Adjusted EBITDAC of 410 (365) MSEK, increased 12 percent, Adj EBITDAC margin was 25 (21) percent
• Capitalization of product development amounted to 138 (204) MSEK, 8 (12) percent in relation to net revenue
• Non-cash goodwill impairment of 6,867 MSEK, reported as items affecting comparability
• EBIT of -6,965 (130) MSEK
• Net result was -7,278 (10) MSEK
• Free cash flow for the quarter amounted to 342 (127) MSEK, and for the last 12 months to 1,050 (833) MSEK
• Total net debt, including cash earnout for the next 12 months, amounted to 4,736 (4,611) MSEK
• Adjusted leverage ratio, including cash earnout for the next 12 months, pro forma was 2.10x (1.84x)
• Cash position was 957 (807) MSEK and 1,224 (2,432) MSEK of undrawn credit facilities
• Stillfront’s board of directors proposes no dividend for 2024

” Strong cash flows in a challenging UA environment, advancing with our turnaround of North America and continued progress in our efficiency and cost optimization efforts.

Stillfront’s net revenue amounted to 1,660 MSEK in the fourth quarter with a 5 percent organic decline year-over-year as we continued to see a slowdown in new players’ activity, mostly impacting the Strategy portfolio.

The decline in bookings and gross profit was fully offset by less fixed costs, less product development costs and less UAC, resulting in an adjusted EBITDAC of 410 MSEK with a 25 percent EBITDAC margin and 12 percent growth compared to Q4 2023.

We continue to see positive trends for the free cash flow generation which amounted to 342 MSEK in the quarter and for the full year we saw free cash flow returning to over 1 BSEK”.

Alexis Bonte, Group President and Interim CEO, Stillfront

Key figures Full Year Report 2024

Stillfront presents three new reporting segments

As of 1 January 2025, Stillfront’s operations have been divided into three Business Areas: Europe, North America and MENA&APAC, to enhance growth, profitability and transparency. At the same time, Stillfront is increasing its focus on key franchises and addressing low performing games, which is a key lever to improve organic growth while also reducing costs. Stillfront will present its first interim report in accordance with the new Business Areas structure for the period January – March 2025 on 6 May 2025.

Key historical figures for new Business Areas*

Business Area Europe

Business Area North America

Business Area Mena & APAC

*A more detailed presentation of the key financial results for each Business Area can be accessed in the attached excel-file or at stillfront.com.

The numbers presented above and in the excel-file include new terminology as to how Stillfront define certain items.

Definitions:

Business Area – Includes franchises and game teams that are managed by staff physically located within the same geographical area. A Business Area consists of 4 different types of game portfolios from which it receives bookings from 1) Key game franchises 2) Active LiveOps, 3) Legacy LiveOps, 4) External Partnerships

Game portfolio breakdown definitions:

Key franchises – Includes key game franchises:

• Business Area Europe: 1) Albion, 2) Big, 3) Empire, 4) Narrative, 5) Supremacy;
• Business Area North America: 6) Bitlife, 7) Home Design Makeover, 8) Word; and
• Business Area MENA & APAC: 9) Board, 10) Jawaker

The games included as key game franchises have a set of definitions that define them, such as full-year bookings above 200 MSEK, consistency of core experience, technology and game mechanics and recognizable and evolving IP.

Non-Franchises:

Active LiveOps – more than 5% of Bookings invested in user acquisition

Legacy Live Ops – less than 5% of Bookings invested in user acquisition

External partnerships – Stillfront does not have user data (does not act as the publisher)

Other definitions:

Headquarters (HQ) - Group functions that deliver services to the group and are recharged to business areas and their subsidiaries via intercompany management fees based on allocation keys.

Shared services - Offers services to game teams and business areas for which they earn a service fee, based on usage, or make a margin on volume, examples of such services are Marketing, Payments, Data & Analytics, IT & Tech, as well as Finance and HR.

Invitation to webcast

The report along with the historical figures for the three new Business Areas will be presented in a live webcast at 10:00 a.m. CET today. Alexis Bonte, Group President and Interim CEO, and Andreas Uddman, Group CFO, will present the full-year results, the three new business areas and answer questions. The conference will be held in English.

To participate via webcast:

If you wish to participate via webcast, please use the link below.

https://stillfront.events.inderes.com/stillfront-q4-report-2024

To participate via phone:

If you wish to participate via teleconference, please register on the link below. After registration you will be provided with phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.

https://conference.inderes.com/teleconference/?id=5005744

Forward-looking statements

Some statements herein are forward-looking that reflect Stillfront’s current views or expectations of future financial and operational performance. Because these forward-looking statements involve both known and unknown risks and uncertainties, actual results may differ materially from the information set forth in the forward-looking information. Such risks and uncertainties include but are not limited to general business, economic, competitive, technological, and legal uncertainties and/or risks. Forward-looking statements in this report apply only at the time of announcement of the report and are subject to change without notice. Stillfront undertakes no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise, other than as required by applicable law or stock market regulations.