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Stillfront Group AB (STLFF) Q3 2024 Earnings Call Transcript

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Stillfront Group AB (STLFF) Q3 2024 Earnings Call Transcript

Martin Arnell - DNB Markets

Amar Galijasevic - Carnegie Investment Bank

Erik Larsson - SEB

Rasmus Engberg - Kepler Cheuvreux

Aytaj Khalilli - Barclays Bank

Good morning, and welcome to the Stillfront Q3 2024 interim report. I am Alexis Bonte. I am the interim CEO of Stillfront, and I will be joined later by Andreas Uddman, who is our CFO.

Next slide, please. So we continue to have strong cash flow in the third quarter. We had net revenue of SEK1.595 million in Q3. That was down by 4.6% year-on-year, but mostly flat organically. It was down slightly by 0.8%. The gross profit margin was of 80%. That was in line with Q2 and up by 2 percentage points year-on-year. And that was really driven by the mixed effects of an increased share of bookings from our direct-to-consumer channels. Adjusted EBITDAC margin was at 24%. That's down by 0.4% year-on-year and that's due to increased acquisition costs which I will go into later. Free cash flow of SEK298 million in Q3 is up by 49% year-on-year.

Next slide, please. So we had higher than actual acquisition costs in Q3. You can see that they were at 29% of net revenues in the quarter versus a lower amount in Q3 2023, around 26%. Most of the reasons for that was around the Super Free turnaround, where we've been able to get Super Free to have significant growth year-on-year again by investing in the Word Collect, and to less extend the Trivia Star franchises.

Next slide, please. Gross margin improvements mostly compensated for that higher UAC in Q3. We had, as I say, gross margin improvements

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