Swedish audiobook distributor Storytel is celebrating a significant milestone, achieving an operating profit for the first time in seven years, The Bookseller reported. The profit amounting to SEK15m (£1.1m) for the third quarter concluding on September 30 owes it to the robust 13 percent year-on-year increase in sales at SEK842.4m (£62.1m). The notable operating profit is predominantly attributed to the escalating popularity of streaming services in the Nordic countries, with streaming sales reaching SEK571.6m (£42.1), reflecting substantial growth from the previous year’s SEK492.8m (£36.3).
In contrast, print publishing sales experienced a contraction, declining from SEK147m (£10.8m) the previous year to SEK139.9m (£10.3m) in 2023. Storytel reported Earnings Before Interest, Taxes, and Depreciation (EBITDA) of SEK92m (£6.8m), indicating a remarkable 55 percent increase from the previous year, attributed to strategic cost efficiency measures.
The company has updated its guidance for the year, anticipating operational cash flow to reach a minimum of SEK 80m (£5.9m). The expected EBIDTA margin exceeds 6.4 percent, and organic streaming growth is projected to be at 11 percent, mirroring the growth pattern of the preceding year. What remains to be seen now is whether the streaming giant is able to hold on to the growth trajectory in the long run.
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