Stillfront Group: First comment Q2, beating expectations

Research Note

2018-08-28

12:55

This morning Stillfront Group released their report for the second quarter of 2018. The reported figures beat our estimates both on sales and profits. When adjusting for non-recurring items, the EBITDA came in 13% above our projections. As expected the monetization KPIs continued to strengthen. Seasonality wise the quarter was affected by the warm summer and the World Cup. Babil Games has clearly hit the home run with Nida Harb III. The initial investment for the game was about SEK 1m, during the quarter the title had deposits (unadjusted revenue) of SEK 35m. Now the studio will take the game to global markets with the help of Goodgame Studio as publisher. The future looks promising for the Group with a robust pipeline of launches. Overall, we do not expect to make any noteworthy changes to our projections. We see significant potential to our current Base-case.

KL

TO

Kristoffer Lindström

Tomas Otterbeck

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