Slides
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Third Quarter 2025 October 28, 2025
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“We have delivered record high profitability, solid customer intake, and robust cash flow generation. Our performance reinforces our confidence in achieving our mid-term targets, while we raise our margin guidance for 2025..” Third quarter report 2025
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Bodil Eriksson Torp CEO Stefan Wård CFO Third quarter report 2025
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Strong operational momentum ○ Revenue +9% at constant exchange rates (CER) ○ Record-high profitability ○ Strong subscriber growth ○ All-time-low paid churn ○ Entry into new markets and extended customer segments ○ Blended ARPU down 7 SEK, negative FX impact of 4 SEK Strengthened streaming capabilities ○ Improved capabilities in product and technology ○ Innovative product features launched which upgraded the user experience ○ Greater emphasis on data and analytics to maximise return on marketing Commercial and literary success in Publishing segment ○ Launched several of Sweden's most highly anticipated titles ○ Successful integration of Bokfabriken ○ In Q4, Norstedts served as the Swedish publisher of the 2025 Nobel Prize winner Raised margin guidance for 2025 ○ We raise our adjusted EBITDA margin guidance to 18.0-19.5% (from 17.5-19.0) Q3 2025 Highlights Third quarter report 2025
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Group Financial Highlights Q3 2025 Net sales up 6% (9% in CER) Adjusted EBITDA Margin up 3.4 pp Adjusted EBITDA up 26% Stable Gross Profit Margin Third quarter report 2025 Comments Q3 2025 compared with Q3 2024 ● Group revenue +9% in CER (organic +8% CER) ● Streaming revenues 7% CER, Publishing revenues 16% CER ● Gross Profit +6%, margin of 45.4% (45.5) ● Adjusted EBITDA +26% to 224 (178) MSEK, margin of 22.1% (18.7%) ● Net profit for the period amounted to 138 (55) MSEK. ● Cash flow from operations before change in working capital 203 (148) MSEK ● NIBD/EBITDA R12 of 0.03x (0.40) MSEKMSEK
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LTM EBITDA adj. 729 (509) MSEK, +43% YoY LTM-development Net sales and adj. EBITDA margin Third quarter report 2025 MSEK
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Streaming Performance Q3 2025 10% Increase in Average Subscribers Downward churn trend, Index (R12) ARPU remain at a solid level * Nordics revenue includes 100% of Storytel Norway’s revenue. See also footnote 1 under Streaming geographical performance split table of the interim report. Comments Q3 2025 compared with Q3 2024 ● Ave paying subs +236,000, +10% YoY ○ Nordics* +58,000, +5% YoY ○ Non-Nordics Core** +160,000, +17% YoY ○ Rest of World +18,000, +10% YoY ● ARPU down by 6% YoY, mainly due to FX and geographical mix. ARPU +2% QoQ ● CLV/SAC well above target (3x) ● Paid churn at all-time-low ** The Netherlands, Poland, Bulgaria, Turkey, and all of the operations of Audiobooks.com Avg subscribers (thousands) SEK Third quarter report 2025
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Streaming segment Comments Q3 2025 compared with Q3 2024 ● Streaming sales +4% (+7% in CER) to 884 (852) MSEK ○ Nordics: sales +2% (+4% in CER), subs +5%, ARPU -2% ○ Non-Nordics Core: sales +6% (+14% in CER), subs +17%, ARPU -10% ○ Rest of World: sales +8 (+11% in CER), subscribers +10%, ARPU -2% ● Gross profit +3% to 364 (353) MSEK, gross margin of 41.1% (41.4%) ● EBITDA +37% to 158 (116) MSEK, margin of 17.9% (13.6%), from improved opex ● Operating profit +43% to 120 (84) MSEK Revenue (MSEK) Third quarter report 2025 Streaming (MSEK) Q3-25 Q3-24 Change, % Net sales 884 852 4% Cost of sales -521 -499 4% Gross profit 364 353 3% Operating profit 120 84 43% Add back depr. 38 32 20% EBITDA 158 116 37% Key metrics Q3-25 Q3-24 Change, p.p. Gross margin 41.1% 41.4% -0.3 EBITDA margin 17.9% 13.6% 4.3
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Publishing segment Comments Q3 2025 compared with Q3 2024 ● Net sales up 14% to 324 (285) MSEK ● Gross profit up 17% to 115 (98) MSEK with a margin of 35.5% (34.5%) ● EBITDA up 25% to 108 (87) MSEK with a margin of 33.4% (30.5%) ● Operating profit increased 45% to 68 (47) MSEK ● Bokfabriken contributed with 23 MSEK to net sales in the quarter Publishing (MSEK) Q3-25 Q3-24 Change, % Net sales 324 285 14% Cost of sales -209 -187 12% Gross profit 115 98 17% Operating profit 68 47 45% Add back depr. 40 40 0% EBITDA 108 87 25% Key metrics Q3-25 Q3-24 Change, p.p. Gross margin 35.5% 34.5% 1.0 EBITDA margin 33.4% 30.5% 3.0 MSEK Third quarter report 2025
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Strong Cash flow generation Comments Q3 2025 compared with Q3 2024 Adjustments for non-cash items relates mainly to depreciation and amortization, FX movements and changes in provisions ● Cash flow from operating activities before changes in working capital 203 (148) MSEK ● Change in working capital of -45 (45) MSEK, from normal variation ● Cash flow from financing activities -59 (-9) MSEK, loan repayment of -50 MSEK ● Total cash flow for the period was 45 (140) MSEK Third quarter report 2025 MSEK Q3-25 Q3-24 2024 Profit before tax 144 62 236 Cash flow from operating activities before change in working capital 203 148 510 Change in working capital -45 45 33 Cash flow from operating activities 158 193 543 Cash flow from other investing activities -17 -11 -83 Operational Capex -38 -33 -142 Cash flow from financing activities -59 -9 -143 Cash flow for the period 45 140 175 Translation differences in available funds -3 -7 12 Available funds at the beginning of period 485 315 436 Available funds at end of period 527 448 623
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Solid financial position Comments Q3 2025 compared with Q3 2024 ● Cash & equivalents 527 (448) MSEK ● Interest bearing debt 550 (650) MSEK ● Equity 1,589 (1,330) MSEK ● Equity-to-asset ratio 50 % (44%) MSEK Q3-25 Q3-24 Q4-24 Intangible assets 1,871 1,838 1,994 Tangible assets 17 15 14 Right-of-use assets 62 77 71 Non-current financial assets 76 69 68 Inventory 85 57 53 Trade receivables 235 210 220 Other current receivables 322 317 346 Cash and cash equivalents 527 448 623 Total assets 3,195 3,032 3,389 Equity 1,589 1,330 1,552 Non-current liabilities 158 166 829 Trade payables 241 229 292 Other current liabilities 1,208 1,307 717 Total equity and liabilities 3,195 3,032 3,389 Third quarter report 2025
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High degree of financial flexibility Comments Q3 2025 compared with Q3 2024 ● Net debt was 23 (202) MSEK ● The leverage ratio, NIBD to adjusted EBITDA, amounted to 0.03 (0.40) Net Interest-Bearing Debt (MSEK) Q3-25 Q3-24 Q4-24 Interest-bearing liabilities within Current liabilities 550 650 - Interest-bearing liabilities within Non-current liabilities - - 650 Cash and cash equivalents 527 448 623 Total Net Interest-Bearing Debt (NIBD) 23 202 27 NIBD / adjusted R12 EBITDA ratio 0.03 0.40 0.05 Third quarter report 2025
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● Raised adjusted EBITDA margin target for 2025 ● Strong paid subscriber intake ● Record-high profitability and strong financial position ● Paid churn at all-time-low ● Launch of several new product features ● Estonia launch and new partnership in Chile ● Appointed Stefan Wård as new CFO Summary Third quarter report 2025
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Strategic direction… …to deliver on mid-term financial targets ● Strengthen our leading position in the Nordics, increase growth in non-Nordics core and expand into new adjacent markets ○ Synergies between Streaming and Publishing segments ○ Continued focus on operational excellence ○ Invest in our platform and offering, dedicated AI strategy ○ Broaden audience segmentation ● Strong operational momentum, high degree of financial flexibility ● Active M&A agenda o deliver on our full-year guidance for 2025. Third quarter report 2025
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Q&A