Sparks

Storytel’s derives 90% of its revenues from its streaming operations and its flexible pricing options are helping to drive its subscriber base both in its core Nordic markets and beyond. There has been a small corresponding reduction in average revenue per unit (ARPU), with an overall 8% (constant currency) increase in Q3 revenue and a strong uplift in gross and operating margin, helped by the strong cross-sourcing of quality content from the group’s publishing activities. Churn is at record low levels. Marketing efficiency is at the core of the improvement over the last couple of the years and further gains will likely be more hard won, but the group has a strong reservoir of data on which to base its strategies across the various markets. With full-year expectations on revenue growth lifted to 8%, Storytel has already reached its FY26 targets of an adjusted EBITDA margin above 15%, and operational cash flow above 10% of revenues, two years ahead of plan. With the strong balance sheet and cash characteristics, the recently installed CEO, Bodil Eriksson Torp, comes into a business that is performing well in competitive markets.