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1. Company Snapshot

1.a. Company Description

Storytel AB (publ) provides audiobooks and e-books streaming services.The company offers a subscription service for audiobooks and e-books under the Storytel and Mofibo brands, as well as through Audiobooks.com.It also publishes audiobooks primarily through the publisher, Storyside.


The company is headquartered in Stockholm, Sweden.

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1.b. Last Insights on STORY

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1.c. Company Highlights

2. Storytel's Q3 2025 Earnings: Strong Growth and Profitability

Storytel Group delivered a robust financial performance in Q3 2025, with revenue growth of 9% in constant currency, driven by a focus on customer experience and operational efficiencies. The company's EPS came in at 1.66, beating estimates of 1.46. The EBITDA margin improved significantly, with the streaming segment expanding by 4.3 percentage points and the publishing segment reaching 33.4%, up 3 percentage points year-over-year. The company's strong financial position is reflected in its cash and equivalents of NOK 0.5 billion and net debt of NOK 23 million.

Publication Date: Nov -26

📋 Highlights
  • Revenue Growth:: 9% constant currency revenue growth driven by customer experience and operational efficiencies.
  • Streaming Growth:: Added 56,000 new subscribers (Q3), with 4% reported sales growth and 7% in constant currencies.
  • EBITDA Margin Improvement:: Streaming segment improved EBITDA margin by 4.3 percentage points year-over-year.
  • Publishing Profitability:: 14% YoY sales growth, EBITDA margin of 33.4% (up 3 percentage points YoY) post Bokfabriken acquisition.
  • Financial Position:: NOK 0.5 billion in cash equivalents and net debt of NOK 23 million, with raised 2025 margin guidance to 18.0-19.5%.

Segment Performance

The streaming segment added 56,000 new subscribers in Q3, with a strong intake from the Nordics. The segment delivered a reported sales growth of 4% and 7% in constant currencies. The publishing segment achieved strong sales and growth, with a significant improvement in profitability, partly driven by the successful acquisition of Bokfabriken, delivering a 14% year-over-year growth.

Growth Prospects

Storytel plans to accelerate its expansion in core non-Nordic markets and enter new adjacent markets. The company has launched its services in Estonia and formed a new partnership in Chile, and plans to continue adding markets to its footprint through partnerships, acquisitions, and organic growth. As Bodil Torp mentioned, "over 80% of Storytel's content is consumed in local languages, highlighting the importance of having relevant local content," which is a key competitive moat.

Valuation

With a P/E Ratio of 22.55 and an EV/EBITDA of 13.4, Storytel's valuation appears reasonable given its strong growth prospects and profitability. The company's ROE of 18.15% and ROIC of 14.5% indicate a strong ability to generate returns on equity and invested capital. Analysts estimate next year's revenue growth at 9.4%, which is in line with the company's historical performance.

Competitive Advantage

Storytel's competitive advantage lies in its highly engaged and loyal customer base, with a low churn rate. The company's focus on local content and AI initiatives, such as voice switching, enhances the customer experience and drives engagement. As Stefan Wård noted, the company has an "intense AI agenda, both for efficiency and product enhancement," which is a group-wide effort.

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.59%)

6. Segments

Streaming Nordics

Expected Growth: 10%

Storytel AB's Streaming Nordics segment growth is driven by increasing demand for digital audiobooks, strategic partnerships, and expansion into new markets. The company's strong content offerings, user-friendly platform, and competitive pricing also contribute to its growth. Additionally, the rise of smart speakers and voice assistants has increased audiobook consumption, further fueling growth.

Streaming Non-Nordics

Expected Growth: 8%

Strong demand for audiobooks, increasing adoption in emerging markets, and successful marketing efforts contribute to the 8% growth in Streaming Non-Nordics for Storytel AB. Additionally, the company's expanding content library, strategic partnerships, and user-friendly platform experience also drive growth in this segment.

Books

Expected Growth: 7%

Storytel AB's 7% growth is driven by increasing demand for audiobooks, expansion into new markets, and strategic partnerships. The rise of mobile listening, improved content offerings, and user-friendly platforms also contribute to growth. Additionally, the company's focus on emerging markets, such as Latin America and Asia, provides further opportunities for expansion.

Group-Wide Items and Eliminations

Expected Growth: 5%

Storytel AB's 5% growth in Group-Wide Items and Eliminations is driven by increasing subscription revenue, expanded content offerings, and strategic partnerships. Additionally, cost savings from operational efficiencies and effective marketing strategies contribute to the growth. The company's focus on emerging markets and diversification of revenue streams also support the upward trend.

Other Adjustments

Expected Growth: 6%

Storytel AB's 6% growth is driven by increasing demand for audiobooks, strategic partnerships, and expansion into new markets. The company's focus on content diversification, user engagement, and subscription-based model also contribute to its growth. Additionally, investments in technology and marketing efforts have improved customer acquisition and retention, further fueling growth.

7. Detailed Products

Audiobooks

Storytel offers a vast library of audiobooks in multiple languages, allowing users to access a wide range of genres and titles.

E-books

Storytel provides access to a vast collection of e-books, including bestsellers and classics, for users to read on their devices.

Original Content

Storytel produces exclusive original content, including audiobooks and podcasts, featuring popular authors and celebrities.

Subscription Service

Storytel offers a subscription-based service, allowing users to access a vast library of content for a flat monthly fee.

Publishing Services

Storytel provides publishing services, allowing authors and publishers to distribute their content to a wide audience.

8. Storytel AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Storytel AB (publ) operates in the digital audiobook subscription market, which is still a growing market. However, there are substitutes such as e-books, physical books, and other forms of entertainment that could potentially threaten Storytel's market share.

Bargaining Power Of Customers

Storytel AB (publ) has a large customer base, and individual customers do not have significant bargaining power. However, if a large group of customers were to switch to a competitor, it could have a significant impact on Storytel's revenue.

Bargaining Power Of Suppliers

Storytel AB (publ) relies on publishers and authors to provide content for its platform. While there are many publishers and authors, some larger publishers may have more bargaining power due to their large catalogs of content.

Threat Of New Entrants

The digital audiobook subscription market is still growing, and there are low barriers to entry. New entrants could potentially disrupt the market and gain market share from Storytel AB (publ).

Intensity Of Rivalry

The digital audiobook subscription market is highly competitive, with several major players competing for market share. Storytel AB (publ) faces intense competition from companies such as Audible, Scribd, and Google Play Books.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.04%
Debt Cost 7.77%
Equity Weight 58.96%
Equity Cost 11.52%
WACC 9.98%
Leverage 69.60%

11. Quality Control: Storytel AB (publ) passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Storytel

A-Score: 4.6/10

Value: 4.1

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Quality: 6.7

Yield: 1.2

Momentum: 7.5

Volatility: 1.7

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Future

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Value: 8.9

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Quality: 6.9

Yield: 0.6

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

78.7$

Current Price

78.7$

Potential

-0.00%

Expected Cash-Flows