Board Change • May 20
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 1 experienced director. No highly experienced directors. Independent Director Erik Forsberg is the most experienced director on the board, commencing their role in 2018. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Duyuru • Mar 27
Stillfront Group AB (publ) Announces Board Appointments Stillfront Group AB (publ) held an extraordinary general meeting on March 27, 2026, where the following main resolutions were adopted. The meeting resolved, in accordance with the Major Shareholders’ proposal, to elect Mohammad AlhajHasan, Waleed Tuffaha, and Thomas Vollmoeller as new members of the board of directors until the end of the annual general meeting 2026. In addition to the newly elected board members, the board of directors consists of Erik Forsberg, Maria Hedengran, and Lars-Johan Jarnheimer, whose terms of appointment continue until the end of the annual general meeting 2026. The meeting further resolved, in accordance with the Major Shareholders’ proposal, to elect Lars-Johan Jarnheimer as chair of the board of directors and Erik Forsberg as deputy chair of the board of directors until the end of the annual general meeting 2026. Meeting date: March 27, 2026. Duyuru • Feb 16
Stillfront Group AB (Publ) Announces Not Stand for Election of Directors Stillfront Group AB (publ) announced that Katarina Bonde, Marcus Jacobs and David Nordberg will not be available for election at the extraordinary general meeting. Duyuru • Feb 13
Stillfront Group AB (publ), Annual General Meeting, May 13, 2026 Stillfront Group AB (publ), Annual General Meeting, May 13, 2026. Duyuru • Dec 07
Stillfront Group AB (publ) to Report Fiscal Year 2025 Final Results on Apr 22, 2026 Stillfront Group AB (publ) announced that they will report fiscal year 2025 final results at 9:00 AM, Central European Standard Time on Apr 22, 2026 Duyuru • Oct 14
Stillfront Group AB (Publ) Provides Earnings Guidance for the Third Quarter of 2025 Stillfront Group AB (publ) provided earnings guidance for the third quarter of 2025. For the quarter, the company expected to report net revenue of SEK 1,373 million (SEK 1,595 million), which corresponds to an organic net revenue decline of 7.8% compared to the third quarter of 2024. Duyuru • Jul 10
Stillfront Appoints Emily Villatte as Group Chief Financial Officer, Effective January 7, 2026, or Such Earlier Date Stillfront has appointed Emily Villatte as Group Chief Financial Officer (CFO). Emily will assume the position on January 7, 2026, or such earlier date as may be communicated by Stillfront. Tim Holland is currently serving as interim Group CFO and will continue in this role until Emily assumes the position as Group CFO. Emily brings extensive financial, operational, and leadership expertise from executive roles. She is currently serving as CFO and Deputy CEO at Acast, and has previously held positions within the JLT Group, including CFO Northern Europe and COO Northern Europe. Duyuru • Apr 09
Stillfront Group AB (publ), Annual General Meeting, May 14, 2025 Stillfront Group AB (publ), Annual General Meeting, May 14, 2025, at 16:00 W. Europe Standard Time. Location: at mannheimer swartlings premises, at norrlandsgatan 21, stockholm Sweden Duyuru • Mar 05
Stillfront Appoints Alexis Bonte as Group CEO Stillfront's Board of Directors has appointed Alexis Bonte as Group CEO, effective immediately. Alexis Bonte previously had the position of President and Group Interim CEO. Alexis joined Stillfront in 2017 following the acquisition of eRepublik Labs, a company he co-founded in 2007. Since joining Stillfront, Alexis has held several key leadership positions, including Group COO from 2019 and most recently as President and Interim Group CEO since October 2024. Alexis brings extensive experience to the role with his deep understanding of the gaming market and operational expertise. Duyuru • Jan 09
Stillfront Group AB (publ) Announces Andreas Uddman to Step Down as Group CFO Stillfront announced that Andreas Uddman has decided to step down as Group CFO. He will remain in his role until his successor takes over or until July 2025 at the latest. Duyuru • Jan 07
Stillfront Group Announces Strategic Executive Appointments Stillfront announced the appointment of Todd Heringer as Executive Vice President of business area North America and Kieran O'Leary as new Executive Vice President of Growth Platform. Todd Heringer appointed EVP business area North America: With over 25 years of experience in the interactive online, social, and mobile entertainment industries, Todd Heringer has assumed the position of EVP of business area North America at Stillfront. Todd brings a rich background from the gaming industry with roles such as Senior Vice President and Head of Operations at Big Fish and positions at Backflip Studios and GSN games. His tenure in these roles involved developing and implementing corporate strategy, cultivating a collaborative culture, and steering high-performing teams. In his new role, Todd will be part of Stillfront’s Executive management and manage the overall performance of the North American business area, with a focus on optimizing the underlying portfolio of the region. Todd will be based out of California and started his new role on January 6, 2025. Kieran will report to Group President & interim CEO Alexis Bonte but will not be part of the executive management team. Initially he will be based out of France and is set to relocate to Stockholm during 2025. He started his new role on January 6, 2025. Duyuru • Oct 29
Stillfront Group AB (publ) to Report Fiscal Year 2024 Final Results on Apr 22, 2025 Stillfront Group AB (publ) announced that they will report fiscal year 2024 final results on Apr 22, 2025 Duyuru • Oct 16
Stillfront Group AB (Publ) Announces Chief Executive Officer Changes Jörgen Larsson leaves as CEO for Stillfront Group AB (publ), Alexis Bonte appointed interim CEO. The Board of Directors of the company initiated the recruitment process for a new CEO for the company and appointed Alexis Bonte as interim CEO with immediate effect. Alexis Bonte has been with the company since 2017, is a member of the executive management team, and most recently held the position of President Publishing and Business Acceleration. The process of recruiting a new permanent CEO has begun, and the Board announced that Alexis Bonte has accepted the role of interim CEO of the company. Alexis is a valued leader and has made significant contributions within Stillfront since 2017, thus having a solid knowledge of the company. Reported Earnings • Jul 23
Second quarter 2024 earnings released: kr0.22 loss per share (vs kr0.11 loss in 2Q 2023) Second quarter 2024 results: kr0.22 loss per share (further deteriorated from kr0.11 loss in 2Q 2023). Revenue: kr1.87b (down 4.9% from 2Q 2023). Net loss: kr112.0m (loss widened 97% from 2Q 2023). Revenue is forecast to stay flat during the next 3 years compared to a 5.6% growth forecast for the Entertainment industry in Germany. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 25 percentage points per year, which is a significant difference in performance. Duyuru • May 29
Stillfront Group AB (publ) to Report Fiscal Year 2024 Results on Feb 05, 2025 Stillfront Group AB (publ) announced that they will report fiscal year 2024 results at 7:00 AM, Central European Standard Time on Feb 05, 2025 Duyuru • May 15
Stillfront Group AB (publ) Announces Board Appointments Stillfront Group AB (publ) at its annual general meeting held on 14 May 2024, approved to elect Maria Hedengren and Lars-Johan Jarnheimer as new members of the board until the close of the next annual general meeting. Maria Hedengren has 25 years of experience from leading positions in international growth companies, including CFO of NetEnt and iZettle and CEO of Readly, and is currently active on several boards, as an investor and as a venture partner at a global venture capital company. Lars-Johan Jarnheimer has more than 40 years of experience from multinational companies such as Tele2, Millicom, H&M, IKEA and the media company Egmont Group. He is currently chair of the board of Telia Company, Inka Holding (IKEA), Elite Hotels and Arvid Nordqvist and a board member of SAS. Reported Earnings • Apr 25
Full year 2023 earnings released: EPS: kr0.014 (vs kr1.16 in FY 2022) Full year 2023 results: EPS: kr0.014 (down from kr1.16 in FY 2022). Revenue: kr7.58b (down 1.4% from FY 2022). Net income: kr7.00m (down 99% from FY 2022). Profit margin: 0.1% (down from 7.3% in FY 2022). Revenue is forecast to stay flat during the next 3 years compared to a 5.2% growth forecast for the Entertainment industry in Germany. Over the last 3 years on average, earnings per share has fallen by 47% per year whereas the company’s share price has fallen by 51% per year. Reported Earnings • Feb 09
Full year 2023 earnings released: EPS: kr0.014 (vs kr1.16 in FY 2022) Full year 2023 results: EPS: kr0.014 (down from kr1.16 in FY 2022). Revenue: kr7.58b (down 1.3% from FY 2022). Net income: kr7.00m (down 99% from FY 2022). Profit margin: 0.1% (down from 7.3% in FY 2022). Revenue is forecast to stay flat during the next 3 years compared to a 3.8% growth forecast for the Entertainment industry in Germany. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has fallen by 58% per year, which means it is performing significantly worse than earnings. Duyuru • Feb 07
Stillfront Group AB (publ) to Report Fiscal Year 2023 Results on Apr 22, 2024 Stillfront Group AB (publ) announced that they will report fiscal year 2023 results at 9:00 AM, Central European Standard Time on Apr 22, 2024 New Risk • Oct 28
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 29% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.7% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.7% net profit margin). Reported Earnings • Oct 26
Third quarter 2023 earnings released: kr0.014 loss per share (vs kr0.16 profit in 3Q 2022) Third quarter 2023 results: kr0.014 loss per share (down from kr0.16 profit in 3Q 2022). Revenue: kr1.82b (down 7.2% from 3Q 2022). Net loss: kr7.00m (down 108% from profit in 3Q 2022). Revenue is forecast to grow 1.6% p.a. on average during the next 3 years, compared to a 3.0% growth forecast for the Entertainment industry in Germany. Over the last 3 years on average, earnings per share has fallen by 33% per year but the company’s share price has fallen by 53% per year, which means it is performing significantly worse than earnings. New Risk • Oct 25
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 6.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.6% average weekly change). Profit margins are more than 30% lower than last year (3.8% net profit margin). Reported Earnings • Jul 21
Second quarter 2023 earnings released: kr0.11 loss per share (vs kr0.23 profit in 2Q 2022) Second quarter 2023 results: kr0.11 loss per share (down from kr0.23 profit in 2Q 2022). Revenue: kr1.96b (flat on 2Q 2022). Net loss: kr57.0m (down 149% from profit in 2Q 2022). Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 2.4% growth forecast for the Entertainment industry in Germany. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has fallen by 40% per year, which means it is performing significantly worse than earnings. New Risk • Jul 07
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.2% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Profit margins are more than 30% lower than last year (6.1% net profit margin). Shareholders have been diluted in the past year (2.2% increase in shares outstanding). Valuation Update With 7 Day Price Move • Jun 09
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to €1.48, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 19x in the Entertainment industry in Europe. Total loss to shareholders of 77% over the past three years. Duyuru • May 13
Stillfront Group AB (publ) Appoints Katarina G. Bonde as New Chair of the Board of Directors Stillfront Group AB (publ) at the AGM, the shareholders approved Katarina G. Bonde was elected as new chair of the board of directors until the close of the next annual general meeting. Reported Earnings • Apr 23
Full year 2022 earnings released: EPS: kr1.16 (vs kr1.61 in FY 2021) Full year 2022 results: EPS: kr1.16 (down from kr1.61 in FY 2021). Revenue: kr7.69b (up 30% from FY 2021). Net income: kr559.0m (down 5.3% from FY 2021). Profit margin: 7.3% (down from 9.9% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.2% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Entertainment industry in Germany. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has fallen by 31% per year, which means it is performing significantly worse than earnings. Reported Earnings • Feb 20
Full year 2022 earnings released: EPS: kr1.16 (vs kr1.61 in FY 2021) Full year 2022 results: EPS: kr1.16 (down from kr1.61 in FY 2021). Revenue: kr7.70b (up 30% from FY 2021). Net income: kr559.0m (down 5.3% from FY 2021). Profit margin: 7.3% (down from 9.9% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 5.9% growth forecast for the Entertainment industry in Germany. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to €1.91, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 16x in the Entertainment industry in Europe. Total loss to shareholders of 53% over the past three years. Duyuru • Feb 15
Stillfront Group AB (publ) to Report Fiscal Year 2022 Final Results on Apr 20, 2023 Stillfront Group AB (publ) announced that they will report fiscal year 2022 final results at 9:00 AM, Central European Standard Time on Apr 20, 2023 Valuation Update With 7 Day Price Move • Jan 14
Investor sentiment deteriorated over the past week After last week's 16% share price decline to €1.31, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 14x in the Entertainment industry in Europe. Total loss to shareholders of 58% over the past three years. Duyuru • Jan 04
Stillfront Group AB (Publ) Announces Jan Samuelson, Chair of the Board of Directors to Not Be Available for Re-Election Jan Samuelson, Chair of the Board of Directors of Stillfront Group AB (publ), has informed the nomination committee that he is not available for re-election at the 2023 annual general meeting. Jan has been chair of the board of directors of Stillfront since 2018. The annual general meeting will be held in Stockholm, Sweden on 11 May 2023. Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment improved over the past week After last week's 17% share price gain to €1.82, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 15x in the Entertainment industry in Europe. Total loss to shareholders of 40% over the past three years. Duyuru • Dec 06
Stillfront Group AB (publ) Announces Changes to Nomination Committee Stillfront Group AB (publ) announced that the composition of the nomination committee ahead of the 2023 annual general meeting has changed as a result of a change in ownership. The composition of the nomination committee ahead of the 2023 annual general meeting was announced through a press release on 9 November 2022. As a result of a subsequent change in ownership, the composition of the nomination committee has changed by Caroline Sjösten (appointed by Swedbank Robur Fonder) leaving the nomination committee and that Niklas Johansson (appointed by Handelsbanken Fonder) joining as a new member of the nomination committee. After the change, the nomination committee ahead of the 2023 annual general meeting consists of the following members: Ossian Ekdahl, Chair of the Nomination Committee, appointed by Första AP-fonden (AP1) Niklas Johansson, appointed by Handelsbanken Fonder Patrik Jönsson, appointed by SEB Fonder Jan Samuelson, Chair of the Board of Directors of Stillfront Group AB (publ) (adjunct). Reported Earnings • Oct 27
Third quarter 2022 earnings released: EPS: kr0.16 (vs kr0.35 in 3Q 2021) Third quarter 2022 results: EPS: kr0.16 (down from kr0.35 in 3Q 2021). Revenue: kr1.96b (up 37% from 3Q 2021). Net income: kr83.0m (down 35% from 3Q 2021). Profit margin: 4.2% (down from 9.0% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Entertainment industry in Germany. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Reported Earnings • Jul 22
Second quarter 2022 earnings released: EPS: kr0.23 (vs kr0.41 in 2Q 2021) Second quarter 2022 results: EPS: kr0.23 (down from kr0.41 in 2Q 2021). Revenue: kr1.97b (up 31% from 2Q 2021). Net income: kr117.0m (down 20% from 2Q 2021). Profit margin: 5.9% (down from 9.7% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 7.2%, compared to a 131% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Board Change • May 17
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. No highly experienced directors. Independent Director Katarina Bonde was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • May 05
First quarter 2022 earnings released: EPS: kr0.36 (vs kr0.41 in 1Q 2021) First quarter 2022 results: EPS: kr0.36 (down from kr0.41 in 1Q 2021). Revenue: kr1.82b (up 27% from 1Q 2021). Net income: kr145.0m (flat on 1Q 2021). Profit margin: 8.0% (down from 10% in 1Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 10.0%, compared to a 179% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Reported Earnings • Apr 21
Full year 2021 earnings released: EPS: kr1.61 (vs kr1.79 in FY 2020) Full year 2021 results: EPS: kr1.61. Revenue: kr5.93b (up 37% from FY 2020). Net income: kr590.0m (up 1.7% from FY 2020). Profit margin: 9.9% (down from 13% in FY 2020). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 14%, compared to a 181% growth forecast for the industry in Germany. Duyuru • Apr 09
Stillfront Group AB (publ) to Report Q4, 2022 Results on Feb 15, 2023 Stillfront Group AB (publ) announced that they will report Q4, 2022 results on Feb 15, 2023 Valuation Update With 7 Day Price Move • Mar 18
Investor sentiment improved over the past week After last week's 19% share price gain to €2.89, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 21x in the Entertainment industry in Germany. Total returns to shareholders of 51% over the past three years. Valuation Update With 7 Day Price Move • Feb 23
Investor sentiment deteriorated over the past week After last week's 25% share price decline to €3.00, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 19x in the Entertainment industry in Germany. Total returns to shareholders of 83% over the past three years. Duyuru • Feb 19
Stillfront Group AB (publ) Announces Kai Wawrzinek Will Not Be Available for Re-Election At the Annual General Meeting 2022 Stillfront Group AB (publ) announced that Kai Wawrzinek has informed the Nomination Committee that he will not be available for re-election at the Annual General Meeting 2022. Duyuru • Feb 17
Stillfront Group AB (publ) to Report Fiscal Year 2021 Final Results on Apr 21, 2022 Stillfront Group AB (publ) announced that they will report fiscal year 2021 final results on Apr 21, 2022 Reported Earnings • Feb 17
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: kr1.61 (down from kr1.79 in FY 2020). Revenue: kr5.94b (up 37% from FY 2020). Net income: kr590.0m (up 1.7% from FY 2020). Profit margin: 9.9% (down from 13% in FY 2020). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Over the next year, revenue is forecast to grow 9.2%, compared to a 340% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has increased by 39% per year, which means it is tracking significantly ahead of earnings growth. Duyuru • Feb 16
Stillfront Group AB (publ) Appoints Alexandre Salem as Senior Vice President Operations & Platforms and Member of its Group Business Management Team, Effective February 21, 2022 Stillfront Group AB (publ) announced that Alexandre Salem will join as Senior Vice President Operations & Platforms and member of Stillfront's Group business management team. Alexandre joins Stillfront most recently from Huawei where he was Global Director of Gaming Partnerships. Alexandre has vast experience from the gaming industry and previous experience includes roles such as Gaming Lead EMEA Partnerships Solutions at Google and Global Advertising Monetization Director at King. As SVP Operations & Platforms, Alexandre Salem’s role will be to boost scalability and growth tracks, and to strengthen Stillfront and its studios partnerships with the various platforms where it distributes its games. Alexandre will also directly support and govern a selection of studios within the group by being a partner in their efforts to drive performance and continue their successful journeys. Alexandre Salem will assume his position on February 21, 2022. Duyuru • Feb 02
Stillfront Group AB (publ) (OM:SF) completed the acquisition of Six Waves Inc from Founders, employees and investors, including NEXON Korea Corporation. Stillfront Group AB (publ) (OM:SF) agreed to acquire Six Waves Inc from Founders, employees and investors, including NEXON Korea Corporation for approximately $200 million on January 17, 2022. As part of the financing arrangement of the Transaction, Stillfront’s board of directors has resolved on a preferential rights issue of approximately SEK 2.0 billion, which is subject to approval by an extraordinary general meeting (the “Rights Issue”). Of the Upfront Purchase Price, approx. 92 percent is payable in cash, and approx. 8 percent is payable in a total of 2,913,857 newly issued shares in Stillfront. Operational founders and key employees in 6waves may receive additional earn-out payment of up to 1.0A EBITDA for each of the financial years 2022, 2023, 2024 and 2025, whereof 75% is payable in cash and 25% in newly issued shares in Stillfront. The total aggregate earnout for the aforementioned financial years is capped at a maximum of $100 million.
The acquisition of 6Waves will provide Stillfront with a solid foothold in East Asia and significantly strengthen Stillfront’s presence in the attractive Japanese gaming market. Further, the acquisition will strengthen Stillfront’s strategy portfolio contributing several top grossing long lifecycle games to the portfolio. The acquisition will also enable substantial scaling and collaboration potential within Stillfront’s group of studios. The cash portion of the Upfront Purchase Price of the Transaction will be financed through existing credit facilities. Six Waves reported Total revenue of $84.873757 million, Adjusted EBITDA of $27.704905 million and EBIT of $27.045264 million. As part of the financing arrangement of the Transaction, subject to approval by an extraordinary general meeting expected to be held on or around February 23, 2022, the board of directors of Stillfront has today resolved on a Rights Issue of approximately SEK 2.0 billion with preferential rights for existing shareholders. The final terms for the Rights Issue, including subscription price and number of new shares, are expected to be resolved by the board of directors and made public on or around February 23, 2022. Completion of the Transaction is expected to occur on January 31, 2022 and 6waves is expected to be consolidated into Stillfront’s consolidated financial reporting from February 1, 2022.
Stillfront Group AB (publ) (OM:SF) completed the acquisition of Six Waves Inc from Founders, employees and investors, including NEXON Korea Corporation on February 1, 2022. Reported Earnings • Nov 11
Third quarter 2021 earnings released: EPS kr0.35 (vs kr0.45 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: kr1.43b (up 28% from 3Q 2020). Net income: kr128.0m (down 16% from 3Q 2020). Profit margin: 9.0% (down from 14% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has increased by 50% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Oct 21
Investor sentiment deteriorated over the past week After last week's 16% share price decline to €4.18, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 24x in the Entertainment industry in Europe. Total returns to shareholders of 200% over the past three years. Reported Earnings • Aug 12
Second quarter 2021 earnings released: EPS kr0.41 (vs kr0.57 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: kr1.50b (up 18% from 2Q 2020). Net income: kr146.0m (down 22% from 2Q 2020). Profit margin: 9.7% (down from 14% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 10
Investor sentiment deteriorated over the past week After last week's 16% share price decline to kr5.46, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 28x in the Entertainment industry in Europe. Total returns to shareholders of 159% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €9.49 per share. Valuation Update With 7 Day Price Move • Jul 06
Investor sentiment deteriorated over the past week After last week's 19% share price decline to kr6.69, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 27x in the Entertainment industry in Europe. Total returns to shareholders of 217% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €11.57 per share. Recent Insider Transactions • May 13
Insider recently bought €743k worth of stock On the 10th of May, Jan Samuelson bought around 100k shares on-market at roughly €7.43 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold €336k more in shares than they bought in the last 12 months. Reported Earnings • Apr 24
Full year 2020 earnings released: EPS kr1.79 (vs kr1.34 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: kr4.33b (up 100% from FY 2019). Net income: kr580.0m (up 72% from FY 2019). Profit margin: 13% (down from 16% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has increased by 66% per year, which means it is tracking significantly ahead of earnings growth. Is New 90 Day High Low • Mar 09
New 90-day low: €8.16 The company is down 6.0% from its price of €8.67 on 09 December 2020. The German market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Entertainment industry, which is up 14% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €11.51 per share. Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment deteriorated over the past week After last week's 25% share price decline to kr9.26, the stock is trading at a trailing P/E ratio of 57x, down from the previous P/E ratio of 75.7x. This compares to an average P/E of 36x in the Entertainment industry in Europe. Total returns to shareholders over the past three years are 492%. Reported Earnings • Feb 19
Full year 2020 earnings released: EPS kr1.79 (vs kr1.34 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2020 results: Revenue: kr4.33b (up 100% from FY 2019). Net income: kr580.0m (up 72% from FY 2019). Profit margin: 13% (down from 16% in FY 2019). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has increased by 78% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Feb 19
Revenue misses expectations Revenue missed analyst estimates by 2.5%. Over the next year, revenue is forecast to grow 38%, compared to a 3.8% growth forecast for the Entertainment industry in Germany. Is New 90 Day High Low • Feb 10
New 90-day high: €10.45 The company is up 14% from its price of €9.19 on 11 November 2020. The German market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Entertainment industry, which is up 10.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €9.99 per share. Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment improved over the past week After last week's 16% share price gain to kr10.00, the stock is trading at a trailing P/E ratio of 62.6x, up from the previous P/E ratio of 54.1x. This compares to an average P/E of 36x in the Entertainment industry in Europe. Total returns to shareholders over the past year are 132%. Duyuru • Feb 03
Stillfront Group AB (publ) (OM:SF) signed an agreement to acquire 100% stake in Moonfrog Labs Pvt Ltd. from its joint founders and institutional investors. Stillfront Group AB (publ) (OM:SF) signed an agreement to acquire 100% stake in Moonfrog Labs Pvt Ltd. from its joint founders and institutional investors on February 1, 2021. The consideration shall be paid in cash. As per terms, Stillfront acquires Moonfrog in four tranches, of which the first tranche of 91% of the shares for a consideration of $90 million on a cash and debt free basis upon completion of the acquisition of the First Tranche. The remaining 9% of the shares in Moonfrog are acquired through a maximum of three additional tranches Deferred Tranches. The consideration for the acquisition of the second tranche shall be an amount equal to 1x EBITDA for the period January 1 to December 31, 2021. The consideration for the acquisition of the third tranche shall be an amount equal to1x EBITDA if EBITDA is up to $20 million, and 1.25x EBITDA if EBITDA exceeds $20 million for the period January 1 to December 31, 2022. The consideration for the acquisition of the fourth tranche shall be an amount equal to 0.50x EBITDA for the period January 1 to December 31, 2023. The Initial Consideration is equivalent of approximately 6x of Moonfrog adjusted EBITDA for 2020. The Initial Consideration including any adjustment consideration will be financed from cash at hand and available credit facilities. Key employees of Moonfrog still remain with the business and be part of the management of Moonfrog post-closing of the First Tranche. Moonfrog ÿill be consolidated into Stillfront's consolidated financial reporting from 1 March 2021. Closing of the transaction is subject to customary closing conditions and is expected to complete on February 26, 2021. Carnegie Investment Bank AB (publ) acted as financial advisor to Stillfront Group. Valuation Update With 7 Day Price Move • Dec 24
Investor sentiment improved over the past week After last week's 16% share price gain to kr10.17, the stock is trading at a trailing P/E ratio of 62.5x, up from the previous P/E ratio of 53.9x. This compares to an average P/E of 33x in the Entertainment industry in Europe. Total returns to shareholders over the past year are 191%. Valuation Update With 7 Day Price Move • Dec 19
Investor sentiment improved over the past week After last week's 16% share price gain to kr100.00, the stock is trading at a trailing P/E ratio of 62.6x, up from the previous P/E ratio of 53.9x. This compares to an average P/E of 34x in the Entertainment industry in Europe. Total returns to shareholders over the past year are 192%. Is New 90 Day High Low • Dec 09
New 90-day low: €85.60 The company is down 2.0% from its price of €87.60 on 10 September 2020. The German market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Entertainment industry, which is up 19% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €62.18 per share. Reported Earnings • Nov 12
Third quarter 2020 earnings released: EPS kr4.51 The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2020 results: Revenue: kr1.12b (up 93% from 3Q 2019). Net income: kr153.0m (up 42% from 3Q 2019). Profit margin: 14% (down from 19% in 3Q 2019). The decrease in margin was driven by higher expenses. Duyuru • Oct 06
Stillfront Group AB (publ) (OM:SF) signed an agreement to acquire Nanobit D.o.o. from Alan Sumina, Zoran Vucinic and certain key employees for approximately $150 million. Stillfront Group AB (publ) (OM:SF) signed an agreement to acquire Nanobit D.o.o. from Alan Sumina, Zoran Vucinic and certain key employees for approximately $150 million on a cash and debt free basis on September 17, 2020. Under the terms, Stillfront will acquire 78% as first tranche for $100 million payable as 0.28 million shares worth of $30 million to Alan Sumina, Zoran Vucinic and $70 million in cash to sellers and 22% as second tranche for $48 million payable as $14.4 million in shares and $33.6 million in cash in 2023. The first tranche consideration will be subject to adjustment based on the cash, financial debt, transaction expenses and the difference between target and actual indebtedness of Nanobit. Second tranche consideration is depending on the EBITDA development of Nanobit for the financial years 2021 and 2022. Transaction is intended to be financed by available cash and credit facilities. The founders, Alan Sumina and Zoran Vucinic, and other key employees will remain within Nanobit and be part of the management of Nanobit post-closing of the first tranche. Completion of the first tranche transaction is conditional on a number of closing deliverables including but not limited to repayment of bonds issued by Nanobit and repayment of external debts. Closing of the first tranche is expected to occur on September 30, 2020. Transaction will result in an attractive earnings multiple for Stillfront. Advokatfirma DLA Piper Sweden KB acted as legal advisor and Ernst & Young Corporate Finance AB acted as financial advisor for Stillfront. Mike Turner of Latham & Watkins LLP acted as legal advisor and Aream & Co acted financial advisor for sellers of Nanobit. Joacim Johannesson and Jörgen S. Axelsson of Setterwalls Advokatbyrå AB acted as legal advisor to the shareholders in Nanobit. Recent Insider Transactions • Sep 28
Chief Operating Officer recently sold €1.1m worth of stock On the 23rd of September, Alexis Bonte sold around 10k shares on-market at roughly €108 per share. This was the largest sale by an insider in the last 3 months. This was Alexis' only on-market trade for the last 12 months. Is New 90 Day High Low • Sep 19
New 90-day high: €108 The company is up 38% from its price of €78.00 on 19 June 2020. The German market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Entertainment industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €70.07 per share. Duyuru • Jul 30
Stillfront Group AB (publ) (OM:SF) completed the acquisition of Candywriter, LLC from Kevin O'Neil and Nadir Khan. Stillfront Group AB (publ) (OM:SF) entered into an agreement to acquire Candywriter, LLC from Kevin O'Neil and Nadir Khan for approximately $200 million on April 23, 2020. The purchase price is subject to adjustments, customary enterprise value to equity value adjustment for net cash/debt and two-way net working capital. Under the terms of the agreement, Stillfront Group will pay an upfront consideration in the form of 708,463 newly issued shares in Stillfront; with 18 months lock-up from the date of receipt of these shares and the remaining approximately $36.9 million payable in cash. Further, an earn-out consideration may be payable by Stillfront in an aggregate maximum total amount of $120.6 million on a cash and debt free basis, out of which 50% shall be paid in cash and 50% in newly issued shares in Stillfront; with 12 months lock-up from the date of receipt of the shares. The ultimate size of the yearly earn-out component will depend on the EBIT development of Candywriter for the financial years 2020, 2021 and 2022. The cash portion of transaction will be funded by existing cash at hand and Revolving Credit Facility of SEK 1.6 billion ($159.7 million) with Nordea and Swedbank.
For the year ended December 31, 2019, Candywriter reported total revenue of SEK 250 million ($26.8 million), adjusted EBIT of SEK 143 million ($15.3 million) and adjusted EBITDA of SEK 144 million ($15.4 million). Kevin O'Neil and Nadir Khan of Candywriter will remain active as the key management team of the company going forward. The transaction is conditional upon, including no order being issued by any governmental entity and no injunction being issued preventing the consummation of the Transactions, a warranty and indemnity insurance being issued, all warranties being true in all material respects, no founder employee agreement shall have been revoked by any founder and that there shall not have occurred a material adverse effect since January 1, 2020. The transaction is expected to be completed by end of April 2020. DLA Piper acted as legal advisor and EY acted as due diligence provider to Stillfront Group. Agnitio Capital Limited acted as financial advisor and Perkins Coie LLP acted as legal advisor to Candywriter, Kevin O'Neil and Nadir Khan.
Stillfront Group AB (publ) (OM:SF) completed the acquisition of Candywriter, LLC from Kevin O'Neil and Nadir Khan on April 29, 2020. All other conditions for closing have now been fulfilled.