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Stillfront Group reported a 5% decline in net revenue for FY 2024, totalling $153.5 million, down from $160.8 million the previous year. Organic revenue also saw a 5% decrease. This is according to its FY 2024 financials.
Despite the revenue drop, the company’s adjusted EBITDAC rose 12% to $37.7 million, with the margin improving to 25% from 21%. Product development capitalisation fell to $12.7 million, representing 8% of net revenue.
A significant non-cash goodwill impairment of $631.5m impacted EBIT, which turned negative at -$640.6m. Due to this, the net result plunged to -$669.2 million, a decline from $0.9 million in 2023.
However, free cash flow remained strong at $31.5 million for the quarter and $96.6 million over the past 12 months, up from $76.6 million the previous year.
The company’s total net debt stood at $435.7 million, with a cash position of $88 million and undrawn credit facilities of $112.2 million. The board has proposed no dividend for 2024.
Restructuring for growth
Stillfront also noted that as of January 1st 2025, it had reorganised its operations in three business areas. Europe, North America, as well as MENA and APAC.
The restructuring aims to drive new growth, improve profitability, and provide transparency. Alongside the shift, the company said it would focus on key franchises while addressing underperforming games in a bid to boost organic growth and reduce costs.
“Strong cash flows in a challenging UA environment, advancing with our turnaround of North America and continued progress in our efficiency and cost optimisation efforts,” said Stillfront Group president and interim CEO Alexis Bonte.
“Stillfront’s net revenue amounted to 1,660 MSEK ($153.5m) in the fourth quarter with a 5 per cent organic decline year-over-year as we continued to see a slowdown in new players’ activity, mostly impacting the Strategy portfolio.”
“The decline in bookings and gross profit was fully offset by less fixed costs, less product development costs and less UAC, resulting in an adjusted EBITDAC of 410 MSEK ($37.7m) with a 25 per cent EBITDAC margin and 12 per cent growth compared to Q4 2023,” said Bonte.
“We continue to see positive trends for the free cash flow generation, which amounted to 342 MSEK ($31.5m) in the quarter, and for the full year, we saw free cash flow returning to over 1 BSEK ($92m).”
Earlier this year, Stillfront appointed Todd Heringer as executive vice president of the business area in North America, and Kieran O’Leary took on the role of executive VP of the growth platform.
