Global games studio Stillfront Group has released its comprehensive financial report for 2023, revealing that net revenue totaled 1,742 MSEK (~$165 million), reflecting a 2% decrease compared to the previous year. Additionally, organic net revenue and bookings experienced a 3% and 2% decline, respectively.

CEO Jörgen Larsson stated, "Stillfront’s bookings returned to positive organic growth for the months of November and December in the fourth quarter." This turnaround was attributed to the successful launch of Sunshine Island and significant scaling of new and existing games. However, despite this improvement, the company has decided not to pay dividends at this time.

The financial report also highlights a notable 84% increase in EBIT, reaching 130 MSEK (~$15.5 million). Conversely, EBITDA saw a 19% decrease to 531 MSEK (~$49.9 million), with adjusted EBITDA declining by 15% to 569 MSEK (~$53.5 million). This decline in adjusted EBITDA was accompanied by an adjusted EBITDA margin of 33%.

Items affecting comparability had a negative impact of -37 MSEK (~$4.3 million) on EBITDA, primarily due to cost optimizations. Product development capitalization amounted to 204 MSEK (~$23.7 million), while adjusted EBITDAC stood at 365 MSEK (~$53.5 million), reflecting a 17% decline, with an adjusted EBITDAC margin of 21%.

Larsson expressed optimism about the market's performance, citing favorable conditions and stronger seasonality compared to previous years. He also noted that despite a slight decline in organic bookings and net revenue for the full quarter, record levels of marketing investments were made to support long-term growth opportunities.

Looking ahead, Larsson expects the year-over-year organic growth rate to improve in 2024, fueled by continued high marketing investments during the start of the year.

Source: adapted from an article by Isa Muhammad, Staff Writer for PocketGamer.biz.