Author Topic: STORY-B.ST - Storytel  (Read 6346 times)

NewbieD

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Re: Storytel
« Reply #10 on: August 30, 2016, 12:13:47 PM »

Gotta love the growth, but it's trading at 90x BITDA if Bloomberg's numbers are correct. You have to be REALLY confident that there is a moat here.  BTW, sorry about the lousy formatting. I don't know how to drop a spreadsheet into this.
you can see that the Swedish segment appears to have reached scale and is running at 30% "contribution margin," nearing SEK 100 million in annual contribution, and still growing quickly, while the non-Swedish segments are sub-scale and losing money, but also growing. 

Because of the language barrier, I can't tell what costs are included in the segment-level contribution margins they disclose, but at current prices I think you have to believe they'll reach scale in at least some of the other markets.  In addition, I don't think the financials include results from the recent acquisitions.

The contribution margin is income minus content costs and marketing. Content costs are about 55% for the content they don't own themselves.

Agree with your take that they need to succeed in one or two more markets to be a good buy. Growth in Sweden is probably at the inflexion point where it will start to slow down because the market is becoming saturated. Sensortower.com has reviews from Apps and from there I can see that the number of reviews from Netherlands is decreasing slowly but steadily so there seems to be some traction at least. The seller of Mofibo that they bought is now running the Netherlands effort. He's got decent share of stock. Talk in english: https://www.youtube.com/watch?v=ktaiFwUw-JM

One point from this talk is that he mentions that Mofibo had a fixed cost per book of content. This means they had a fixed income per customer and a variable cost - loosing money if someone listened to many books. From what I understand this is not the case with Storytels agreement. They instead distribute  55% of the monthly income from each customer onto the content providers who served books for the customers. Less share for the content they made themselves.

The financial from last Q includes the streaming service proforma for all Qs but not the book publisher. The book publisher had  revenues of 435 MSEK and 37 MSEK net income in 2015. Result is volatile though. Bought for 152 MSEK.

Has there been any attempts at subscription audiobooks in the US? If yes, why did it fail?


KJP

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Re: Storytel
« Reply #11 on: August 30, 2016, 01:02:19 PM »

Has there been any attempts at subscription audiobooks in the US? If yes, why did it fail?

There are several audiobook subscription services in the US, including Audible, Downpour and Scribd.  To my knowledge, none of them offers unlimited reading.  Instead, you get a certain number of books with your subscription and then have to pay per book if you want more. 

NewbieD

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Re: STORY-B.ST - Storytel
« Reply #12 on: November 11, 2016, 01:49:05 PM »
Q3 report coming up on monday on this one. It seems to be chugging along. The CFO bought shares for her likely net worth (young) at 30 days before (last possible trading time).
 
They were at an arabic speaking book fair so probably looking to expand to that area (or just want to serve all the arabic speakers in Scandinavia:))

NewbieD

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Re: STORY-B.ST - Storytel
« Reply #13 on: November 27, 2017, 04:52:26 AM »
This has now launched in Spain, Russia and India amongst others. If there are any CoBF readers from those markets it would be interesting to hear their take on the viability of the product in those countries/languages.

NewbieD

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Re: STORY-B.ST - Storytel
« Reply #14 on: May 15, 2018, 02:35:49 AM »
In case anyone is interested, Storytel has now switched to english for its official reporting and communication.
They are also launching a Kindle-like device. Unsure what to think about this. https://www.youtube.com/watch?v=bERnczN-Oa4

NewbieD

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Re: STORY-B.ST - Storytel
« Reply #15 on: January 15, 2020, 12:50:42 AM »
This has kept growing well during the last 18 mths, feels like they will keep delivering for many years. Presentation from first Capital Markets Day held yesterday, here:

https://investors.storytel.com/sv/wp-content/uploads/sites/3/2020/01/storytel-capital-markets-day-january-2020-1.pdf