The owner of Supremacy, Albion Online, Goodgame, Jawaker, Kixeye and more is looking to streamline under new boss Alexis Bonte.
Stillfront announced that a strategic review may mean the “selective divestment or discontinuation of certain assets within the group”, it said this morning.
The review will “evaluate certain assets as part of a focused effort to strengthen the group by reallocating resources toward more scalable franchises and other opportunities,” it said. The Swedish roll-up firm has appointed Carnegie (DNB) and Aream as the process begins.
Stillfront had previously announced a cost cutting program in Q3 2024 designed to save the company up to SEK 250m (~$23m).
New boss Alexis Bonte is making his mark, clearly. He was appointed president and group CEO in March, and last week, Stillfront announced it would be merging two of its studios. Conflict of Nations maker Dorado Games and Supremacy developer Bytro are now one entity called Twin Harbour Interactive. A spokesperson assured us that there would be no layoffs as part of the move.
The strategic review was announced as Stillfront reported its Q125 financials. Highlights in brief here, all comparisons year-over-year:
- Net revenue of SEK 1,545m ($160m), down 12%
- Gross margin of 81%, up 1%
- Adjusted EBITDAC of SEK 402m (~$41.7m), up 12%
- Adjusted EBITDAC margin of 26%, up 5%
- Direct to consumer revenue is now 36% of total, up 6%
- Free cash flow of SEK 194m (~$20.1m), up from SEK 138m (~$14.3m)
- Total net debt, including cash earnout for the next 12 months, amounted to SEK 4,379m (~$453.7m), down from 4,643m (~$481m)
- Total net debt including all earnout liabilities of SEK 5,656m (~$586m), down from SEK 6,294m (~$651.9m)
- Cash position was SEK 934m (~96.8m), up from SEK 877m (~$90.9m)
Stillfront group president and CEO Alexis Bonte said that the firm’s cost savings program and “more efficient UA spending” drove the adjusted EBITDAC improvement of 12 percent.
“To accelerate our transformation, we have launched a strategic review to explore options for maximizing shareholder value of selected group assets,” he reiterated.
