In this equity research report, analysts Albert Jansson and August Nõu Strömgren provide a detailed analysis of Storytel Group, the Nordic market leader in audiobook streaming and publishing. By reducing dependence on third-party content through acquisitions, the Company leverages content ownership to enhance profitability and competitive advantages. Internally produced content is estimated to scale from 30% of revenue in 2024A to 39% by 2027E, driving EBIT margin expansion of 6 percentage points by 2027E. Through an equally weighted DCF and peer valuation, a target price of SEK 136.0 is implied, indicating a potential upside of 36.0%.
Investment Thesis
● Publishing synergies reduce royalty costs and drive gross margin expansion of 370 bps through 2027E
● Proprietary user data strengthens retention and boosts LTV/CAC from 2.2x to 2.6x by 2030E
● Short 7.5-month subscriber payback period in Non-Nordic markets support efficient international scaling