Storytel, the Swedish audiobook company, made significant strides on Wednesday by reporting double-digit growth in revenue and margins in the fourth quarter. Surpassing the billion kronor mark for the first time, the company achieved a record-high turnover, with an adjusted EBITDA margin of 18.7% (up from 10.4%).
Since Bodil Ericsson Torp took the helm as CEO in October last year, the company’s stock has surged by approximately 80%. She credits the foundation of this success to her predecessor, Johannes Larcher, while emphasizing the team’s intense efforts to execute the outlined strategy for profitable growth.
“It has involved everything from major investments in original content to consciously managing our cost base,” Torp told Placera.
Having previously served as CEO of Aller Media and most recently coming from the publicly listed acquisition company VO2, Torp wasted no time in her four months at Storytel. She swiftly acquired the publishing house Bokfabriken and secured the rights to beloved children’s book characters Bert and Sune.
“This is a crucial part of our strategy. There is a strong content agenda within Storytel, and we aim to acquire rights to brands that we can further develop across various formats,” explained Torp.
While the adjusted EBITDA margin exceeded the company’s 2026 target of “over 15%” in Q4, growth in streaming revenue fell slightly short of the goal of organic growth between 10-12% in the mid-term. When asked about potentially sacrificing margins to drive streaming growth, Torp hinted at an upcoming strategic shift.
“We are in the process of developing a new strategy that will extend to 2028. This will address key aspects of our business, from customer offerings and markets to products and services, as well as sustaining profitable growth,” Torp revealed.
One aspect she confidently highlighted in the upcoming strategy is the integration of AI technologies. This includes enhancing the audio book service’s “voice switcher,” allowing users to switch between human and AI-generated voices seamlessly.
“AI will play a significant role in our future endeavors, not only in improving our efficiency but also in enhancing user experience,” emphasized Torp.
Amid speculation of a potential merger or fierce competition with Spotify, Torp remains unfazed. With a loyal customer base of approximately 2.4 million subscribers, she expressed readiness to face any additional competition.
“We are already operating in highly competitive markets, and we are prepared to confront further challenges. We feel confident in our ability to navigate this landscape,” Torp reassured.
In the ever-evolving landscape of digital streaming, Storytel’s robust financial performance in Q4 2024, as compared to consensus estimates, reflects the company’s resilience and strategic vision for the future. With a focus on innovation and strategic growth, Storytel under Torp’s leadership is poised to continue its success story in the years to come.