Storytel Reports Strong Q3 Growth Amid Competitive Landscape in Sweden

During an earnings call, executives highlighted differing growth rates within its business divisions: streaming revenue rose by 7.8%, while external publishing sales saw a notable increase of 53.8%, 26.6% of which was organic growth. The streaming segment includes services like Storytel, Mofibo, and Audiobooks.com, whereas the Publishing division encompasses publishers such as Norstedts from Sweden, Gummerus from Finland, People’s from Denmark, and Overamstel from the Netherlands, which was acquired on May 19, 2026, boosting this division’s performance.

Operating profit also increased by 16% to SEK 176 million (approximately US$17.7 million). CEO Bodil Eriksson Torp reported an increase of 80,000 paying subscribers in the quarter, marking the largest gain since 2023. By the end of the quarter, the company had 2.83 million paying subscribers and maintained its adjusted EBITDA guidance for the year at SEK 900 million (US$90.7 million).

The company also noted heightened engagement with its AI-driven features. The Genie companion tool facilitated over 800,000 conversations, mainly focused on genres like fantasy, children’s literature, and nonfiction. Additionally, the Recaps feature, offering AI-generated summaries, has expanded to 10 markets with over 400,000 users each month. Genie's personalized recommendations have been encouraging listeners to add more titles to their libraries.

Regionally, Storytel’s European operations outside the Nordics led its streaming growth, with an 18.6% revenue increase at constant exchange rates, driven largely by strong performances in Poland, the Netherlands, Germany, and Turkey. Notably, Poland surpassed 300,000 paying subscribers during the quarter. Meanwhile, Nordic markets experienced a 5.6% revenue growth, adding 33,000 subscribers, up from 29,000 the previous year. The average revenue per user (ARPU) slightly increased to SEK 119.6 (US$12.05) from SEK 118.1 (US$11.90) a year earlier.

CFO Stefan Wård emphasized the company's focus on its 10 core markets, which include five Nordic countries, the U.S., the Netherlands, Poland, Turkey, and Bulgaria, making up over 95% of its revenue. He pointed out Poland as the most significant market in Europe and identified Turkey as a key growth area, while noting Germany as a surprising success outside the core markets. Wård described the Netherlands as stable but not exceptional.

Referring to the impact of Spotify’s entry into the audiobook market in Sweden, Denmark, and Finland on November 18, 2025, Wård stated that the company’s performance has been solid, with Finland facing challenges, yet innovation in Sweden has demonstrated resilience. He indicated that overall competition hasn’t intensified significantly since Spotify’s arrival, with churn rates remaining low in Sweden, Denmark, and Norway, despite some difficulties in Finland.

In Latin America, results were mixed, with a 1.5% revenue decline and a 5.7% ARPU drop; however, gross margins improved to 59% from 55.9%. Wård noted that while the ebook segment has high margins, Latin American markets are more stable.

In a new initiative, Storytel launched Storytel Books on October 1. This service allows users to buy print books directly through the app, integrating with existing features. Torp stated that many subscribers appreciate owning physical books alongside digital titles, and the initiative could draw in new customers to their streaming services, although it's too early to assess its full impact.