Storytel

(draft from April 17 2016 that I decide to publish now in October)

Summary Investment Thesis

  • Fast growing (85% subscriber growth last year).
  • Steady revenue stream
  • Platform type business model can create virtuous circle. I.e. comparable to Netflix, HBO.
  • Low visibility due to: Non-regulated list, Reverse Merger listing, Prime target group (middle age women) doesn’t correlate strongly with small cap stock picker demographics.
  • CEO and his wife are big shareholders (total 20+%) and likely most of their wealth in the company.
  • Apart from Amazon/Audible (english) the competition seems limited in local european languages.
  • Unlimited listening for $20/month is a better value for the customer than Audibles which charges per book.
  • Long run-way left with growth just from current markets.

Risks

  • Move from print books to audio is slower than expected.
  • Usurped by a better offering. E.g. Amazon expanding or other major book retailers getting better at audiobook distribution. Examples in Sweden are BookBeat (Bonnier).

Leave a Reply

Your email address will not be published. Required fields are marked *