Viaplay boosted by Nordic ad market

Source: Viaplay

Improved prospects in its core markets should help Viaplay meet its target range for sales for the full year, according to the struggling streamer’s latest trading update.

Viaplay said that it now expects its Nordic operations to perform above the previously released range for sales, while international operations are likely to perform worse than expected. The net result is that the streamer’s overall sales should be within the previous guidance.

Viaplay said it expected to end the year with about 4.106 million subscribers in the Nordic region and about 2.396 million in its international markets – a total of 6.502 million that will be slightly below previous guidance.

The streamer said that the change was largely due to a decline in its Finnish base in the fourth quarter and higher churn and uncertainty in the markets it is planning to exit.

Viaplay’s sales performance in the Nordic region was boosted by a lower Q4 decline in ad sales than that experienced in the prior year and by improved content sub-licensing sales.

Viaplay confirmed that the cashflow impact of its planned exit from the Baltic countries, Poland, North America and the UK would be in the range of SEK2.2 billion for the 2024-28 period, but said it was looking to mitigate this by implementing cost-cutting measures. The company is booking provisions and write-downs for the fourth quarter totalling approximately SEK2.4.2.6 billion.

The update came as Viaplay published the prospectus for its recapitalisation, with its planned rights issue to open from tomorrow until February 2. The rights issue, along with two ‘directed issues’ will secure a equity capital injection of SEK4 billion for the company.

CEO Jørgen Madsen Lindemann said that the company was continuing to take “a broad range of operating and financial measures” to improve its financial position, with the objective of returning to growth and profitability.