Viaplay to axe staff, businesses to focus on Nordics, Netherlands
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| 21 July 2023
Following the shock resignation of its CEO earlier this summer and a commitment and a downgrade of its short-term outlook, Viaplay Group has announced its second quarter results, revealing a new strategy focusing on core Nordic, Netherlands and Viaplay Select operations.
Viaplay jorgen Madsen 29June2023
The company said that for the sake of the future of its business it has had to make a number of immediate decisions. These include letting go of more than a quarter of its employees and discontinuing its low tier non-sports offering in each of its international markets, in order to focus on its sports offering and the sale of non-sports content through the profitable Viaplay Select business.

For the second quarter of its financial year, Viaplay actually showed 16% Group organic sales growth with reported sales of SEK 4.591 billion with revenues for the core Viaplay streaming up 42% on organic basis to represent 53% share of total revenues.

However, operating loss before associated company income (ACI) and items affecting comparability (IAC) was SEK 273 million. This was affected by SEK 6.279 billion in write-downs and provisions for sports and non-sports content, exit from the Baltics and goodwill impairment, and restructuring costs. Total reported operating loss was SEK 6.551 billion including ACI of SEK 2 million. Net loss was SEK 5.886 billion.

Assessing the prospects of the company and the actions that he believes are required, newly installed Viaplay Group president and CEO Jørgen Madsen Lindemann (pictured) said the company’s new strategy and plan, which includes, but is not limited to, focusing core Nordic, Netherlands and Viaplay Select operations; implementing a new operational model; downsizing, partnering or exiting other international markets; rightsizing and pricing our product offering in the Nordics; undertaking a major cost reduction programme; and conducting an immediate strategic review of the entire business to consider all options including content sub-licensing, asset disposals, equity injections or the sale of the whole Group.

Lindemann also revealed that the company’s recent spate of significant content investments have not all been paying off, and are committed in the short and medium term. In addition, he conceded that the pursuit of subscriber volume growth has been at the cost of value, especially in the area partner agreements.

“The weakness in the advertising markets and currency exchange rates are additional factors that we must live with. The international expansion assumptions, including the timelines to profitability, have also been pushed materially into the future since the expansion started. We are moving quickly to address all of these challenges,” he said.

“Going forward, our focus will be on the Nordic markets with the new operating model in place, on the right content mix, on the development of our soon to be profitable Dutch operations, and on the sale of our content internationally through Viaplay Select. We are focusing our attention and resources on those markets where we can compete for the long term, and ensuring that our products are relevant, popular and generate healthy returns.”