Nordic Entertainment Group (NENT Group) has set itself a new goal of becoming Europe’s leading streaming company. It will launch Viaplay in a total of 10 international markets by 2023, including Poland, the US, Estonia, Latvia and Lithuania next year.
By the end of 2025, NENT Group aims to increase its subscriber base to approximately 10.5 million by more than doubling its Viaplay paying subscriber base in the Nordics to approximately 6 million and growing its international subscriber base to approximately 4.5 million. This is expected to generate 18-20% compound annual organic sales growth for 2020-2025, with the Nordic operations generating 13-15% growth. The Nordic operations are expected to have a significantly higher EBIT margin of approximately 15% in 2025, with the 10 international markets being EBIT profitable on a combined basis in 2025. The Group is considering funding the expansion with an equity raise that would also be intended to increase the liquidity in the Group’s shares.
Anders Jensen, NENT Group president & CEO, said “Viaplay is a proven Nordic success story and we are now ready to expand internationally and become the European streaming champion. We have one of the world’s most flexible and scalable technology platforms, and aim to be the most diverse and inclusive storyteller with our amazing range of original, acquired, local and live content that offers something special for everyone. We have already signed up key content rights in our target markets and are in discussions with distributors about exciting new partnerships to ensure that Viaplay is available everywhere”.
“This expansion requires funding and we will be discussing this with our shareholders. The growth and profitability targets that we are presenting today illustrate the unique and significant potential of our existing Nordic business and future international operations. The time is right to seize this major opportunity that we have in front of us, given the continued growth in streaming and ever-increasing demand for high-quality and locally relevant entertainment. We are ready. We have the platform, we have the operational model, we have the content and, most importantly, we have the team”.
