Viaplay Group has released plans for a package of measures to secure the survival of the company.
In a statement, Viaplay said it would raise SEK4 billion (€350 million) in new equity, write down SEK 2 billion and renegotiate debt of SEK14.6 billion.
However, in mid morning trading in Stockholm, Viaplay shares were down by over 70%.
Since it Q2 report in July Viaplay has been introducing a range of measures from a new country-based operating model through to a major cost reduction programme.
Chief Executive Jorgen Madsen Lindemann today confirmed that it has let go of more than 30% of its staff.
The Nordic, Netherlands and Viaplay Select operations have both stable subscriber volumes and rising ARPU (Average Revenue Per Unit).
Baltics, Poland and the UK have continied to perform below expectations. On Thursday, it emerged that Premier Sports would buy back the business it sold to Viaplay a year ago, subject to regulatory approval, while it has been confirmed Viaplay will exit the Baltic and Polish markets by summer 2025.
The Nordic advertising markets continued to be under pressure in Q3, and Viaplay’s combined advertising sales were down 10% with AVOD growth unable to compensate for the fall.
Viaplay reported an operating loss for the third quarter of SEK 538 million, taking its nine-month loss to SEK 7.4 billion.
