Viaplay says its full year group net sales are expected to come in within its previously provided target range.
The streaming company has issued a trading update alongside a prospectus as part of its refinancing plan. Nordic operations have performed above expectations, with international operations falling below. Subscriber numbers are “slightly below” expectations with approximately 4.106 million Nordic subscribers and approximately 2.396 million International subscribers.
Viaplay is putting the fall down to a decline in the Finland subscriber base in the fourth quarter, and higher churn levels and general uncertainty in the international markets it plans to exit.
The higher than anticipated Nordic net sales growth is expected to have reflected a lower year on year decline in advertising sales in the fourth quarter and higher content sublicensing sales in particular.
Viaplay Group’s overall and segment profits are expected to be within the previously provided target ranges, while Viaplay Group’s estimated free cash flow for the year is expected to have improved, when compared with the previous targets, due to actions taken to improve Viaplay Group’s working capital.
The prospectus includes updated targets for the full year 2024, including net sales for core Nordic, Netherlands and Viaplay Select operations of between SEK 17.2–17.8 billion, while operating income varies between a loss of SEK 250 million and a profit of SEK 50 million.
Changes in the exchange rate between the Swedish Kronar, and the Norwegian, Danish and British currencies are also likely to impact sales.
Jørgen Madsen Lindemann, Viaplay Group President and CEO: “This is another important step forward in the recapitalisation plan, which is intended to secure the future of Viaplay Group and provide the opportunity to rebuild stakeholder value. The preliminary indication of our Q4 results is in line with our previous targets, and we have adjusted our 2024 targets for changes in currency rates and the previously announced disposal of the majority of our remaining content production businesses.
“We have much to do, and many changes still to make, but our core customer proposition is strong, and we are taking steps every day to further enhance our entertainment products and content mix.”
The Swedish Financial Supervisory Authority has approved Viaplay Group AB’s prospectus for its SEK 0.9 billion rights issue and the admission of the shares onto NASDAQ Stockholm. The subscription period commences on 19 January and ends on 2 February.
SEK 4 billion worth of shares are being issued to existing shareholders through the rights issue that is being supported by prorata investments from shareholders including Canal Plus and PPF Cyprus Management Limited.