Viaplay has announced a small growth in its net sales, but still reported heavy losses, days after the completion of a comprehensive recapitalisation programme.
The 3% increase in fourth quarter sales to SEK4.9bn (US$419m) came against an operating income that collapsed to a SEK10.3bn loss in 2023 from a profit of SEK413m in 2022. Losses declined to SEK2.9bn in Q4 2023 from a loss of SEK294m in Q4 2022.
CEO Jorgen Madsen Lindemann said that following the recapitalisation the company can now “fully focus” on the many operational improvements that need to be made to the business.
Exits from the UK, the Baltics and Poland has meant that many costs have needed to be written off and Viaplay has been left with cash costs for content that it cannot sell back or sublicence. “The exiting of these non-core markets enables us to focus on our core Nordic operations, in markets where we have delivered profitable growth with double digit margins and strong cash conversion in the past. And that, combined with our scale and soon to be profitable business in the Netherlands, is what we are aiming to do again,” said Lindemann.
He added that prices have been adjusted to “reflect our unique entertainment value proposition, both for our customers and our partners” and that growing the subscriber base required a very disciplined approach. “We have ended any expensive and value-destructive hunt for customers and revenue, which was not creating long-term value.”
Increased Nordic operating profits were offset by the losses in the international markets.
