Viaplay announced its financial results for the second quarter (Q2) and first half (H1) of 2024. The company reported a total operating income of SEK 7m (-6,551) including ACI of SEK 28m and IAC1 of SEK 48m (-6,279), as well as a SEK 120 million ($11.4 million) loss in the quarter, a figure that Viaplay says fits within its budgetary expectations and is well below the SEK 5.8 billion ($549.7 million) it lost in Q2 2023, showcasing the length to which the streamer has narrowed its losses. Throughout 2024, Viaplay has undertaken a policy of slimming down its offerings and divesting from all but its key markets, the Netherlands and the Nordic countries.
Viaplay’s strategy has paid dividends in some areas, but hampered others, signified by a 4% growth in net sales for the first quarter of the year contrasting with a 20% drop in subscribers over the same period. This trend has continued into Q2, where sales across the group’s core operations grew by a further 2.6% year-on-year (YoY) in Q2 2023, while subscribers continued to fall.
Jørgen Madsen Lindemann, Viaplay Group president and Chief Executive, said: “Our focused work to retransform Viaplay Group is progressing, with substantial changes being made across the business, and many more to come. We are launching new, improved and more relevant products, talking to our partners about how best to monetise our content, and reducing costs in all areas. These changes are necessary for us to deliver competitive products to our customers and partners, and to achieve our long-term goals of delivering profitable growth, generating positive cash flow and creating shareholder value. Our guidance for 2024 is unchanged.”
Lindemann also indicated that the second half of 2024 may yet see further growth, owing to the onset of a number of its season sports rights and major showpiece events in the latter half of the year. During Q2, Viaplay announced the prolongation of Formula 1 rights in the Netherlands and Nordics, as well as the prolongation of UEFA League rights in key markets, including addition of Champions League rights in Sweden.
“During the quarter, we announced new long-term partnerships with Formula 1 and UEFA that will drive increased viewing and further commercial opportunities. Viaplay Group’s platform will remain home to Formula 1 in the Netherlands and all five Nordic countries until 2029, and we have secured top-class European club football for our viewers in four Nordic countries for the next three seasons, including the return of the UEFA Champions League in Sweden. Both deals reflect our commitment to competing for the long term in our core markets, and to offering unique premium content that appeals to scale audiences,” Lindemann added. “Our films and series content is also performing better, with the top titles including Norwegian original crime series ‘Wisting’, Swedish soap opera ‘The Beach Hotel', and the new season of popular reality format 'Paradise Hotel Denmark'.”
The CEO concluded that much remains to be done to retransform back into a successful, competitive, profitable, cash flow positive and shareholder value creating company.