NENT Q2 bears the brunt of Covid-19 | Major Businesses | Business
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Following a profit warning in March, Nordic Entertainment (NENT) Group has reported a 13% annual drop in sales for the second quarter of its financial year, reflecting said the company the impact that Covid-19 has had on major sports activities.

Anders Jensen NENT Group 5Sep2019For the quarter ended 30 June 2020, the company posted sales of SEK 2.624 billion ($296.1 million) and an operating income of SEK 156 million ($17.6 million), tumbling 64% compared with the end of the same period in 2019. Revenues for the half year amounted to SEK 5.994 billion ($680 million), falling 14.3% year-on-year.

When excluding a SEK 2.383m ($268.91 million) non-cash capital gain arising from Viasat Consumer merger with Canal Digital, operating income before items affecting comparability (IAC) was SEK 210 million ($23.70 million). Associated company income was SEK 54 million ($6.09 million) including NENT Group's 50% share in Allente's net income since beginning of May. Adjusted net income for continuing operations was SEK 148 million ($16.7 million).

Paying Viaplay streaming subscribers were up 206,000 quarter-on-quarter and 605,000 year-on-year to 2.716 million following high intake and low churn levels. FY20 intake target recently raised to 600,000. Viaplay sales were down 4% annually due to what NENT said were proactive and temporary reduction in sports package prices. Indeed these were flagged in March 2020 when the price for the Viaplay direct-to-consumer packages including sports were reduced due to the lack of sports action. The company stressed that now that the majority of sports have resumed, prices are back to normal and that the Viaplay business was performing “very well”.

Commenting on the results for the quarter, NENT Group Anders Jensen (pictured) said that despite the Covid-19 pandemic and the merger between Viasat Consumer and Canal Digital, the company will come out of the current period crisis stronger and better positioned. “Our overall performance in Q2 has demonstrated the resilience of both our products and people, as well as the relevance of our streaming strategy,” he added. “While the impact of the pandemic is far from over, our priority is to deliver the best possible customer experience and this is reflected in our content being more popular than ever. Our technology platform has again proven its agility through this volatile period and, following the successful launch in Iceland and the announcement of our expansion to the Baltics, our vision is now to scale Viaplay even further.”