Streaming steams ahead for NENT in first half year | Major Businesses | Business | News | Rapid TV News
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In a period featuring the company’s now usual array of corporate shake-ups and divestments, NENT Group has released an interim financial report for the first half of 2021 claiming to show its five-year strategy was track with marked annual rises for organic sales and subscriber growth in its Viaplay business line.
Viaplay 22July2021
The statement showed that for the January to June 2021 period, paying subscribers for the Viaplay streaming service were up 21% year-on-year with 140,000 subscribers added quarter-on-quarter, of which 113,000 were Nordic subscribers and 27,000 were international subscribers. It ended the first half of the year with a total of 3.287 million Nordic paying subscribers.

Total streamed minutes of viewing of Viaplay originals was up 82% YoY and coverage of the European football championships also boosted subscriber intake in Denmark. With such growth, NENT has upgraded its 2021 year-end international, non-Nordic, Viaplay subscriber target from more than 250,000 to 500,000 and has increased its Viaplay originals ambition to at least 50 for the year, as several major sports rights come on stream after the summer. It said it was well on track to meet a year-end target of adding at least 400,000 new paying Nordic subscribers.

The 31% annual rise in organic sales growth in the second quarter of 2021 generated sales of SEK 3.072 billion, or SEK 2.624 billion including a SEK 238 million contribution from the subsequently deconsolidated Viasat Consumer business. For the half year, sales were SEK 6.054 billion, representing organic annual growth of 23.2%.

The company’s operating income before associated company income (ACI) and items affecting comparability (IAC) was up 56% compared with the same period of 2020 to SEK 244 million including a SEK 50 million impact of Viaplay International expansion. Operating income rose 98% on an underlying basis when excluding SEK 33 million contribution from the Viasat Consumer business in Q2 2020. Total reported operating income was SEK 179 million and net income from continuing operations was SEK 87 million.

Viaplay revenues represented 35% of sales and were up 36% year-on-year on an organic basis after 21% YoY subscriber growth. The revenue growth was said to have reflected the company’s price adjustments made in the Spring.

Commenting on the half year performance, NENT president and CEO Anders Jensen said: “The momentum that we have established continued into the second quarter of our five-year strategy period, and we are well on track to reach our goals. This was the first quarter when Viaplay was our largest revenue generating unit, which is a major milestone in our transformation. The pace of our international expansion is now ramping up with the imminent launch in Poland, and we are raising our subscriber and investment targets for the year to reflect the strength of our content offering and the new partnerships that we are forging.”