After a recent period of massive growth with constant launches of its core steaming service in key territories and major acquisitions, Viaplay Group has announced a downgrade of its short-term outlook for 2023 followed by the shock resignation of CEO Anders Jensen.
The downgrade follows what is being described as being a function of several factors. Principally the company has seen lower demand in the Nordic and international streaming direct-to-consumer streaming subscriber markets and lower wholesale subscription sales by linear distribution partners. Secondly, the accelerated deterioration of the Scandinavian TV and radio advertising markets and lastly the slower delivery of cost savings programmes. The company added that transactional FX headwinds have increased and are not expected to recover until the end of 2023.
The Viaplay Group expects a Q2 closing subscriber balance of 7.7 million, Q2 sales of between SEK 4.5 and 4.6 billion, and Q2 EBIT before ACI and IAC of between SEK -250 and -300 million. Advertising revenues are expected to be down between 12% and 16% on an organic basis in Q2, due to what is said to be a sharp and rapid deterioration in the TV and radio advertising markets.
The Viaplay Group board of directors accepted the resignation of Jensen (pictured) and has announced the appointment of Jorgen Madsen Lindemann as the new CEO of Viaplay Group with immediate effect. Madsen Lindemann is the former CEO of MTG, which is the previous parent company of Viaplay Group and also listed on Nasdaq Stockholm. Prior to becoming CEO of MTG, Jorgen held various senior leadership positions at MTG over 26 years, including head of the Nordic operations and international operations, and head of sports rights acquisition and production.
“The outlook for the markets in which we are operating has shifted considerably and at a very rapid pace, and the execution of cost savings programmes has not been mitigating the effects from these conditions to a sufficient extent. The impact of the macroeconomic headwinds on the business require that we execute differently on our strategy,” commented Pernille Erenbjerg, Viaplay Group chair of the board.
”With more than 30 years of experience in the entertainment industry and leading Nordic and International businesses, we are confident that Jorgen has the right profile to lead this work. The overall strategic direction of the company is unchanged and Jorgen, together with the Board and his leadership team, will evaluate the need for structural, operational, and capital allocation enhancements to the delivery of the strategy.“
The Viaplay Group expects a Q2 closing subscriber balance of 7.7 million, Q2 sales of between SEK 4.5 and 4.6 billion, and Q2 EBIT before ACI and IAC of between SEK -250 and -300 million. Advertising revenues are expected to be down between 12% and 16% on an organic basis in Q2, due to what is said to be a sharp and rapid deterioration in the TV and radio advertising markets.
The Viaplay Group board of directors accepted the resignation of Jensen (pictured) and has announced the appointment of Jorgen Madsen Lindemann as the new CEO of Viaplay Group with immediate effect. Madsen Lindemann is the former CEO of MTG, which is the previous parent company of Viaplay Group and also listed on Nasdaq Stockholm. Prior to becoming CEO of MTG, Jorgen held various senior leadership positions at MTG over 26 years, including head of the Nordic operations and international operations, and head of sports rights acquisition and production.
“The outlook for the markets in which we are operating has shifted considerably and at a very rapid pace, and the execution of cost savings programmes has not been mitigating the effects from these conditions to a sufficient extent. The impact of the macroeconomic headwinds on the business require that we execute differently on our strategy,” commented Pernille Erenbjerg, Viaplay Group chair of the board.
”With more than 30 years of experience in the entertainment industry and leading Nordic and International businesses, we are confident that Jorgen has the right profile to lead this work. The overall strategic direction of the company is unchanged and Jorgen, together with the Board and his leadership team, will evaluate the need for structural, operational, and capital allocation enhancements to the delivery of the strategy.“
