Recapitalisation completed and full focus on operational improvements and product performance
First quarter highlights
- Total reported Group net sales of
SEK 4,757m (4,537) and operating income before associated company income (ACI) and items affecting comparability (IAC) ofSEK -317m (-291) -
Core operations (Nordics,
Netherlands and Viaplay Select) 6% organic net sales growth toSEK 4,459m (4,279), with operating income before ACI and IAC ofSEK -270m (103) -
IAC of
SEK -188m (-44) primarily comprised unrealised non-cash currency effects related to previous content provisions -
Total reported operating income of
SEK -473m (-325) including ACI ofSEK 32m (10) -
Net income of
SEK 605m (-288) and EPS ofSEK 0.23 (-3.68) includedSEK 1,190m one-off impact related to debt write-down part of recapitalisation -
Comprehensive recapitalisation programme completed on
9 February 2024 with net cash proceeds ofSEK 3.6bn and financial net debt reduced bySEK 5.6bn
Financial summary
Q1 | Q1 | Fullyear | |
(SEKm) | 2024 | 2023 | 2023 |
Total net sales | 4,757 | 4,537 | 18,567 |
Core operations net sales | 4,459 | 4,279 | 17,332 |
Organic sales growth for core operations | 5.6% | 27.3% | 10.6% |
Reported sales growth for core operations | 4.2% | 30.7% | 13.5% |
Operating income before ACI and IAC | -317 | -291 | -1,115 |
Core operations operating income before ACI and IAC | -270 | 103 | 89 |
Associated company income (ACI) | 32 | 10 | 63 |
Items affecting comparability (IAC)1) | -188 | -44 | -9,224 |
Operating income | -473 | -325 | -10,276 |
Net income for the period | 605 | -288 | -9,747 |
Basic earnings per share (SEK) | 0.23 | -3.68 | -124.61 |
1) Please see page 21 regarding items affecting comparability.
Alternative performance measures used in this report are explained and reconciled on pages 19-23.
A word from our President & CEO
The completion of the recapitalisation programme was an important step in setting the foundation for our retransformation into a profitably growing and cash generative business. We are now fully focused on the many operational improvements that need to be made across the Group. Our Q1 results are in line with expectations, and we have reiterated our outlook for the year.
We have adjusted our product prices in recent months, in order to ensure that we can continue to invest in our content offering. This led to temporarily increased churn levels, and research shows that our linear and streaming products continue to be highly relevant, resonate well and provide very good value for money for our partners and customers, when benchmarked with competitor offerings.
Our core commercial content has continued to perform well, with viewing of the new
Following the recapitalisation, we can now begin to commission for Spring 2025. Our slate for Q2 looks good with new seasons of successful local and international series, great new movie releases and new shows including comedy drama 'All and Eva' and documentary 'Ace of Base - All That She Wants'. These will line up alongside the Ice Hockey World Championships, the Stanley Cup, top motor-racing, two golf majors and the culmination of the
The reality is that our content costs have risen faster than our revenues over the past few years, due to competition, underlying inflation and ongoing adverse FX movements. We cannot expect our direct customers and distribution partners to carry these cost increases 100% alone, which is why we have sublicensed selected sports and non-sports content to other broadcasters and streamers.
We are also innovating with new products such as our interesting linear TV channel partnership with Talpa TV in
We are in talks with our distribution partners regarding all of the above and will learn from what has been done well and not so well in the past few years, both in terms of products that have worked and where we can enhance the consumer offering and better monetise our content. These discussions will also address how we tackle account sharing together. This is a major issue for the industry.
We estimate that approximately a third of premium subscribers have been sharing the account details for their
As flagged previously, we have adjusted our financial reporting structure this quarter, in order to reflect our strategic focus on our core Nordic,
The 6% organic growth for our core operations primarily reflected the sublicensing deals that I have mentioned and were announced during Q4. We do expect
The growth in our operating expenses was mainly due to rising content costs, which were partly offset by lower SG&A costs after the changes that we have made in the last year. As expected, profitability for the core operations declined, with significant improvements required in the coming quarters.
Our commitment to restore profitability, enhance our product offering and rebuild sustainable stakeholder value is unwavering. It will take time and will be done with a laser focus on consistent operational improvements, mutually beneficial partnerships turning account sharers into customers, innovative revenue streams, the right content mix at the right price, and strict cost control.
Jørgen
Shareholder information
2024 Annual General Meeting
Financial calendar | |
Annual General Meeting | |
Publication of Q2 Interim report | |
Publication of Q3 Interim report |
Conference call
A conference call will take place today, Tuesday 23 April at 09.00
The conference call can be accessed online at https://edge.media-server.com/mmc/p/qqgao8xx
Or, register for the conference call at https://register.vevent.com/register/BIe68fefec771b4478bbf5f188c0644d81
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Contact
press@viaplaygroup.com or +46 73 699 17 00
investors@viaplaygroup.com or +44 7768 440 414
Notes to editors
This information is information that
This interim report contains statements concerning, among other things,
https://news.cision.com/viaplay-group/r/q1-2024-interim-report-january-march,c3965653
https://mb.cision.com/Main/16563/3965653/2750716.pdf
https://news.cision.com/viaplay-group/i/jorgen-madsen-lindemann-viaplay-group-president-and-ceo-photo-by-hans-berggren-2,c3292172
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