2025 targets reiterated. Continued focus on performance improvements, monetisation, and cost control
Fourth quarter financial highlights

>        Total reported Group net sales of SEK 4,837m (4,903) and total operating income before associated company income (ACI) and items affecting comparability (IAC) of SEK 174m (-230).

>        5% organic sales growth for core operations (Nordics, Netherlands and Viaplay Select), with reported sales of SEK 4,638m (4,566) and operating income before ACI and IAC of SEK 210m (16).

>        Total reported operating income of SEK -92m (-2,863) including ACI of SEK 38m (15) and IAC1 of SEK -304m (-2,648).

>        Net income of SEK -230m (-2,881) and basic earnings per share of SEK -0.05 (-36.83).

>        Group free cash flow of SEK 384m (-1,640), and financial net debt position of SEK 829m and net debt of SEK 1,113m.

>        Core operations 2025 full-year financial targets of low-to-mid single-digit percentage revenue growth, and positive free cash flow are reiterated and remain unchanged.

Financial summary

1) Items affecting comparability in Q4 2024 comprised currency effects related to previous content provisions, currency effects as an effect of the Group's limited possibility to hedge, write-down of assets and additional redundancy costs. Full year 2024 also comprise capital gain from divestments and costs in connection to the recapitalisation. Please see page 22 regarding items affecting comparability.

Alternative performance measures used in this report are explained and reconciled on pages 19-24.
 

A word from our President & CEO

Our Q4 and full-year results are in line with provided guidance, and we reiterate the targets for 2025. The targets of low- to mid-single-digit revenue growth and positive free cash flow for the core operations reflect our commitment to enhancing efficiency, maximising returns on investment, addressing value leakage across all areas, and maintaining strict cost control. We made progress in 2024 and much remains to be done as we continue our efforts to retransform Viaplay Group into a strong and sustainable business to the benefit of all stakeholders.

Sport has an incredible ability to bring people together, create lasting memories, and engage audiences across generations. We continue to deliver world-class coverage of some of the biggest sporting events, ensuring fans can experience the excitement as it happens. Our sports slate features a strong lineup of high-profile events that engage millions of viewers across our markets. This includes the Premier League, the Handball World Cup, and the Champions' League knockout stages, as well as the ongoing FIS winter sports competitions. All of this builds up to the highly anticipated start of the 2025 Formula 1 season with the Australian Grand Prix in March. As we bring these unforgettable moments to audiences, we continue to maximise the value of our content rights through innovative distribution and partnerships.

Our revised content strategy, with a focus on commercial and relevant non-scripted formats, continues to drive higher engagement across multiple platforms while contributing to a stronger, more relevant offering and improved returns on investment. During the quarter, a diverse range of non-scripted formats captivated audiences across our core markets. Looking ahead, we have a strong lineup, including new seasons of established formats like `Paradise Hotel', `Robinson Ekspeditionen', and `Luxury Trap' and exciting new formats such as `Better Sex', `Elbæks - Real Estate for Millions' and `Tobias & Patricia: Love in Chaos' together with `Borgs 24/7', both building on the popularity of widely known influencers with broad reach across multiple markets.

Our portfolio of world-class sports and relevant local formats is unique, and both data and external research confirm that audiences place great value on our content. During the year, we have taken important steps to further monetise this portfolio, including the introduction of the HVOD tier and account-sharing restrictions on Viaplay, as well as the sale of sports and non-sports content to third parties. We will continue to transform, innovate and refine our value proposition for subscribers, suppliers, and partners, ensuring it fully reflects the relevance, impact and value it generates.

The HVOD tier on Viaplay, which includes advertising, has continued to attract and engage new subscribers in the Nordics. Recently, we launched HVOD in the Netherlands and introduced new linear channels in collaboration with local partners to further strengthen our advertising business, expand access to our premium sports offering, and add value for subscribers and partners.

Q4 Core organic sales growth of 5% was driven by positive development across all areas except advertising, which decreased organically by 3% as growth in radio and digital was offset by the structural decline in linear TV advertising markets. We continue to focus on increasing our digital advertising inventory, which grew 36%, driven by the recent launch of HVOD across all Nordic markets.

Viaplay streaming subscription sales organic growth of 5% was driven by price adjustments implemented across all markets, in combination with favourable mix effects as the D2C subscriber base grew both sequentially and compared to last year, mainly driven by high ARPU sports subscribers. Viaplay Core D2C ARPU continued to see positive development both sequentially and compared to last year.

The 9% organic sales growth in linear channel subscriptions was driven by price increases and new distribution agreements with our core partners. Sublicensing of sports and new partnership deals contributed to the 13% organic growth in Sublicensing and Other.

Lower operating expenses and sales growth contributed to Core operating income before ACI and IAC of SEK 210m. As in previous quarters, the underlying improvement was even stronger when factoring in FX headwinds.

We closed the year with a financial net debt of SEK 829m and generated positive free cash flow of SEK 384m in the quarter. Full year free cash flow amounted to negative SEK 2.0bn of which SEK 0.8bn from Non-core markets and SEK 1.2 bn from Core markets. Both in line with our guidance.

"We will continue to transform, innovate, and refine our value proposition for subscribers, suppliers, and partners, ensuring that it fully reflects its relevance, impact, and the value it generates."

For 2025, we reiterate our ambitions of low-to-mid single-digit sales growth and positive free cash flow for our core operations, while remaining focused on retransforming Viaplay Group into a strong and sustainable business. We will innovate and deliver compelling and relevant stories, competitively priced products for subscribers who, following our development in account sharing, access them as intended. We will maintain strict cost control to ensure that expenses are aligned with revenues and generate the right return. In addition, we will carefully balance risks and opportunities while upholding disciplined liquidity management to strengthen our financial position. There is still work to be done, and we remain fully focused on executing with discipline and determination to create long-term value for all stakeholders.

Jørgen Madsen Lindemann

President & CEO

Shareholder information

2025 Annual General Meeting

The 2025 Annual General Meeting of Viaplay shareholders will be held on Tuesday 13 May 2025 in Stockholm. Shareholders wishing to have matters considered at the meeting should submit their proposals in writing to agm@viaplaygroup.com or to the Company Secretary, Viaplay Group AB, BOX 17104, 104 62 Stockholm, Sweden, at least seven weeks before the meeting in order that such proposals may be included in the notices to the meeting. Further details of when and how to register will be published in advance of the meeting. The Board of Directors will propose to the Annual General Meeting that no annual cash dividend be paid for 2024.

Financial calendar
 

Conference call

A conference call will take place today, Thursday 20 February at 09.00 Stockholm local time, 08.00 London local time and 03.00 New York local time.

The conference call can be accessed online https://edge.media-server.com/mmc/p/q7j5pzyf

Or, register for the conference call at

https://register.vevent.com/register/BI87f12ecdd6734c34a13a4bd78720db2c
 

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NOTES TO EDITORS

This information is information that Viaplay Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CET on 20 February 2024.

Viaplay Group AB (publ) is the Nordic region's leading entertainment provider. Our Viaplay streaming service is available in every Nordic country, as well as in the Netherlands and Poland, and our Viaplay Select branded content concept has been added to partner platforms around the world. We also operate TV channels across most of our markets, as well as radio stations in Norway and Sweden. Our talented people come to work every day with a shared passion and clear mission to entertain millions of people with our unique offering of locally relevant storytelling, which spans premium live sports, films, series and music. Our purpose is to grow our business profitably and responsibly, and deliver sustainable value for all our stakeholders. Viaplay Group is listed on Nasdaq Stockholm (`VPLAY B').

This interim report contains statements concerning, among other things, Viaplay Group's financial condition and results of operations that are forward-looking in nature. Such statements are not historical facts but, rather, represent Viaplay Group's future expectations. Viaplay Group believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions; however, forward-looking statements involve inherent risks and uncertainties, and a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements. Such important factors include but may not be limited to Viaplay Group's market position; growth in the streaming industry; and the effects of competition and other economic, business, competitive and/or regulatory factors affecting the business of Viaplay Group, its group companies and the streaming industry in general. Forward-looking statements apply only as of the date they were made and, other than as required by applicable law, Viaplay Group undertakes no obligation to update any of them in the light of new information or future events.

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