Viaplay Group has cut its full-year revenue growth guidance figures, after announcing its financial results for the third quarter of 2022.
The Nordic media giant cited the economic slowdown on advertising and subscription sales, the lower than expected premium subscription sales in Norway, as well as the decision to discontinue a distribution agreement for the reduction.
Viaplay saw its net sales increase 25.4 per cent year-over-year (YoY) to SEK3.97 billion (US$357 million) for Q3. The group posted a total net loss of SEK86 million (US$7.7 million), compared to a net income of SEK55 million (US$4.9 million) in the same period last year.
Paying subscribers to Viaplay leapt 78 per cent YoY to 6.43 million, with 879,000 added in Q3.
The completion of the Premier Sports acquisition in October was also mentioned, as was Viaplay’s launch in the UK on 1st November.
Viaplay announced the deal for the pay-TV network from Setanta Sports in July, which valued Premier Sports at UK£30 million (US$33.9 million) on a cash and debt-free basis. The agreement added the likes of LaLiga, Uefa international matches and the United Rugby Championship (URC) to Viaplay’s live content portfolio, which it hopes will help it make an impact in the UK market.
Premier Sports’ existing pay-TV channels will also be rebranded as Viaplay Sports 1 and Viaplay Sports 2, with the free-to-air (FTA) channel FreeSports becoming Viaplay Xtra. The channels will remain available through existing distribution partners and will continue to broadcast to commercial premises, including pubs and clubs.
Viaplay’s imminent UK launch adds to its direct-to-consumer (DTC) presence in every Nordic and Baltic country, as well as Poland and the Netherlands. The US, Canada, Germany, Austria and Switzerland are due to follow in 2023. The streaming service also expects to have a market presence in at least 21 countries by the end of next year.
“We have delivered another quarter of high subscriber and revenue growth, which demonstrate the attraction and resilience of our well-differentiated offerings,” said Anders Jensen, president and chief executive of Viaplay.
He continued: “Now that we have completed the acquisition of Premier Sports in the UK, we are raising our year end international subscriber target from approximately 2.5 million to approximately 2.7 million.
“At the same time, we are reducing our year end Nordic target from 4.8 million to 4.6 million. Our group target is therefore unchanged at 7.3 million.
“As a result of the immediate effects of the general economic slowdown on advertising and subscription sales, the lower than anticipated premium subscription sales in Norway, and the strategic decision to discontinue an unfavourable distribution agreement, we are reducing our full year Nordic organic revenue growth target to approximately ten per cent.
“Conversely, international sales are expected to exceed our previous expectations, and we now expect full year total Group organic revenue growth of approximately 20 per cent.”
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