Embattled Nordic streaming service, Viaplay, has made significant strides in its financial recovery. The company reported a drastic reduction in its losses for the fourth quarter (Q4) of 2024, marking a major turnaround from the previous year.
Viaplay reported an operating loss of SEK92 million ($8.6 million) for Q4 2024, a substantial decrease from SEK2.7 billion last year when the company was grappling with massive financial gaps and transitioning to a new strategy centered around unscripted programs and sports. The net loss for Q4 also saw a significant drop, going down from SEK 2.86 billion to SEK 230 million.
The majority of Viaplay’s financial recovery can be attributed to cost-cutting measures implemented by the company. Total net sales in Q4 were slightly down at SEK 4.84 billion compared to SEK 4.9 billion in 2023. Full-year sales also experienced a slight dip, moving from SEK18.57 billion in 2023 to SEK18.49 billion this year; however, losses fell dramatically from an overwhelming SEK10.28 billion to just SEK558 million. Despite these challenges, Viaplay posted organic sales growth of about five percent within its core operations which now include markets within the Nordics and Netherlands as well as their premium content service - Viaplay Select.
The Stockholm-based media group is aiming for "low-to-mid single-digit percentage revenue growth" along with positive cash flow throughout 2025 while keeping their net debt at end-of-year at approximately SEK829 million ($77 Million).
Strategic divestment and budget tightening
In the face of significant financial issues over the past few years, Viaplay has undergone a major budget tightening in the last 18 months. This included divesting from all markets outside of the Nordic region and Netherlands.
Viaplay's President and CEO, Mads Jørgen Lindemann, stated that these results reflect a "commitment to enhancing efficiency, maximizing returns on investment, addressing value leakage across all areas, and maintaining strict cost control."
Viaplay President and CEO, Mads Jørgen Lindemann, said:
“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.”
“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.”
Expansion in sports broadcasting
Viaplay has also expanded its sports broadcasting portfolio which includes soccer’s UEFA Champions League, English Premier League matches, Handball World Cup games and motor racing’s Formula 1 events.
The company recently launched hybrid video on demand (HVOD) service in Netherlands along with new linear channels in collaboration with local partners to broaden access to its premium sports offerings. The media group also increased subscription tier offerings and raised prices earlier this month ahead of the new F1 season.
Through strategic cost-cutting measures and a focus on core operations growth within specific markets like Nordics & Netherlands as well as expansion into sports broadcasting; Viaplay has managed to significantly reduce its operating loss from SEK7.4 billion ($688 Million) down to SEK465 million ($43 Million) during first nine months of 2024. This marks an impressive turnaround for the company amidst challenging financial circumstances.
