Viaplay Group's transformation continues in Q2 with focus on value over volume, announces the acquisition of Telenor's 50 percent share in Allente Group and revises its financial targets
Second quarter financial highlights
> Total reported Group net sales of SEK 4,313m (4,485) and total operating income before associated company income (ACI) and items affecting comparability (IAC) of SEK 84m (-70).
> Reported sales for Core operations (Nordics, Netherlands and Viaplay Select) of SEK 4,160m (4,292), with organic sales growth of -0,1%. Operating income before ACI and IAC of SEK 89m (-72).
> Total reported operating income of SEK 88m (7) including ACI of SEK 46m (28) and IAC1 of SEK -42m (48).
> Net income of SEK -49m (-120) and basic earnings per share of SEK -0.01 (-0.03).
> Group free cash flow of SEK 823m (627), and financial net debt position of SEK 787m and net debt of SEK 1,075m.
> Acquisition of Telenor's 50 percent share in Allente Group announced today
Revised full year outlook for 2025, to the following 2:
> Pro forma Core net sales: SEK 21.0-22.0 billion
> Pro forma Core EBITDA before ACI & IAC: SEK 0.8-1.1 billion
> Pro forma adjusted Group Operating FCF3: SEK 0.5-0.75 billion
Revised long-term ambitions as, to the following:
> Core organic sales growth: On average flat over the period 2025-2028
> Core EBITDA before ACI & IAC margin: Double digit by 2028
> Adjusted Group Operating FCF3: Gradually increasing year over year
Financial summary
Full | |||||
Q2 | Q2 | H1 | H1 | year | |
(SEKm) | 2025 | 2024 | 2025 | 2024 | 2024 |
Total net sales | 4,313 | 4,485 | 8,687 | 9,241 | 18,490 |
Core operations, net sales | 4,160 | 4,292 | 8,353 | 8,751 | 17,598 |
Organic sales growth for Core operations | -0.1% | 2.6% | -2.5% | 4.1% | 4.7% |
Reported sales growth for Core operations | -3.1% | 0.2% | -4.5% | 2.2% | 1.5% |
Operating income before ACI and IAC | 84 | -70 | -143 | -387 | -269 |
Core operations operating income before ACI and IAC | 89 | -72 | -133 | -341 | -181 |
Associated company income (ACI) | 46 | 28 | 80 | 60 | 151 |
Items affecting comparability (IAC)1 | -42 | 48 | 189 | -140 | -439 |
Operating income | 88 | 7 | 126 | -467 | -558 |
Net income for the period | -49 | -120 | -174 | 485 | 106 |
Basic earnings per share (SEK) | -0.01 | -0.03 | -0.04 | 0.13 | 0.03 |
1) Items affecting comparability in Q2 2025 comprised redundancy costs, currency effects related to previous content provisions and currency effects as an effect of the Group's limited possibility to hedge. Please see page 23 regarding items affecting comparability. 2) Pro form figures as if Allente was consolidated from January 1 2025. 3) Adjusted Group Operating Free Cash flow refers to Group free cash flow, adjusted for costs related to acquisitions, interest, dividends, and extraordinary one-off working capital effects?.
A word from our President & CEO
As announced today, we have entered into an agreement to acquire Telenor's 50 percent stake in Allente Group. The transaction, which remains subject to customary regulatory approvals, is fully supported by our key stakeholders. This marks a natural evolution of the successful long-standing partnership between Telenor and Viaplay Group. We are thankful and impressed by what has been accomplished together with Allente and Telenor since its formation in 2020, and by the strong collaboration over the years. Together, Viaplay and Allente will be able to offer even more compelling products and services that consumers love - to audiences across the Nordic market. The transaction is expected to create opportunities for both Allente and Viaplay Group to expand their customer base, enhance product and service offerings, and unlock new cross-platform and cross-market offerings.
Updated financial guidance
Based on the acquisition of Allente, we are updating our full-year 2025 guidance to include Pro forma Core net sales between SEK 21.0-22.0 billion, pro forma Core EBITDA before ACI & IAC between SEK 0.8-1.1 billion and adjusted pro forma Group operating free cash flow of SEK 0.5-0.75 billion. This replaces our previous guidance for 2025.
Following the transaction, we are also updating our long-term financial ambitions to reflect the combined Group. While we expect Core organic net sales to be broadly flat in the coming years, we now target double-digit EBITDA margins by 2028 - a shift from our previous EBIT-based ambition, which applied to Viaplay Group on a standalone basis. In addition, we expect adjusted Group operational free cash flow to increase gradually year over year. More details will be provided as the process progresses.
Content performance
The ongoing Formula 1 season continues to drive strong engagement across our core markets and was once again the most-watched sports content of the quarter, both in terms of unique users and total viewing time. In addition, the Ice Hockey World Championship, Premier League finale, and Golf Majors attracted broad audiences across multiple platforms. Audiences in Denmark and Sweden currently enjoys the UEFA Women's Euros, and when Sweden played Poland, Viaplay Sports became the most-watched TV channel in Sweden - just two weeks after launch. Looking ahead, audiences across the Nordics and the Netherlands, can look forward to the early qualifying rounds of the UEFA Champions League, before the new Premier League season begins in mid-August.
Our non-sports content continued to deliver during the quarter. The fifth season of long-time audience favourite Wisting performed strongly and reinforced the importance of consistent, high-quality local storytelling. Paradise Hotel remains more than just a show - it's a phenomenon that continues to drive reach, engagement and loyalty across platforms. In both Norway and Denmark, the most recent seasons topped the viewing charts. In Sweden, last season was one of the most watched ever on Viaplay - a clear sign of the format's continued relevance, and after the summer, audiences can look forward to a new season premiering.
Q2 Financial performance
Our Core operations developed in line with our plan. The D2C base continued to grow year-on-year and declined slightly quarter-on-quarter, reflecting typical seasonal churn following the conclusion of major sports leagues. While our B2B subscriber base declined significantly year-on-year - primarily due to the structure of new partner agreements - Viaplay Streaming subscription sales declined by only 1% on an organic basis. This reflects our strategic focus on value over volume. Average revenue per subscriber continued to improve both year-on-year and sequentially.
Linear channel subscription sales declined by 3% organically year-on-year, reflecting continued volume decline. This is a trend we expect to continue over time, though partially offset by pricing and packaging developments. We are actively adapting our channel strategy to these dynamics and recently launched Viaplay Sports - a new linear TV channel in Sweden - which creates new content and monetisation opportunities in a more targeted environment for our broad sports content offering.
Group advertising sales grew by 1% organically. While linear TV advertising remains under structural pressure, we continued to deliver double-digit growth in digital inventory, driven by HVOD expansion and new formats. Radio also contributed positively, and we see good momentum in digital monetisation as advertisers follow audiences across platforms.
Sublicensing and other sales increased 23% year-on-year, driven by sports sublicensing. As expected, scripted content sales were lower compared to last year's exceptional volumes. Our focus remains on long-term rights management, cost efficiency and the creation of value-enhancing strategic partnerships. The recently announced Premier League sublicensing deal with Amazon Prime Video in the Netherlands is one example of this approach in action.
Core operating income before IAC and ACI improved by SEK 161 million compared to the same quarter last year and amounted to SEK 89 million. Reported costs declined, driven primarily by lower non-sports content spend, and working capital contributed positively, in line with seasonal patterns. Core free cash flow amounted to SEK 1 042 million.
Non-core market update
Outside of Core, we concluded the wind down of our direct-to-consumer operations in Poland at the end of June. This marks the final step in our non-core markets exits and enable us to focus our resources going forward where they generate maximum return on investment.
Closing words
We are executing on our plan - and continue to strive becoming a more relevant entertainment company - with clear priorities, disciplined capital allocation, and a sharp focus on building long-term value. Our teams remain focused on relevant storytelling, operational delivery and new opportunities to grow and monetise our portfolio. But as stated in previous quarters, we still have a lot do, and things to improve. We also look forward to welcoming the talented Allente team into our group and to explore the potential we see in our future together.
Thank you
The transaction we have announced today marks an important milestone in our transformation, and it would not have been possible without the support of our key stakeholders. I want to thank Telenor for their longstanding partnership, and the entire Allente team for their dedication and impressive work over the years. Together, they have built Allente into the strong company it is today.
A warm thank you to our lending banks - Nordea, SEB, Danske Bank, Swedbank, and DNB - and to SEK, EKN, our bondholders, PPF, and Groupe Canal+ for their continued support. I'm also grateful to our advisors - DNB, Carnegie, and Gerhardt & Danielsson - for their commitment and professionalism.
And finally, to our truly supportive commercial partners - you know who you are - thank you!
Jørgen Madsen Lindemann
President & CEO
Shareholder information
Financial calendar
Publication of Q3 2025 22 October 2025
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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 CEST on 17 July 2025.
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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