Transformation plan on track to hit financial targets.
Q1 Highlights
- Core operations net sales of SEK 5,278m (pro forma SEK 5,399m1) stable on an organic basis, and Core operation EBITDA before ACI and IAC of SEK 101m (pro forma SEK 86m1)
- Group net sales of SEK 5,279m (4,374), operating income of SEK -234m (38) including ACI of SEK 0m (34) and IAC2 of SEK -184m (231), net income of SEK -420m (-125) and basic earnings per share of SEK -0.09 (-0.03)
- Group free cash flow of SEK 37m (-671) comprised SEK 85m (-756) for Core operations and SEK -48m (85) for Non-core operations
- Allente Group restructuring proceeding according to plan with no change to anticipated synergy levels and timings, and no change to Core operations sales and EBITDA targets
Financial summary
| Q1 | Q1 | Full year | |
| (SEKm) | 2026 | 2025 | 2025 |
| Net sales | 5,279 | 4,374 | 17,682 |
| Net sales, Core operations (pro forma for 20251) | 5,278 | 5,399 | 21,494 |
| EBITDA before ACI and IAC | 101 | -180 | 198 |
| EBITDA before ACI and IAC, Core operations (pro forma for 20251) | 101 | 86 | 1,144 |
| Operating income | -234 | 38 | -486 |
| Net income for the period | -420 | -125 | -1,267 |
| Basic earnings per share (SEK) | -0.09 | -0.03 | -0.28 |
1) Pro forma financials for 2025 to improve comparison. The pro forma for 2025 is calculated as if Allente Group had been consolidated from 1 January 2025. Viaplay Group acquired the remaining 50% of Allente Group and assumed full ownership of Allente Group on 13 November 2025. Reported Core operations net sales Q1 2025 was SEK 4,194m, and full year 2025 SEK 17,344m. Reported Core operations EBITDA Q1 2025 was SEK -175m, and full year 2025 SEK 209m.
2) Items affecting comparability in Q1 2026 mainly comprised restructuring costs, as well as foreign exchange translation effects related to previous content provisions. Please see page 17 for more information regarding items affecting comparability.
A word from our President & CEO
The first quarter of the year was also the first full quarter in which we owned and consolidated 100% of Allente Group. We have made good progress with the integration of the business, which we know well as a long-term owner, operator and partner. The combination has further strengthened our customer proposition and ability to monetise our content portfolio. We are on track to deliver both the synergies arising from the integration, as well as our full year 2026 financial targets for our Core operations. We have also made good progress with our broader transformation strategy, but we still have much to do to deliver our longer term ambitions of double-digit EBITDA margins and healthy free cash flow generation. The business benefited again in the quarter from the combination of the product and partnership enhancements that we have made, as well as the cost savings that we have implemented. We reported a SEK 708m positive year on year swing in group free cash flow in Q1, and are in a considerably stronger commercial and financial position than we were a year ago.
Our Core operations streaming subscription sales were up 8% on an organic basis and driven by D2C subscription sales. We grew our D2C subscriber base year on year, while the B2B base was down year on year after we amended certain agreements in the first half of last year to reinforce our focus on value over volume. The B2B base grew when compared to Q4 2025. Our D2C and B2B ARPU levels were up year on year and compared to Q4 2025, which primarily reflected the positive mix effects of the higher proportion of premium sports subscribers. This reflects the strength of our high quality, wide-ranging and year-round sports content offering. We are continuing to rightsize the remaining legacy B2B partner distribution agreements onto a more commercial and sustainable footing.
Our non-streaming subscription sales, which now include almost all of the Allente Group sales, were down 5% on an organic basis. This reflected the ongoing structural decline in the Allente DTH subscriber base and the broader decline in linear channel subscriptions as customers migrate to streaming products. This was offset to an extent by pricing and packaging initiatives.
Our advertising sales were down 1% on an organic basis, as continued strong growth in digital advertising sales, as well as growth in radio advertising sales, continued to be offset by the decline in linear TV advertising sales.
Our 'Other' sales were down 17% on an organic basis and reflected the lower level of scripted content sales. Sports sublicensing sales were also down but included a number of new deals.
Our total Core operations sales were stable on an organic basis in the quarter.
Our Q1 programming slate was as attractive as ever - combining the very best in premium sports, local storytelling and international formats. Winter sports and darts have taken centre stage, together with our most comprehensive ever coverage of the culmination of the English Premier League and English Football League seasons, as well as the men's World Cup football qualification matches and European Handball Championships. Formula 1 motor racing also returned to screens in the quarter and attracted large audiences.
The latest seasons of well-known local adaptations of international reality shows including Paradise Hotel performed well, alongside continued strong engagement for returning favourites such as Luxury Trap, the successful launch of new local formats including Mothers and Swedish Farmers, and a solid slate of acquired series and movies.
The reported reduction in operating expenditure for our Core operations reflected the measures taken to adjust the overall cost base and improve efficiency levels, as well as positive FX effects. Content accounts for approximately 75% of our total costs, and these costs continued to rise due to the inflation embedded in our multi-year agreements. We continue to allocate capital where appropriate to drive the positive viewing and subscription trends that we have seen.
Our Core operations EBITDA before ACI and IAC was up when including the SEK 140m of positive year-on-year FX effects. We have little associated company income now that Allente Group has been consolidated, while IAC primarily comprised the costs associated with the integration of the Allente business. There is no change to our expectation that the integration will yield SEK 300 to 400 million of annual full run-rate cash synergies in 2027, and that some of these synergies will be realised in 2026 once the integration has been finalised. The cash cost of the integration is still expected to be between SEK 270 and 330 million, and to be reported as an IAC during 2026.
We reported a positive free cash flow for Q1 as positive operating free cash flow from our Core operations and changes in working capital more than offset the ongoing cash drag from the discontinued Non-core operations, and our cash borrowing costs.
We continue to expect the full year 2026 sales for our Core operations to be stable on an organic basis, which is also in line with our long-term ambition. The anticipated growth in our streaming subscription and digital advertising sales will continue to be offset by declining linear channel and advertising sales. On the profitability side, our annual pre-ACI and IAC EBITDA target of between SEK 1.0 and 1.4 billion for our Core operations requires that we continue to execute on the transformation of Viaplay Group, and benefit from the integration of Allente Group.
We are negotiating the extension of content and distribution agreements on commercial market terms, and exiting or replacing agreements where this is not possible. These improvements are key building blocks in our ambition to deliver a double-digit EBITDA margin for 2028, which will increase our cash flows and ability to reduce our debt levels over time.
In summary, Q1 was another step along our transformation path. We are becoming more and more competitive, but we still have much to do to hit our targets and fulfil our ambitions. Together, we are building a more relevant and resilient Group, which will both entertain and create long-term value for our customers, our people, our partners and our owners.
Jørgen Madsen Lindemann
President & CEO
Shareholder information:
2026 Annual General Meeting
The 2026 Annual General Meeting of Viaplay shareholders will be held on Tuesday 12 May 2026 in Stockholm. Shareholders may also exercise their voting rights at the Annual General Meeting by postal voting in accordance with the provisions of Viaplay Group's Articles of Association. As previously communicated, the Board of Directors will propose to the Annual General Meeting that no annual cash dividend be paid for 2025. The AGM resolutions will be published as soon as the outcome of the voting has been established. The AGM notice and related documentation are available at www.viaplaygroup.com.
Financial calendar
Annual General Meeting: 12 May 2026
Publication of Q2 2026 report: 17 July 2026
Publication of Q3 2026 report: 22 October 2026
Conference call
A conference call will take place today, Thursday 23 April at 09.00 Stockholm local time, 08.00 London local time and 03.00 New York local time.
The webcast can be accessed here
Or, register for the conference call here
About Viaplay Group AB (publ)
Viaplay Group 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 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 commercial radio stations in Norway and Sweden. Allente, a leading Nordic provider of TV and broadband services, is part of Viaplay Group and strengthens our position across the Nordic media landscape. 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. Viaplay Group is listed on Nasdaq Stockholm ('VPLAY B').
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This information is information that Viaplay Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-04-23 07:30 CEST.
Image Attachments
Jørgen Madsen Lindemann Viaplay Group President And CEO Photo Hans Berggren
