On track to deliver full year targets, with continued execution of strategic transformation plan.
Q3 Highlights
- Group net sales up to SEK 5,251m (4,018), operating income up to SEK 122m (25) including ACI of SEK 0m (48) and IAC2 of SEK -48m (33), net income improvement to SEK -30m (-142) with basic earnings per share of SEK -0.01 (-0.03)
- Core operation net sales of SEK 5,251m (pro forma SEK 5,191m1) stable on an organic basis, and core operation EBITDA before ACI and IAC up to SEK 313m (pro forma SEK 276m1)
- Group free cash flow of SEK -32m (-1,193), of which SEK 58m (-1,154) from Core operations and SEK -90m (-39) from Non-core operations
- Allente Group integration on track with synergies as anticipated
- Regulatory clearance received for sale of Dutch operations, with transaction expected to close in coming weeks
- No change to 2026 financial targets or long-term ambitions
| Nine | Nine | Full | |||
| Q3 | Q3 | months | months | year | |
| (SEKm) | 2026 | 2025 | 2026 | 2025 | 2025 |
| Net sales | 5,251 | 4,018 | 16,043 | 12,705 | 17,682 |
| Net sales, Core operations (pro forma1) | 5,251 | 5,191 | 16,037 | 15,981 | 21,494 |
| EBITDA before ACI and IAC | 313 | -13 | 871 | -65 | 198 |
| EBITDA before ACI and IAC, Core operations (pro forma1) | 313 | 276 | 871 | 775 | 1,144 |
| Operating income | 122 | 25 | 140 | 151 | -486 |
| Net income for the period | -30 | -142 | -380 | -316 | -1,267 |
| Basic earnings per share (SEK) | -0.01 | -0.03 | -0.08 | -0.07 | -0.28 |
1) Pro forma financials for 2025 are provided in order to facilitate like-for-like comparison. The pro forma results for 2025 are 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 operation net sales amounted to SEK 4,014m for Q3 2025, and SEK 12,367m for nine months 2025. Reported Core operation EBITDA before ACI and IAC amounted to SEK -13m for Q3 2025, and SEK -54m for nine months 2025. Please see page 23 for more information regarding the pro forma financials.
2) Items affecting comparability in Q3 2026 mainly comprised restructuring and integration costs, as well as foreign exchange translation effects related to previous content provisions. Please see page 20 for more information regarding items affecting comparability.
Alternative performance measures used in this report are explained and reconciled on pages 17-23.
A word from our President & CEO
The Q3 results demonstrate that we remain on track to deliver our full year targets, and that we continue to execute our strategic transformation plan and move towards our long-term objectives of healthy operating margins, restored cash flow generation, and lower borrowing levels. The integration of Allente is proceeding as anticipated, and we are working to complete the divestment of our Dutch operations. We are also implementing a wide range of organic measures to strengthen our market positions and partnerships, reduce non-essential costs, invest in key areas and conserve cash. We are operationally focused on our core markets in the Nordics, and on further optimising our product offerings. We still have much to do to ensure that we are set up as commercially, competitively, and sustainably as possible.
Sales for our Core operations were stable year-on-year on an organic basis this quarter, and again reflected some differing drivers between our business segments. We continue to expect full year 2026 sales for our core operations to be stable year-on-year on an organic basis, and for this trend line to also continue on a longer-term basis.
Total subscription sales were up 1% on an organic basis and represented over 80% of Group sales. Our streaming subscription sales were up 4% on an organic basis with the Viaplay subscriber base stable year-on-year and growing compared to Q2 this year. The year-on-year growth in our B2B sales reflected our focus on 'value over volume' in our distribution partner agreements, while the rising D2C ARPU level again reflected positive mix effects and pricing dynamics. The breadth and depth of our highly relevant and compelling content offerings, including our high quality and year-round sports coverage, remain consistent differentiators for us.
Non-streaming subscription sales include almost all of Allente's sales, as well as the sale of our linear TV channels through third party distributors, and were down 1% on an organic basis. This lower decline than in previous quarters development reflected higher Allente sales as coverage of FIFA World Cup men's football matches were made available to entertainment venues. We have also continued to work with Allente and our partners to introduce new packaging and pricing initiatives to offset the ongoing structural decline in the DTH and linear TV channel subscriber bases. Allente's ARPU was up again, both year-on-year and quarter-on-quarter.
Advertising sales were down 1% on an organic basis in what is the seasonally weakest period of the year and one in which coverage of FIFA men's World Cup football was shown by rival media outlets, while our Q3 2025 audience shares were boosted by our coverage of the UEFA Women's European football championships. The high growth in our digital advertising sales continued, with particularly strong growth in ad impressions in all countries, and almost offset the linear declines.
Our 'Other' sales line comprises scripted content and sports sublicensing sales to partners. These sales are volatile by nature and were down 14% on an organic basis this quarter.
Our Q3 content line-up combined the very best in premium sports, local storytelling and international hits. The start of the new seasons of the national and European football leagues and cup competitions have attracted large audiences, not least as we have become the first broadcaster in the world to show all 12 matches each week from the English Football League Championship. Our 'Viaplay Premier Sunday' show has not only delivered some of the best onsite coverage, but also attracted a big following of English Premier League fans on social
media. And our Formula One coverage has also continued to drive viewing figures, with Max Verstappen returning to the podium and Kimi Antonelli looking to become the first Italian world champion since Alberto Ascari in the 1950s.
The Q3 non-sports content offering included the successful launch of new titles, as well as strong new seasons of favourite formats. The premieres included 'Temptation Island' and 'Tændt på Temptation Island' in Denmark, while the new seasons of returning formats included 'Paradise Hotel Sverige' and 'Svenska Fall' in Sweden, and 'Charterfeber' and 'Eventyrlig Oppussing' in Norway. The international content slate included 'Outlander: Blood of My Blood Season 2' and 'South Park', as well as hit movies 'Hunting Season' and 'Flight Risk'. Supernatural thriller 'Obsession' was the standout title in the Viaplay Store.
Operating expenditure for our core operations was slightly up year-on-year, but less so than in previous quarters. A combination of synergies from the Allente Group integration, broader content and production savings, and positive FX effects, almost offset Allente's investment in coverage of the FIFA World Cup men's football matches, and the inflation embedded in our legacy and multi-year content agreements.
Our core operation EBITDA before ACI and IAC was up again and included approximately SEK 75 million of positive year-on-year FX effects. There is no change to our expectation that the integration of Allente Group will yield SEK 300 to 400 million of annual full run-rate cash synergies in 2027, and some of these synergies are already being realised this year. The cash cost of the integration is also still expected to be between SEK 270 and 330 million, and is reported as an IAC. We continue to expect full year 2026 core operation EBITDA before ACI and IAC to be between SEK 1.0 and 1.4 billion, and there is no change to our longer-term ambition to achieve a double-digit EBITDA (before ACI and IAC) margin for 2028.
The positive operating free cash flow from our core operations partially offset the negative changes in working capital, which included the ongoing cash drag from the discontinued non-core operations, our cash borrowing costs and low levels of capital expenditure. The year-on-year improvement continued to reflect the changes in contractual payment terms with key partners. This resulted in a largely stable net debt position compared to Q2.
We continue to work with our partners to extend key content and distribution agreements on market terms, which is essential for the delivery of our transformation plan. Where this is not possible, we exit the agreements and find alternatives.
The delivery of our transformation plan, including the integration of Allente Group and the divestment of our Dutch operations, will strengthen our cash flows and enable us to deleverage our balance sheet over time. Our resources will once again be solely focused on the Nordic markets, where we have the greatest advantage, opportunity and potential.
Q3 was another milestone along the path towards our targets and ambitions. We still have much to do to ensure that we are as relevant and resilient as possible, and rebuild a Group that can entertain and sustain our audiences, customers, people, partners, investors and owners.
Jørgen Madsen Lindemann
President & CEO
*****
Financial calendar
Publication of Q4 2026 report: 18 February 2027
Annual General Meeting: 18 May 2027
Conference call
A conference call will take place today, Thursday 22 October, 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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Image Attachments
Jørgen Madsen Lindemann Viaplay Group President And CEO Photo By Hans Berggren
