Viaplay, the Nordic streaming service, has announced the layoff of more than a quarter of its workforce amid major streamlining measures including pulling out of streaming services in the US and UK markets. The decision comes alongside the release of Q2 results, which showed improvement from last year. New CEO Jørgen Madsen Lindemann unveiled the company's new strategy, focusing on core markets, cost reduction, and potential equity injections or sales of the entire group.
Viaplay, formerly known as NENT, revealed its plans to streamline operations and refocus on its core markets in a bid to enhance profitability and address challenges in international expansion. The restructuring will result in around 450 redundancies, with an estimated cost of 45 million Swedish Krona ($4 million). The move echoes ProSiebenSat.1's decision to cut approximately 400 roles.
The senior executives who are set to be laid off include Nordics Chief Commercial Officer Fillipa Wallestam, Head Of International Scripted Thomas Axelsson, and Exec Producer Isabelle Hultén. This strategic shift involves discontinuing its low-tier non-sports offering in the US and UK markets while concentrating on the Nordic and Dutch regions. Additionally, Viaplay will focus on content sales internationally via Viaplay Select and continue to emphasize the Nordic original series and its sports rights strategy.
Viaplay's Q2 results showed positive signs with sales reaching 4.6 billion Swedish Krona ($450 million), driven by a 42% organic sales growth. However, advertising revenues declined by 16%, leading to an operating income decrease of 6.5 billion Swedish Krona ($630 million) and a net income of minus 5.8 billion Swedish Krona ($560 million).
Despite the improvements, Viaplay lost around 1 million subscribers in the quarter, bringing its total subscriber count to around 6.6 million. The company is now revising its financial targets, projecting an expected EBIT loss of approximately $90 million for this year before potentially returning to profitability in 2024. Sales are expected to reach around $1.8 billion for this year and next, and Viaplay aims to surpass 7 million subscribers this year, with 2024 projections yet to be determined.