ANPSStephane Kox interviews Max Verstappen, 30 July 2022
NOS Nieuws•vandaag, 16:16
The share price of the Swedish streaming platform Viaplay has fallen sharply after the company issued a warning that things are going worse than previously thought. At around 3:30 p.m., the stock was down 65 percent.
In the Netherlands, Viaplay is best known as the broadcaster of Formula 1 races. Viaplay warned that this year’s profits in Scandinavia are expected to be much lower. And the losses outside Scandinavia will be much greater.
According to Viaplay, this is due to a deterioration in the TV and radio advertising market. And there are fewer new streaming subscribers. More existing customers are also leaving due to price increases. Viaplay was already working on cost savings, but that is not happening as quickly as previously thought. Because of the problems, CEO Anders Jensen is leaving. A new CEO was immediately installed: Jorgen Madsen Lindemann.
Due to the price drop, Viaplay’s share is now worth around 89 Swedish kronor (7.64 euros). At its peak, in October 2021, that was still 530 kroner (45.53 euros).
In 2021, Viaplay obtained the Dutch broadcasting rights of Formula 1 for a period of three years (2022 to 2024). Before that, Ziggo owned the F1 rights. Due to the success of Max Verstappen, there is a lot of attention for the sport in the Netherlands. At the end of 2022, Viaplay had 1.2 million subscribers in the Netherlands. How many there are now is unknown.
Viaplay has spent a lot of money buying up sports rights in recent years. And so the company has to make up for those expenses with subscription sales and advertising revenue. If they are disappointing, as is the case now, the revenue model will be jeopardized.