Viaplay Group (VPLAY) Q1 2025 earnings summary

Executive summary

• Transformation focused on performance, monetization, value over volume, and cost control, with 2025 targets reiterated; recapitalization completed and content strategy refocused on local storytelling.

• Core D2C subscriber base and ARPU increased year-over-year, reflecting a focus on value over volume and price increases; free-TV channel viewing increased in every core market.

• Sale of UK business and studio operations completed; exit from non-core markets, including Poland, Baltics, and U.K., on track for summer 2025.

• Organisational restructuring includes workforce reduction and new country-based operating model.

• Major sports rights secured and partnerships formed to support strategic direction.

Financial highlights

• Core operations net sales were SEK 4,194m in Q1 2025, down from SEK 4,459m in Q1 2024, representing a 5% organic decline; all other revenue streams grew year-over-year.

• Core operating income (ex ACI & IAC) was SEK -222m, an improvement from SEK -270m in Q1 2024, despite SEK -110m FX effect.

• Group free cash flow for Q1 was SEK -671m (core: SEK -756m, non-core: SEK +85m), with non-core operations generating SEK 180m in net sales.

• Net income for Q1 was SEK -125m, compared to SEK 605m last year, with the prior year including a SEK 1.19bn one-off debt write-down.

• Total reported operating income was SEK 38m, including SEK 231m in positive IAC from currency effects.

Outlook and guidance

• 2025 full-year targets for core operations: low- to mid-single-digit organic revenue growth and positive free cash flow remain unchanged.

• Group targets double-digit operating profit margins by 2028 and positive free cash flow by 2027.

• Year-on-year improvement in core EBIT expected to be stronger in H1 than H2 due to legacy contract cost step-ups.

• Full-year FX headwind on core EBIT expected to be SEK 100–150m.