Viaplay Group (VPLAY) Q2 2024 earnings summary

Executive summary

• Q2 2024 core operations delivered 2.6–3% organic sales growth, with EBIT (ex ACI & IAC) improving to SEK -70m and a net cash position of SEK 372m at quarter end.

• Strategic focus remains on operational improvements, cost control, price increases, and monetizing premium content to drive profitability.

• Non-core operations included the completed UK divestment, Baltic exit, and planned Poland closure in 2025.

• Free cash flow was SEK 606–614m in Q2, driven by positive working capital changes.

• Net income improved to SEK -120m from SEK -5,886m year-over-year.

Financial highlights

• Core net sales for Q2 2024 were SEK 4,292m, with group net sales at SEK 4,485m; group operating income (ex ACI & IAC) was SEK -70m.

• Viaplay sales declined 0.9–1% organically, but price increases led to stable or slightly growing revenue.

• B2B linear channel subscription sales grew 6.8–7% organically, supported by price increases.

• Advertising revenues grew 5–5.1% organically, with digital and radio gains offsetting linear TV declines.

• Sublicensing and other sales rose 11–11.1% organically, driven by new products and price increases.

Outlook and guidance

• 2024 guidance unchanged: core net sales SEK 17.2–17.8bn, EBIT (ex IAC & ACI) between SEK -250m and SEK 50m, group free cash flow between SEK -1.7bn and -2.2bn.

• Negative transactional FX impact on full-year EBIT expected at SEK 300–400m.

• Content costs expected to be broadly flat in H2; free cash flow generation targeted for 2025 (core) and 2027 (group).

• Q3 expected to see working capital build-up due to sports rights payments; sub-licensing revenues to increase in H2 with Amazon deal.

• Non-core operations expected to report SEK 0.8–1.0bn in sales and negative free cash flow of SEK 0.6–0.8bn for 2024.