Viaplay Group (VPLAY) Q4 2024 earnings summary

Executive summary

• Q4 and full-year results aligned with expectations and guidance, supporting a long-term turnaround strategy focused on cost control, content optimization, and monetization improvements.

• Achieved 5% organic sales growth in core operations, with EBIT (ex ACI & IAC) of SEK 210m, showing YoY improvement when excluding FX impacts.

• Core D2C subscriber base and ARPU increased YoY, reflecting a focus on value over volume, price changes, and new HVOD tier rollout.

• Execution on operational improvements, strict cost discipline, and performance improvements remain top priorities.

• Non-core operations generated SEK 198m in net sales, with an EBIT of SEK -36m; exit from Poland planned for mid-2025.

Financial highlights

• Core net sales reached SEK 4,638m in Q4 2024, up from SEK 4,566m in Q4 2023; FY 2024 core net sales were SEK 17,598m.

• Group operating income (ex ACI & IAC) was SEK 174m in Q4 2024, compared to SEK -230m in Q4 2023.

• Group free cash flow for Q4 was SEK 384m; full-year group free cash flow was negative SEK 2 billion, in line with guidance.

• Financial net debt reduced to SEK 829m at quarter-end, down from SEK 4,681m a year earlier.

• Net income for Q4 2024 was SEK -230m, a significant improvement from SEK -2,881m in Q4 2023.

Outlook and guidance

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

• Aiming for positive free cash flow for the group by 2027 and double-digit operating profit margins by 2028.

• Non-core operations expected to have a SEK 0.5 billion cash drag in 2025.

• Focus on strict cost control, working capital efficiency, and optimizing content costs, especially in sports.

• FX volatility and limited hedging remain key risks, with significant unhedged exposure to USD, EUR, and NOK.