Viaplay reports strong growth in subscriber base, but weaker ad revenues

Platform operator Viaplay has increased its global subscriber base to 7.3 million in Q4 2022, up 890,000 on the previous quarter. Revenues grew 73%, but profits were down due to a mix of international investment, high sports rights costs and soft ad revenues.

Commenting on the results, president & CEO Anders Jensen said: “We ended the year in excellent shape and on track towards our five-year strategic goals. We have delivered in line with our updated guidance for 2022, growing our Viaplay subscriber base to over 7.3 million, and our total sales to SEK 15.7 billion ($1.5bn) for the year.”

Despite fierce competition, Jensen said the company continued to “grow or maintain our subscriber market shares in all markets. Viaplay is now available in 11 markets, and we will shortly launch direct-to-consumer in the US and Canada. Our content is also available in 20 other markets through our curated Viaplay Select offering. We have achieved these goals in challenging market conditions, and again demonstrated the resilience and sustainability of our products, our people and our business.”

Jensen said the 83% year on year growth in the Viaplay subscriber base in Q4 was driven by both our Nordic and international markets, which reached their combined year-end target and added 890k subscribers in the quarter. “Churn levels increased moderately in Q4 due to the suspension of football leagues during the World Cup, and then returned to lower levels as the subscribers returned,” he added.

Pointing to the contribution of the company’s non-Nordic business, he said Viaplay international revenues accounted for 28% of total Viaplay revenues, compared to 4% in Q4 2021. Advertising revenues (23% of group sales) were down 9% YoY on an organic basis. “This reflected the decline in each of the Scandinavian advertising markets, and the football world cup coverage on competing platforms. We expect this trend of lower advertising spend to continue for at least the first half of 2023.”