Viaplay: The Nordic Streamer Emerging from the Storm

Second-Quarter Figures: Not as Bad as Feared

Swedish media group Viaplay has reported its second-quarter results, and the figures were not merely acceptable — they were encouraging. The company’s net sales reached SEK 5.51 billion, exceeding the result recorded in the same period last year. However, the most important news is not the revenue growth itself, but the fact that Viaplay, which was still losing money not long ago, returned to profitability during the quarter.

Net profit amounted to SEK 70 million. Admittedly, this is a modest sum for a company of Viaplay’s size, but the return to profitability is itself an important signal to the market. A year ago, Viaplay was reporting losses, and investors were seriously questioning whether the streaming service, once regarded as one of Europe’s leading players, could survive in an intensely competitive environment. That question is no longer as pressing.

The company’s operating profit for the second quarter reached SEK 253 million. This is more than simply breaking even. It is a meaningful result showing that the business is beginning to generate money rather than merely spending it on content and marketing.

Streaming Is Growing, but Not Through New Subscribers

Organic sales from streaming subscriptions increased by 7% compared with the previous year. This is solid growth, but there is one important detail: it was not driven by the acquisition of new subscribers. Instead, it came from higher average revenue per user. The subscriber base remains stable, but each customer is paying slightly more.

This is both good news and a cause for concern. It is positive because the company has learned to monetize its existing audience more effectively than before. This may be the result of price increases, which are always a risky move for streaming services. If subscribers do not leave after prices rise, it suggests that they continue to see value in the content.

The concern is that price-driven growth cannot continue indefinitely. At some point, the market will become saturated, and the company will have to find other growth drivers.

For now, however, the strategy is working. Viaplay continues to invest in premium sports rights and locally produced programming, and those investments are delivering results. Users are willing to pay for content they cannot obtain from competitors.

Sale of the Dutch Business: A Strategic Retreat

One of the quarter’s most significant developments was the announcement that Viaplay would sell its Dutch operations for €142 million. The transaction is part of a broader strategy focused on concentrating resources on the Nordic markets, where the company has historically held strong positions and can operate most efficiently.

The decision to sell the Dutch business appears to acknowledge that Viaplay cannot remain strong on every front simultaneously. The international expansion pursued by the company in previous years proved too expensive and was not always successful.

The company is now entering a period of consolidation. It will focus on the areas in which it performs best while selling or closing less efficient operations.

The proceeds from the transaction will be used to reduce net debt, which remains one of Viaplay’s main challenges. The company’s debt burden has been a serious constraint, limiting its ability to invest and increasing financial risk. Reducing debt will make Viaplay more resilient and give it greater room to manoeuvre.

Allente: Synergies Are Already Beginning to Work

The integration of Allente, the Norwegian platform operator previously acquired by Viaplay, has started to produce its first benefits. The company reported improvements in operating efficiency and initial synergies that helped offset inflation-driven increases in content costs.

This is important because inflation remains one of the biggest challenges facing media companies. The cost of producing and licensing content continues to rise. Unless companies find ways to save money in other areas, their profit margins will decline. Viaplay has found one such solution through the integration of Allente.

The company expects the integration to generate annual cash synergies of between SEK 300 million and SEK 400 million by 2027. These are not merely accounting figures. They represent real savings that will have a direct impact on earnings. If the forecasts prove accurate, Viaplay will gain a meaningful competitive advantage.

Premium Sports and Local Content Are the Company’s Strongest Assets

Viaplay NENTF ... has always relied heavily on premium sports content, and the latest quarter confirmed the strength of that approach. Sport remains one of the types of content for which viewers are willing to pay more, and it attracts a loyal audience.

Unlike films and television series, which are often available across several platforms, sports broadcasts are frequently exclusive. This creates a natural barrier that discourages subscribers from leaving.

Local programming is another important element of Viaplay’s strategy. Unlike global giants such as Netflix NFLX ... and DIS ... Disney, which produce content for audiences around the world, Viaplay focuses on specific local markets. This enables the company to create programming that resonates with regional audiences and cannot easily be replicated by competitors.

This approach has helped the company attract a broad audience while increasing both viewing figures and sales. People are watching, and people are paying — exactly how a healthy business should operate.

Financial Targets Reaffirmed: Confidence in the Future

Viaplay reaffirmed its financial targets for 2026 and its long-term objective of achieving a double-digit EBITDA margin by 2028. This is an important signal to the market: the company is not changing its plans under pressure but remains confident in its strategy.

Achieving a double-digit margin is an ambitious target for a streaming service, particularly at a time when many competitors are struggling simply to break even. However, Viaplay has an advantage. It operates in the relatively small but potentially high-margin Nordic markets, where consumer purchasing power is strong and competition is less intense than in the United States or the United Kingdom.

In addition, the company continues to reduce debt and improve operating efficiency. If these trends continue, achieving a double-digit margin appears entirely realistic.

What Comes Next? Viaplay’s Prospects

Viaplay is currently at a crossroads. On the one hand, the company has finally returned to profitability, which is a major achievement after several years of losses. On the other hand, it still has a great deal of work ahead before it can become a truly stable and growing business.

Its key priorities for the coming years will be to continue improving operating efficiency, reduce debt, retain and expand its subscriber base through high-quality content, and identify new sources of growth.

Selling the Dutch business was the right move, but Viaplay may also need to dispose of additional assets if they do not fit within its revised strategy.

Competition in the streaming market is not becoming any less intense. Global companies continue to invest billions in content, and Viaplay does not have the same financial resources to compete with them on equal terms.

However, the company possesses a local advantage that global players cannot easily replicate. That advantage could become the foundation of its long-term success.

The market responded positively to Viaplay’s report. Profitability, higher average revenue per user, the sale of non-strategic assets, and the reaffirmation of financial targets all create the impression of a company that is emerging from the storm and beginning to move in the right direction.

There are, of course, still many challenges ahead. Inflation, rising content costs, and changes in consumer behaviour could all affect future results. For now, however, Viaplay is demonstrating that it has a plan and is following it.

And in a world where many companies jump from one strategy to another without a clear vision of the future, that is already a significant achievement.