Q3 2024 Viaplay Group AB (publ) Earnings Call Transcript
Key Points
- Viaplay Group AB (OSTO:VPLAY A) achieved 6% organic sales growth in Q3, driven by linear subscription revenues and sublicensing of content.
- The introduction of a competitively priced HVOD tier in Denmark, Sweden, and Norway has attracted new customer segments and reactivated former subscribers.
- Efforts to tackle account sharing have shown encouraging results, with most former account sharers choosing to remain subscribers.
- Sublicensing and other sales grew by 165% year-on-year, driven by ongoing sales of scripted content and strategic sublicensing of sports content.
- Cost control measures and core sales growth have enabled a reduction in EBIT losses year-on-year and sequentially.
- Viaplay's D2C subscriber base was down year-on-year in almost all markets, despite sequential growth from Q2 to Q3.
- Advertising revenue, which accounts for 18% of core revenues, was down 1% on an organic basis due to a decline in linear TV advertising revenues.
- The company faces substantial currency challenges due to the weak SEK, impacting financial performance.
- Core SG&A costs increased due to the allocation of all central overhead costs to the core segment.
- The company is still dealing with the negative cash impact from exiting non-core operations, with a significant negative free cash flow reported.
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So good morning, everyone, and welcome to today's Q3 2024 results conference call. My name is Matthew Hooper, and I will be your host today. Joining me today on the call is our CEO, Jorgen Madsen Lindemann, and making his debut today is CFO, Johan Johansson, who joined us at the beginning of August. Welcome, gentlemen.
As usual, our presentation will be followed by a Q&A session, and you can find our results materials, including a presentation deck on the Investor Relations section of our website. We will not follow the slides, but they do provide the usual and relevant information for you. Please be advised that today's conference is being recorded.
(Event Instructions)
I will now hand the call over to Jorgen to walk you through the Q3 highlights. So over to you, Jorgen.
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