Viaplay plummets after it slashes outlook, CEO resigns

Modern Times MTG AB

05/06/2023 08:06

** Shares in Viaplay  VPLAYb.ST  slump 56% after the Swedish
streaming company slashed 2023 sales and EBIT outlook, withdrew
its long-term guidance and replaced its CEO
    ** Viaplay attributes the outlook cut to worsening operating
environment and a delay in realisation of its cost savings
programme
    ** The company appoints Jorgen Madsen Lindemann, the former
CEO of Viaplay's previous parent MTG  MTGb.ST , as its new CEO,
replacing Anders Jensen
    ** Viaplay sees 2023 organic sales growth of 16%-17.5% for
the group, down from previously expected 24%-26%, excluding
Premier Sports, which it bought in July 2022, and currency
exchange effects (FX)
    ** For the Nordic region, the sales target is cut to 7%-8%
from 12-15%, also excluding FX and Premier Sports
    ** It sees 2023 EBIT ex. items and associated company income
of SEK 0.8-1.0 bln ($73.9-92.4 mln) for the Nordics and a loss
of SEK 1.4-1.5 bln for the international segment (previously
profit of 1.2-1.35 bln and loss of SEK 1.0-1.1 bln respectively)
    ** The stock is down 81.7% from its pandemic peak of SEK 535
per share recorded in October 2021

($1 = 10.8238 Swedish crowns)

 (Reporting by Agata Rybska)
 ((agata.rybska@thomsonreuters.com))