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Viaplay Group
Earnings Release • Feb 14, 2023
2993_10-k_2023-02-14_eb010a82-8590-4b9f-b641-3e901637c698.pdf
Earnings Release
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Fourth quarter highlights
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Viaplay paying subscribers up 83% YoY to 7,318k (4,005) with 890k subscribers added QoQ
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Viaplay revenues growing 73% to represent 48% share of total revenues
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24% organic sales growth with reported sales of SEK 4,670m (3,553)
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Operating income before associated company income (ACI) and items affecting comparability (IAC) of SEK -284m (121), including SEK -420m (-219) impact of Viaplay International expansion
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Total reported operating income of SEK -294m (69) including ACI of SEK 76m (-51) and IAC of SEK -86m (0)
-
IAC related to reorganisation costs, acquisition of Premier Sports UK, and content write-downs with remaining costs of SEK 45m to be included in Q1 2023 results 1)
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Net income from total operations of SEK -250m (32) and EPS of SEK -3.19 (0.41)
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Board of Directors will propose to Annual General Meeting that no annual cash dividend be paid for 2022, and that 2022 profits be carried forward into 2023 for investment into the ongoing international expansion
| Financial overview | Full | Full | ||
|---|---|---|---|---|
| Q4 | Q4 | year | year | |
| (SEKm) | 2022 | 2021 | 2022 | 2021 |
| Continuing operations | ||||
| Net sales | 4,670 | 3,553 | 15,691 | 12,661 |
| Organic growth | 23.9% | 12.4% | 19.7% | 16.7% |
| Operating income before ACI and IAC | -284 | 121 | -372 | 607 |
| Associated company income (ACI) | 76 | -51 | 275 | 40 |
| Operating income before IAC | -208 | 69 | -97 | 647 |
| Items affecting comparability (IAC)1) | -86 | 0 | 510 | -74 |
| Operating income | -294 | 69 | 413 | 573 |
| Net income from continuing operations | -250 | 32 | 323 | 365 |
| Net income from discontinued operations2) | - | - | - | -40 |
| Net income from total operations | -250 | 32 | 323 | 325 |
| Basic earnings per share (SEK) | -3.19 | 0.41 | 4.13 | 4.23 |
| Adjusted net income from continuing operations | -132 | 189 | 70 | 864 |
| Adjusted earnings per share from continuing operations (SEK) | -1.69 | 2.43 | 0.90 | 11.26 |
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IAC includes restructuring costs related to the previously announced reorganisation, the acquisition and integration of Premier Sports in the UK, and content write-downs. The full year 2022 IAC includes the proceeds from the settlement of court cases with TV 2 Denmark in Q1 2022. Please see page 17 for details
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Discontinued operations comprised Viaplay Group's non-scripted, branded entertainment and events businesses, which were divested in 2021. Please see note 4 for details. This report refers to Viaplay Group's continuing operations unless otherwise indicated.
Alternative performance measures used in this report are explained and reconciled on pages 16-20.
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 for the year. Despite fierce competition, we continue 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. We have a stronger content line-up than ever before and have invested further in our technology platform to deliver even better customer experiences. We have also extended our distribution partnerships to ensure that Viaplay is as widely available as possible. We are well prepared for what lies ahead and to make further progress towards our goals.
Our 20% group organic sales growth and 10% Nordic organic sales growth for the full year were in line with the updated guidance that we provided in November. The primary growth driver was Viaplay (48% of group sales), with organic revenues up 73% YoY in Q4 and up 52% for the full year.
The 83% YoY 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. The previously discontinued partnership in Sweden was renewed on improved terms, and we now have partnerships with the largest pay-TV operators in almost all our markets. These win/win strategic partnerships continue to be cornerstones of our growth. 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.
Our Viaplay Nordic revenues were up 33% YoY on an organic basis, while our Viaplay international revenues accounted for 28% of total Viaplay revenues, compared to 4% in Q4 2021. We have already adjusted our price points upwards in the Nordic markets to reflect our even stronger content offering and rising inflation. We premiered a total of 126 scripted and non-scripted Viaplay originals in 2022 and will premiere more than 130 in 2023. And we will add Formula One coverage in Poland from the start of the new season in March.
We launched Viaplay in the UK during Q4, thirty-five years after we started broadcasting our channels into the Nordics from London. Our streaming service and channels are now available direct to consumer and through pay-tv partners, with a combination of live sports and Nordic drama. We will add locally produced Viaplay originals, and more third-party content to the platform as we establish ourselves in one of the world's largest and most content hungry markets.
Our Linear subscription and other revenues (29% of group sales) were up 7% YoY on an organic basis. This reflected the new distribution deals and rising prices, which will continue to drive growth in 2023.
Our 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. Advertising prices are being raised again in the annual negotiations, in order to offset lower linear viewing levels and reflect the broader inflationary environment.
Our Q4 Nordic profits were in line with the updated guidance that we provided in November. The YoY decline in Q4 profits reflected the weaker advertising markets, higher sports rights costs yet to be offset by higher prices, and the temporary discontinuation of a distribution agreement in Sweden. Timing of price increases and the phasing of content costs are expected to result in lower margins for the first half of 2023, and then higher margins and a YoY increase in full year Nordic profits. As previously announced, we are implementing cost savings and avoidance programmes to offset the currency exchange and economic headwinds that we currently anticipate. These measures are in line with our actions in previous downturns.
The combined losses for our international operations are broadly in line with the guidance provided in November, and still lower than anticipated at the beginning of 2022. This reflected continued content investments and the ongoing expansion. The high levels of international subscriber and revenue growth are expected to result in significantly lower losses in 2023, and a combined international profit in 2024.
The IAC reflect our previously announced reorganisation and cost savings programme, which are focusing our resources on the areas that will drive most value moving forward. The latest dividend payment from our Allente joint venture added to our financial position, and we remain fully funded for our expansion journey. We have clear line of sight to our 2025 objectives and full visibility over our largely fixed cost base.
Our new organisational structure is now in place and will bring us even closer to our local customers and partners, while preserving the scale benefits of the investments that we are making into our platform and our content. Operational excellence and sustainable growth are central to our success and, while we find ourselves in uncertain times, I remain confident in our proven ability to adapt and to deliver on our considerable potential and ambitious plans.
Anders Jensen President & CEO
Group
Organic net sales were up 24%, when excluding changes in FX rates and the contribution of acquired and divested operations. This growth was driven by the performance of Viaplay in the Nordic and international markets. Reported sales amounted to SEK 4,670m (3,553). Please see page 16 for a reconciliation of organic and reported sales growth.
Viaplay subscribers
Sales by category
Organic sales growth
| Full | Full | |||||
|---|---|---|---|---|---|---|
| Q4 | Q4 | year | year | |||
| (SEKm) | 2022 | 2021 | Change % | 2022 | 2021 | Change % |
| Viaplay | 2,227 | 1,198 | 85.9% | 6,969 | 4,386 | 58.9% |
| Linear subscription & other1) | 1,362 | 1,214 | 12.2% | 4,914 | 4,498 | 9.2% |
| Advertising | 1,081 | 1,140 | -5.2% | 3,808 | 3,777 | 0.8% |
| Total | 4,670 | 3,553 | 31.4% | 15,691 | 12,661 | 23.9% |
1) Previous reported 'Other subscription' and 'Studios & other' have been combined into 'Linear subscription & other'.
Viaplay was the largest quarterly revenue contributor and accounted for 48% of Group sales. Viaplay sales were up 73% on an organic basis and included SEK 628m of international sales in the quarter and SEK 1,434m for the full year. The total Viaplay paying subscriber base grew by 83% YoY to 7,318k subscribers. Viaplay added 890k paying subscribers QoQ, with 396k added in the Nordics and 494k in the international markets. This acceleration was driven by successful B2B partnerships and direct to consumer sales. The Dutch and Polish subscriber bases grew to over 1.2m each at the end of the period.
Linear subscription and other sales, which include linear channel subscription sales, sublicensing and Viaplay Studios' external sales, accounted for 29% of Group sales and were up 7% on an organic basis. All three categories contributed to the growth in the quarter, with extended third party distribution deals and higher prices for enhanced content offerings being the key growth drivers.
Advertising sales accounted for 23% of Group sales and were down 9% on an organic basis, which reflected the weaker TV advertising markets and coverage of the Football World Cup on rival channels. Viaplay Group's TV audience share was up in Denmark and Norway, and down in Sweden, with the TV advertising markets estimated to have declined in all three markets. Viaplay Group's radio audience share was up in Sweden and down in Norway, with the radio advertising markets estimated to have grown in Norway and declined in Sweden.
Operating expenses excluding items affecting comparability increased 46% to SEK 5,042m (3,452) and reflected the ongoing international expansion and investments in sports rights and original productions.
Operating income before ACI and IAC amounted to SEK -284m (121) and included the SEK -420m (-219) impact of the international expansion in the quarter, and SEK -1,383m (-505) for the full year. Operating income before IAC amounted to SEK -208m (69) and included SEK 76m (-51) of associated company income, which primarily comprised the Group's 50% share in the earnings of Allente. Please see note 3 regarding Allente's financial performance and position. Total operating income amounted to SEK -294m (69) and included IAC of SEK -86m (0). The IAC comprised costs related to the previously announced reorganisation, the acquisition and integration of Premier Sports in the UK, and the write-down of content (see page 17 for details).
Net interest and other financial items totalled SEK -23m (-22). Net interest amounted to SEK -32m (-23), of which SEK -3m (-3) related to interest on net lease liabilities. Other financial items amounted to SEK 9m (1) and mainly comprised the impact of currency exchange rates on the revaluation of financial items.
Tax amounted to SEK 67m (-17), and total net income amounted to SEK -250m (32), with total basic earnings per share of SEK -3.19 (0.41).
Cash flow from operating activities
Cash flow from operations excluding changes in working capital totalled SEK -102m (318) and included the receipt of a SEK 200m (125) dividend from Allente. Changes in working capital amounted to SEK - 345m (391) and primarily reflected payments for content and sports rights. Cash flow from operating activities amounted to SEK-447m (710).
Cash flow from investing activities
Total cash flow related to investing activities amounted to SEK -440m (-38) and included capital expenditure on tangible and intangible assets of SEK -58m (-52) and other investing activities of SEK 5m (14). The acquisition of Premier Sports was finalised during Q4 and resulted in a cash outflow of SEK -387m.
Cash flow from financing activities
Cash flow from financing activities amounted to SEK 577m (5) with borrowings increasing by SEK 500m (0) in the quarter. The net change in cash and cash equivalents amounted to SEK -310m (677).
Financial position
The Group's net debt position at the end of the quarter was SEK 1,482m (-2,059), and the financial net debt position was SEK 1,105m (-2,422). Cash and cash equivalents totalled SEK 2,775m (5,702), while the Group's total borrowings amounted to SEK 3,900m (3,300) and lease liabilities (net of sublease receivables) amounted to SEK 377m (364).
Viaplay Group AB is the Group's parent company and is responsible for Group-wide management, administration and financing.
Net sales for the Parent Company amounted to SEK 94m (46). Income before tax and appropriations amounted to SEK 80m (5), and net income for the period amounted to SEK 90m (174). The income statement and balance sheet for the Parent Company are presented on page 11.
A key component of Viaplay Group's five-year sustainability strategy is ensuring responsible and ethical business practices and encouraging climate conscious content production practices across the industry. The Group therefore reviews its content portfolios and productions on an ongoing basis, and conducts surveys and third-party sustainability audits of selected productions. Four productions were audited in 2022 with action plans put in place to follow up on identified areas for improvement.
Viaplay continues to drive diversity and inclusion in its operations and productions by investing in storytelling that raises awareness of important societal topics. Recently announced and premiered Viaplay Originals and Productions such as 'Human to Human', 'Power Women' and 'Hilma' have highlighted the ongoing impact of the war in Ukraine and the empowerment of women. In response to Russia's invasion of Ukraine, the Group has continued to apply the international sanctions, exclude Russian content from its platforms, and screening contracts and counterparties to ensure that no payments are made to entities in Russia.
The Group has been included in the World and European S&P Dow Jones Sustainability Indices for the second consecutive year, maintaining its position in the top 10% of media and entertainment companies. Viaplay Group was also included in the 2022 Albright Report's 'Green List', which is the best-in-class category for gender equality amongst companies headquartered in Sweden, and was recognised with a
'Low ESG Risk Rating' by Sustainalytics and a ranking of 8th out of 294 businesses in the global media industry.
Significant events during and after the quarter
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12 October Viaplay Select to launch on CINDIE in nine Latin American countries
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13 October Viaplay Group and Telenor agree long-term Swedish and Norwegian distribution partnership
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1 November Viaplay launches in the UK
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2 November Viaplay Group and SBS bring Viaplay Select to Australian audiences
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8 November Viaplay Group enters multi-market device partnership with VIDAA
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9 November Viaplay Group reaffirms targets, signs Pickbox NOW deal and appoints new senior leaders
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10 November Viaplay to show PDC European Tour darts in the UK and 10 European countries
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1 December Viaplay to be streaming home of IHF handball in 10 countries until 2031
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12 December Viaplay Group and Telia enter expanded content partnership in Sweden
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15 December Viaplay Group included in S&P Dow Jones Sustainability Indices for second consecutive year
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19 December Viaplay launches on The Roku Channel in the US
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27 December Viaplay Group and T-Mobile agree distribution deal in Poland
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18 January Viaplay Select comes to Canada with Crave
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26 January Viaplay Select launches on CANAL+ in Austria
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1 February Viaplay Group enters Dutch distribution deal with Solcon
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8 February Viaplay sets US and Canada direct-to-consumer launch dates
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9 February Viaplay secures MotoGP™ rights in every Nordic country
A full list of announcements and reports can be found at www.viaplaygroup.com
Risks & uncertainties
Significant risks and uncertainties exist for the Group and the parent company. These factors include the prevailing economic and business environments in each of the Group's markets; commercial risks related to expansion into new territories; political and legislative risks related to changes in rules and regulations in the various territories in which the Group operates; exposure to foreign exchange rate movements; changes in the ability to access capital markets; and the competition for subscribers, content, and talent. The increasing shift towards online entertainment consumption and the Group's expansion also make the Group a potential target for cyber-attacks, intrusions, disruptions or denials of service. The macroeconomic development globally, with increased inflation and interest rates, puts pressure on both companies and consumers. In addition, the currency exchange rate volatility adds further uncertainty. Viaplay Group is monitoring the situation closely and acting accordingly.
Long-term targets
Viaplay Group provided a series of updated long-term operational and financial targets in its Q3 results announcement on 25 October 2022. These targets are listed below.
Long-term targets
| Group sales growth 1) | ~16-19% CAGR 2020-2025 |
|---|---|
| Nordic sales growth1) | ~10-12% CAGR 2020-2025 |
| Viaplay subscribers | ~12m by end of 2025 |
| ~13% margin for 2025 with positive result for International operations already | |
| Group EBIT (excluding ACI & IAC) | in 2024, ~20% long-term margin for Nordic operations, and ~25% long term |
| margin for International operations | |
| Leverage policy2) | <2.5x Net Debt/LTM EBITDA including leases |
1) based on 2020 Group revenues excluding the contribution from the deconsolidated Viasat Consumer business and the subsequently divested Studio operations , and including the contribution from the consolidation of Premier Sports business from Q4 2022
2) based on trailing twelve month adjusted EBITDA and including leases. Viaplay Group's leverage may exceed these levels temporarily from time to time
Short-term outlook
Viaplay Group also provided a series of short-term operational and financial targets for 2023 at its Capital Markets Day on 9 November 2022.
| 2023 Group organic sales growth | ~ 24-26% (excl. FX and Premier Sports) |
|---|---|
| 2023 Nordic organic sales growth | ~12-15% |
| Viaplay subscribers at end of 2023 | ~9 million subscribers by end of 2023, of which ~5m Nordic and ~4m |
| International | |
| 2023 EBIT (excluding ACI & IAC) | Nordics: ~SEK 1.2-1.35 bn |
| International: Loss of SEK ~1.0-1.1 bn | |
| 2023 Change in working capital | Negative ~ SEK 2.0 bn |
Stockholm, 14 February 2023
Anders Jensen President & CEO
This report has not been reviewed by the Group's auditors.
Condensed consolidated income statement
| Full | Full | |||
|---|---|---|---|---|
| Q4 | Q4 | year | year | |
| (SEKm) | 2022 | 2021 | 2022 | 2021 |
| Continuing operations | ||||
| Net sales | 4,670 | 3,553 | 15,691 | 12,661 |
| Cost of sales | -4,240 | -2,718 | -13,086 | -9,462 |
| Gross income | 430 | 835 | 2,605 | 3,199 |
| Selling and marketing expenses | -330 | -308 | -1,264 | -1,030 |
| General and administrative expenses | -545 | -426 | -1,933 | -1,632 |
| Other operating income and expenses | 75 | 19 | 730 | -4 |
| Share of earnings in associated companies and joint ventures | 76 | -51 | 275 | 40 |
| Operating income | -294 | 69 | 413 | 573 |
| Net financial items | -23 | -22 | -88 | -97 |
| Income before tax | -317 | 48 | 325 | 476 |
| Tax expenses | 67 | -17 | -2 | -111 |
| Net income for the period, continuing operations | -250 | 32 | 323 | 365 |
| Net income for the period, discontinued operations | - | - | - | -40 |
| Net income for the period | -250 | 32 | 323 | 325 |
| Items that are or may be reclassified to profit or loss net of tax | ||||
| Currency translation differences | 46 | 30 | 123 | 140 |
| Cash flow hedges | -166 | 49 | 108 | 289 |
| Other comprehensive income for the period | -120 | 79 | 231 | 429 |
| Total comprehensive income for the period | -370 | 111 | 554 | 754 |
| Net income for the period attributable to: | ||||
| Equity holders of the parent company | -250 | 32 | 323 | 325 |
| Total comprehensive income for the period attributable to: | ||||
| Equity holders of the parent company | -370 | 111 | 554 | 754 |
| Earnings per share | ||||
| Basic earnings per share (SEK), continuing operations | -3.19 | 0.41 | 4.13 | 4.76 |
| Diluted earnings per share (SEK), continuing operations | -3.19 | 0.41 | 4.13 | 4.74 |
| Basic earnings per share (SEK) | -3.19 | 0.41 | 4.13 | 4.23 |
| Diluted earnings per share (SEK) | -3.19 | 0.41 | 4.13 | 4.21 |
| Number of shares | ||||
| Shares outstanding at the end of the period | 78,225,962 | 77,970,071 | 78,225,962 | 77,970,071 |
| Basic average number of shares outstanding | 78,225,962 | 77,963,209 | 78,137,402 | 76,731,753 |
| Diluted average number of shares outstanding | 78,225,962 | 78,251,262 | 78,225,008 | 77,031,536 |
Condensed consolidated balance sheet
| 31 Dec | 31 Dec | |
|---|---|---|
| (SEKm) | 2022 | 2021 |
| Non-current assets | ||
| Intangible assets | 2,437 | 1,981 |
| Machinery, equipment and installations | 174 | 163 |
| Right-of-use assets | 335 | 321 |
| Shares and participations | 1,363 | 1,328 |
| Long-term sublease receivables | 104 | 127 |
| Other long-term receivables | 94 | 144 |
| Total non-current assets | 4,507 | 4,064 |
| Current assets | ||
| Inventories | 5,206 | 3,543 |
| Accounts receivable | 1,218 | 847 |
| Short-term sublease receivables | 32 | 31 |
| Prepaid expenses and accrued income | 7,588 | 4,990 |
| Other current receivables | 537 | 350 |
| Cash and cash equivalents | 2,775 | 5,702 |
| Total current assets | 17,356 | 15,463 |
| Total assets | 21,863 | 19,527 |
| Equity | ||
| Equity | 8,911 | 8,323 |
| Total equity | 8,911 | 8,323 |
| Non-current liabilities | ||
| Long-term borrowings | 3,250 | 2,500 |
| Long-term lease liabilities | 394 | 416 |
| Long-term provisions | 143 | 157 |
| Other non-current liabilities | 112 | 238 |
| Total non-current liabilities | 3,899 | 3,311 |
| Current liabilities | ||
| Short-term borrowings | 650 | 800 |
| Short-term lease liabilities | 119 | 106 |
| Short-term provisions | 55 | 215 |
| Other current liabilities | 8,229 | 6,772 |
| Total current liabilities | ||
| 9,053 | 7,893 | |
| Total liabilities | 12,952 | 11,204 |
Condensed consolidated statement of cash flow
| Full | Full | |||
|---|---|---|---|---|
| Q4 | Q4 | year | year | |
| (SEKm) | 2022 | 2021 | 2022 | 2021 |
| Operating activities | ||||
| Net income for the period, continuing operations | -250 | 32 | 323 | 365 |
| Net income for the period, discontinued operations | - | 0 | - | -40 |
| Dividends from associated companies | 200 | 125 | 300 | 500 |
| Depreciation, amortisation and write-down | 74 | 96 | 270 | 326 |
| Other adjustments for non-cash items | -126 | 66 | -589 | 143 |
| Cash flow from operations, excluding changes in working capital | -102 | 318 | 304 | 1,294 |
| Changes in working capital | -345 | 391 | -3,305 | -817 |
| Cash flow from operating activities | -447 | 710 | -3,001 | 477 |
| Investing activities | ||||
| Acquisitions of operations | -387 | - | -387 | - |
| Divestments of operations | - | - | - | 443 |
| Capital expenditures in tangible and intangible assets | -58 | -52 | -186 | -216 |
| Other cash flow from investing activities | 5 | 14 | 71 | 16 |
| Cash flow from investing activities | -440 | -38 | -502 | 243 |
| Financing activities | ||||
| New borrowings | 500 | - | 1,400 | - |
| Amortisation of borrowings | - | - | -800 | -1,260 |
| Net change in leases | -19 | -15 | -72 | -83 |
| Share issue, net of transaction costs | - | - | - | 4,292 |
| Other cash flow from financing activities | 96 | 20 | 7 | -39 |
| Cash flow from financing activities | 577 | 5 | 535 | 2,910 |
| Change in cash and cash equivalents for the period | -310 | 677 | -2,968 | 3,630 |
| Cash and cash equivalents at the beginning of the period | 3,065 | 5,014 | 5,702 | 2,040 |
| Translation differences in cash and cash equivalents | 20 | 11 | 41 | 32 |
| Cash and cash equivalents at end of the period | 2,775 | 5,702 | 2,775 | 5,702 |
Condensed consolidated statement of changes in equity
| Full | Full | |||
|---|---|---|---|---|
| Q4 | Q4 | year | year | |
| (SEKm) | 2022 | 2021 | 2022 | 2021 |
| Opening balance | 9,273 | 8,204 | 8,323 | 3,236 |
| Net income for the period | -250 | 32 | 323 | 325 |
| Other comprehensive income for the period | -120 | 79 | 231 | 429 |
| Total comprehensive income for the period | -370 | 111 | 554 | 754 |
| Share issue | - | - | - | 4,346 |
| Share issue transaction costs, net of tax | - | - | - | -43 |
| Effect of share based programmes | 8 | 9 | 34 | 30 |
| Closing balance | 8,911 | 8,323 | 8,911 | 8,323 |
Parent company condensed income statement
| Full | Full | |||
|---|---|---|---|---|
| Q4 | Q4 | year | year | |
| (SEKm) | 2022 | 2021 | 2022 | 2021 |
| Net sales | 94 | 46 | 123 | 86 |
| General and administrative expenses | -83 | -59 | -298 | -228 |
| Other operating income and expenses | - | - | 1 | 1 |
| Operating income | 11 | -13 | -174 | -141 |
| Net financial items | 69 | 18 | 138 | 58 |
| Income before tax and appropriations | 80 | 5 | -36 | -83 |
| Group contribution | - | 187 | - | 186 |
| Income before tax | 80 | 192 | -36 | 103 |
| Tax expenses | 10 | -18 | 36 | - |
| Net income for the period | 90 | 174 | - | 103 |
| Other comprehensive income | - | - | - | - |
| Total comprehensive income for the period | 90 | 174 | - | 103 |
Parent company condensed balance sheet
| 31 Dec | 31 Dec | |
|---|---|---|
| (SEKm) | 2022 | 2021 |
| Non-current assets | ||
| Shares and participations in Group companies | 223 | 202 |
| Long-term receivables from Group companies | 9,053 | 5,931 |
| Other long-term receivables | 40 | - |
| Total non-current assets | 9,316 | 6,133 |
| Current assets | ||
| Receivables from Group companies | 2,919 | 943 |
| Other current receivables | 278 | 131 |
| Cash and bank | 2,610 | 5,590 |
| Total current assets | 5,807 | 6,664 |
| Total assets | 15,123 | 12,797 |
| Equity | ||
| Restricted equity | 157 | 157 |
| Non-restricted equity | 6,479 | 6,447 |
| Total equity | 6,636 | 6,604 |
| Non-current liabilities | ||
| Long-term borrowings | 3,250 | 2,500 |
| Other non-current liabilities | 9 | - |
| Total non-current liabilities | 3,259 | 2,500 |
| Current liabilities | ||
| Short-term borrowings | 650 | 800 |
| Liabilities to Group companies | 4,163 | 2,643 |
| Other current liabilities | 415 | 250 |
| Total current liabilities | 5,228 | 3,693 |
| Total equity and liabilities | 15,123 | 12,797 |
Note 1 - Accounting policies
This Interim report has been prepared according to 'IAS 34 Interim Financial Reporting' and 'The Annual Accounts Act'. The interim report for the parent company has been prepared according to the Annual Accounts Act - Chapter 9 'Interim Report'.
The Group's financial accounts and the parent company accounts have been prepared according to the same accounting policies and calculation methods as were applied in the preparation of the 2021 Annual & Sustainability Report. Disclosures in accordance with IAS 34.16A are presented in the financial statements and their accompanying notes, as well as in other parts of the interim report.
| Full | Full | |||
|---|---|---|---|---|
| Q4 | Q4 | year | year | |
| (SEKm) | 2022 | 2021 | 2022 | 2021 |
| Revenue streams | ||||
| Subscription | 3,170 | 2,145 | 10,841 | 7,932 |
| Advertising | 1,102 | 1,140 | 3,837 | 3,777 |
| Licenses, royalities and other | 250 | 178 | 657 | 694 |
| Production | 148 | 89 | 356 | 258 |
| Total | 4,670 | 3,553 | 15,691 | 12,661 |
| Revenue recognition | ||||
| At a point in time | 250 | 178 | 657 | 694 |
| Over time | 4,420 | 3,375 | 15,034 | 11,967 |
| Total | 4,670 | 3,553 | 15,691 | 12,661 |
Note 2 – Revenue recognition
Note 3 – Income from associated company Allente
Allente's revenue increased and subscribers declined in the quarter. The Company's operating income included SEK 1m (314) of integration costs that were reported as items affecting comparability. Amortisation and depreciation charges for the period included SEK 112m (84) of PPA-related charges. Viaplay Group's 50% share of Allente's net income of SEK 156m amounted to SEK 78m.
| Full | Full | |||
|---|---|---|---|---|
| Q4 | Q4 | year | year | |
| (SEKm) | 2022 | 2021 | 2022 | 2021 |
| Net sales | 1,735 | 1,684 | 6,808 | 6,817 |
| EBITDA before IAC | 362 | 304 | 1,264 | 1,328 |
| Depreciation and amortisation | -139 | -108 | -463 | -433 |
| Operating income before IAC | 223 | 196 | 801 | 895 |
| Items affecting comparability (IAC) | -1 | -314 | -22 | -736 |
| Operating income | 222 | -118 | 779 | 159 |
| Financial items | -29 | -13 | -65 | -55 |
| Tax | -37 | 27 | -150 | -22 |
| Net income | 156 | -104 | 564 | 82 |
| Viaplay Group 50% share of net income | 78 | -52 | 282 | 41 |
| Net debt | 1,938 | 2,156 | 1,938 | 2,156 |
| Total subscribers (thousand) | 1,040 | 1,064 | 1,040 | 1,064 |
Note 4 – Discontinued and divested operations
The discontinued operations in 2021 comprised the non-scripted production, branded entertainment and events businesses that were divested during 2021. These businesses were part of the former Studios segment and reported as assets held for sale and discontinued operations since Q2 2020. The net income, assets and liabilities of the operations were reported in a separate line in the consolidated income statement and balance sheet. Splay One was divested on 6 April 2021 and the remaining discontinued studios businesses were divested on 30 September 2021. The total capital loss including transaction costs amounted in total to SEK -45m and was reported within discontinued operations. The NENT Studios UK content distribution business was sold to All3Media on 11 June 2021 and the divestment resulted in a capital loss (including transaction costs) amounting to SEK -74m which was reported within continuing operations.
| Full | Full | |||
|---|---|---|---|---|
| Q4 | Q4 | year | year | |
| (SEKm) | 2022 | 2021 | 2022 | 2021 |
| External sales | - | - | - | 615 |
| Internal sales | - | - | - | 60 |
| Cost of sales | - | - | - | -548 |
| Selling, Technology and administration expenses | - | - | - | -123 |
| Other income and expenses | - | - | - | -42 |
| Operating income | - | - | - | -38 |
| Financial net & Tax | - | - | - | -3 |
| Net income, discontinued operations | - | - | - | -40 |
Note 5 – Acquired operations
Viaplay Group announced an agreement to acquire Premier Sports in the UK on 21 July. The acquisition was finalised on 21 October and yields synergies that will accelerate the development of the Viaplay streaming service in the UK. Premier Sports had a total of 222,000 paying subscribers at the end of June 2022.
The purchase price amounted to SEK 387m on a cash and debt-free basis. Premier Sports is consolidated in the Group and contributed with sales of SEK 56m and a negative EBIT of SEK -12m in the fourth quarter. Transaction costs for the acquisition amounted to SEK 11m. The purchase price allocation resulted in a surplus value of SEK 443m, which has been allocated to goodwill.
Note 6 – Number of shares
Viaplay Group AB has a total of 78,442,244 issued and outstanding shares.
| Class A | Class B | Class C | ||
|---|---|---|---|---|
| Parent company | Shares | Shares | Shares | Total |
| Number of shares as at 31 December 2021 | 532,572 | 77,439,153 | 470,519 | 78,442,244 |
| Reclassification of Class A shares | -1,036 | 1,036 | - | - |
| Share awards vested (LTI 2019) | - | 255,891 | -255,891 | - |
| Reclassification of Class C shares | - | 5,128 | -5,128 | - |
| Number of shares as at 31 December 2022 | 531,536 | 77,701,208 | 209,500 | 78,442,244 |
| Of which, treasury shares | - | -6,782 | -209,500 | -216,282 |
| Number of shares excl treasury shares as at 31 December 2022 |
531,536 | 77,694,426 | - | 78,225,962 |
The Annual General Meeting in May 2022 approved a share-based long-term incentive plan (LTIP 2022). The plan is performance-based and directed to around 115 participants across Viaplay Group. LTIP 2022
will vest in 2025 and is dependent on the achievement of two 3-year targets regarding Total Shareholder Return and the number of Viaplay subscribers. The maximum number of B shares to be vested is 365,013. The LTIP 2019 programme expired in Q2 and 244,872 Class B shares were delivered to participants. The LTIP 2019 and LTIP 2021 programmes are described in more detail in Note 7 in the 2021 Annual & Sustainability Report.
Note 7 – Related party transactions
The Group has related party relationships between its subsidiaries, associated companies and joint ventures. All related party transactions are based on market terms and negotiated on an arm's length basis.
| Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |
|---|---|---|---|---|---|---|---|---|---|---|
| (SEKm) | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 | 2022 | 2022 |
| Nordic sales | 2,982 | 3,070 | 3,049 | 3,505 | 12,606 | 3,233 | 3,442 | 3,539 | 4,042 | 14,257 |
| International sales | - | 2 | 5 | 48 | 55 | 91 | 282 | 433 | 628 | 1,434 |
| Total net sales | 2,982 | 3,072 | 3,054 | 3,553 | 12,661 | 3,324 | 3,725 | 3,972 | 4,670 | 15,691 |
| - of which Viaplay | 1,012 | 1,076 | 1,100 | 1,198 | 4,386 | 1,302 | 1,570 | 1,870 | 2,227 | 6,969 |
| - of which Linear subscription & other | 1,111 | 1,056 | 1,118 | 1,214 | 4,498 | 1,146 | 1,149 | 1,257 | 1,362 | 4,914 |
| - of which Advertising | 859 | 941 | 837 | 1,140 | 3,777 | 876 | 1,006 | 845 | 1,081 | 3,808 |
| Operating income before ACI and IAC | 163 | 244 | 80 | 121 | 607 | -49 | 132 | -171 | -284 | -372 |
| Associated company income (ACI) | 47 | 9 | 34 | -51 | 40 | 55 | 73 | 71 | 76 | 275 |
| Operating income before IAC | 210 | 253 | 114 | 69 | 647 | 6 | 205 | -100 | -208 | -97 |
| Items affecting comparability (IAC) | - | -74 | - | - | -74 | 595 | - | - | -86 | 510 |
| Operating income | 210 | 179 | 114 | 69 | 573 | 602 | 205 | -100 | -294 | 413 |
| Net income | 145 | 92 | 55 | 32 | 325 | 483 | 175 | -86 | -250 | 323 |
| Basic earnings per share (SEK) | 1.99 | 1.18 | 0.71 | 0.41 | 4.23 | 6.20 | 2.25 | -1.10 | -3.19 | 4.13 |
| Adjusted net income from continuing operations | 231 | 266 | 179 | 189 | 864 | 39 | 212 | -49 | -132 | 70 |
| Adjusted earnings per share from continuing operations (SEK) |
3.16 | 3.41 | 2.30 | 2.43 | 11.26 | 0.50 | 2.71 | -0.63 | -1.69 | 0.90 |
| Sales growth | -11.5% | 17.1% | 8.0% | 11.7% | 5.5% | 11,5% | 21.3% | 30.0% | 31.4% | 23.9% |
| Organic growth | 15.9% | 31.3% | 9.9% | 12.4% | 16.7% | 9,9% | 18,4% | 25.4% | 23.9% | 19.7% |
| Operating margin before ACI and IAC | 5.5% | 7.9% | 2.6% | 3.4% | 4.8% | -1.5% | 3.5% | -4.3% | -6.1% | -2.4% |
| Operating margin | 7.1% | 5.8% | 3.7% | 2.0% | 4.5% | 18.1% | 5.5% | -2.5% | -6.3% | 2.6% |
| Net debt | -777 | -1,697 | -1,392 | -2,059 | -2,059 | -1,107 | -1,636 | 546 | 1,482 | 1,482 |
| Net debt/EBITDA 12 months trailing | -0.6 | -1.2 | -1.1 | -2.1 | -2.1 | -1.4 | -2.3 | 1.2 | 8.6 | 8.6 |
| ROCE | 14.5% | 15.3% | 14.0% | 9.9% | 9.9% | 6.6% | 5.7% | 2.4% | -1.2% | -1.2% |
| Viaplay subscriber base ('000s) | 3,147 | 3,287 | 3,608 | 4,005 | - | 4,783 | 5,549 | 6,428 | 7,318 | - |
| - of which Nordic subscribers ('000s) | 3,147 | 3,260 | 3,296 | 3,458 | - | 3,576 | 4,034 | 4,229 | 4,625 | - |
| - of which International subscribers ('000s) | - | 27 | 313 | 547 | - | 1,208 | 1,515 | 2,200 | 2,694 | - |
| CSOV Sweden (25-59) % | 22.5 | 21.3 | 20.4 | 22.0 | 21.7 | 21.3 | 22.2 | 20.1 | 17.8 | 20.3 |
| CSOV Norway (25-59) % | 15.3 | 15.3 | 17.0 | 20.2 | 17.2 | 16.6 | 19.9 | 17.6 | 20.7 | 18.9 |
| CSOV Denmark (25-59) % | 17.8 | 22.7 | 19.1 | 18.4 | 19.3 | 19.0 | 19.8 | 18.5 | 21.1 | 19.6 |
| CSOL Sweden (12-79) % | 39.0 | 39.2 | 40.1 | 40.1 | 39.6 | 43.5 | 44.7 | 43.7 | 43.9 | 44.1 |
| CSOL Norway (10+) % | 67.0 | 67.4 | 65.6 | 67.3 | 66.7 | 69.7 | 68.1 | 67.5 | 64.7 | 67.5 |
The purpose of Alternative Performance Measures (APMs) is to facilitate the analysis of business performance and industry trends that cannot be directly derived from financial statements. Viaplay Group is using the following Alternative Performance Measures:
-
Change in net sales from Organic growth, Acquisitions/divestments and Changes in FX rates
-
Operating income before associated company income (ACI) and items affecting comparability (IAC)
-
Operating income before IAC
-
Net debt and Net debt/EBITDA
-
Capital Employed and Return on Capital Employed (ROCE)
-
Adjusted net income and earnings per share
Reconciliation of sales growth
Since the Group generates the majority of its sales in currencies other than in the reporting currency (i.e. SEK, Swedish Krona) and currency rates have proven to be rather volatile, and due to the fact that the Group has historically made several acquisitions and divestments, the Company's sales trends and performance are analysed as changes in organic sales growth. This presents the increase or decrease in the overall SEK net sales on a comparable basis, allowing separate discussion of the impact of acquisitions/divestments and exchange rates.
Organic growth, i.e. sales growth adjusted for acquisitions/divestments and changes in FX rates, amounted to 23.9% in Q4 2022.
| Net sales | Net Sales adjusted for acquisitions/ |
||||
|---|---|---|---|---|---|
| Acquisitions/ | adjusted for acquisitions/ |
Changes in | divestments and changes in FX |
||
| Q4 (SEKm) | Reported Net sales | divestments | divestments | FX rates | rates |
| 2022 | 4,670 | -56 | 4,614 | -213 | 4,401 |
| 2021 | 3,553 | - | 3,553 | - | 3,553 |
| Growth | 1,117 | 1,061 | 848 | ||
| Growth % | 31.4% | 29.9% | 23.9% | ||
| Net sales adjusted for |
Net Sales adjusted for acquisitions/ divestments and |
||||
| Full year (SEKm) | Reported Net sales | Acquisitions/ divestments |
acquisitions/ divestments |
Changes in FX rates |
changes in FX rates |
| 2022 | 15,691 | - 56 | 15,635 | -542 | 15,093 |
| 2021 | 12,661 | -48 | 12,613 | - | 12,613 |
| Growth | 3,030 | 3,022 | 2,480 | ||
| Growth % | 23.9% | 24.0% | 19.7% |
Reconciliation of operating income before associated company income (ACI) and items affecting comparability (IAC)
Operating income before associated company income (ACI) and items affecting comparability (IAC) refers to operating income after the reversal of material items and events related to changes in the Group's structure or lines of business, which are relevant for understanding the Group's development on a like-for-like basis. This measure is used by management to follow and analyse the underlying profits and to offer more comparable figures between periods.
Operating income before IAC and associated company income
| Full | Full | |||
|---|---|---|---|---|
| Q4 | Q4 | year | year | |
| (SEKm) | 2022 | 2021 | 2022 | 2021 |
| Operating income | -294 | 69 | 413 | 573 |
| Items affecting comparability (IAC) | -86 | - | 510 | -74 |
| Operating income before IAC | -208 | 69 | -97 | 647 |
| Associated company income (ACI) | 76 | -51 | 275 | 40 |
| Operating income before ACI and IAC | -284 | 121 | -372 | 607 |
Items affecting comparability
| Full | Full | |||
|---|---|---|---|---|
| Q4 | Q4 | year | year | |
| (SEKm) | 2022 | 2021 | 2022 | 2021 |
| Capital loss from divestment of NENT Studio UK and write down of Studio assets |
- | - | - | -74 |
| Restructuring costs | -37 | - | -37 | - |
| Write-down of content | -27 | - | -27 | - |
| Acquisition and integration of Premier Sports | -22 | - | -22 | - |
| Settlement of court cases | - | - | 595 | - |
| Total | -86 | - | 510 | -74 |
Items affecting comparability classified by function
| Full | Full | |||
|---|---|---|---|---|
| Q4 | Q4 | year | year | |
| (SEKm) | 2022 | 2021 | 2022 | 2021 |
| Cost of sales | -38 | - | -38 | - |
| Administrative expenses | -34 | - | -34 | - |
| Other operating income and expenses | -14 | - | 582 | -74 |
| Total | -86 | - | 510 | -74 |
Reconciliation of net debt/EBITDA ratio
Net debt refers to the sum of interest-bearing liabilities less total cash and interest-bearing assets. Net debt also includes lease liabilities net of sublease receivables and dividends payable. Net debt is used by Group management to track the indebtedness of the Group and to analyse the leverage and refinancing needs of the Group. The net debt to EBITDA ratio provides a KPI for net debt in relation to cash profits generated by the business, i.e. an indication of a business' ability to pay its debts. This measure is commonly used by financial institutions to rate creditworthiness. A negative figure indicates that the Group has a net cash position (cash in excess of interest-bearing liabilities).
Net debt
| 31 Mar | 30 Jun | 30 Sep | 31 Dec | 31 Mar | 30 Jun | 30 Sep | 31 Dec | |
|---|---|---|---|---|---|---|---|---|
| (SEKm) | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 | 2022 |
| Short-term borrowings | 50 | 800 | 800 | 800 | 800 | 150 | 150 | 650 |
| Long-term borrowings | 3,300 | 2,500 | 2,500 | 2,500 | 3,400 | 3,250 | 3,250 | 3,250 |
| Total financial borrowings | 3,350 | 3,300 | 3,300 | 3,300 | 4,200 | 3,400 | 3,400 | 3,900 |
| Interest bearing receivables | - | 40 | 40 | 20 | 20 | 20 | 20 | 20 |
| Dividend receivable - Allente | - | - | - | - | - | 100 | - | - |
| Short-term investments | - | - | - | - | - | - | 100 | - |
| Cash and cash equivalents | 4,604 | 5,415 | 5,014 | 5,702 | 5,642 | 5,254 | 3,065 | 2,775 |
| Cash and cash equivalents included in assets held for sale |
26 | 5 | - | - | - | - | - | - |
| Financial net debt | -1,280 | -2,160 | -1,754 | -2,422 | -1,462 | -1,974 | 215 | 1,105 |
| Lease liabilities | 569 | 539 | 534 | 522 | 508 | 487 | 479 | 513 |
| Lease liabilities included in liabilities related to assets held for sale |
122 | 102 | - | - | - | - | - | - |
| Sublease receivables | 188 | 178 | 172 | 158 | 153 | 149 | 148 | 136 |
| Total lease liabilities net | 504 | 463 | 362 | 364 | 355 | 338 | 331 | 377 |
| Net debt | -777 | -1,697 | -1,392 | -2,059 | -1,107 | -1,636 | 546 | 1,482 |
Net debt/EBITDA before IAC
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| (SEKm) | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 | 2022 |
| Operating income before IAC, continuing operations |
1,069 | 1,111 | 969 | 647 | 443 | 395 | 181 | -97 |
| Operating income before IAC, discontinued operations |
-20 | -10 | 2 | 8 | 16 | 3 | - | - |
| Depreciation, amortisation and write-downs, continuing operations1) |
264 | 264 | 267 | 296 | 294 | 292 | 292 | 270 |
| Depreciation, amortisation and write-downs, discontinued operations1) |
47 | 44 | 42 | 30 | 19 | 10 | - | - |
| EBITDA 12 months trailing | 1,359 | 1,409 | 1,280 | 980 | 772 | 700 | 473 | 173 |
| Net debt | -777 | -1,697 | -1,392 | -2,059 | -1,107 | -1,636 | 546 | 1,482 |
| Total net debt / EBITDA 12 months trailing | -0.6 | -1.2 | -1.1 | -2.1 | -1.4 | -2.3 | 1.2 | 8.6 |
1) Refers to non-current assets only
Reconciliation of Return on Capital Employed (ROCE)
Return on capital employed is a performance measure for operating income before items affecting comparability in relation to the capital employed within the operations. Operating income before items affecting comparability is the main profit metric that operations are responsible for and is measured before interest and taxes. Capital employed is the sum of current and non-current assets less current and non-current liabilities, provisions and liabilities at fair value. All items are non-interest-bearing. Capital employed equals the sum of equity and net debt.
Return on Capital Employed (ROCE)
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|---|---|---|---|
| (SEKm) | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 | 2022 |
| Inventories | 2,900 | 3,009 | 3,252 | 3,543 | 3,869 | 4,181 | 4,629 | 5,206 |
| Accounts receivable | 947 | 899 | 1,089 | 847 | 924 | 1,117 | 1,023 | 1,218 |
| Prepaid expense and accrued income | 4,076 | 4,238 | 4,196 | 4,990 | 4,888 | 6,682 | 6,979 | 7,588 |
| Other current assets | 290 | 406 | 261 | 350 | 373 | 676 | 843 | 537 |
| Other current liabilities | -5,155 | -6,245 | -5,498 | -6,772 | -5,733 | -8,485 | -7,207 | -8,229 |
| Total working capital | 3,057 | 2,307 | 3,300 | 2,958 | 4,321 | 4,171 | 6,267 | 6,320 |
| Intangible assets | 2,031 | 1,998 | 1,992 | 1,981 | 2,001 | 1,984 | 1,972 | 2,437 |
| Machinery, equipment and installations | 120 | 131 | 148 | 163 | 168 | 162 | 163 | 174 |
| Right-of-use assets | 350 | 330 | 335 | 321 | 313 | 295 | 290 | 335 |
| Shares and participations | 1,599 | 1,577 | 1,495 | 1,328 | 1,445 | 1,382 | 1,474 | 1,363 |
| Other long-term receivables | 133 | 127 | 115 | 124 | 127 | 155 | 130 | 74 |
| Capital employed held for sale | 614 | 498 | - | - | - | - | - | - |
| Provisions | -339 | -351 | -360 | -372 | -255 | -270 | -239 | -198 |
| Other non-current liabilities | -280 | -256 | -213 | -238 | -262 | -270 | -238 | -112 |
| Other items included in the capital employed | 4,227 | 4,054 | 3,512 | 3,306 | 3,538 | 3,438 | 3,552 | 4,073 |
| Capital employed | 7,284 | 6,361 | 6,812 | 6,264 | 7,858 | 7,609 | 9,819 | 10,393 |
| Operating income before IAC 12 months trailing, continuing operations |
1,069 | 1,111 | 969 | 647 | 443 | 395 | 181 | -97 |
| Operating income before IAC 12 months trailing, discontinued operations |
-20 | -10 | 2 | 8 | 16 | 3 | 0 | - |
| Operating income before IAC 12 months | ||||||||
| trailing, total | 1,049 | 1,101 | 971 | 655 | 459 | 398 | 181 | -97 |
| Average Capital Employed (5 quarters) | 7,205 | 7,199 | 6,933 | 6,597 | 6,916 | 6,981 | 7,673 | 8,389 |
| ROCE % | 14.5% | 15.3% | 14.0% | 9.9% | 6.6% | 5.7% | 2.4% | -1.2% |
| Assets held for sale | 1,352 | 846 | - | - | - | - | - | - |
| Cash and cash equivalents included in assets held for sale |
-26 | -5 | - | - | - | - | - | - |
| Liabilities related to assets held for sale | -834 | -446 | - | - | - | - | - | - |
| Lease liability, included in liabilities related to assets held for sale |
122 | 102 | - | - | - | - | - | - |
| Capital employed held for sale | 614 | 498 | - | - | - | - | - | - |
Adjusted net income from continuing operations
Adjusted net income and earnings per share are the Group's net income and EPS from continuing operations when excluding items affecting comparability and the amortisation of acquisition-related intangible assets, net of tax, for both Viaplay Group and its 50% share in the earnings of Allente. These performance measures provide a relevant metric to better understand the Group's underlying results and development. Please see note 3 for more information on Allente's performance and page 17 regarding Viaplay Group's items affecting comparability.
| Full | Full | |||
|---|---|---|---|---|
| Q4 | Q4 | year | year | |
| (SEKm) | 2022 | 2021 | 2022 | 2021 |
| Net income, continuing operations | -250 | 32 | 323 | 365 |
| Adjustment items | 118 | 157 | -253 | 499 |
| Adjusted net income from continuing operations | -132 | 189 | 70 | 864 |
| Basic average number of shares outstanding | 78,225,962 | 77,963,209 | 78,137,402 | 76,731,753 |
| Adjusted earnings per share from continuing operations (SEK) | -1.69 | 2.43 | 0.90 | 11.26 |
| Adjustment items | ||||
| Viaplay Group | ||||
| IAC | -86 | - | 510 | -74 |
| Tax effect on IAC | 14 | - | -99 | - |
| Amortisations of surplus value (PPA) | -1 | -2 | -4 | -8 |
| Tax effect on amortisations of surplus value (PPA) | 0 | 0 | 1 | 2 |
| Allente | ||||
| IAC | -1 | -157 | -11 | -368 |
| Tax effect on IAC | 0 | 34 | 2 | 80 |
| Amortisations of surplus value (PPA) | -55 | -42 | -184 | -167 |
| Tax effect on amortisations of surplus value (PPA) | 11 | 9 | 38 | 36 |
| Adjustment items | -118 | -157 | 253 | -499 |
Associated company income (ACI)
Associated companies are companies in which the Group holds voting rights of at least 20% and no more than 50%. Associated company income is the Group's share of the associated company's net income.
Capital employed
Capital employed is the sum of current and non-current assets less current and non-current liabilities, provisions and liabilities at fair value. All items are non-interest-bearing.
Commercial Share of Listening (CSOL)
CSOL comprises Viaplay Group's estimated share of commercial radio listening amongst 10+ year olds in Norway and 12-79 year olds in Sweden.
Commercial Share of Viewing (CSOV)
CSOV comprises Viaplay Group's estimated share of commercial TV viewing amongst 25-59 year olds.
Earnings per share
Earnings per share is expressed as net income attributable to equity holders of the parent divided by the average number of shares outstanding.
EBITDA
EBITDA is Earnings Before Interest, Taxes, Depreciation and Amortisation.
Items Affecting Comparability (IAC)
Items Affecting Comparability refer to material items and events related to changes in the Group's structure or lines of business, which are relevant for understanding the Group's development on a likefor-like basis.
Net debt
Net debt is the sum of short and long-term interest-bearing liabilities less total cash and interest-bearing assets. Net debt also includes lease liabilities net of sublease receivables and dividends payable. A negative figure indicates that the Group has a net cash position (cash in excess of interest-bearing liabilities).
Operating expenses
Operating expenses comprise Cost of sales, Selling and marketing expenses, and Administrative expenses, and exclude Items Affecting comparability.
Operating income
Operating income comprises results before interest and taxes, otherwise known as EBIT (Earnings Before Interest and Taxes).
Organic growth
Organic growth is the change in net sales compared to the same period of the previous year excluding acquisitions and divestments and adjusted for currency translation and transaction effects.
Return On Capital Employed (ROCE) %
Return on capital employed is calculated as operating income as a percentage of average capital employed.
Viaplay subscribers
A Viaplay subscriber is defined as a customer who has access to Viaplay and for whom a method of payment has been provided. Viaplay Group only reports paid-for subscriptions where a payment has been received directly from the end-customer or from a partner organisation.
2023 Annual General Meeting
The 2023 Annual General Meeting of Viaplay shareholders will be held on Tuesday 16 May 2023 in Stockholm. Shareholders wishing to have matters considered at the meeting should submit their proposals in writing to [email protected] or to the Company Secretary, Viaplay Group AB, BOX 17104, 104 62 Stockholm, Sweden, at least seven weeks before the meeting in order that such proposals may be included in the notices to the meeting. Further details of when and how to register will be published in advance of the meeting. The Board of Directors will propose to the Annual General Meeting that no annual cash dividend be paid for 2022 and that the 2022 profits be carried forward into 2023 for the planned investment into the ongoing international expansion.
Financial calendar
Publication of 2022 Annual Financial & Sustainability report Week commencing 3 April Publication of Q1 interim report 25 April Annual General Meeting 16 May Publication of Q2 interim report 20 July Publication of Q3 interim report 24 October
Contact
[email protected] or +46 70 270 72 17 [email protected] or +44 7768 440 414
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Conference call and video webcast
A conference call and video webcast will take place today at 09.00 Stockholm local time, 08.00 London local time and 03.00 New York local time.
The video webcast will be streamed at https://edge.media-server.com/mmc/p/9mvjcf8e Please register for the conference call at https://register.vevent.com/register/BI235d8c3016334d4f886f78a7b81d0055
Viaplay Group Ringvägen 52, PO Box 17104 104 62 Stockholm, Sweden viaplaygroup.com @viaplaygroup
Viaplay Group AB (publ) is the international entertainment provider. Our Viaplay streaming service is available direct-toconsumer in every Nordic and Baltic country, Poland, the Netherlands and the UK, and we are expanding rapidly by launching in the US and Canada in 2023. Every day, millions of customers enjoy our unique entertainment offering, including acclaimed Viaplay Series, Films and more, and an unrivalled line-up of premium live sports. In addition, our innovative Viaplay Select branded content concept makes Viaplay's compelling storytelling available to partners around the world. From streaming to TV channels, radio stations and production companies, our purpose is to tell stories, touch lives and expand worlds. Viaplay Group is listed on Nasdaq Stockholm (`VPLAY B').This information is information that Viaplay Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CET on 14 February 2023.
This interim report contains statements concerning, among other things, Viaplay Group's financial condition and results of operations that are forward-looking in nature. Such statements are not historical facts but, rather, represent Viaplay Group's future expectations. Viaplay Group believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions; however, forward-looking statements involve inherent risks and uncertainties, and a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements. Such important factors include but may not be limited to Viaplay Group's market position; growth in the streaming industry; and the effects of competition and other economic, business, competitive and/or regulatory factors affecting the business of Viaplay Group, its group companies and the streaming industry in general. Forward-looking statements apply only as of the date they were made and, other than as required by applicable law, Viaplay Group undertakes no obligation to update any of them in the light of new information or future events.
Viaplay Group UK www.viaplaygroup.com @viaplaygroup +44 (0)20 8742 5100 Company no: 2228654