Viaplay Group

Earnings Release • Jul 18, 2024

2024 Q2

Continued focus on operational improvements and product performance

Second quarter highlights

• Total reported Group net sales of SEK 4,485m (4,591) and total operating income before associated company income (ACI) and items affecting comparability (IAC) of SEK -70m (-273)

• 2.6% organic sales growth for core operations (Nordics, Netherlands and Viaplay Select), with sales of SEK 4,292m (4,282) and operating income before ACI and IAC of SEK -72m (82)

• Total reported operating income of SEK 7m (-6,551) including ACI of SEK 28m (2) and IAC¹ of SEK 48m (-6,279)

• Net income of SEK -120m (-5,886) and Earnings per share of SEK -0.03 (-75.24)

• Group free cash flow of SEK 606m (263), and financial net cash position of SEK 372m (net debt of 1,879)

• Prolongation of Formula 1 rights in the Netherlands and Nordics

• Prolongation of UEFA League rights in key markets, including addition of Champions League rights in Sweden

					Full
	Q2	Q2	H1	H1	year
(SEKm)	2024	2023	2024	2023	2023
Total net sales	4,485	4,591	9,241	9,128	18,567
Core operations, net sales	4,292	4,282	8,751	8,560	17,332
Organic sales growth for core operations	2.6%	12.6%	4.1%	19.5%	10.6%
Reported sales growth for core operations	0.2%	16.5%	2.2%	23.2%	13.5%
Operating income before ACI and IAC	-70	-273	-387	-564	-1,115
Core operations operating income before ACI and IAC	-72	82	-341	184	89
Associated company income (ACI)	28	2	60	12	63
Items affecting comparability (IAC)1	48	-6,279	-140	-6,323	-9,224
Operating income	7	-6,551	-467	-6,875	-10,276
Net income for the period	-120	-5,886	485	-6,174	-9,747
Basic earnings per share (SEK)	-0.03	-75.24	0.13	-78.93	-124.61

Financial summary

1) Items affecting comparability comprised capital gain on divestment of Viaplay UK business; redundancy costs; and unrealised non-cash currency effects related to previous content provisions. Please see page 23 regarding items affecting comparability. Alternative performance measures used in this report are explained and reconciled on pages 20-25.

A word from our President & CEO

Our focused work to retransform Viaplay Group is progressing, with substantial changes being made across the business, and many more to come. We are launching new, improved and more relevant products, talking to our partners about how best to monetise our content, and reducing costs in all areas. These changes are necessary for us to deliver competitive products to our customers and partners, and to achieve our long-term goals of delivering profitable growth, generating positive cash flow and creating shareholder value. Our guidance for 2024 is unchanged.

During the quarter, we announced new long-term partnerships with Formula 1 and UEFA that will drive increased viewing and further commercial opportunities. Viaplay Group's platform will remain home to Formula 1 in the Netherlands and all five Nordic countries until 2029, and we have secured top-class European club football for our viewers in four Nordic countries for the next three seasons, including the return of the UEFA Champions League in Sweden. Both deals reflect our commitment to competing for the long term in our core markets, and to offering unique premium content that appeals to scale audiences.

Our films and series content is also performing better, with the top titles including Norwegian original crime series 'Wisting', Swedish soap opera 'The Beach Hotel', and the new season of popular reality format 'Paradise Hotel Denmark'.

Looking ahead, we have new seasons of the Danish Superliga and Premier League kicking off this summer, and Formula 1 arriving at World Champion Max Verstappen's home circuit in the Netherlands in August. At the same time, we will premiere new seasons of proven local productions like 'Paradise Hotel Sweden', 'Charter Fever' in Norway and 'Expedition Robinson' in Denmark.

Our content is both our biggest revenue driver and our largest cost. Fully monetising our unique offering is a key priority, and new products such as the Viaplay HVOD tier, which we rolled out in June in Denmark with further markets to come, should play an important role moving forward. Updating and reframing our B2B distribution deals is also critical given how popular and relevant we see our content is for viewers and customers, and in order to establish a fair commercial balance. Our priority is to build value, not just volume. This is also why we have raised our prices across almost all markets, given the great value for money that our products provide.

At the same time, we are accelerating our actions to prevent the value leakage caused by account sharing and piracy. We are working directly with our subscribers, and closely with our B2B distribution partners, to minimise out of home account sharing by limiting the number of concurrent streams possible on Viaplay, so that we can all convert more account sharers into paying subscribers. The early signs look good and we do expect our customers to play fair in this regard so that they can continue to enjoy our strong line-up of sports, movies and series. Together with our industry peers, we also launched an anti-piracy campaign in Sweden, with more countries to follow.

Our organic revenue growth of 3% for our core operations was driven by the 7% growth in linear channel subscription sales as we raised our prices to reflect the strength of our content offering. The 1% decline in Viaplay sales reflected lower subscriber volumes but higher prices, with more work to be done with our customer offering and partnership agreements moving forward. The 5% growth in our advertising revenues was driven by growth in digital and radio, which more than offset falling sales in weak but gradually improving linear TV markets. And sublicensing revenues were up due to the sale of content to third parties, in order to reduce the loss on legacy original content.

The operating loss of SEK -72m for our core operations is in line with our full year outlook and reflected higher sports costs and lower SG&A costs. The weakness of the Swedish krona also continued to exert a negative effect on our profitability. We closed the quarter with a financial net cash position of SEK 372m and generated positive free cash flow of SEK 606m in Q2, both of which are in line with our plan.

The exit from our non-core international markets is ongoing, and we completed the sale of the Viaplay UK operation in Q2, having exited the Baltic markets in Q1.

"Our content offering is becoming even more

relevant and attractive as we develop and enhance our storytelling. Our products must be paid for fairly and priced right. Our partnerships must be

mutually beneficial. Our culture must reflect our position and our ambition. We are focused on making the improvements that are needed to turn compelling storytelling into strong and sustainable business."

We have made good progress so far, but much remains to be done for us to retransform back into the successful, competitive, profitable, cash flow positive and shareholder value creating company that we were.

Jørgen Madsen Lindemann President & CEO

Group performance

Sales

Group net sales amounted to SEK 4,485m (4,591). The core operations (Nordics, Netherlands and Viaplay Select) generated organic sales growth of 2.6% and net sales amounted to SEK 4,292m (4,282). The growth was primarily driven by linear channel subscription sales. Net sales for the non-core operations (Poland) amounted to SEK 193m (309). Please see pages 21-22 for a reconciliation of the core operations' reported and organic sales growth.

Operating income

Operating income before ACI and IAC amounted to SEK -70m (-273), with operating income before ACI and IAC of SEK -72m (82) for the core operations and SEK 2m (-355) for the non-core operations. IAC of SEK 48m (-6,279) comprised the capital gain on the divestment of Viaplay UK, redundancy costs and unrealised non-cash foreign exchange translation effects related to previous content provisions. ACI totalled SEK 28m (2) and primarily comprised the Group's 50% share of the net income of Allente. Total operating income therefore amounted to SEK 7m (-6,551). Please see page 23 for further information about the items affecting comparability and note 3 on page 16 regarding Allente's financial performance and position.

Net financial items and net income

Net interest and other financial items totalled SEK -104m (-35). Net interest amounted to SEK -72m (-50), of which SEK -7m (-3) related to net lease liabilities, and reflected higher borrowing costs following the refinancing. Other financial items amounted to SEK -32m (15) mainly comprised facility fees and impact of currency exchange rates on the revaluation of financial items.

Taxes amounted to SEK -23m (700), with Group net income of SEK -120m (-5,886) and basic earnings per share of SEK -0.03 (-75.24).

Cash flow

Cash flow from operations, excluding changes in working capital, totalled SEK -180m (-198) and included SEK 0m (100) of cash dividends from Allente. Changes in working capital amounted to SEK 794m (506) and cash flow from operating activities therefore totalled SEK 614m (308).

Cash flow related to investing activities amounted to SEK 56m (-45) and included SEK 64m related to the divestment of Viaplay UK, SEK -13m (-46) of capital expenditure on tangible and intangible assets, and SEK 5m (1) of other investing activities.

Cash flow from financing activities amounted to SEK -1m (-651). The total net change in cash and cash equivalents therefore amounted to SEK 669m (-388).

Group free cash flow (cash flow from operating activities plus cash flow from investing activities excluding acquisitions and divestments) amounted to SEK 606m (263), of which SEK 605m related to the core operations and SEK 1m related to the non-core operations.

Financial position

.

Group net debt totalled to SEK -96m (2,229) at the end of the period. Financial net debt, when excluding net lease liabilities of SEK 276m (350), totalled SEK -372m (1,879). Cash and cash equivalents amounted to SEK 1,996m (1,648) at the end of the period, while the Group's total borrowings amounted to SEK 1,870m (3,547).

The recapitalisation programme was finalised on 9 February 2024 and generated net proceeds of SEK 3,610m, after transaction costs of SEK 390m. The recapitalisation programme included the write down of SEK 2,000m of debt, of which SEK 500m was exchanged for shares. The equity value of those shares totalled SEK 810m at the time that the debt was cancelled and is reported within equity, while SEK 1,190m is recognised as other financial income in net financial items in the Group's income statement, all included in Q1 2024. The recapitalisation programme includes the amendment and extension of existing bank and bond commitments until 2028. The commitments are subject to financial covenants.

Performance by operating segment

Core operations

	Q2	Q2	Reported change	Organic sales	H1	H1	Full year
(SEKm)	2024	2023	%	growth %	2024	2023	2023
Viaplay streaming subscription	1,996	2,014	-0.9%	-1.2%	3,960	4,054	7,998
Linear channel subscription	1,202	1,125	6.8%	6.6%	2,384	2,273	4,531
Advertising	901	857	5.1%	4.6%	1,735	1,729	3,552
Sublicensing & other	193	285	-32.2%	11.1%	672	504	1,251
Net sales	4,292	4,282	0.2%	2.6%	8,751	8,560	17,332
Operating expenses before ACI and IAC	-4,364	-4,200	-3.9%		-9,092	-8,376	-17,243
Operating income before ACI and IAC	-72	82	n.a		-341	184	89
Operating margin before ACI and IAC (%)	-1.7%	1.9%	-		-3.9%	2.1%	0.5%
Viaplay subscribers ('000)	4,710	4,952	-4.9%		4,710	4,952	4,843

Viaplay streaming subscription sales were down 1% year-on-year and grew slightly quarter-on-quarter to account for 47% of segment net sales. The year-on-year development reflected a decrease in the number of subscribers, which were partly offset by price increases across almost all markets. The quarter-on-quarter development also reflected the price increases. The price increases primarily immediately affect the D2C subscriber base and take longer to impact the B2B base.

Linear channel subscription sales, which comprise fees received from distributors for including the Group's linear channels in their TV packages, grew by 7% year-on-year on an organic basis and accounted for 28% of segment net sales. The growth reflected uplifts in agreements and price increases.

The Nordic advertising markets continue to improve sequentially but were still down overall. Group advertising sales grew 5% year-on-year on an organic basis as a result of continued growth in digital and radio advertising sales, which more than compensated for lower linear TV advertising sales. The Group's digital advertising inventory increased by 31% year-on-year. The Group's TV target audience share was up in Sweden and down in Norway and Denmark, with the TV advertising markets estimated to have declined in all three markets. The Group's radio target audience share was stable in both Norway and Sweden, with the radio advertising market estimated to have grown in both countries. Advertising revenues accounted for 21% of segment net sales.

Sublicensing & other sales, which primarily comprise the sublicensing of sports and non-sports content to third parties, as well as sales by Viaplay Studios for prior periods, were up 11% year-on-year on an organic basis and accounted for 4% of segment net sales. The growth primarily reflected higher sales of non-sports content.

Operating expenses were up 4% year-on-year and reflected higher content costs and negative FX effects due to the continued weakness of the Swedish krona. Segment operating income before ACI and IAC amounted to SEK -72m (82), and segment free cash flow amounted to SEK 605m. The year-on-year change in operating profitability included SEK -89m of negative FX effects arising from the purchasing of content in currencies that have strengthened against the Group's SEK reporting currency.

Non-core operations

			Reported			Full
	Q2	Q2	change	H1	H1	year
(SEKm)	2024	2023	%	2024	2023	2023
Total net sales	193	309	-37.5%	490	567	1,235
Operating expenses before ACI and IAC	-191	-664	71.2%	-536	-1,315	-2,439
Operating income before ACI and IAC	2	-355	n.a	-46	-748	-1,204
Operating margin before ACI and IAC (%)	n.a	n.a		n.a	n.a	n.a
Viaplay subscribers ('000)	1,484	1,679	-11.6%	1,484	1,679	1,659

The year-on-year decline in net sales reflected the sale of the UK business and exit from the Baltics, balanced by growth in the Polish subscriber base. Segment operating income before ACI and IAC amounted to SEK 2m (-355), and segment free cash flow amounted to SEK 1m.

Parent company

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 8m (11). Income before tax amounted to SEK 13m (65), and net income for the period amounted to SEK 13m (51). The income statement and balance sheet for the parent company are presented on page 13.

Sustainability

In line with its commitment to advancing equality, diversity, and inclusion, the Group continued to broadcast and stream coverage of world-class women's sports during the quarter, including the new season of Sweden's top women's football league, Damallsvenskan; live LPGA Tour golf; the National Women's Soccer League from the US; and the 24th IHF Women's handball Junior World Championship.

Viaplay Group was part of a consortium of academic institutions and businesses that won funding from the EU Horizon Europe - Innovation Action Programme for the StreamSCAPES research and innovation project. StreamSCAPES aims to develop approaches for driving sustainable climate transition through streaming platforms as central nodes within the audiovisual and cultural sectors. Additionally, the Group hosted and participated in the first meeting of the Green Producers Club in Sweden, which provides an emissions measurement tool for productions, and aims to facilitate knowledge sharing and networking in order to support the Nordic cultural and creative industries in reducing their emissions in line with the Paris Agreement.

As part of its commitment to ensuring health & safety, human rights and production working environments aligned with Viaplay Group's values and codes of conduct, the Group conducted an on-site sustainability and social audit of a new non-scripted production in Norway during the quarter. Additionally, the Group conducted a Double Materiality Assessment according to European Sustainability Reporting Standard guidance in preparation for reporting in compliance with the EU Corporate Sustainability Reporting Directive in 2025.

Financial targets

Viaplay Group's operational and financial targets were updated in conjunction with the publication of the prospectus related to its new equity issues on 16 January 2024. These targets are unchanged and as follows:

Full year 2024

Net sales for core operations (Nordic, Netherlands, and Viaplay Select)	SEK 17.2-17.8 billion
Operating income before ACI & IAC for core operations (Nordic, Netherlands and Viaplay Select)	Between a loss of SEK 250 million and a profit of SEK 50 million
Group free cash flow 1)	Negative SEK 1.7-2.2 billion, including negative SEK 0.6-0.8 billion for the non-core operations

1) Cash flow from operating activities plus cash flow from investing activities excluding acquisitions and divestments of operations.

The Group's non-core operations are expected to report sales of approximately SEK 0.8-1.0 billion, an operating loss of approximately SEK 0.1 billion, and negative free cash flow of approximately SEK 0.6-0.8 billion for the full year 2024.

Risks & uncertainties

Significant risks and uncertainties exist for the Group and the parent company and are described in the Group's 2023 Annual & Sustainability report on pages 21-26. These factors include, for example, the prevailing economic and business environments in each of the Group's markets combined with content cost commitments; content and sports rights' attractiveness; 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 financing; fulfilment of financial covenants; the successful implementation of the new strategy and plan; and the competition for subscribers, audiences, 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. Viaplay Group monitors each of these situations closely and acts accordingly.

Other information

Significant events during and after the quarter

• 2 April Viaplay Group and Talpa Network enter linear TV partnership in the Netherlands

• 2 April Viaplay Group completes sale of UK business

• 12 April Viaplay Group Nomination Committee presents proposals for Board of Directors

• 12 April Viaplay Group publishes notice to Annual General Meeting

• 30 April Viaplay Group secures extended Formula 1 rights in the Netherlands and all Nordic countries in landmark five-year deal

• 14 May Viaplay Group holds 2024 Annual General Meeting

• 29 May Viaplay Group to show UEFA club competitions in five Nordic countries

A full list of announcements and reports can be found at www.viaplaygroup.com

Board's assurance

The Board of Directors and the Chief Executive Officer certify that this interim report provides a true and fair overview of the Group and parent company's operations, performance and financial position for the period, and describes the material risks and uncertainties facing the Group companies and parent company.

Stockholm, 18 July 2024

Simon Duffy Katarina Bonde Anna Bäck Chair of the Board Non-executive Director Non-executive Director

Erik Forsberg Andrea Gisle Joosen Jacques du Puy

Non-executive Director Non-executive Director Non-executive Director

Maxime Saada Didier Stoessel Annica Witschard

Non-executive Director Non-executive Director Non-executive Director

Jørgen Madsen Lindemann President & CEO

This report has not been reviewed by the Group's auditors.

Financial statements

Condensed consolidated income statement

					Full
	Q2	Q2	H1	H1	year
(SEKm)	2024	2023	2024	2023	2023
Net sales	4,485	4,591	9,241	9,128	18,567
Cost of sales	-3,985	-4,195	-8,445	-8,325	-17,265
Gross income	500	396	796	803	1,302
Selling and marketing expenses	-230	-283	-461	-613	-1,094
General and administrative expenses	-342	-404	-716	-820	-1,545
Other operating income and expenses	3	17	-6	65	222
Share of earnings in associated companies and joint ventures	28	2	60	12	63
Items affecting comparability	48	-6,279	-140	-6,323	-9,224
Operating income	7	-6,551	-467	-6,875	-10,276
Net financial items	-104	-35	987	-72	-247
Income before tax	-97	-6,586	520	-6,948	-10,523
Tax	-23	700	-35	774	776
Net income for the period	-120	-5,886	485	-6,174	-9,747
Other comprehensive income
Items that are or may be reclassified to profit or loss net of
tax
Currency translation differences	-29	91	-14	-21	-83
Cash flow hedges	-14	69	37	36	-174
Other comprehensive income for the period	-43	160	23	15	-257
Total comprehensive income for the period	-163	-5,726	508	-6,159	-10,004
Net income for the period attributable to:
Equity holders of the Parent company	-120	-5,886	485	-6,174	-9,747
Total comprehensive income for the period attributable to:
Equity holders of the Parent company	-163	-5,726	508	-6,159	-10,004
Earnings per share
Basic earnings per share (SEK)	-0.03	-75.24	0.13	-78.93	-124.61
Diluted earnings per share (SEK)	-0.03	-75.24	0.13	-78.93	-124.61
Number of shares
Shares outstanding at the end of the period Basic average number of shares outstanding	4,578,225,962 4,578,225,962	78,225,962 78,225,962	4,578,225,962 3,614,141,811	78,225,962 78,225,962	78,225,962 78,225,962

Condensed consolidated balance sheet

(SEKm)	30 Jun 2024	30 Jun 2023	31 Dec 2023
Non-current assets
Intangible assets	1,685	1,962	1,711
Machinery, equipment and installations	147	176	158
Right-of-use assets	231	303	251
Shares and participations	1,177	1,214	1,204
Long-term sublease receivables	66	98	78
Deferred tax assets	974	893	972
Other long-term receivables	13	82	21
Total non-current assets	4,293	4,728	4,395
Current assets
Inventories	2,829	3,116	2,911
Accounts receivable	1,214	1,109	1,084
Short-term sublease receivables	34	35	32
Prepaid expenses and accrued income	7,912	8,525	7,799
Other current receivables	297	472	344
Cash and cash equivalents	1,996	1,648	2,542
Assets held for sale	-	-	610
Total current assets	14,282	14,905	15,322
Total assets	18,575	19,632	19,717
Equity
Equity	4,106	2,765	-1,090
Total equity	4,106	2,765	-1,090
Non-current liabilities
Long-term borrowings	1,870	2,550	2,550
Long-term lease liabilities	276	364	308
Long-term provisions	2,623	2,217	3,235
Deferred tax liabilities	199	130	195
Other non-current liabilities	11	5	15
Total non-current liabilities	4,979	5,266	6,303
Current liabilities
Short-term borrowings	-	997	4,700
Short-term lease liabilities	100	119	93
Short-term provisions	876	66	797
Other current liabilities	8,514	10,418	8,467
Liabilities related to assets held for sale	-	-	447
Total current liabilities	9,490	11,600	14,504
Total liabilities	14,469	16,866	20,807
Total shareholders' equity and liabilities	18,575	19,632	19,717

.

Condensed consolidated statement of cash flow

					Full
	Q2	Q2	H1	H1	year
(SEKm)	2024	2023	2024	2023	2023
Operating activities
Net income for the period	-120	-5,886	485	-6,174	-9,747
Dividends from associated companies and joint ventures	-	100	100	100	100
Depreciation, amortisation and write-down	51	76	103	150	301
Other adjustments incl deferred tax	-111	5,512	-1,488	5,397	7,904
Cash flow from operations, excluding changes in working capital	-180	-198	-801	-527	-1,442
Changes in working capital	794	506	-106	-143	-1,906
Cash flow from operating activities	614	308	-907	-670	-3,348
Investing activities
Divestments of operations	64	-	126	-	5
Capital expenditures in tangible and intangible assets	-13	-46	-24	-104	-159
Other cash flow from investing activities	5	1	7	5	17
Cash flow from investing activities	56	-45	109	-99	-137
Financing activities
New borrowings	-	260	-	860	4,985
Amortisation of borrowings	-	-913	-3,392	-1,213	-1,635
Net change in leases	-10	-8	-32	-36	-82
Share issue	-	-	4,000	-	-
Transaction cost, total recapitalisation	-2	-	-390	-	-
Other cash flow from financing activities	11	10	31	9	21
Cash flow from financing activities	-1	-651	217	-380	3,289
Change in cash and cash equivalents for the period	669	-388	-581	-1,149	-196
Cash and cash equivalents at the beginning of the period	1,336	2,007	2,569	2,775	2,775
Translation differences in cash and cash equivalents	-9	29	8	22	-10
Cash and cash equivalents at end of the period	1,996	1,648	1,996	1,648	2,569
Cash and cash equivalents included in assets held for sale	-	-	-	-	-27
Cash and cash equivalents at end of the period, continuing	1,996	1,648	1,996	1,648	2,542

Condensed consolidated statement of changes in equity

					Full
	Q2	Q2	H1	H1	year
(SEKm)	2024	2023	2024	2023	2023
Opening balance	4,271	8,486	-1,090	8,911	8,911
Net income for the period	-120	-5,886	485	-6,174	-9,747
Other comprehensive income for the period	-43	160	23	15	-257
Total comprehensive income for the period	-163	-5,726	508	-6,159	-10,004
Share issue	-	-	4,000	-	-
Debt to equity issue	-	-	810	-	-
Share issue transaction costs	-2	-	-125	-	-
Effect of share based programmes	-	5	3	13	3
Closing balance	4,106	2,765	4,106	2,765	-1,090

Parent company condensed income statement

					Full
	Q2	Q2	H1	H1	year
(SEKm)	2024	2023	2024	2023	2023
Net sales	8	11	16	22	96
General and administrative expenses	-49	-41	-106	-86	-182
Other operating income and expenses	1	-	1	1	1
Items affecting comparability	-12	-1	-33	-10	-67
Operating income	-52	-31	-122	-73	-152
Net financial items	65	96	1,298	189	280
Income before tax	13	65	1,176	116	128
Tax	-	-14	1	-24	31
Net income for the period	13	51	1,177	92	159
Other comprehensive income
Items that are or may be reclassified to profit or loss net of tax
Cash flow hedge	-1	8	2	7	-2
Other comprehensive income for the period	-1	8	2	7	-2
Total comprehensive income for the period	12	59	1,179	99	157

Parent company condensed balance sheet

	30 Jun	30 Jun	31 Dec
(SEKm)	2024	2023	2023
Non-current assets
Shares and participations in Group companies	5,927	230	5,925
Long-term receivables from Group companies	2,115	9,046	3,005
Other long-term receivables	74	48	74
Total non-current assets	8,116	9,324	9,004
Current assets
Short-term receivables from Group companies	6,908	2,561	6,968
Other current receivables	287	331	205
Cash and bank	1,913	1,472	2,428
Total current assets	9,108	4,364	9,601
Total assets	17,224	13,688	18,605
Equity
Restricted equity	275	158	158
Non-restricted equity	12,387	6,590	6,638
Total equity	12,662	6,748	6,796
Provisions
Provisions	10	1	19
Total provisions	10	1	19
Non-current liabilities
Long-term borrowings	1,870	2,550	2,550
Other non-current liabilities	11	8	14
Total non-current liabilities	1,881	2,558	2,564
Current liabilities
Short-term borrowings	-	997	4,700
Liabilities to Group companies	2,527	2,977	4,240
Other current liabilities	144	407	286
Total current liabilities	2,671	4,381	9,226
Total equity and liabilities	17,224	13,688	18,605

Notes

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 2023 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. The preparation of the interim report requires Viaplay Group to update assessments and estimates, and make assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities as well as income and expenses, where the underlying risks have been described on page 8 of this interim report. The actual outcome may differ from these estimates and judgements. The critical assessments and sources of uncertainty in estimates are overall the same as those described in note 2 in the 2023 Annual & Sustainability report.

The Group's operating segments have changed with effect from 1 January 2024 in order to reflect the Group's new business strategy and operating structure. The core operations comprise the Group's Nordic, Netherlands and Viaplay Select markets. The non-core operations comprise the international markets that the Group is exiting - Poland, UK and Baltics. Results for prior periods have been restated accordingly.

Note 2 – Operating Segments

The Group's reporting of two operating segments, core operations and non-core operations, is primarily based on its customers' geographical domicile. The reporting reflects the Group's operational structure and how the performance in the Group is internally monitored, reported, and followed up upon by the Chief Operating Decision Maker (CODM). The CEO is identified as the CODM of the Group.

Core operations

The core operations includes the Group's operations related to the Viaplay streaming service available in all Nordic countries and Netherlands, pay-TV channels in all Nordic countries except Iceland; commercial free-TV channels in Sweden, Denmark and Norway; and commercial radio networks and audio streaming services in Sweden and Norway. The segment also includes Viaplay select operations.

Non-core operations

The non-core operations includes the international markets the Group is exiting, Poland, Baltics and UK. Starting 1 February 2024, Viaplay's full live sports portfolio in the Baltic region has been sublicensed to a third party, with direct Viaplay subscribers in the three countries transferred during March. The UK based Premier Sports business was divested beginning of April 2024 and the North American D2C operations has been closed down during Q1 2024. Viaplay Group will exit the Polish market in summer 2025.

Reconciliation segment reporting

	Core operations		Non-core operations		Total Group
	Q2	Q2	Q2	Q2	Q2	Q2
(SEKm)	2024	2023	2024	2023	2024	2023
Net sales	4,292	4,282	193	309	4,485	4,591
Operating expenses before ACI and IAC	-4,364	-4,200	-191	-664	-4,555	-4,864
Operating income before ACI and IAC	-72	82	2	-355	-70	-273
Associated company income (ACI)					28	2
Items affecting comparability (IAC)					48	-6,279
Operating income					7	-6,551
Net financial items					-104	-35
Tax					-23	700
Net income					-120	-5,886

	Core operations		Non-core operations		Total Group
	H1	H1	H1	H1	H1	H1
(SEKm)	2024	2023	2024	2023	2024	2023
Net sales	8,751	8,560	490	567	9,241	9,128
Operating expenses before ACI and IAC	-9,092	-8,376	-536	-1,315	-9,628	-9,691
Operating income before ACI and IAC	-341	184	-46	-748	-387	-564
Associated company income (ACI)					60	12
Items affecting comparability (IAC)					-140	-6,323
Operating income					-467	-6,875
Net financial items					987	-72
Tax					-35	774
Net income					485	-6,174

Sales by category

As a result of the new strategy the Group has introduced a new sales category - Sublicensing & other sales. This category includes sales from the Viaplay Select branded concept and other sublicensing as well as external sales generated by the Group's content production business previously reported within Linear subscription & Other. The former revenue stream production is included in Sublicensing & Other sales since operations within Viaplay Studios are divested or in the process of ceasing operation. Historic figures have been adjusted accordingly.

					Full
	Q2	Q2	H1	H1	year
(SEKm)	2024	2023	2024	2023	2023
Viaplay streaming subscription	2,189	2,323	4,450	4,621	9,234
Linear channel subscription	1,202	1,125	2,384	2,273	4,531
Advertising	901	857	1,735	1,729	3,552
Sublicensing & other	193	285	672	504	1,251
Total	4,485	4,591	9,241	9,128	18,567

Total 4,485 4,591 9,241 9,128 18,567

Revenue recognition
At a point in time	311	282	918	553	1,319
Over time	4,174	4,308	8,324	8,574	17,248

Note 3 – Income from associated company Allente

Allente's net sales was in line with last year. Subscribers declined in the quarter. Allente's operating income improved as an effect of lower operating expenses compared to last year and included SEK -7m (-27) of items affecting comparability. Amortisation and depreciation charges for the period included SEK 108m (107) of PPA-related charges. Viaplay Group's 50% share of Allente's net income of SEK 62m amounted to SEK 31m.

					Full
	Q2	Q2	H1	H1	year
(SEKm)	2024	2023	2024	2023	2023
Net sales	1,656	1,626	3,305	3,272	6,610
EBITDA before IAC	249	194	492	377	874
Depreciation and amortisation	-126	-126	-254	-257	-513
Operating income before IAC	123	69	238	120	361
Items affecting comparability (IAC)	-7	-27	-15	-28	-30
Operating income	116	42	223	92	331
Financial items	-35	-32	-61	-55	-128
Tax	-19	-1	-36	-6	-69
Net income for the period	62	9	126	31	134
Viaplay Group 50% share of net income for the period	31	5	63	15	67
Net debt	1,444	1,909	1,444	1,909	1,626
Total subscribers (thousand)	922	1,037	922	1,037	993

Note 4 – Divested operations

The divestment of Paprika Holding AB, including its direct and indirect subsidiaries in Central and Eastern Europe was finalised on 19 January 2024. The total purchase price amounted to approximately SEK 62m on a cash and debtfree basis and the loss for the sale amounting to SEK -1m is reported within items affecting comparability.

The divestment of the UK operations (previously Premier Sports) was completed on 4 April 2024. The total purchase price amounted to approximately SEK 64m on a cash and debt-free basis and the gain for the sale amounting to SEK 71m is reported within items affecting comparability

Note 5 – Assets held for sale

At 31 December 2023 the UK operations and Paprika Group were classified as assets held for sale.

			Full
	30 Jun	30 Jun	year
SEKm	2024	2023	2023
Non-current assets	-	-	58
Accounts receivable and other receivables	-	-	525
Cash and cash equivalents	-	-	27
Assets held for sale	-	-	610
Interest-bearing liabilities	-	-	-1
Accounts payable and other payables	-	-	-446
Liabilities related to assets held for sale	-	-	-447
Net assets	-	-	163

Note 6 – Changes in equity and number of shares

The directed issue, rights issue and the debt-to-equity issue approved at the extraordinary general meeting of Viaplay Group on 10 January 2024 was finalised 9 February 2024 and generated, net after transaction costs, proceeds of SEK 3,610m. Total transaction costs amounted to SEK 390m of which SEK 125m was related to the share issue and is reported within the Group's equity. The residual of the transaction costs, SEK 265m, related to the refinancing of the Group and is reported as prepaid borrowing costs and will be expensed over the maturity period of the debt financing.

The recapitalisation programme included write-down of existing debt obligations of SEK 2,000m in exchange of 0,5 billion shares. The equity value of the shares at the date the debt was extinguished totalled SEK 810m and is reported within the Group's equity and SEK 1,190m is recognised as other financial income within finance net in the Group's income statement.

Viaplay Group AB had a total of 4,579,122,244 shares at the end of the period, of which 531,536 were class A shares with 10 votes each, 4,577,701,208 were class B shares with one vote each, and 889,500 were class C shares with one vote each. Viaplay Group held 6,782 class B shares and all 889,500 class C shares as treasury shares. The total number of votes in Viaplay Group amounted to 4,583,906,068. The total number of votes in Viaplay Group excluding 6,782 class B shares and 889,500 class C shares held in treasury amounted to 4,583,009,786.

Parent company	Class A Shares	Class B Shares	Class C Shares	Total
Number of shares as at 31 December 2023	531,536	77,701,208	889,500	79,122,244
Share issue (directed issue, rights issue and debt-to equity issue)	-	4,500,000,000		4,500,000,000
Number of shares at 30 June 2024	531,536	4,577,701,208	889,500	4,579,122,244
Of which treasury shares	-	-6,782	-889,500	-896,282
Number of shares excl treasury shares as at 30 June 2024	531,536	4,577,694,426	-	4,578,225,962

Note 7 – Provisions

Total long- and short-term provisions amounted to SEK 3,499m (2,283) of which SEK 3,166m (2,023) is related to provisions for onerous contracts, SEK 89m (72) provisions for restructuring and SEK 245m (188) are royalties and other provisions.

	30 Jun 2024
		Onerous	Royalties
SEKm	Restructuring	contracts	and other	Total
Opening balance 1 January 2024	80	3,486	465	4,031
Provisions during the period	76	-	9	86
Used during the period	-67	-424	-203	-694
Reversed during the year	-1	-	-8	-9
Reclassifications	-	-	-29	-29
Unwinding discounting	-	8	-	8
Translation differences	-	95	11	107
Closing balance as of 30 June 2024	89	3,166	245	3,499

	30 Jun 2023
SEKm	Restructuring	Onerous contracts	Royalties and other	Total
Opening balance 1 January 2023	28	-	170	198
Provisions during the period	70	2,023	98	2,192
Used during the period	-25	-	-69	-95
Reversed during the period	-1	-	-9	-10
Translation differences	-	-	-2	-2
Closing balance as of 30 June 2023	72	2,023	188	2,283

	31 Dec 2023
SEKm	Restructuring	Onerous contracts	Royalties and other	Total
Opening balance 1 January 2023	28	-	170	198
Provisions during the year	295	4,048	629	4,972
Used during the year	-233	-186	-318	-737
Reversed during the year	-9	-	-12	-21
Revaluation during the year	-	-287	19	-268
Translation differences	-1	-89	-23	-113
Closing balance as of 31 December 2023	80	3,486	465	4,031

Note 8 – 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. The Paprika Holding and its subsidiaries were divested to key executives in Paprika Holding AB Group in January in accordance with the approval from the Extraordinary general meeting January 10, 2024. February 9, 2024 the Group completed a recapitalisation program, including a SEK 3.1 billion directed share issue and a SEK 0.9 billion rights issue.

Group performance data

	Q3	Q4	FY	Q1	Q2	Q3	Q4	FY	Q1	Q2
(SEKm)	2022	2022	2022	2023	2023	2023	2023	2023	2024	2024
Viaplay streaming subscription	1,732	1,976	6,466	2,040	2,014	1,987	1,956	7,998	1,964	1,996
Linear channel subscription	1,111	1,112	4,331	1,148	1,125	1,175	1,082	4,531	1,182	1,202
Advertising	845	1,081	3,808	872	857	780	1,043	3,552	834	901
Sublicensing & other	160	298	660	219	285	264	485	1,251	479	193
Core sales	3,848	4,467	15,265	4,279	4,282	4,206	4,566	17,332	4,459	4,292
Non-core sales	124	203	426	258	309	330	337	1,235	298	193
Total net sales	3,972	4,670	15,691	4,537	4,591	4,536	4,903	18,567	4,757	4,485
Core organic sales growth	n.a	n.a	n.a	27.3%	12.6%	5.2%	1.6%	10.6%	5.6%	2.6%
Core operating income before ACI and	138	41	599	103	82	-112	16	89	-270	-72
IAC Non-core operating income before ACI
and IAC	-309	-325	-971	-394	-355	-209	-246	-1,204	-47	2
Operating income before ACI and IAC	-171	-284	-372	-291	-273	-321	-230	-1,115	-317	-70
Associated company income (ACI)	71	76	275	10	2	36	15	63	32	28
Items affecting comparability (IAC)	-	-86	510	-44	-6,279	-253	-2,648	-9,224	-188	48
Operating income	-100	-294	413	-325	-6,551	-538	-2,863	-10,276	-473	7
Net income for the period	-86	-250	323	-288	-5,886	-693	-2,881	-9,747	605	-120
Basic earnings per share (SEK)	-1.10	-3.19	4.13	-3.68	-75.24	-8.85	-36.83	-124.61	0.23	-0.03
Core operating margin before ACI and IAC	3.6%	0.9%	3.9%	2.4%	1.9%	-2.7%	0.4%	0.5%	-6.1%	-1.7%
Operating margin before ACI and IAC	-4.3%	-6.1%	-2.4%	-6.4%	-5.9%	-7.1%	-4.7%	-6.0%	-6.7%	-1.6%
Operating margin	-2.5%	-6.3%	2.6%	-7.2%	-142.7%	-11.9%	-58.4%	-55.3%	-9.9%	0.2%
Net debt	546	1,482	1,482	2,516	2,229	3,328	4,976	4,976	549	-96
Net debt/EBITDA before IAC	1.2	8.6	8.6	-24.4	-3.9	-4.5	-6.6	-6.6	-0.7	0.2
Core subscribers ('000s)	5,302	5,876	-	6,022	4,952	5,013	4,843	-	4,850	4,710
Non-core subscribers ('000s)	1,126	1,443	-	1,621	1,679	1,651	1,659	-	1,624	1,484
Total Viaplay subscriber base ('000s)	6,428	7,318	-	7,643	6,631	6,664	6,502	-	6,475	6,194
CSOV Sweden (30-64)	22.5%	18.9%	21.9%	24.6%	19.8%	25.5%	22.4%	23.1%	23.3%	21.4%
CSOV Norway (30-69)	20.8%	22.8%	21.3%	20.3%	16.9%	17.1%	22.2%	19.4%	21.6%	15.6%
CSOV Denmark (30-60)	19.2%	21.6%	20.3%	20.2%	22.0%	20.8%	21.9%	21.2%	18.9%	20.5%
CSOL Sweden (12-79)	43.7%	43.9%	44.1%	44.7%	43.3%	44.2%	39.1%	42.8%	42.2%	42.2%
CSOL Norway (10+)	67.5%	64.7%	67.5%	66.0%	65.3%	67.3%	65.8%	66.2%	65.0%	66.0%

Alternative Performance Measures

Below follows so-called alternative performance measures, i.e., financial measures that are not defined under IFRS. Viaplay Group believes that these alternative performance measures combined with other measures that are defined in accordance with IFRS contribute to the understanding of trends related to financial performance, return on investment and indebtedness and are useful information to investors.

An alternative performance measure is defined as a financial measure of historical or future financial performance, financial position or cash flows other than a financial measure defined or specified in the applicable financial reporting framework. These alternative performance measures should not be considered in isolation or as an alternative to performance measures defined in accordance with IFRS. In addition, such measures, as defined by Viaplay Group, may not be comparable to other similarly titled measures used by other companies.

As a result of the new strategy and operational focus the measure Return on capital employed (ROCE) adjusted % is not relevant for the Group and therefore no longer reported as an alternative performance measure. The same applies to the reported and organic sales for the total Group. This measure is no longer a meaningful performance measure due to that the Group is exiting the non-core operations. This measure is still relevant for the core operations and is reported on, and reconciled below.

Viaplay Group is using the following Alternative Performance Measures:

• Reported sales growth and organic sales growth, core operations

• Operating income before associated company income (ACI) and items affecting comparability (IAC)

• Operating income before IAC

• Net debt and Net debt/EBITDA before IAC

• Free cash flow

The following tables provide an explanation of the use and reconciliation of alternative performance measures.

Reconciliation of reported sales growth and organic sales growth, core operations

Since the core operations generates sales in currencies other than in the Group's reporting currency (SEK, Swedish Krona), and the fact that currency rates have proven to be rather volatile, and due to the fact that the Group has historically made acquisitions and divestments, the Group's sales trends and performance are analysed as changes in organic sales growth within the core operations. This presents the increase or decrease in the overall SEK net sales on a comparable basis, allowing for separate discussion of the impact of acquisitions/divestments and exchange rates.

Year on year organic sales growth for core operations, i.e. sales growth adjusted for acquisitions/divestments and changes in FX rates, amounted to 2.6% in Q2 2024.

Reported sales growth and organic sales growth, core operations

Q2 (SEKm)	Reported Net sales	Acquisitions/ divestments	Net sales adjusted for acquisitions/ divestments	Changes in FX rates	Net sales adjusted for acquisitions/ divestments and changes in FX rates (organic sales)
Viaplay streaming subscription sales
2024	1,996	-	1,996	-6	1,990
2023	2,014	-	2,014	-	2,014
Growth	-18		-18		-24
Growth %	-0.9%		-0.9%		-1.2%
Linear channel subscription sales
2024	1,202	-	1,202	-2	1,200
2023	1,125	-	1,125	-	1,125
Growth	77		77		75
Growth %	6.8%		6.8%		6.6%
Advertising sales
2024	901	-	901	-4	897
2023	857	-	857	-	857
Growth	44		44		40
Growth %	5.1%
			5.1%		4.6%
Sublicensing & other
2024	193	-	193	3	196
2023	285	- 109	176	-	176
Growth	-92		17		20
Growth %	-32.2%		9.7%		11.1%
Total, Core operations
2024	4,292	-	4,292	-10	4,282
2023	4,282	- 109	4,173	-	4,173
Growth, Core operations	10		119		109
Growth %	0.2%		2.9%		2.6%

H1 (SEKm)	Reported Net sales	Acquisitions/ divestments	Net sales adjusted for acquisitions/ divestments	Changes in FX rates	Net Sales adjusted for acquisitions/ divestments and changes in FX rates (organic sales)
Viaplay streaming subscription sales
2024	3,960	-	3,960	-4	3,956
2023	4,054	-	4,054	-	4,054
Growth	-94		-94		-98
Growth %	-2.3%		-2.3%		-2.4%
Linear channel subscription sales
2024	2,384	-	2,384	-2	2,382
2023	2,273	-	2,273	-	2,273
Growth	111		111		109
Growth %	4.9%		4.9%		4.8%
Advertising sales
2024	1,735	-	1,735	3	1,738
2023	1,729	-	1,729	-	1,729
Growth	6		6		9
Growth %	0.3%		0.3%		0.5%
Sublicensing & other
2024	672	-	672	3	675
2023	504	- 155	349	-	349
Growth	168		323		326
Growth %	33.3%		92.6%		93.4%
Total, Core operations
2024	8,751	-	8,751	0	8,751
2023	8,560	- 155	8,405	-	8,405
Growth, Core operations	191		346		346
Growth %	2.2%		4.1%		4.1%

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 the Group's share of associated company's and joint ventures net income and 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 associated company income (ACI) and items affecting comparability (IAC)

					Full
	Q2	Q2	H1	H1	year
(SEKm)	2024	2023	2024	2023	2023
Operating income	7	-6,551	-467	-6,875	-10,276
Items affecting comparability (IAC) (-)	48	-6,279	-140	-6,323	-9,224
Operating income before IAC	-41	-272	-327	-552	-1,052
Associated company income (ACI) (-)	28	2	60	12	63
Operating income before ACI and IAC	-70	-273	-387	-564	-1,115

Items affecting comparability

					Full
	Q2	Q2	H1	H1	year
(SEKm)	2024	2023	2024	2023	2023
Exit markets - sports content (International)	-	-540	-	-540	-2,650
Write-down and provision - non sports content (International)	-	-1,568	-	-1,568	-1,484
Impairment of goodwill & other assets (International)	-	-484	-	-484	-641
Write-down and provision - non sports content (Nordics)	-	-2,072	-	-2,072	-2,268
Write-down and provision - sports content (Nordics)	-	-1,570	-	-1,570	-1,855
Restructuring and redundancy costs	-76	-45	-76	-78	-300
Acquisition and divestments	71	-	70	-3	-3
Advisory costs and recapitalisation costs	-	-	-39	-8	-23
Unrealised currency translation effects (Provisions)	53	-	-95	-	-
Total	48	-6,279	-140	-6,323	-9,224

Items affecting comparability classified by function

					Full
	Q2	Q2	H1	H1	year
(SEKm)	2024	2023	2024	2023	2023
Cost of sales	2	-5,751	2	-5,756	-8,302
Administrative expenses (+)	-82	-45	-121	-81	-299
Other operating income and expenses (+)	129	-484	-21	-486	-623
Total	48	-6,279	-140	-6,323	-9,224

Reconciliation of net debt/EBITDA before IAC ratio

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 before IAC ratio provides a KPI for net debt in relation to underlying 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. Prepaid borrowing expenses recognised in connection to the recapitalisation February 9, 2024 is reported within net debt.

Net debt

	30 Sep	31 Dec	31 Mar	30 jun	30 sep	31 dec	31 Mar	30 Jun
(SEKm)	2022	2022	2023	2023	2023	2023	2024	2024
Short-term borrowings	150	650	950	997	2,200	4,700	-	-
Long-term borrowings (+)	3,250	3,250	3,250	2,550	2,550	2,550	1,863	1,8701)
Total financial borrowings	3,400	3,900	4,200	3,547	4,750	7,250	1,863	1,870
Interest bearing receivables (-)	20	20	20	20	20	-	-	-
Prepaid borrowing expense (-)	-	-	-	-	-	-	255	246
Short-term investments (-)	100	-	-	-	-	-	-	-
Cash and cash equivalents (-)	3,065	2,775	2,007	1,648	1,724	2,542	1,287	1,996
Cash and cash equivalents included in assets held for sale (-)	-	-	-	-	-	27	48	-
Financial net debt	215	1,105	2,173	1,879	3,006	4,681	273	-372
Lease liabilities (+)	479	513	483	483	453	401	393	376
Lease liabilities included in liabilities related to assets held for sale (+)	-	-	-	-	-	4	-	-
Sublease receivables (-)	148	136	140	133	131	110	117	100
Total lease liabilities net	331	377	343	350	322	295	276	276
Net debt	546	1,482	2,516	2,229	3,328	4,976	549	-96

Net debt/EBITDA before IAC

	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
(SEKm)	2022	2022	2023	2023	2023	2023	2024	2024
Operating income before IAC, continuing operations	181	-97	-384	-860	-1,045	-1,051	-1,056	-826
Depreciation and amortisation continuing operations2)	292	270	281	291	301	301	279	254
EBITDA before IAC 12 months trailing	473	173	-103	-569	-744	-750	-777	-572
Net debt	546	1,482	2,516	2,229	3,328	4,976	549	-96
Total net debt / EBITDA before IAC	1.2	8.6	-24.4	-3.9	-4.5	-6.6	-0.7	0.2

1) includes SEK 1,858m of borrowings and accrued interest expense of SEK 12m to be settled at maturity date.

2) Refers to non-current assets only.

Reconciliation of free cashflow

Free cash flow refers to the sum of cash flow from operating activities and cash flow from investing activities excluding the acquisitions and divestments of operations. The measure is used to follow and analyse cash flow for the total group. The measure is also an important measure to follow up the non-core cashflow.

Free cashflow

	Total Group
	Q2	Q2	H1	H1	Full year
(SEKm)	2024	2023	2024	2023	2023
Cash flow from operating activities	614	308	-907	-670	-3,348
Capital expenditures in tangible and intangible assets	-13	-46	-24	-104	-159
Other cash flow from investing activities	5	1	7	5	17
Group Free cash flow	606	263	-924	-769	-3,490

Free cash flow for non-core operations amounted to SEK 1m for Q2 2024 and SEK -375m for H1 2024. Core operations free cash flow, including capital expenditures in tangible and intangible assets and other cash flow from investing activities of SEK -8m, amounted to SEK 605m for Q2 2024. Core operations free cash flow, including capital expenditures in tangible and intangible assets and other cash flow from investing activities of SEK -17m, amounted to SEK -549m for H1 2024.

Definitions

Associated company income (ACI)

Associated company income is the Group's share of the associated company's and joint ventures net income. Associated companies (excluding joint ventures) are companies in which the Group holds voting rights of at least 20% and no more than 50%. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.

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, including 3-party channels we represent, amongst 30- 64 year olds in Sweden, 30-69 year olds in Norway and 30-60 year olds in Denmark.

EBITDA

EBITDA comprises net income before net financial items, taxes, depreciation and amortisation.

EBITDA before IAC EBITDA after reversal of items affecting comparability.

EBITDA before ACI and IAC

EBITDA after reversal of associated company income and Items affecting comparability.

Free cash flow

Free cash flow refers to the sum of cash flow from operating activities and cash flow from investing activities excluding the acquisitions and divestments of operations.

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 like-for-like basis.

Net debt

Financial net debt is the sum of short and long-term borrowings and dividends payable reduced by total cash and cash equivalent, prepaid borrowing expenses, short-term investments, interest-bearing receivables and dividend receivable. Net debt also includes lease liabilities net of sublease receivables. A negative figure indicates that the Group has a net cash position.

Net debt/EBITDA before IAC

Net debt in relation to EBITDA before IAC for the last 12 months.

Operating income

Operating income comprises net income before net financial items and taxes, otherwise known as EBIT (reads Earnings Before Interest and Taxes).

Operating income before IAC

Operating income after reversal of items affecting comparability.

Operating income before ACI and IAC

Operating income after reversal of associated company income and items affecting comparability.

Operating margin

Operating income as a percentage of net sales.

Operating margin before ACI and IAC

Operating income before ACI and IAC as a percentage of net sales.

Organic sales growth

Organic sales 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.

Reported sales growth

Change in net sales compared to the same period of the previous year in percentage.

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.

Shareholder information

Financial calendar

Publication of Q3 Interim report 22 October 2024

Contact

press@viaplaygroup.com or +46 73 699 17 00 investors@viaplaygroup.com or +44 7768 440 414

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Conference call

A conference call will take place today, Thursday 18 July at 09.00 Stockholm local time, 08.00 London local time and 03.00 New York local time.

The conference call can be accessed online at https://edge.media-server.com/mmc/p/psbs9qxr

Or, register for the conference call at

https://register.vevent.com/register/BI6b0a74398744458f987f0e379170aa30

Viaplay Group Ringvägen 52, PO Box 17104 104 62 Stockholm, Sweden viaplaygroup.com @viaplaygroup

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 18 July 2024.

Viaplay Group AB (publ) is the Nordic region's leading entertainment provider. Our Viaplay streaming service is available in every Nordic country, as well as in the Netherlands and Poland, and our Viaplay Select branded content concept has been added to partner platforms around the world. We also operate TV channels across most of our markets, as well as radio stations in Norway and Sweden. Our talented people come to work every day with a shared passion and clear mission to entertain millions of people with our unique offering of locally relevant storytelling, which spans premium live sports, films, series and music. Our purpose is to grow our business profitably and responsibly, and deliver sustainable value for all our stakeholders. Viaplay Group is listed on Nasdaq Stockholm (`VPLAY B').

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