Viaplay on Monday disclosed its CEO Anders Jensen resigned from the company, as the Swedish SVOD and media company cited macroeconomic challenges leading it to downgrade its short-term 2023 outlook and withdraw long-term financial targets for 2025.
Replacing Jensen effective immediately is Jorgen Madsen Lindemann, former CEO of MTG – the previous parent company of Viaplay Group. Prior to his role as chief executive of MTG, Lindemann held various leadership positions at the company for more than 25 years, including head of Nordic operations and international operations and head of sports rights acquisition and production.
Jensen meanwhile has been the CEO of Viaplay for the past five years since its formation as an independent company in 2018.
“It has been a privilege and an honour to be on the team making Viaplay Group into the forward leaning and future focused company that it is today. I remain confident of the success that lies ahead for the company,” said Jensen in a statement. “But I also feel that, in the light of current challenges, the company is best served if I step down, and I have therefore decided to do so. I wish the company and the team the very best in the future.”
For 2023 Viaplay is now guiding between 16-17.5% organic sales growth (down from previous expectations of 24-26% growth); its 2023 EBIT profit forecast in the Nordics is between SEK 0.8 billion-1 billion (down from prior SEK 1.2 billion-1.35 billion) and Viaplay projects an international profit loss between SEK1.4-1.5 billion (up from the previous guidance of an SEK 1-1.1 billion loss).
Viaplay is slated to report Q2 results on July 20 and expects to close the period with a subscriber base of 7.7 million and sales between SEK 4.5 and 4.6 billion (around $414 million - $423 million). Advertising revenue is expected to be down between 12-16% in Q2 due to rapid declines in the TV ad market. In the second quarter Viaplay expects an operating loss between SEK 250 million-300 million. The company also said the rising cost of living is resulting in lower D2C streaming and wholesale linear subscription sales, along with higher churn after price increases.
In a statement Pernille Erebjer, chair of Viaplay’s board, thanked Jensen and wished him luck on future endeavors, saying he “led the achievement of significant milestones for the Group, including the development of our unique content offerings.”
Viaplay offers its direct-to-consumer streaming service by the same name in every Nordic and Baltic country, Poland, the Netherlands, the U.K., the U.S. and Canada. The Viaplay SVOD launched in the U.S. in February priced at $5.99 per month. Viaplay is also one of the partners that U.S.-based Paramount Global teamed up with to go to market for its own launch of free ad-supported streaming TV (FAST) service Pluto TV in the Nordics – absorbing the existing AVOD Viafree service which was phased out in favor of a single integrated product. It’s an approach that Pluto execs have touted success with, and mirrored a similar model in Canada with partner Corus.
Commenting on the market and leadership changes, Erenbjerg said market operating shifts are driving the need to execute on the company’s strategy differently, but noted the strategic direction of Viaplay is unchanged under the new CEO.
“The outlook for the markets in which we are operating has shifted considerably and at a very rapid pace, and the execution of cost savings programmes has not been mitigating the effects from these conditions to a sufficient extent. The impact of the macroeconomic headwinds on the business require that we execute differently on our strategy,” Erenbjerg stated. “With more than 30 years of experience in the entertainment industry and leading Nordic and International businesses, we are confident that Jorgen has the right profile to lead this work.”
Viaplay cited several factors for downgrading its 2023 outlook, including lower demand in the Nordic and international streaming DTC subscriber markets, alongside lower wholesale subscription sales by linear distribution partners. It also blamed the accelerated deterioration of the Scandinavian TV and radio ad markets, and a cost savings program that’s taking longer than expected. In addition, Viaplay cited increased FX headwinds that aren’t expected to recover until the end of the year.
“The overall strategic direction of the company is unchanged and Jorgen, together with the Board and his leadership team, will evaluate the need for structural, operational, and capital allocation enhancements to the delivery of the strategy,” Erenbjerg continued.
In a statement Lindemann commented on his new role, saying, “I know Viaplay Group well, and have of course followed the company’s journey closely over the years. I am passionate about the Group’s tremendous potential. I am very much looking forward to the opportunity to be part of leading Viaplay Group through the currently challenging times, and delivering on the next phase of its development.”
Viaplay in May had a trio of leadership changes, including appointing Fillippa Wallestam as EVP and chief commercial officer of the Nordics, its largest commercial region, after Kim Ponder, a 24-year Viaplay executive, decided to leave the company. Viaplay also appointed Cecilia Gave as EVP and head of Sports, while Sandra Åberg was named SVP and head of investor relations, taking over from Matthew Hooper, who turned to focus on his role as chief commercial officer of U.K. for the company.
Reuters reported Viaplay shares fell by 60% on Monday to a record low after the company’s warning on the business environment, as well as the CEO replacement.