Bank: “Optimism for Viaplay prospects in Netherlands”
May 25, 2021
Analysts at investment bank Berenberg have issued ‘BUY’ advice on Nordic Entertainment Group (NENT) on the back of its news that its Viaplay platform will launch early in 2022 in the Netherlands.
“We are optimistic regarding the prospects for Viaplay in the Netherlands, particularly as NENT has already secured two key sports rights, most notably Formula 1 as Dutch driver Max Verstappen commands a large and loyal domestic following. We also expect strong investment in local original content to drive medium-term market penetration, with an expected annual release cadence of five to 10 Dutch originals once the Dutch operation is fully up and running,” said Berenberg.
Indeed, the bank has increased its subscriber forecasts for NENT and reminded clients that NENT’s recent Q1 results talked of “at least” 400,000 Nordic subs and 250,000 International subs.
The bank’s note to clients said: “Despite caution regarding the near-term impact of Covid-19 restrictions easing, we believe current momentum warrants greater optimism, and we increase our Nordic and international subscriber forecasts to 452,000 and 348,000, respectively, up from 425,000 and 340,000. Given our optimism regarding the potential for Viaplay internationally, particularly in Poland and the Netherlands, we are easing our conservatism and increasing estimates for the international subscriber base. Our new 5.5 million international subscriber forecast for 2025 is materially above management’s outlook of 4.5 million.”
The bank gives a Target Price for NENT’s shares to Swedish Kroner 590 (NENT’s current price is SEK 392).