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Viaplay expects 24-26% growth in 2023

November 11, 2022

Viaplay Group has held Capital Markets Day (CMD), updating investors and analysts on its expectations for 2023. The CMD came less than a month since the company’s Q3 numbers drove the company’s share price down 8 percent.

The CMD was more open on the company’s prospects for next year. Investment bank Jefferies admitted in a flash-note that while the presentations were “evergreen” they still seemed to repeat much of the Q3 expectations.

However, some brand new numbers were forthcoming notably group organic sales growth of 24-26 per cent (consensus: 24.5 per cent), Nordic sales growth of 12-15 per cent (consensus: 16 per cent), Nordic EBIT of SEK 1.2-1.35 billion (-22 per cent behind a pre-Q3 consensus of SEK 1.6 billion), International EBIT losses of -SEK 1.1 billion (in line), Viaplay subscribers of 9 million (in line).

The CMD also detailed where Viaplay outlined how it is going to cut SEK 1 billion in costs from its operations. Jefferies said: “The CFO indicated that the plans have been communicated internally (suggesting the work has started). In terms of contribution, 50 percent of savings will come from sub-licensing content and / or pulling discretionary content purchases, 25 percent will come from the re-prioritization of resources (mainly, delaying market launches), and the balance will come from vanilla cost-cutting. The CEO indicated that this is not SEK 1 billion of run-rate cost savings into perpetuity (though obviously some elements are) — there are deferrals in the package, signalling that the spending can / will return.”

Jefferies is maintaining its ‘HOLD’ advice to clients and gives a price target of SEK 340 (current trading is around SEK 199).

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