Bank: More Viaplay reorganisation likely
June 29, 2023
By Chris Forrester
Equity analysts at investment bank Jefferies, responding to Viaplay’s new operating model, said that a simple interpretation of the announcement is that it expects the new strategy update to yield a larger and more aggressive cost-saving programme.
“Read between the lines of the [Viaplay] release, however, and you’ll find a tacit admission that Viaplay’s product offering hasn’t been localised enough, Viaplay hasn’t been close enough to consumers, and management haven’t been accountable enough,” states Jefferies.
In essence, Viaplay announced a Nordic country-based operating model and changes to its management team. The new model, quoting from the release, “should enable improved operating efficiency and performance, sharpen focus on the development of market-relevant product offerings and accelerate the ongoing review of operations and return on investment”.
“Under the new model, each country will have a management team responsible for daily operation and strategic development of the business, including full line of sight and accountability for sales, costs, profitability, cash flows, content, and marketing. Previously, these functions, most notably content, were centralised for all country operations,” said Jefferies.
“The new CEO has appointed country heads for Sweden, Norway, Finland, and Denmark. This is a mix of new hires and internal interim appointments. International operations in the Baltics, Poland, Netherlands, and UK fall under the reinstated Chief Sports & Business Development Officer. Following the 14-Jun resignation of the previous Chief Sports Officer, there appears to be a sidelining of the Chief Commercial Officer too,” suggests Jefferies.
“In our view, decentralising key operational functions to the country level and putting all international operations under the Head of Sport (i.e., not a dedicated country manager, as has been done for the Nordic operations) is a signal of potential country exits in time,” concludes the bank’s report.