Viaplay Boss Steps Down Immediately Due To Economic Downturn
06.06.2023 - 19:20
/ deadline.com
Viaplay Group CEO Anders Jensen is stepping down immediately amidst an economic downturn that is causing rapid deterioration in the ad market and subscriber churn.
Jensen is departing after five years and will be replaced by Jorgen Madsen Lindemann, the ex-CEO of the nordic TV outfit’s former parent company MTG.
Delivering the news via an update in the early hours of this morning, Viaplay posted expected Q2 sales of between 4.5BN ($420M) and 4.6BN Swedish Krona with negative EBIT of between 250M and 300M Swedish Krona. Advertising revenues are expected to be down between 12% and 16% on an organic basis, due to the “sharp and rapid deterioration in the TV and radio advertising markets,” added the group, with an update on the medium term outlook set to be provided on July 20.
Viaplay added that the rising cost of living is resulting in lower D2C streaming and wholesale linear subscription sales, as well as higher churn levels following price increases.
Adjusted for the full year, Viaplay would therefore see a dip in the full year profits that were expected in the previous update – delivered last last year.
With that in mind, Viaplay’s Board has scotched the “long term operational and financial guidance” that was previously in place for 2025 and Jensen has offered his immediate resignation.
Board Chair Pernille Erenbjerg said the “overall strategic direction of the company is unchanged and [new CEO] 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.“
“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