Stockholm-based Viaplay Group AB has now lost 80% of its market value due to the upheaval that began in early June, when it shocked investors by cutting its 2023 outlook and replacing its chief executive officer.
The development comes after the Scandinavian drama and sports streamer posted a net loss of 5.89 billion kroner ($574 million), admitting that "the push for subscriber growth was driven by cost."
“It's a fact that assumptions about a number of our initiatives, especially with regard to international expansion, don't add up,” Chief Executive Officer Jørgen Madsen Lindemann said by phone. “We also see that the cost of our content in the Scandinavian countries exceeds our revenues to some extent.”
The firm is now planning to lay off more than 25% of its workforce, which at the end of 2022 consisted of 1,691 people. Instead, Viaplay will focus on its operations in Scandinavia, the Netherlands and Viaplay Select. The goal is to find solutions, including partnerships, asset sales and exits by 2024, the CEO said.