Viaplay Group AB

Reported core operations sales were up 0.7% year over year on an organic basis. Combined first-half sales for core operations were SEK 10.8 billion, about 25% higher than standalone first-half last year, and combined first-half EBITDA before ACIs and IACs was SEK 560 million versus a loss of SEK 50 million in first half last year. Q2 EBITDA was up year over year versus the pro forma comparison, including an approximate SEK 110 million currency tailwind. D&A was SEK 152 million, including about SEK 100 million of PPA amortization charges. Items Affecting Comparability were SEK 52 million in Q2, mainly SEK 242 million of redundancy and restructuring costs linked to Allente integration; first-half IACs were SEK 203 million, in line with prior guidance for total integration costs of SEK 270 million-SEK 330 million. Free cash flow was SEK 113 million in Q2, with operating cash flow of SEK 145 million, CapEx of SEK 32 million, and net debt to trailing 12 months pro forma EBITDA of 4.5x versus 4.7x at Q1. Management expects full-year working capital to be broadly neutral excluding non-core cash drag, CapEx to be around the SEK 150 million level, and annual cash interest costs at approximately SEK 450 million. The company continues to expect the non-core cash drag to be approximately SEK 500 million this year, SEK 400 million next year, and SEK 200 million in 2028. The Dutch operations are being sold for EUR 142 million on a cash and debt-free basis; the company said the proceeds will reduce net debt once the deal closes.

Jørgen Lindemann framed the quarter as continued progress on a multi-year transformation toward a more focused Nordic business. He emphasized that Allente adds scale, cash flow, and synergy potential, and said the company is using discipline on content rights, distribution partnerships, and capital allocation to improve relevance and profitability. His tone was confident but measured: he repeatedly noted there is still “a lot to do,” while highlighting that the business is moving in the right direction.

Johan Johansson focused on the mechanics behind the quarter’s reported numbers and cash flow. He said FX added about SEK 80 million to core sales, about SEK 30 million to costs, and roughly SEK 110 million to core EBITDA, while D&A was SEK 152 million and Q2 IACs were SEK 52 million, mainly restructuring tied to Allente. On cash, he pointed to SEK 145 million of operating cash flow, SEK 113 million of free cash flow, RCF usage of SEK 700 million at quarter-end, net debt of SEK 5.12 billion excluding leases, and scheduled Allente-related borrowing amortization of SEK 420 million this year and next year combined; he also reiterated approximately SEK 450 million in annual cash interest costs and said the Dutch sale should aid deleveraging.

Analysts focused on the Dutch divestment, the sustainability of the Nordic strategy, the loss of UEFA Champions League rights in Sweden, cash-flow seasonality, and the subscriber decline. Management said the Dutch sale was driven by transformation priorities, unsolicited offers, price and speed, and that it follows the established regulatory process; they did not comment on the Dutch regulator beyond that. On sports rights, Jørgen said the company will not “win all the competition,” will not overbid if the business case does not support it, and will look for alternatives to mitigate churn and pricing pressure. On cash flow, Johan confirmed the second-half non-core cash drag is expected to be SEK 400 million, and management said organic sales should remain roughly stable once the Netherlands is excluded.