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Investing.com -- Viaplay stock fell 18% after the company reported third-quarter results showing a 3% organic revenue decline in its core operations, a deterioration from the flat trend observed in the second quarter.
The Nordic streaming and entertainment company posted net sales of SEK4,018 million, which was 2% below analyst estimates. The revenue shortfall was primarily attributed to weaker performance in Linear channel subscriptions and Sublicensing segments.
Despite the overall decline, Viaplay’s Streaming segment delivered 1% organic growth, marking an improvement from the negative YoY development seen in the previous quarter. The company reported a positive net intake of 53,000 subscribers, the first positive quarter in a year, driven by growth in the direct-to-consumer base and supported by sports-package subscriptions.
The company reported an EBIT before ACI and IAC of SEK-56 million, returning to negative territory after posting SEK84 million in Q2. This decline reflects the seasonally challenging nature of the third quarter, with sports rights inflation being a key factor in the weaker performance.
Free cash flow came in at SEK-1.2 billion, reflecting the usual seasonal weakness in Q3 driven by sports-rights payments. Year-to-date free cash flow of SEK-0.9 billion from Core operations shows improvement compared to the SEK-2.1 billion recorded at the same point in 2024.
Viaplay reiterated its 2025 guidance on a pro forma basis, with Allente consolidated from January 1, 2025. The company expects core sales of SEK21-22 billion, EBITDA pre-ACI/IAC of SEK0.8-1.1 billion, and operating free cash flow of SEK0.5-0.75 billion.
The company confirmed that its Allente acquisition remains on track and is expected to close in the fourth quarter of this year.
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