Sales revenues for the Nordic Entertainment (Nent) Group’s Viaplay streaming service bounced back in the third quarter on strong subscriber growth.
Nent has reported that Viaplay revenues have increased by 18 per cent to SEK957m (€92m/$109m) and subscriber numbers are up 31 per cent year-on-year. The pan-Nordic broadcaster ended the quarter with 2.8 million Viaplay subscribers.
The results mark a rebound from the second quarter when sales revenues fell by 4 per cent as Nent reduced prices for its sports packages due to the Covid-19 pandemic.
Nent stated that it will raise its paying subscriber targets after the increase in subscribers that followed sports’ return from the Covid-19 suspensions in July. In the latest report it has confirmed that it is expecting about 3 million subscribers by the end of 2020. This would be an increase of 700,000 year-on-year.
However, Nent saw its total net sales decrease in the third quarter to SEK3.4bn from SEK2.8bn in Q3 2019. It also announced that advertising sales were down 9 per cent, but that this was significantly less than it predicted with “demand levels gradually returning”.
Nent has also announced that it will move all streaming registrations and television broadcast licenses to Sweden from the UK as of January 1, 2021 due to the Brexit transitional period ending at the end of 2020.
The move means these platforms will be regulated by the Swedish Press and Broadcasting Authority for the first time.
Anders Jensen, president and chief executive officer at Nent, has said that Nent “do not expect any significant financial impact from this historic change, but we are of course very happy with this move as it ensures the continued availability of our content across the Nordic region and beyond”.
Viaplay launched in Iceland in April this year. and will be launching in Estonia, Latvia and Lithuania in the first quarter of 2021.
The company has said that it plans to launch Viaplay in 15 additional countries in the next five years, with more information on the planned expansion to be provided on November 10.