Earnings call transcript: Viaplay posts stronger Q2 2026 as turnaround advances

Earnings call transcript: Viaplay posts stronger Q2 2026 as turnaround advances

US stock futures slide further with tech set for more losses; Netflix disappoints Viaplay said second-quarter 2026 results showed further progress in its turnaround, with first-half core sales rising about 25% from a year earlier on a standalone basis and EBITDA moving to a SEK 560 million profit before restructuring and integration items from a SEK 50 million loss. The Stockholm-listed streaming company did not provide EPS or revenue consensus data in the materials reviewed, and its shares were unchanged at $2.40 after the update, near the middle of their 52-week range of $1.21 to $3.50.

Key Takeaways - First-half core sales reached SEK 10.8 billion, helped by the Allente integration and stronger streaming activity. - First-half EBITDA before ACIs and IACs improved sharply to SEK 560 million from a SEK 50 million loss a year earlier. - Streaming subscription sales rose 7% organically, supported by premium sports and improved commercial terms with distribution partners.

- Viaplay said its net debt to EBITDA ratio improved to 4.5 times from 4.7 times at the end of the first quarter. - The company kept its 2026 free cash flow guidance at neutral, excluding cash drag from non-core operations. Company Performance Viaplay said the quarter reflected steady progress in its transformation after the integration of Allente Group.

The company described itself as a larger Nordic media group with more customers, more content monetization options and greater cash flow potential. On a combined basis, first-half 2026 sales for core operations were SEK 10.8 billion, while EBITDA before ACIs and IACs reached SEK 560 million. That compares with a loss of SEK 50 million in the same period last year on a pro forma basis.

The company also said core operations sales rose 0.7% organically in the second quarter. Viaplay’s streaming business remained a bright spot. Streaming subscription sales increased 7% year over year on an organic basis, with both direct-to-consumer and business-to-business sales growing.

Average revenue per user also improved, helped by premium sports content and a focus on value rather than volume. At the same time, the company’s traditional pay-TV and non-streaming businesses remained under pressure. Allente’s DTH business continued to decline as viewers shift to streaming, and non-streaming subscription sales fell 3% organically.

Advertising revenue rose slightly on an organic basis, but linear TV advertising remained structurally weak. Financial Highlights - Core operations sales: SEK 10.8 billion in the first half, up about 25% year over year on a standalone basis. - Second-quarter core operations sales: up 0.7% organically year over year.

- First-half EBITDA before ACIs and IACs: SEK 560 million, versus a SEK 50 million loss a year earlier. - Second-quarter EBITDA: benefited from about SEK 110 million in positive currency effects. - Operating cash flow: SEK 145 million in the quarter.

- Free cash flow: SEK 113 million in the quarter, including SEK 176 million from core operations and a SEK 63 million drag from non-core operations. - CapEx: SEK 32 million in the quarter. - Net debt: SEK 5.12 billion at the end of the quarter, broadly unchanged from SEK 5.2 billion at the end of the first quarter.

- Net debt to EBITDA: 4.5 times, down from 4.7 times at the end of the first quarter. - Debt to equity: 3.47 times as of the most recent quarter, reflecting the company’s significant debt burden. - Gross profit margin: 14.24% over the last twelve months, underscoring pressure on profitability as content costs remain elevated.

- RCF drawn: SEK 700 million, down from SEK 750 million at the end of the first quarter. Earnings vs. Forecast No EPS or revenue consensus figures were provided in the materials reviewed, so a direct surprise calculation is not available. Even so, the reported operating trend was clearly stronger than a year earlier.

The most important comparison was the sharp improvement in profitability. First-half EBITDA before ACIs and IACs rose to SEK 560 million from a SEK 50 million loss in the prior-year period. That is a swing of SEK 610 million, a significant turnaround for a company that has been restructuring its business model.

VPLAYa">InvestingPro data shows the company operates with a significant debt burden and remains unprofitable over the last twelve months, with return on assets at negative 9%. Subscribers can access 15 additional ProTips and comprehensive financial health scores to better assess the sustainability of this turnaround. Sales also improved meaningfully.

First-half core operations sales of SEK 10.8 billion were about 25% higher than the comparable standalone period last year. The company said streaming subscription sales increased 7% organically, while D2C and B2B revenue both grew. Market Reaction Viaplay shares were unchanged at $2.40 after the update, according to the latest stock data.

The stock has traded between $1.21 and $3.50 over the past 52 weeks, putting the current price about 31% above the low and about 31% below the high. The muted reaction suggests investors may be balancing the stronger operating trend against several open questions. Those include the pace of deleveraging, the timing of the Dutch divestment, the durability of currency benefits and the impact of losing UEFA Champions League rights in Sweden from the second half of 2027.

Despite the flat session, the stock has delivered a 70% return over the past year and is up 39% year-to-date, reflecting growing confidence in the turnaround. According to InvestingPro analysis, the stock appears undervalued at current levels—placing it among opportunities on the platform’s most undervalued stocks list. No trading volume data was provided, so it is not possible to determine whether the session saw unusual activity.

Outlook & Guidance Viaplay kept its 2026 outlook broadly intact. The company said annual cash interest costs are running at about SEK 450 million and capital expenditure should be around SEK 150 million for the full year, in line with 2025. Management reiterated that free cash flow should be neutral in 2026, excluding the cash drag from non-core operations.

That drag is expected to total about SEK 500 million in 2026, SEK 400 million in 2027 and SEK 200 million in 2028, mainly because of legacy content agreements in exited markets. The company also said it expects working capital to be negative in the third quarter and positive in the fourth quarter, with broadly neutral full-year working capital excluding the non-core drag. Looking further ahead, Viaplay is targeting a double-digit EBITDA margin in 2028, up from 5.3% in 2025 on a pro forma basis.

Management said this will depend on content discipline, better commercial terms on legacy agreements, sales growth and continued cost control. Viaplay also said the sale of its Dutch operations for EUR 142 million on a cash and debt-free basis should help reduce net debt once the deal closes after regulatory approvals. Executive Commentary Chief Executive Jørgen Lindemann said the combined Viaplay and Allente group has “created a larger group with more customers, more content monetization potential, and more cash flow-generating capacity” to support the company’s transformation.

He also said first-half sales for core operations were “almost 25% higher” than a year earlier and noted that first-half EBITDA before ACIs and IACs improved from a loss to a profit. He described the result as evidence that the strategy is working. On sports rights, Lindemann said the company will not chase every auction.

“It is about discipline,” he said, adding that Viaplay will walk away when the business case does not support higher bids. CFO Johan Johansson said net debt to trailing 12-month pro forma EBITDA improved to 4.5 times from 4.7 times at the end of the first quarter. He added that further deleveraging depends on stronger cash flow and the end of non-core cash drag in 2028.

Risks and Challenges - Structural decline in linear TV: Viaplay’s traditional TV and DTH businesses continue to shrink as viewers move to streaming. - Rights pressure: The loss of UEFA Champions League rights in Sweden from H2 2027 could affect subscriber retention and pricing power. - Legacy content inflation: Sports content costs remain high because of inflation built into older agreements.

- Cash burn: The company continues to burn through cash with negative free cash flow of $172 million over the last twelve months, adding pressure to deleveraging efforts. - Non-core cash drag: Payments tied to legacy content agreements will continue to weigh on cash flow through 2028. - Currency swings: The quarter benefited from a stronger Swedish krona, which may not repeat.

Q&A Analysts focused heavily on the Dutch divestment, the company’s sports strategy and the outlook for subscriber trends. Questions centered on why Viaplay sold its Dutch business now, how the company expects regulators to view the deal and what the sale means for leverage. Management said the timing was driven by unsolicited offers, the quality of the bid and the chance to complete the deal before key sports rights begin in August and September.

Analysts also pressed management on the loss of Champions League rights in Sweden. Lindemann said losing some auctions is normal and that Viaplay will keep a disciplined approach to rights bidding while leaning on other sports properties such as the Premier League, the FA Cup and national team matches. Another topic was the drop in streaming subscribers during the quarter.

Management said the decline reflected seasonality and the timing of league expirations, while stressing that both D2C and B2B sports sales remain strong. Finally, analysts asked about the building blocks for the company’s 2028 margin target. Lindemann pointed to content relevance, better pricing on legacy agreements, alternative content options and a broad mix of sales and cost initiatives.

Full transcript - Nordic Entertainment A (VPLAYa) Q2 2026: Matthew Hooper, Conference Call Host, Viaplay: Good morning, everyone, and welcome to today’s Q2 2026 results conference call. At this time, all participants are in a listen-only mode.

My name is Matthew Hooper, and I will be your host today. Joining me here on the call are our CEO, Jørgen Lindemann, and our CFO, Johan Johansson. Welcome, gentlemen.

Our presentation will be followed by a Q&A session on the telephone dial-in line. You can find our results materials, including the presentation deck and detailed fact sheet on the investor relations section of our website. As usual, the deck is for your information.

Our remarks and commentary will not follow it slide by slide. Please be advised that today’s conference call is being recorded. I will now hand the call over to Jørgen to walk through the results.

Over to you, Jørgen. Jørgen Lindemann, CEO, Viaplay: Thank you, Matthew, and good morning, everyone. We made further progress along our transformation path in Q2.

The Allente integration is proceeding according to plan. The combination of the Viaplay and Allente groups has created a larger group with more customers, more content monetization potential, and more cash flow-generating capacity to deliver our strategic transformation and goals. The combined sales of SEK 10.8 billion for our core operations for the first half of this year is almost 25% higher than what we reported on a standalone basis for first half last year.

Our combined first-half EBITDA before ACIs and IACs of SEK 560 million compares with a loss of SEK 50 million in first half last year. The integration of the Allente Group is running according to plan. We have now taken the majority of the costs relating to the restructuring.

The resulting cash cost synergies are as expected. They are starting to come through and will be at their full year run rate level from the start of next year as planned. There will also be sales synergies, which our teams are exploring fully and carefully in areas such as customer acquisition and retention, marketing and promotion, product packaging and development, content utilization and monetization, and how we make the most of our tech stacks and CRM activities.

More broadly, we are making progress with our strategic transformation. On the sales side, our streaming subscription sales were up 7% year-on-year on an organic basis, with both our D2C and B2B sales growing. The total Viaplay subscriber base was stable year-on-year and down quarter-on-quarter, as usual, due to the seasonally quieter summer sales period.

Both D2C and B2B ARPU levels were up year-on-year and quarter-on-quarter due to the growth in the number of premium sports subscribers, as well as the continued focus on value over volume in the extension of our agreement with key distribution partners. More D2C and B2B customers are choosing our sports offering because we have much high-quality, wide-ranging, and year-round offering of the very best sports content. We have more coverage of major sport this year than ever before.

This quarter featured the exciting combination of the English Premier League football season and the Danish Superliga, the Ice Hockey World Championships, the final rounds of the UEFA Club championships, Formula One motor racing, and golf from the three of four majors, the Masters, the PGA Championship, and the U.S. Open. Our non-streaming revenues comprise the Allente DTH business as well as our own linear pay TV channel sales to third-party networks. Scheduled appointment viewing still has a large and loyal following.

The number of linear platforms and channel subscribers is in long-term structural decline due to the shifting consumer preference to streaming services. The vast majority of the Allente subscribers already have Viaplay bundled with their subscription, so they have the best of the scheduled, live, and on-demand viewing worlds in their existing subscriptions. The Allente DTH subscriber base continued to decline in Q2.

Allente has also added new content to make the product even stronger and raise prices, which partially offset volume declines. In total, our non-streaming subscription sales were down 3% on an organic basis. Our total advertising sales was up slightly on an organic basis, which again reflected the combination of strong digital sales through our AVOD and HWOT offerings and growing radio advertising sales, which were offset by the ongoing structural decline in linear TV advertising.

Our content offerings remain very attractive, and we will invest further in our offerings. We successfully launched several new local productions across our markets during Q2. In Norway, "Helvetesuka" premiered and has become one of the strongest performing local titles ever on the platform.

We also launched "Skjærgårdsfeber," a spin-off from one of the most successful franchises in Norway, "Charterfeber." In Denmark, we introduced the Danish version of "Charterfeber," while "Middag på Michelin-restauranterne" also stood out as a strong local launch. Our international slate was further strengthened by the premiere of the international hit, "Sandokan," which has been particularly well-received by subscribers who engaged with "Outlander" earlier this year.

Our movie offerings also continued to differentiate the service during the quarter. Standout titles included "The Materialists," starring Dakota Johnson, Chris Evans, and Pedro Pascal, as well as our Swedish original movie, "Det är något som inte stämmer," based on the best-selling novel by Martina Haag. The other sales line comprises our sports licensing business, where we sub-license our sports rights to third-party broadcasters and streamers in our core markets, and our scripted content sales business, where we sell our portfolio of original scripted content to broadcasters and streamers around the world.

Sales were down 15% year-over-year on an organic basis, as reflected the lower volume of scripted content sales in particular. Overall, our core operations sales were up 0.7% year-over-year on an organic basis. When excluding the positive currency effects, our core operations costs were up 2% on a pro forma basis.

The primary operating cost driver is content, which accounts for three quarters of our total cost base. The largest part of this is sports content, where our costs have continued to rise due to the inflation built into our multi-year legacy agreements. As we prolong these agreements on competitive market terms or find alternatives, the inflation will be less in the second half of the year and also increase less next year.

We offset some of this increase by reallocating capital to more profitable areas and with SGA savings, including some synergies from the Allente Group integration. The ongoing transformation, discipline, capital allocation, sales and cost management, and the negotiation and extension of key content and distribution partnership agreements on commercial and competitive terms. All the securing of alternative options are the major drivers of our longer-term ambition to deliver a double-digit EBITDA margin in 2028, compared to the 5.3% that we delivered last year on a pro forma basis.

Our Q2 EBITDA was up year-on-year when compared to the pro forma number, including Allente Group result last year, and then this included an approximate SEK 110 million currency tailwind due to the strengthening of the Swedish krona reporting currency. The recently announced sale of the Dutch operations will focus us operationally on the Nordic markets, where we have the greatest scale advantages and synergy potential, and we will also provide cash to reduce our net debt and strengthen our financial profile. We remain totally focused on rebuilding as relevant and a resilient Nordic business as possible, one that both entertains and creates sustainable value for our customers, our people, our partners, and our owners.

We are doing this by crafting competitive products and commercial partnerships to stand the test of time and enable us to achieve our transformation objectives. We still have a lot to do to deliver our short and long-term goals, but we are making progress and remain fully focused on making this transformation happen. This is it for my comments for now, and I will now hand the call over to you, Johan, for your comments on our financial performance and position before we take questions.

Johan Johansson, CFO, Viaplay: Thank you, Jørgen, and good morning, everyone. As a reminder, the quarterly fact sheet on our website provides the usual relevant historical and backup information. In the report published today, we have provided the pro forma information for prior periods in 2025 to include Allente Group as if it had been consolidated from the beginning of last year.

This is so that you can see the organic development. The effects are shown as usual in the APMs at the back of the report. We have focused the commentary in the report on key sales and EBITDA numbers for our core operations as we discontinued the last of our non-core operations last summer.

When it comes to cash flow and balance sheet commentary, we have provided group numbers as we still have a cash drag from legacy content agreements that are yet to expire in markets that we have already exited. The year-on-year FX movements had big impact again this quarter, with approximately SEK 80 million positive impact on the reported core operation sales as the Norwegian kroner in particular strengthened against our Swedish krona reported currency. Reported core operations cost benefited from the net positive FX tailwind of approximately SEK 30 million due to the strength of the Swedish krona against the EUR and the dollar, in which we have the vast majority of our cost.

The net result of this was an approximate SEK 110 million positive year-on-year FX effect on our core operations EBITDA in Q2. We do still have significant currency exposure in the second half of the year, primarily in NOK, so these numbers can still move materially in either direction during the rest of the year. Depreciation and amortization amounted to SEK 152 million for the quarter and included approximately SEK 100 million of PPA amortization charges, which we flagged previously and are the result of the consolidation of Allente Group.

The SEK 52 million of Items Affecting Comparability in Q2 primarily comprised SEK 242 million of redundancy and restructuring costs relating to the integration of Allente Group, as well as SEK 10 million of currency translation effects. We have previously guided for total integration cost of SEK 270 million to SEK 330 million, with the majority being taken as IAC in the first half of this year. The SEK 203 million of IAC in the first half of the year was well in line with this.

We have almost no associated company income or dividends now that we have fully consolidated Allente Group. When looking at our interest costs, please remember that the cost for the EUR 646 million of balance sheet bank guarantee facility that we canceled in November last year were included in other financial items, not the net interest. Whereas now almost all our borrowing costs are included in the net interest.

Although the net interest costs were up year-on-year, other financial items were also significantly down. Moving on to the group cash flow. We reported the minus SEK 52 million working capital development, which primarily reflected the payments that we made for legacy content agreements in market that we have exited.

This Non-Core Operation cash drag, which we talked about previously, is included in the working capital and is expected to amount to approximately SEK 500 million this year, SEK 400 million next year and SEK 200 million in 2028. The year-on-year swing in working capital reflects the smoother and more stable setup that we have now. The payment terms in our new commercial arrangements reduce the cash flow volatility between quarters.

Previously, there were substantial swings to payment timing differences. Our cash flow from operating activities totaled SEK 145 million in Q2, and included SEK 115 million of cash interest cost, and SEK 78 million of cash tax cost. We invested SEK 32 million of CapEx in Q2, and reported the positive free cash flow result of SEK 113 million, of which SEK 176 million from the Core Operations and minus SEK 63 million from the Non-Core Operations.

The SEK 187 million cash flow to financing activities included the quarterly amortization of Allente Group related borrowing, which will total SEK 420 million this year and next year. This included changes in the usage of the SEK 2.8 billion RCF, which we have had to draw on SEK 700 million at the end of the quarter compared to SEK 750 million at the end of Q1. The net change in cash equivalents therefore amounted to minus SEK 74 million in Q2.

When looking at the second half of the year, we do expect working capital to be negative in Q3 and as the positive effects in first half of the year will reverse, and we expect it to be positive in Q4. For the year as a whole, when excluding the Non-Core Operations cash drag, we expect the working capital to be broadly neutral and we are constantly working on to improve the working capital profile. We continue to expect CapEx to be at or about the same SEK 150 million level for the combined group as last year.

Cash tax payments will benefit from the carried forward tax losses that we have, and our annual cash interest costs are now running at approximately SEK 450 million. After the scheduled debt repayment of SEK 105 million of total borrowings excluding the RCF, we are now under SEK 5.8 billion compared to SEK 5.9 billion at end of Q1. You can see the usual debt maturity profile chart in the slide pack on the website.

Aside from the scheduled repayments this year and next, all of the rest of our debt facility mature in 2028. Our financial net debt, when excluding leases, were largely unchanged at SEK 5.12 billion at the end of the period compared to just under SEK 5.2 billion at the end of Q1, and comprised SEK 6.5 billion of borrowings and SEK 1.3 billion of cash. Our net debt to trailing 12 months pro forma EBITDA, excluding associate company income and IAC was 4.5 times at the end of Q2 compared to 4.7 times at the end of Q1.

The recently announced divestment of our Dutch operations for EUR 142 million on a cash and debt-free basis will enable us to reduce our net debt once the transaction closes after the various regulatory and other approvals. The further de-leveraging of our balance sheet depends on the strengthening of our cash flows through the effective doubling of our EBITDA margin between 2025 and 2028, and the ending of our non-core operations cash drag in 2028. We are making progress and the margin improvement still requires a lot of work, including the work with our suppliers, partners to move all the agreements onto commercially competitive market terms or find alternatives.

We are focused on executing all of the various initiatives we have in place to deliver the transformation plan and make the required efficiency gains, including driving sales growth, cost reductions, and managing our working capital to be as positive as possible and allocate our investment capital to generate as positive returns as possible. That concludes my remarks. So now back to you, Matthew.

Matthew Hooper, Conference Call Host, Viaplay: Thank you very much, Johan, and we are now ready to take your questions. If you would like to ask a question, you will need to be on the telephone dial-in line as the webcast is listen only as per the invitation. Please press star one and then one again on your telephone keypad and you will enter the queue.

If you wish to cancel the question, simply press star one and one again. The first question comes from Christopher at Kepler Cheuvreux. Please go ahead, Christopher.

Christopher, Analyst, Kepler Cheuvreux: Morning, guys. Thank you for taking my questions. I would like to start with the Dutch divestment there.

Can you please just talk to us about why you struck this deal now and why it did not happen perhaps two to three years ago when you were shrinking your footprint. Maybe also talk to us about the timeline you mentioned a bit, but also how positive you are on receiving a green light from the regulator, where we have seen some, should say, non-pro-business decisions before from the Dutch regulator. Jørgen Lindemann, CEO, Viaplay:

Yeah. As you can say, in general, it is part of the transformation that we are making, yeah? The same goes also with the acquisition of Allente.

The idea is, of course, to build a very strong and focused Nordic business. As I said as well, that is also where we have the biggest scale, and we can realize the biggest synergies. We did receive a number of unsolicited offers and in the end decided to take clearly the best price and also where we saw the biggest certainty and also where we had speed.

Clearly the rights is also beginning now in August, September. We wanted to make a speedy process so the potential new owner can capitalize on those rights as well. When it comes to the process on the competition authorities, there is, as you know, structure in that and the path which they’re laying out, how to go about this.

That is what we are following. That is ongoing, and I will not comment on any historical decisions in Netherlands. Christopher, Analyst, Kepler Cheuvreux: Fair enough.

You mentioned this Nordic story, back to the roots where you have a clear right to win, which I think we all applaud, right? Can you give us a bit more on that strategy? Is this back to the old star Viaplay in the Nordics, where you have a strong sports portfolio, more seasoned with your own local content, like going back to the Viaplay originals, or will you more continue with this, should I say, non-scripted route you’ve taken in recent years?

Jørgen Lindemann, CEO, Viaplay: I think important for us, of course, that our offering is commercial attractive. That is not only the non-scripted or the scripted or sport, whatever. It is a big variety, or whatever it is called, of content that we have.

It needs to be relevant, clearly, and it needs to be commercial attractive. That is the key criteria. We have linear TV, as you know, we have radio, we have AVOD, we have sport offering, the Viaplay offering, we have DTH, we have our broadband offering as well through Allente and so forth.

There is a lot of revenue opportunities that we are having for our content. That is clearly something which we are exploring, as we say as well, that we have not even explored the sales synergies as well with Allente. What is it that we can do more together?

How is it that we can capitalize even more on the relevant content that we are producing? It is, like in all other media companies, about relevance, and we have very strong sports position. We have a very strong local content position, and we have a very strong acquired position as well from Northland and so on.

Luckily, we have a lot of distribution platforms where we can capitalize on that content, as you see with the Nordic business and the revenue coming out of the Nordics. Christopher, Analyst, Kepler Cheuvreux: Thank you. You mentioned sports and your strong portfolio, but we recently learned that you lost out on extending the UEFA Champions League rights in Sweden from H2 next year, which I think is a worry for the market, right?

Can you please talk to us about how you can mitigate possible impact or possible negative impacts in terms of churn and you not being able to raise prices, et cetera? Jørgen Lindemann, CEO, Viaplay: I think that is just normal. I do not think that we will be winning all the competition, all the auctions that we are going into, as we also have had in the past.

It is about discipline approach where you actually understand your business case, when the business case is not supporting increased offers, then you leave it. That I have done also in the past last time where we see. That is a discipline you will see us continue to do, and then it is up to us to find alternatives.

We have a very strong football offering as well. Do not forget, in Sweden alone, we have the FA Cup, we have the Premier League, we have the national team matches and so forth. There is a lot we have to offer still.

Then we will then find alternatives if that is needed. We will not enter into crazy bidding in these processes and competition we’re used to. There might have been others than just Disney in that process as well, that has always been the case.

Christopher, Analyst, Kepler Cheuvreux: Got it. If I turn to the cash flow side, fantastic development in H1, positive SEK 150 million in my model here. You’re guiding for a neutral free cash flow for the year, excluding the non-core cash drag.

What I’m struggling to understand is this non-core cash drag and the timing, because if my maths are correct, that implies a negative SEK 400 million cash drag in H2, which is very different to the seasonality we’re used to in non-core cash drag. Maybe you can help us understand that. Johan Johansson, CFO, Viaplay: We have different payment schedules for that sort of cash drag.

It is correct that it is the SEK 400 in the second half of the year for that. Yes. Christopher, Analyst, Kepler Cheuvreux:

Okay. On streaming subscribers, it was a bit negative in Q2 here with roughly 200,000 outflow. I know there is a seasonality, but it was a bit more pronounced than I had expected.

Can you talk about the mix there in B2B and B2C in terms of the subscriber decline? Jørgen Lindemann, CEO, Viaplay: I think as you say yourself, there’s seasonality in that as well. Like all other years has been the same.

We continue to see the sport actually continue to grow fairly well when it comes to both the D2C and also the B2B part to be fair. The campaigns we have with our B2B partners seems to be working very well, so we are happy about that. It is linked, of course, to as many times that when your leagues are expiring, which they did a little bit earlier this year as well due to the World Cup football as well.

That, of course, had an impact. Christopher, Analyst, Kepler Cheuvreux: Got it. Maybe a last one.

You mentioned, Jørgen, some of the building blocks for the EBITDA margin to expand to the double digits in 2028, but I missed part of that. Can you remind us of the big building blocks? Jørgen Lindemann, CEO, Viaplay: That is several building blocks, to be fair.

As we said, first of all is the relevance of the content, and the sales related to that content. It is also quite important that the content that we are buying is also on market terms. Clearly, as you can see, as I also said, a lot of the legacy contracts we’re having, we are prolonging those on market terms, or we find alternatives for those as well.

It is a mix of many things which we would like to see happen in order for us to get into double digits in 2028. Christopher, Analyst, Kepler Cheuvreux: Understood. Thank you, guys, and congrats on a good first half.

Jørgen Lindemann, CEO, Viaplay: Thank you. Johan Johansson, CFO, Viaplay: Thank you. Matthew Hooper, Conference Call Host, Viaplay:

Okay. Thank you, Christopher. The next question we will take is from Alex at SB1 Market.

Alex, over to you to ask your questions. Alex, Analyst, SB1 Market: Can you guys hear me? Matthew Hooper, Conference Call Host, Viaplay: We can.

Alex, Analyst, SB1 Market: Oh, perfect. Great. Most of my questions were actually already answered, which is good.

I just have maybe one follow-up on the Dutch Sale. I was wondering if there is any detail you guys can give on the net leverage impact post the Sale. I am not sure how much you can disclose there, but any color on the Dutch business EBITDA, just to know how we should model the business post the Sale.

Johan Johansson, CFO, Viaplay: It is not something that we have disclosed at this time. What we have provided is the historical sort of sales, so you can see the sales multiple. On the leverage, we have not disclosed the cash flow nor the profits.

Alex, Analyst, SB1 Market: Okay. Is that something we should expect once the deal closes then, I am guessing?

Matthew Hooper, Conference Call Host, Viaplay: Yeah. I think we’ll have to see, Alex, what we’re able to give you then.

You can see quite clearly on the front page of our earnings release, if you look at the financial net debt and you look at the proceeds of the sale, it represents quite a significant amount of our financial net debt. I guess you can- Alex, Analyst, SB1 Market: Agreed Matthew Hooper, Conference Call Host, Viaplay: deduce something from that, yeah.

Alex, Analyst, SB1 Market: Yep. Okay. That’s good.

Just the core sales bridge after the Dutch sale. I’m not sure if you guys mentioned this, but once Netherlands is sold now, how should we think about the core sales base and growth profile? I know you mentioned you haven’t changed anything with regards to your guidance for this year, but maybe looking forward.

Is the Nordic-only perimeter expected to be more stable, or does the loss of the Dutch streaming revenue change the organic sales bridge at all for you? Matthew Hooper, Conference Call Host, Viaplay: I think on the organics side, obviously organics will imply then that we take Netherlands out of the mix, right? The comparison then will be excluding Netherlands, and we said we’re not changing the assumptions around a stable year-on-year growth rate.

That doesn’t really change. It just focuses everything back onto the Nordic business. We have a similar profile, and it’s a mixture of this growth on the streaming side.

You saw a slight improvement on the advertising side, but this is offset by the linear subscription market. Obviously our sub-licensing has been a bit volatile, but has been operating in this quarter around the level it was in the latter half of last year. It seems more in the sort of zone there.

It’s a bit of a mix, I’m afraid, but overall, the prognosis for stability in sales remains the same. You may see a bit one way or the other, but it’s around stable, organic. Alex, Analyst, SB1 Market:

Okay. That’s perfect. That’s all for me.

Thank you, guys. Johan Johansson, CFO, Viaplay: Okay.

Matthew Hooper, Conference Call Host, Viaplay: Thank you. Thanks, Alex. I think that’s it actually for the Q&As today.

We’re conscious it’s a busy earning day today for lots of people. Just like to say thank you very much for your time and for your questions. We do really appreciate your interest and always welcome the feedback.

We are available for follow-up questions and meetings, so please don’t hesitate to reach out if you would like to schedule a meeting now or after the summer, and if you have any further questions. I think that’s it for today. Thank you again.

We wish you a great summer, and goodbye for now