Nordic Entertainment Group (NENT) has announced plans to launch its Viaplay streaming service in Poland and the US in 2021 and in five other markets by the end of 2023, with a new target of approximately 10.5 million Viaplay subscribers by end of 2025. In addition, NENT is considering raising more equity to finance the international expansion and increase liquidity and the company also is mulling a secondary US listing.
NENT is aiming for 18-20 percent compound annual group organic sales growth for 2020-2025, with the Nordic operations generating 13-15 percent growth. By the end of 2025, 80 percent of the Nordic region’s 12.7 million households are expected to have an average of three streaming services, compared with 60 percent and two services currently. Its Nordic EBIT margin target for 2025 is approximately 15 percent, while the company intends the ten international markets to be EBIT-positive on a combined basis in 2025.
NENT will phase in Viaplay in ten markets by the end of 2023, including Estonia, Latvia, Lithuania, Poland and the US in 2021. By the end of 2025, NENT aims to increase its subscriber base to approximately 10.5 million by more than doubling its Viaplay paying subscriber base in the Nordic region to approximately 6 million, and expanding its international subscriber base to approximately 4.5 million.
More funding details to follow
Anders Jensen, NENT president and CEO, said the expansion plans require funding and NENT will be discussing this with its shareholders. It will give information about the potential increase in equity of more than SEK 3.5 billion on the afternoon of 10 November. It is also considering a possible secondary listing in the US and the most appropriate capital structure and future distribution policy.
Viaplay will be launched in Estonia, Latvia and Lithuania in March 2021 and in Poland in August next year, offering Nordic, local and international output, as well as live sports such as Bundesliga football. NENT said 25 percent Poland’s 13.8 million households currently have a streaming subscription, and this is expected to exceed 40 percent in 2025, with the current average of 1.5 subscriptions per household also expected to increase.
NENT has obtained the exclusive Polish rights for the Bundesliga and Bundesliga 2 matches until the 2024-25 season from DFL Deutsche Fussball Liga unit Bundesliga International. According to Bundesliga’s own figures, Poland has a Bundesliga fan base of 4.6 million supporters.
US launch in late 2021
In late 2021, Viaplay will be launched in the US as a tailored service offering Nordic drama serials. The US is the world’s largest streaming market with 300 million subscriptions, 80 percent household penetration, and an average of three subscriptions per household and rising.
Viaplay will start trading in five other European markets by the end of 2023. NENTs international operations will be reported separately from Q1 2021 and should be EBIT-positive in 2025, after accumulated combined losses to breakeven of an estimated SEK 2.5 billion.
