Full year report January-December 2019

Q4 2019 highlights

• Viaplay subscribers up 310k from Q418 and 110k from Q319 to a total of 1,568k. Viaplay now represents 62% of the Group’s total subscriber base
• Sales of SEK 4,169m (3,959) with 4% organic growth
• Operating income for combined business segments of SEK 593m (557)
• Total operating income of SEK -217m (516) including additional SEK 11m of advisory costs for the merger between Viasat Consumer and Canal Digital, as well as IAC of SEK -731m (5) comprising redundancy costs and impairment charges
• Net income of SEK -159m (477) and basic earnings per share of SEK -2.36 (7.12)
• Total net debt of SEK 4,139m, including net lease liabilities of SEK 598m, equivalent to 2.2x 12 month trailing EBITDA before IAC¹⁾
• The Board proposes a dividend of SEK 7.00 (6.50) per share, to be paid in two equal tranches
    

1) 2018 figures included in the calculation of trailing 12 months EBITDA before IAC have been adjusted for the estimated effect as if IFRS 16 had been applied for the full period.
2) See page 17 for a reconciliation of business segment operating income. Alternative performance measures used in this report are explained and reconciled on pages 20-23.
 

President & CEO’s comments

“Q4 was a strong finish to a successful first year as listed company. We have delivered on our profitable growth commitment in 2019 with 6% organic sales growth and 6% profit growth for our operating businesses, while growing our Viaplay subscriber base by over 25%. Scaling Viaplay remains our top priority simply because it’s the best way to drive sustainable long term value. We have continued to innovate and transform, and remain well positioned to benefit from the shift to on-demand and online video consumption.”

2019 was a record breaking first year for NENT Group as a standalone business, with strong financial performances by both of our business segments. The momentum continued into Q4 with sales growing 4% on an organic basis and driven primarily by Viaplay. Broadcasting & Streaming delivered continued profitable growth, and the combined profits for our business segments also increased despite ongoing content investments, USD headwinds and falling linear viewing.

We have now implemented our new organisation and operating model, which will enable us to make decisions faster, ensure better strategic alignment, scale flexibly and efficiently, while also generating significant savings. We also announced the proposed 50/50 joint venture between Viasat Consumer and Canal Digital, which is expected to yield substantial synergies and further increase our focus on Viaplay, including the first geographical expansion this year when we launch Viaplay in Iceland later this spring. Our recently announced strategic review of our studios businesses is yet another example of our never-ending quest to optimise our operations to support our streaming ambitions.

The Viaplay subscriber intake is our single most important KPI, as this is where consumers are spending more and more of their time and money. We added 110k Viaplay subscribers compared to Q3 and the base has grown by 310k, or 25%, since the beginning of 2019. Our growth has accelerated and we have gained market share, despite fierce competition. Viaplay is a content champion, offering a unique combination of the broadest and most relevant content, as well as clear category leadership in sports, Nordic originals and films. This is combined with a world-class technology platform that is constantly evolving to enhance the customer experience.

We have continued to invest in our future. We premiered 21 high quality Viaplay Originals in 2019 and will premiere more than 30 in 2020. The majority of these are locally relevant Nordic shows, which are very popular and provide a clear differentiator to rival international services. We have signed a number of new or extended exclusive sports rights agreements. Sports rights are in high demand and we are very conscious not to accept any inflation that would harm our ability to grow profitably. We have improved our kids offering through new deals with NBCUniversal and SF Studios, and signed a new long term agreement with Sony. And our sourcing of original international content will be fueled by our investments in FilmNation UK and PictureStart.

Looking ahead, we have built a very strong foundation to capture the opportunity we see in the streaming world, while also delivering on our profitable growth commitment. 2020 will be another eventful year, in which we will focus on further scaling Viaplay, continue to invest in our content, technology and people, and support this with our relentless search for efficiencies. All credit for the success in 2019 goes to the NENT team members; Your passion, competence and drive are what makes NENT a winner.

Anders Jensen
President & CEO
 

Shareholder information

2020 Annual General Meeting
The 2020 Annual General Meeting of NENT shareholders will be held on Tuesday 19 May 2020 in Stockholm. Shareholders wishing to have matters considered at the meeting should submit their proposals in writing to agm@nentgroup.com or to the Company Secretary, Nordic Entertainment Group AB, BOX 17104, 104 62 Stockholm, Sweden, at least seven weeks before the meeting in order that such proposals may be included in the notices to the meeting. Further details of when and how to register will be published in advance of the meeting.

The Board of Directors will propose the payment of an annual ordinary cash dividend of SEK 7.00 (6.50) per share to the Annual General Meeting of shareholders. The total proposed ordinary cash dividend payment would therefore amount to approximately SEK 471m (438), based on the maximum potential number of outstanding ordinary shares. The Board of Directors of NENT Group intends to further propose that the remainder of the Group’s retained earnings for the year ended 31 December 2019 be carried forward into the 2020 accounts. The proposal is in line with NENT Group’s dividend policy.

Questions?
press@nentgroup.com (or Tobias Gyhlénius, Head of External Communications; +46 73 699 27 09)
investors@nentgroup.com (or Stefan Lycke, Head of Investor Relations; +46 73 699 27 14)

Download high-resolution photos: Flickr

Follow us: nentgroup.com / Facebook / Twitter / LinkedIn / Instagram

Conference call

The company will host a conference call today at 09.00 Stockholm local time, 08.00 London local time and 03.00 New York local time. To participate in the conference call, please dial:

   
The access pin code for the call is 6697906.

To listen to the conference call online and for further information, please visit www.nentgroup.com
  

NOTES TO EDITORS

Nordic Entertainment Group AB (publ) (NENT Group) is the Nordic region’s leading entertainment provider. We entertain millions of people every day with our streaming services, TV channels and radio stations, and our production companies create content that is experienced around the world. We make life more entertaining by telling stories, touching lives and expanding worlds – from live sports, movies and series to music and original shows. Headquartered in Stockholm, NENT Group is listed on Nasdaq Stockholm (‘NENT A’ and ‘NENT B’). This information is information that Nordic Entertainment Group AB (publ) (NENT Group) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CET on 4 February 2020.

Tags: