In this news, we discuss the Swedish media group NENT plans U.S. launch for streaming service.
STOCKHOLM (Reuters) – Swedish Nordic entertainment group (NENT) plans to launch its streaming service Viaplay in the United States next year and is considering a capital increase of more than SEK 3.5 billion (405.85 million) to fund its expansion, he said Tuesday.
Viaplay will be rolled out in 10 international markets by the end of 2023 and will aim to have 10.5 million subscribers by 2025, up from 2.8 million by the end of September.
To finance the international expansion and increase the liquidity of the group’s shares, the company is also considering a capital increase, NENT said in a statement.
NENT shares gained 9% at the start of trading on Tuesday.
“Viaplay is a proven Nordic success story and we are now poised to expand internationally and become the European streaming champion,” said Anders Jensen, CEO of NENT, in a statement.
“This expansion requires funding and we will discuss it with our shareholders.”
NENT said it is also considering a secondary listing in the United States, where it said Viaplay will launch at the end of 2021 as a “bespoke service offering high quality Nordic drama series.”
Viaplay will aim to more than double its Nordic subscriber base to around 6 million, while growing it elsewhere to around 4.5 million, NENT said.
“This acceleration of the group’s development should generate annual organic growth of 18 to 20% of sales for 2020-2025, with the Nordic operations generating growth of 13 to 15%.”
He expects his northern growth to be driven by original and acquired content, which he said was a unique offering, as well as a sharp increase in sports subscribers.
NENT plans to have an operating margin of 15% in the Nordic countries by 2025 – against a group adjusted margin of 6.2% in the third quarter, and also to achieve profitability of its international operations by then .
($ 1 = 8.6238 Swedish kronor)
Reporting by Johannes Hellstrom; Edited by Simon Johnson, Niklas Pollard and Barbara Lewis
Original © Thomson Reuters Corporation