Viaplay Group CEO Anders Jensen is stepping down immediately amidst an economic downturn that is causing rapid deterioration in the ad market and subscriber churn.Jensen is departing after five years and will be replaced by Jorgen Madsen Lindemann, the ex-CEO of the nordic TV outfit’s former parent company MTG.Delivering the news via an update in the early hours of this morning, Viaplay posted expected Q2 sales of between 4.5BN ($420M) and 4.6BN Swedish Krona with negative EBIT of between 250M and 300M Swedish Krona. Advertising revenues are expected to be down between 12% and 16% on an organic basis, due to the “sharp and rapid deterioration in the TV and radio advertising markets,” added the group, with an update on the medium term outlook set to be provided on July 20.Viaplay posited three factors impacting sales: lower demand in the Nordic and international streaming D2C subscriber markets and lower wholesale subscription sales by linear distribution partners, accelerated deterioration of the Scandinavian TV and radio advertising markets and the slower delivery of cost savings programs.Adjusted for the full year, Viaplay would therefore see a dip in the full year profits that were expected in the previous update – delivered last year.With that in mind, Viaplay’s Board has scotched the “long term operational and financial guidance” that was previously in place for 2025 and Jensen has offered his immediate resignation.She said the “overall strategic direction of the company is unchanged and [new CEO] Jorgen, together with the Board and his leadership team, will evaluate the need for structural, operational, and capital allocation enhancements to the delivery of the strategy.““The outlook for the markets in which we are operating has shifted considerably and at a very rapid pace, and the execution of cost savings programmes has not been mitigating the effects from these conditions to a sufficient extent,” he added. “The impact of the macroeconomic headwinds on the business require that we execute differently on our strategy.”He thanked Jensen for “leading the achievement of significant milestones,” which saw him take over when Viaplay – then NENT Group – became an independent company in 2018.Jensen said: “In the light of current challenges, the company is best served if I step down, and I have therefore decided to do so. I wish the company and the team the very best in the future.”Viaplay has been rolling out its Nordic streaming service to key markets such as the UK and U.S. in recent months, while ramping up its original programing and sports rights, most recently greenlighting a drama series from Snabba Cash author Jens Lapidus.
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