Viaplay Q1 2024: Swedish video streaming giant Viaplay posted 5.6 per cent growth in organic sales in the first quarter of 2024, marking a decline from the 27.3 per cent growth seen in the same period last year. This slowdown comes as the company directs its efforts towards operational enhancements following a comprehensive recapitalisation initiative.

Last year, Viaplay underwent major restructuring, including the replacement of its CEO and a reduction of its workforce by 30 per cent. In December, the company unveiled a rescue plan aimed at bolstering its financial position, which involved raising equity, restructuring debt, and refocusing on its core Nordic, Dutch, and Viaplay Select operations.

Despite these efforts, Viaplay faced challenges during the quarter, with net sales from its core operations reaching 4.46 billion Swedish crowns ($410 million). However, this growth was tempered by customer churn resulting from price increases and the prevalence of account sharing among users.

Approximately one-third of Viaplay's premium subscribers were found to be sharing their account details, a practice that the company identified as a significant industry-wide issue. In response, Viaplay is engaging in discussions with distribution partners to address account sharing and intends to introduce additional measures to mitigate this issue by summer.

Viaplay recently completed a 4 billion crown recapitalisation program in February, which included a cash injection from its main stakeholders. The company believes that this infusion of capital should be adequate as it strives to stabilise its business amidst declining demand attributed to rising living costs.

(With Reuters inputs.)