Anders Jensen resigns as Viaplay takes financial hit

Viaplay chief executive Anders Jensen has stepped down with immediate effect amid a rocky financial period for the Scandinavian media giant.

The Sweden-headquartered company has downgraded its short-term economic outlook following a “accelerated deterioration of the operating landscape”, in which it is projecting a 12-16% drop in advertising revenues. This will see its income down by as much as £22.5m.

Viaplay also cited the cost of living crisis as contributing to a subscriber slowdown for its flagship streamer along with higher churn. Viaplay has expanded internationally to major markets including the UK and the US outside of its Nordics heartland.

A cost-saving strategy introduced last year has “not been mitigating the effects from these conditions to a sufficient extent”, according to board chair Pernille Erenbjerg.

The short-term financial outlook alteration is set to see Viaplay lose around £74m-£82m on international revenues while its working capital – a measure of a company’s short-term financial health – is -£148.4m.

Jensen, who has been chief exec and president since 2018, had his resignation accepted by the Viaplay board and has been replaced by Jorgen Madsen Lindemann.

Lindemann is the former chief executive of MTG, which was previously Viaplay’s parent company before a split in 2019. Prior to becoming chief of the newly formed MTG, he held various senior leadership positions at MTG over two and a half decades, including head of the Nordic operations and international operations, and head of sports rights acquisition and production.

Erenbjerg thanked Jensen for the “significant milestones” he achieved as boss and acknowledged that the market in which the company is operating has “shifted considerably and at a very rapid pace”.

“The impact of the macroeconomic headwinds on the business require that we execute differently on our strategy. With more than 30 years of experience in the entertainment industry and leading Nordic and international businesses, we are confident that Jorgen has the right profile to lead this work.

“The overall strategic direction of the company is unchanged and 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.”

Jensen added: “It has been a privilege and an honour to be on the team making Viaplay Group into the forward leaning and future focused company that it is today. I remain confident of the success that lies ahead for the company. But I also feel that, in the light of current challenges, the company is best served if I step down.”

This article originally appeared on our sister site, Broadcast.