Viaplay is in really big trouble. On Monday, the company’s stock fell more than 60 percent, and on Wednesday the stock opened with a 10 percent decline.
Media company Viaplay’s price drop that started on Monday will continue on Wednesday.
The company’s stock traded on the Stockholm stock exchange plunged by almost 12 percent one hour after the start of trading.
On Monday, the company’s stock fell more than 60 percent. The Stockholm Stock Exchange was closed on Tuesday.
On Wednesday at 11 o’clock, the Swedish company’s share cost only about 74.3 Swedish kronor. The share has fallen sharply this week, as at the end of Friday the share cost more than 225 kroner.
Viaplay issued a profit warning on Monday.
The company lowered its short-term organic growth guidance considerably. Earlier, the company estimated that it would reach a growth of 24–26 percent this year, but based on the earnings warning issued on Monday, the growth will remain at 16.5–17.5 percent.
The company also said that it will not receive its calculated expenses as quickly as it had previously estimated.
At that time, the company also estimated that its April–June losses would increase to 250–300 million kroner, or approximately 21.5–26 million euros.
The company also announced on Monday that it was changing its CEO. At the same time, Viaplay withdrew its long-term financial guidance. The company is expected to shed light on its medium-term outlook in July when it releases its second-quarter results.
Viaplay the action has also caused a lot of anger among bench athletes in Finland. The company shows, for example, the NHL, the English Premier League and Formula 1 in Finland. The company announced at the end of February that it would raise the price of its Total package by five euros. The package has cost 44.99 euros per month since March.
As early as the beginning of the 2020s, you could get a Sport package from Viaplay, the monthly price of which was 29.99 euros.
At the same time, the company has also limited viewing of live broadcasts from several devices. Previously, one user account could watch the same broadcast on two devices at the same time. For example, the live sports broadcasts of Viaplay’s competitor C More can still be watched on two devices at the same time. In Finland, C More shows, among other things, the Champions League and the Spanish League.
Those who follow sports have criticized Viaplay’s activities harshly. On various football forums, many people have said that they canceled their order due to the price increases and usage restrictions made by Viaplay.
According to the company, the increase in the price level has affected its business. It can be seen in reduced order volumes and reduced advertising sales.
Viaplay had around 7.3 million users at the end of last year. The company’s turnover was around 1.35 billion euros. At the same time, the company made profits of around 224 million euros.
Read more: Accused of expensive prices, Viaplay is in trouble – The stock plunged by more than 60 percent
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