Viaplay Targeting Double-Digit Profit Margins In Five Years As Swedish Finance Authority Says Yes To Major Recap Program
deadline.comViaplay is targeting double-digit profit margins in five years’ time following the recapitalization program that it hopes will end months of strife, although it has once again downgraded financials for the coming year.
The Scandi outfit delivered the lofty ambition as the Swedish Financial Supervisory Authority approved its major recapitalization program, paving the way for new shares to be issued and traded on the Stockholm stock exchange.
Agreed last week at an Extraordinary General Meeting, the plan has effectively seen Viaplay rescued from collapse but at a price for its existing owners, who have had shares diluted.
Canal+ and investment firm PPF have each taken a 29% stake in the outfit and the recapitalization plan will raise 4 billion Swedish crowns ($391 million) in new equity, write down 2 billion crowns in debt and renegotiate the terms of debt totalling 14.6 billion crowns.
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