Good morning, everyone, and welcome to today's Q2 2026 results conference call. At this time, all participants are on a listen-only mode.

My name is Matthew Hooper, and I will be your host today. Joining me here on the call are our CEO, Jørgen Lindemann, and our CFO, Johan Johansson.

Welcome, gentlemen. Our presentation will be followed by a Q&A session on the telephone dial-in line, and you can find our results materials, including the presentation deck and detailed fact sheet, on the Investor Relations section of our website.

As usual, the deck is for your information, and our remarks and commentary will not follow it slide by slide. Please be advised that today's conference call is being recorded.

I will now hand the call over to Jørgen to walk through the results. Over to you, Jørgen.

Thank you, Matthew, and good morning, everyone. We made further progress along our transformation path in Q2, and the Allente integration is proceeding according to plan.

The combination of the Viaplay and Allente groups has created a larger group with more customers, more content monetization potential, and more cash-flow-generating capacity to deliver our strategic transformation and goals. The combined sales of 10.8 billion for our core operations for the first half of this year is almost 25% higher than what we reported on a stand-alone basis for first half last year.

Our combined first-half EBITDA before ACIs and IACs of 560 million compares with a loss of 50 million in first half last year. The integration of the Allente Group is running according to plan, and we have now taken the majority of the costs relating to the restructuring.

The resulting cash cost synergies are as expected. They are starting to come through, and will be at their full year run-rate level from the start of next year as planned.

There will also be sales synergies, which our teams are exploring fully and carefully in areas such as customer acquisition and retention, marketing and promotion, product packaging and development, content utilization and monetization, and how we make the most of our tech stacks and CRM activities. More broadly, we are making progress with our strategic transformation.

On the sales side, our streaming subscription sales were up 7% year-on-year on an organic basis, with both our D2C and B2B sales growing. The total Viaplay subscriber base was stable year-on-year, and down quarter-on-quarter as usual due to the seasonally quieter summer sales period.

Both D2C and B2B ARPU levels were up year-on-year and quarter-on-quarter due to the growth in the number of premium sports subscribers, as well as the continued focus on value over volume in the extension of our agreement with key distribution partners. More D2C and B2B customers are choosing our sports offering because we have much high-quality, wide-ranging, and year-round offering of the very best sports content.

We have more coverage of major sport this year than ever before. This quarter featured the exciting culmination of the English Premier League football season and the Danish Superliga, the Ice Hockey World Championship, the final rounds of the UEFA club championships, Formula 1 motor racing, and golf from the three of four majors: The Masters, the PGA Championship, and the US Open.

Our non-streaming revenues comprise the Allente DTH business, as well as our own linear pay-TV channels sales to third-party networks. The number of linear platforms and channel subscribers is a long-term structural decline due to the shifting consumer preference to streaming services, but scheduled appointment viewing still has a large and loyal following.

The vast majority of the Allente subscribers already have Viaplay bundled with their subscription, they have the best of the scheduled, live, and on-demand viewing worlds in their existing subscriptions. The Allente DTH subscriber base continued to decline in Q2, but Allente has also added new content to make the product even stronger and raise prices, which partially offset volume declines.

In total, then, our non-streaming subscription sales were down 3% on an organic basis. Our total advertising sales were up slightly on an organic basis, which again reflected the combination of strong digital sales through our AVOD and HVOD offerings, and growing radio advertising sales, which were offset by the ongoing structural decline in linear TV advertising.

Our content offerings remain very attractive, and we will invest further in our offerings. We've successfully launched several new local productions across our markets during Q2.

In Norway, Helvetesuka premiered and has become one of the strongest performing local titles ever on the platform. We also launched Skjærgårdsfeber, a spin-off from one of the most successful franchises in Norway, Charterfeber.

In Denmark, we introduced the Danish version of Charterfeber, while [Middag på Michelin?] restaurants also stood out as a strong local launch.

Our international slate was further strengthened by the premiere of the international hit Sandokan, which has been particularly well received by subscribers who engaged with Outlander earlier this year. Our movie offerings also continued to differentiate the service during the quarter.

Standout titles included The Materialists, starring Dakota Johnson, Chris Evans, and Pedro Pascal, as well as our Swedish original movie Det är något som inte stämmer, based on the bestselling novel by Martina Haag. Finally, the other sales line comprises our sports sublicensing business, where we sublicense our sports rights to third-party broadcasters and streamers in our core markets, and our scripted content sales business, where we sell our portfolio of original scripted content to broadcasters and streamers around the world.

Sales were down 15% year-on-year on an organic basis, as reflected the lower volume of scripted content sales in particular. Overall, our core operations sales were up 0.7% year-on-year on an organic basis.

When excluding the positive currency effects, our core operations costs were up 2% on a pro forma basis. The primary operating cost driver is content, which accounts for three quarters of our total cost base.

The largest part of this is sports content, where our costs have continued to rise due to the inflation built into our multiyear legacy agreements. As we prolong these agreements on competitive market terms or find alternatives, the inflation will be less in the second half of the year, and also increase less next year.

We offset some of this increase by reallocating capital to more profitable areas, and with SG&A savings, including some synergies from the Allente Group integration. The ongoing transformation, disciplined capital allocation, sales and cost management, and the negotiation and extension of key content and distribution partnership agreements on commercial and competitive terms, or the securing of alternative options, are the major drivers of our longer-term ambition to deliver a double-digit EBITDA margin in 2028, compared to the 5.3% that we delivered last year on a pro forma basis.

Our Q2 EBITDA was up year-on-year when compared to the pro forma number, including Allente Group's results last year. Then this included an approximate 110 million currency tailwind due to the strengthening of the Swedish krona reporting currency.

The recently announced sale of the Dutch operations will focus us operationally on the Nordic markets, where we have the greatest scale advantages and synergy potential, and will also provide cash to reduce our net debt and strengthen our financial profile. We remain totally focused on rebuilding as relevant and resilient a Nordic business as possible, one that both entertains and creates sustainable value for our customers, our people, our partners, and our owners.

We're doing this by crafting competitive products and commercial partnerships to stand the test of time and enable us to achieve our transformation objectives. We still have a lot to do to deliver our short- and long-term goals, but we are making progress and remain fully focused on making this transformation happen.

This is it for my comments for now, and I will now hand the call over to you, Johan, for your comments on our financial performance and position before we take questions.

Thank you, Jørgen, and good morning, everyone. As a reminder, the quarterly fact sheet on our website provides the usual relevant historical and backup information.

In the report published today, we have provided the pro forma information for prior periods in 2025 to include Allente Group as if it had been consolidated from the beginning of last year, this is so that you can see the organic development. The FX are shown as usual in the ATMs at the back of the report.

We have focused the commentary in the report on key sales and EBITDA numbers for our core operations, as we discontinued the last of our non-core operations last summer. When it comes to cash flow and balance sheet commentary, we have provided group numbers as we still have a cash drag from legacy content agreements that are yet to expire in markets that we have already exited.

The year-on-year FX movements had big impact again this quarter, with approximately 80 million SEK positive impact on the reported core operations sales, as the Norwegian krone in particular strengthened against our Swedish krona reporting currency. Reported core operations costs benefited from the net positive FX tailwind of approximately 30 million due to the strength of the Swedish krona against the euro and the dollar, in which we have the vast majority of our costs.

The net result of this was an approximate 110 million SEK positive year-on-year FX effect on our core operations EBITDA in Q2. We do still have significant currency exposure in the second half of the year, primarily in NOK, these numbers can still move materially in either direction during the rest of the year.

Depreciation and amortization amounted to 252 million for the quarter, and included approximately 100 million of PPA amortization charges, which were flagged previously and are the result of the consolidation of Allente Group. The 52 million of items affecting comparability in Q2 primarily comprised 42 million of redundancy and restructuring costs relating to the integration of Allente Group, as well as 10 million of currency translation effects.

We have previously guided for total integration costs of 270 to 330 million SEK, with the majority being taken as IAC in the first half of this year. The 203 million of IAC in first half of the year was well in line with this.

With almost no associated company income or dividends now that we have fully consolidated Allente Group. When looking at our interest costs, please remember that the costs for the €646 million off-balance-sheet bank guarantee facility that were canceled in November last year were included in other financial items, not the net interest, whereas now almost all our borrowing costs are included in the net interest.

Although the net interest costs were up year-on-year, other financial items were also significantly down. Moving on to the group cash flow.

We reported -52 million working capital development, which primarily reflected the payments that were made for legacy content agreements in markets that we have exited. This non-core operations cash drag, which we talked about previously, is included in the working capital and is expected to amount to approximately 500 million this year, 400 million next year, and 200 million in 2028.

The year-on-year swing in working capital reflects the smoother and more stable setup that we have now. The payment terms in our new commercial arrangements reduce the cash flow volatility between quarters.

Previously, there were substantial swings due to payment timing differences. Our cash flow from operating activities totaled 145 million in Q2, and included 115 million of cash interest costs and 78 million of cash tax costs.

We invested 32 million of CapEx in Q2, and reported a positive free cash flow result of 113 million, of which 176 million from the core operations and -63 million from the non-core operations. The 187 million cash flow to financing activities included the quarterly amortization of Allente Group-related borrowing, which will total 420 million this year and next year, as well as changes in the usage of the 2.8 billion RCF, which we had drawn 700 million at end of the quarter, compared to 750 million at the end of Q1.

The net change in cash and cash equivalents therefore amounted to -74 million in Q2. When looking at the second half of the year, we do expect working capital to be negative in Q3 and positive as the positive effects in first half of the year will reverse, and it will be expected to be positive in Q4.

For the year as a whole, when excluding the non-core operations cash drag, we expect the working capital to be broadly neutral, and we are constantly working on to improve the working capital profile. We continue to expect CapEx to be at or about the same 150 million level for the combined group as last year.

Cash tax payments will benefit from the carried-forward tax losses that we have, and our annual cash interest costs are now running at approximately 450 million. After the scheduled debt repayment of 105 million of total borrowings excluding the RCF, we are now under 5.8 billion, compared to 5.9 billion at end of Q1.

You can see the usual debt maturity profile chart in the slide pack on the website. Aside from the scheduled repayments this year and next, all of the rest of our debt facilities mature in 2028.

Our financial net debt, when excluding leases, were largely unchanged at 5.12 billion at end of the period, compared to just under 5.2 billion at the end of Q1, and comprised 6.5 billion of borrowings and 1.3 billion of cash. Our net debt to trailing 12 months pro forma EBITDA, excluding associated company income and IAC, was 4.5 times at the end of Q2, compared to 4.7 times at the end of Q1.

The recently announced divestment of our Dutch operations for €142 million on a cash and debt-free basis will enable us to reduce our net debt once the transaction closes after the various regulatory and other approvals. The further deleveraging of our balance sheet depends on the strengthening of our cash flows through the effective doubling of our EBITDA margin between 2025 and 2028, and the ending of our non-core operations cash drag in 2028.

We are making progress, and the margin improvement still requires a lot of work, including the work with our suppliers, partners to move the old agreements onto commercially competitive market terms or find alternatives. We are focused on executing all of the various initiatives we have in place to deliver the transformation plan and make the required efficiency gains, including driving sales growth, cost reductions, and managing our working capital to be as positive as possible, and allocate our investment capital to generate as positive returns as possible.

That concludes my remarks, now back to you, Matthew.

Thank you very much, Johan. We are now ready to take your questions.

If you would like to ask a question, you will need to be on the telephone dial-in line, as the webcast is listen-only as per the invitation. Please press *1 and then 1 again on your telephone keypad, and you will enter the queue.

If you wish to cancel the question, simply press *1 and 1 again. The first question comes from Christopher at Kepler Cheuvreux.

Please go ahead, Christopher.

Morning, guys. Thank you for taking my questions.

I'd like to start with the Dutch divestment there. Can you please just talk to us about why you struck this deal now and why it did not happen perhaps two to three years ago when you were shrinking your footprint?

Maybe also talk to us about the timeline you mentioned a bit, but also how positive you are on receiving a green light from the regulator, where we have seen some, should I say, non-pro-business decisions before from the Dutch regulator?

As you can say, in general, it is part of the transformation that we are making, yeah? The same goes also with the acquisition of Allente.

The idea is of course to build a very strong and focused Nordic business. As I said in as well, that is also where we have the biggest scale, and we can realize the biggest synergies.

We did receive a number of unsolicited offers and in the end decided to take clearly the best price, and also where we saw the biggest deal certainty, and also where we had speed, because clearly the rights is also beginning now in August, September. We wanted to make a speedy process so that the new owner, potential new owner, can capitalize on those rights as well.

When it comes to the process on the competition authorities, there is a, as structure in that, and a path which they're laying out how to go about this. That is what we're following.

That is ongoing, and I will not comment on any historical decisions in Netherlands.

Fair enough. You mentioned this Nordic story, back to the roots, where you have a clear right to win, which I think we all applaud, right?

Can you give us a bit more on that strategy? Is this back to the old-star Viaplay in the Nordics, where you have a strong sports portfolio, more seasoned with your own local content like going back to the Viaplay Originals, or will you more continue with this, should I say, non-scripted route you've taken in recent years?

I think important for us is of course that our offering is commercially attractive, yeah? That is not only the non-scripted, all the scripted or sport, whatever.

It is a big variety, whatever it's called, of content that we have. It needs to be relevant, clearly, and it needs to be commercially attractive, yeah?

That is the key criterias. We have linear TV, as you know.

We have radio. We have AVOD.

We have SVOD offering, the Viaplay offering. We have DTH.

We have our broadband offering as well through Allente, and so forth. There's a lot of revenue opportunities that we having for our content.

That is clearly something which we are exploring, as we say, as well. We have not even explored the sales synergies as well with Allente.

What is it that we can do more together? How is it that we can capitalize even more on the relevant content that we're producing?

It is, like in all other media companies, about relevance. We have very strong sport position.

We have a very strong local content position. We have a very strong acquired position as well, in all fairness.

Luckily, we have a lot of distribution platforms where we can capitalize on that content, as you see with the Nordic business and the revenue coming out of the Nordics.

Thank you. You mentioned sports there in your strong portfolio, but we recently learned that you lost out on extending the Champions League rights in Sweden from H2 next year, which I think is a worry for the market, right?

Can you please talk to us about how you'll mitigate possible impact or possible negative impacts in terms of churn and you not being able to raise prices, etc.?

I think it's normal. I don't think that we will be winning all the competition, all the auctions that we're going into, as we also have had in the past.

It's about a disciplined approach where you actually understand your business case. When the business case is not supporting increased offers, then you leave it.

That I have done also in the past last time when I was CEO. That is a discipline you will see us continue to do.

Then it's up to us to find alternatives. We have a very strong football offering as well.

Don't forget Sweden alone, we have the FA Cup, we have the Premier League, we have the national team matches, and so forth, yeah? There is a lot we have to offer still.

Then we will then find alternatives if that is needed. We will not enter into crazy bidding in these processes.

Competition, we're used to, there might have been other than just Disney in that process as well. That has always been the case.

Got it. If I turn to the cash flow side, fantastic development in H1, positive 150 million in my model here, and you guide for a neutral free cash flow for the year excluding the non-core cash drag.

What I'm struggling to understand is this non-core cash drag and the timing, because if my math are correct, that implies a negative 400 million cash drag in H2, which is very different to the seasonality we're used to in non-core cash drag. Maybe you can help us understand that.

We have different payment schedules for that sort of cash drag. It is correct that it is the 400 in the second half of the year for that, yes.

Okay. On streaming subscribers, it was a bit negative in Q2 here with roughly 200k outflow.

I know there is a seasonality, but it was a bit more pronounced than I had expected. Can you talk about the mix there in B2B and B2C in terms of the subscriber decline?

I think, as you say yourself, there's seasonality in that as well, yeah? Like all other years has been the same.

We continue to see the sport actually continue to grow fairly well when it comes to, yeah, both the D2C and also the B2B part, to be fair. The campaigns we have with our B2B partners seems to be working very well, we're happy about that.

It is linked, of course, to many times that when the leagues are expiring, which they did a little bit earlier this year as well due to the World Cup of Football as well. That of course had an impact.

Got it. Maybe a last one, you mentioned, Jørgen, some of the building blocks for the EBITDA margin to expand to the double digits in 2028, but I missed part of that.

Can you remind us of the big building blocks?

That is several building blocks to be fair. As we said, it is first of all is the relevance of the content, yeah, and the sales related to that content.

Then it is also quite important that the content that we are buying is also on market terms. Clearly, as you can see, and as I also said, a lot of the legacy contracts we're having, we are prolonging those on market terms, or we find alternatives for those as well.

It is a mix of many things which we would like to see happen in order for us to get into double-digit in 2028.

Understood. Thank you, guys, and congrats on a good first half.

Thank you.

Thank you.

Thank you, Christopher. The next question we will take is from Alex at SB1 Markets.

Alex, over to you to ask your questions.

Can you guys hear me?

We can.

Oh, perfect, great. Most of my questions were actually already answered, which is good.

I just have maybe one follow-up on the Dutch sale. I was wondering if there's any detail you guys can give on the leverage impact post the sale?

Not sure how much you can disclose there, but any call on the Dutch business EBITDA just to know how we should model the business post the sale?

It's not something that we have disclosed at this time, so, but what we have provided is the historical sort of sales, you can see the sales multiple. Then on the leverage, we have not disclosed the cash flow nor the profits.

Is that something you should expect once the deal closes, is our guessing?

I think we'll have to see, Alex, what we're able to give you then. You can see quite clearly on the front page of our earnings release, if you look at the financial net debt and you look at the proceeds from the sale, it represents quite a significant amount of our financial net debt, I guess you can deduce something from that, yeah.

Agreed. Yeah.

Yeah. Though that's good.

Then just kind of the core sales bridge after the Dutch sale, not sure if you guys mentioned this, but once that business is sold, now how should we think about kind of the core sales base and growth profile? I know you mentioned you haven't changed anything with regards to your guidance for this year, but maybe looking forward, is the Nordic-only perimeter expected to be more stable, or does the loss of that Dutch streaming revenue change your organic sales bridge at all for you?

I think on the organic side, obviously organics will imply then that we take Netherlands out of the mix, right? That the comparison then will be excluding Netherlands, and we're not changing the assumptions around the stable year-on-year growth rate.

That doesn't really change, and it just focuses everything back onto the Nordic business, whereas we have a similar profile, and it's a mixture of this growth on the streaming side. You saw a slight improvement on the advertising side, but this is offset by the linear subscription market, and then obviously our sublicensing has been a bit volatile, but has been operating in this quarter around the level it was in the latter half of last year, it seems more in the sort of zone there.

It's a bit of a mix, I'm afraid, but overall, the prognosis for stability in sales remains the same. You may see a bit one way or the other, but it's around stable, organic.

Okay. No, that's perfect.

That's all from me. Thank you, guys.

Thank you. Thanks, Alex.

I think that's it, actually, for the Q&A today. We're conscious it's a busy earnings day today for lots of people, just like to say thank you very much for your time and for your questions.

We do really appreciate your interest and always welcome the feedback. We are available for follow-up questions and meetings, please don't hesitate to reach out if you would like to schedule a meeting now or after the summer, and if you have any further questions.

I think that's it for today. Thank you again.

We wish you a great summer, and goodbye for now.