(Reuters) - Swedish streaming company Viaplay Group said on Thursday it has withdrawn its full-year outlook for 2023 following a company review that pointed at weaker forward revenue and earnings forecast for its Nordic operations.
The review initiated by newly appointed CEO Jorgen Madsen Lindemann suggested the increase in Viaplay's fixed content costs in particular was not matched by sufficient revenue growth or cost savings.
Last month, the company's shares fell 60% to a record low after Viaplay said it would replace its CEO and warned of a weakening business environment due to rising living costs denting demand.
Viaplay, which competes with Netflix (NASDAQ:NFLX) and Walt Disney (NYSE:DIS)'s Disney+, previously lowered its short-term organic sales growth projections for 2023 to between 16.0% and 17.5% from its earlier forecast of a range of 24% to 26%.
Viaplay said on Thursday does not see any change in its second-quarter outlook, and plans to provide an update on its strategy and medium-term outlook along with its second-quarter results.
For the second quarter, the company has previously forecast an operating loss between 250 million Swedish crowns ($24.11 million) and 300 million Swedish crowns.
($1 = 10.3675 Swedish crowns)