Streaming service Viaplay is issuing new shares and writing off part of its debt. The company known in the Netherlands for Formula 1 has reached an agreement with creditors and shareholders.
This gives the struggling company some breathing room. Viaplay has miscalculated a number of projects in recent years. Revenues were disappointing, causing losses for the Swedish company and forcing it to cut costs.
For example, part of the staff has been laid off, including in the Netherlands, and the streaming service has begun to withdraw from many markets. It is still looking for companies interested in sourcing spare parts in Poland and the United Kingdom, among other countries. Viaplay will remain active in our country.
The streaming service announced on Friday that it had canceled debts worth 2 billion Swedish krona (175 million euros). Creditors received Viaplay shares for a quarter of that amount. New agreements were concluded for other loans, for example, on the repayment term.
The company is also issuing new shares worth €350 million. These go to existing shareholders.
Viaplay is deep in red
The streaming service also released quarterly numbers on Friday. It was initially scheduled to be published in October, but the company first wanted to reach an agreement with financiers over their debts.
The numbers do show that Viaplay is not doing well. The loss in the third quarter amounted to about 61 million euros. During the first nine months of this year, the loss rose to 600 million euros.
In addition to Formula 1, Viaplay also broadcasts English and German football matches in the Netherlands. It also shows darts matches.
