Netflix rival Viaplay ousts chief and issues profit warning

European streaming service Viaplay has ousted its chief executive and warned on profits, sending shares in the group known for Nordic drama down by more than 50 per cent.

In a press release issued in the early hours of Monday, Viaplay said Anders Jensen would be replaced as chief executive by Jorgen Madsen Lindemann, former head of MTG, the ex-parent company of Viaplay.

The Swedish group, which saw itself as a European rival to Netflix, said it now expected to report an operating loss of SKr400mn-SKr700mn ($37mn-$65mn) and withdrew its long-term guidance for sales, subscriber and profit growth.

It blamed factors including lower demand for streaming subscriptions, an “accelerated deterioration” in Nordic TV and radio advertising, and a slowing of its cost-cutting programme.

Shares in the company plunged by almost 60 per cent in early trading on Monday.