European streaming service Viaplay ousted its chief executive and issued a profit warning, sending shares in the group known for Nordic drama down more than 50%.
In a press release issued early Monday, Viaplay said Anders Jensen will be replaced as CEO by Jorgen Madsen Lindemann, former head of Viaplay’s former parent company MTG.
The Swedish group, which sees itself as a rival to Netflix in Europe, said it now expected to report an operating loss of SEK 400 million to SEK 700 million ($37 million to $65 million) and withdrew its forecast for sales, subscribers and profits. Long-term guidance for growth.
It blamed falling demand for streaming subscriptions, an “accelerating deterioration” in TV and radio advertising in northern Europe and a slowdown in cost-cutting plans, among other factors.
Shares of the company plummeted nearly 60% in early trading on Monday.