Nordic region's leading streaming company, Nordic Entertainment Group (NENT Group), has set a new goal to become the European streaming champion. NENT Group's Viaplay streaming service will be rolled out in 10 international markets by the end of 2023, including Estonia, Latvia, Lithuania, Poland, and the US in 2021. By the end of 2025, NENT Group aims to increase its subscriber base to approximately 10.5 million by more than doubling its Viaplay paying subscriber base in the Nordics to approximately 6 million and growing its international subscriber base to approximately 4.5 million.
This acceleration in the Group's development is expected to generate 18-20 percent compound annual organic sales growth for 2020-2025, with the Nordic operations generating 13-15 percent growth. The Nordic operations are expected to have a significantly higher EBIT margin of approximately 15 percent in 2025, with the 10 international markets being EBIT profitable on a combined basis in 2025. The Group is considering funding the expansion with an equity raise that would also be intended to increase the liquidity in the Group's shares.
Viaplay will be launched in Poland in August 2021 and offer Nordic, local and international content, as well as live sports such as Bundesliga football. 25% of Poland's 13.8 million households currently have a streaming subscription, and this is expected to grow to well over 40% in 2025, with the current average of 1.5 subscriptions per household also expected to increase.
"Viaplay is a proven Nordic success story and we are now ready to expand internationally and become the European streaming champion. We have one of the world's most flexible and scalable technology platforms, and aim to be the most diverse and inclusive storyteller with our amazing range of original, acquired, local, and live content that offers something special for everyone. We have already signed up key content rights in our target markets, and are in discussions with distributors about exciting new partnerships to ensure that Viaplay is available everywhere," Anders Jensen, NENT Group President & CEO, said.