Annual & Sustainability Report 2019

Annual & Sustainability Report 2019

telling stories
touching lives
expanding worlds

2019 in brief

Net sales (SEKbn) 15.7
Organic sales growth 6 %
EBIT before IAC (SEKm) 1545
Total shareholder return 1) + 41 %
Viaplay subscriber growth + 25 %
# of premiered originals 21

1) 28 March–31 December

CEO’s statement

“NENT Group has led the way with our early and ambitious investments in streaming, content and technology leadership as well as innovative partnerships with content owners and distributors. We have delivered on our profitable growth commitment, while strengthening our content offering and growing our Viaplay base by over 25%. Scaling Viaplay remains our top priority simply because it’s the best way to drive long term value.”

The Nordic region’s leading entertainment provider

NENT Group is the Nordic region’s leading entertainment provider. Our primary revenue stream is the sale of subscriptions, which have grown significantly in recent years following our early and significant investments in streaming. Today, we are the Nordic region’s leading streaming company, with the broadest and most relevant content offering spanning all Nordic countries, best-in-class content discovery and a stable and scalable technology platform.

Sales split 2019
  • Subscription & other 61%
  • Advertising 26%
  • NENT Studios 13%

Our Key Brands

Perfectly positioned 

The entertainment industry is changing rapidly. Taking a long-term view and staying on the right side of disruption is essential. NENT Group is the Nordic region’s leading streaming company and our scale is a key success factor. It allows us to invest in our people, technology and content – and as we grow, more users means more data, which we protect carefully and enables us to deliver even better user experiences.

We are positioned to win

Viaplay is already one of the leading streaming services in the region and has gained market shares during 2019. Viaplay has three differentiating factors that position the service to continue growing faster than the overall streaming market:

Being a content champion is about quality as much as quantity. Viewer tastes are highly individual and change over time. Consumer insight is very important but sometimes people don’t know what they want until something is presented to them. Viaplay’s content strategy therefore spans three major content categories; Original content, acquired content and sports.

Streaming involves much more than making content available online. NENT Group has built a platform that competes with the best in terms of performance, functionality and content discovery. Viaplay is constantly getting smarter by analysing user data which in turn makes it possible to provide even more personalized and relevant viewing experiences.

Our people are our greatest strength. We work to attract and inspire talents who want to grow, develop and contribute in a fun, trusting and appreciative company. Taking care of our people and making sure everyone can be the best version of themselves is essential to our success. Our people focus also extends externally, where we use everything from A/B testing and big data analytics, as well as direct customer contact, to understand our customers better.

Sustainability

Sustainability is integrated with NENT Group’s business strategy, culture and values. Our ambition is to make a positive impact in society while doing better business. Our priorities are presented in our sustainability strategy, which consists of five focus areas:

NENT Group is writing a new chapter for Nordic storytelling and the region's creative industry by investing in original content and promoting local talents.

We are Nordic in origin and global in terms of our themes, partnerships and audiences. We offer a broad and diverse product portfolio that includes some of the best international content available. At the same time, we work closely with local talents to produce critically acclaimed Nordic storytelling, and we create job opportunities in the  creative industry. Through the 32 companies that comprise NENT Studios, we produce and distribute series, films and documentaries in every Nordic language.

We work for greater diversity and inclusion in the entertainment industry. We believe this makes both our business and our content better. We want our content to mirror society, and to do that we need to mirror society in our company. We are taking a range of steps to achieve this, such as including unconscious bias training in our values workshops.

Our efforts do not stop there. Equality is one of our values, and we believe that all people should be seen and respected. This is why we have joined the fight against diabetes by raising awareness about diabetes type 1 and 2 and its consequences, and helping erase the stigma surrounding it.

We believe that equal opportunities and inclusion for our people fuel our success. Our values are the foundation of our culture and help create an open and engaging workplace that aims to inspire employees and audiences while creating long-term business value.

We operate in a fast-moving industry and we need to attract and retain the best people in order to stay at the forefront. To achieve this, our focus is on developing our employees while creating a safe and healthy working environment. Our values are embedded in our Employer Value Proposition that was developed in 2019 and will be launched in 2020 and outlines who we are and why we are an employer of choice.

We conduct business responsibly and with integrity, and we expect our suppliers and partners to do the same. Keeping information and data relating to our business, customers and stakeholders safe is a top priority. We also work hard to minimise our environmental footprint and we raise awareness of eco-friendly behavior across the organisation.

We are constantly reinforcing our processes regarding data protection as well as protection of our content from piracy. At the same time, we have initiated a process for identifying high-risk suppliers and making sure they share our ethical standards. We have also launched employee engagement activities that aim to inspire green action in our business and content.

We follow responsible sourcing, production and advertising practices, and comply with regulations protecting minors and minorities. We are working to bring down barriers through subtitling and dubbing that make our content easier to access.

We have launched editorial guidelines and our Content Compliance Team screens all our original productions before they are broadcast on our linear TV channels. To make sure our kids content is relevant, educational and entertaining, we include kids in the creation of specific productions. We will also start focus groups for kids and parents to ensure our entertainment is always safe and trusted.

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