Viaplay Group AB (publ) (VPLAYB) Earnings Call Transcript & Summary

Good afternoon, and welcome, everyone, to the 2022 Viaplay Group Capital Markets Day. So I think it's been more or less 3 years since we had a physical event like this, and that was just after our original listing. So great to see you all. We have a lot of people joining online as well. So welcome to those and good morning to the U.S. We have a lot of people in mind, so that's great. We're going to take all of your questions, and we're on a packed schedule. My name is Matthew Hooper. I'm going to be your pilot for the day and pilot because we have in true fire play style a series and a series of episodes going on today. What we would start with is obviously, a suspenseful introduction to Group view. We're going to have a very entertaining middle and then a twist in the tail at the end. So there is some evening entertainment. Please don't leave at the end of the day, do stay. We have some music apps, and we have some actors and actress and content creators who worked with us who will be interviewed during the course of the evening, where we have a hard finish around 07:30. In terms of other things for today, I trust you've seen the press release that we put out around 12 noon and have seen all the announcements we made there, which we'll be talking a little bit more about during the course of today. The presentations are available from the website. They're also available on the event platform. So no paper wastage, nothing printed but all available digitally. So pleased to do do downloads and have them available to look at. In terms of asking questions, we will have roving microphones in the room. So we'll have Q&A sessions after each presentation block. So please just put your hand up or find the person with the microphone, who will be on the corridor next door to you. For those of you who are online, there's a submit questions tab that you can use there, and I will then have an iPad and take those questions and relay them to the presenters for you. We also have panel discussions. So not only will you see the presenters listed on the screen here, but you will also have guest panelists coming to discuss key issues for the industry, not just for the company. We will have a break in the middle. It's only 15 minutes, but we're going to get through this fast and we hope it's going to be very entertaining for you. The bathrooms are out on the left-hand side. So if you go out of the door up here, we will have coffee and tea available and refreshment to the back. And then when we finish, we'll be moving into the club room where we'll have the evenings entertainment. Wi-Fi is a free open network, I hope you found it already. So I just log in their space network if you need that. So I think that's it in terms of the housekeeping and we'll move on to the main event now. So for that gripping introduction, I was talking about, who better to give that, then our President and CEO, please welcome on stage, Anders Jensen.

Hello, everybody. I know that Matthew said that the entertainment will come later. But I will do my best in the first 20 minutes or so. There is a bet going on out there among my colleagues whether I can actually keep this to 20 minutes and the odds on me succeeding are not great. So I have a lot to tell you today. But first and foremost, like Matthew said, it's so fantastic to see you here today. And of course, all of you are online as well. We've been doing 2 CMDs, important CMDs, completely virtual and standing like this with just the camera to talk to, it's not easy. So thank you very much for being here today. The headline for what I would like to talk about for the next 20 minutes or so is how we are building a sustainable entertainment provider. Sustainable as a corporate citizen, of course, but also sustainable as an investment case, sustainable as an employer, sustainable as somebody who is driving innovation. There has been headwind, there is headwind in the short term. I think it's extremely important for all of us, us in the company and for you here as our guests, to take that step back and look at what we actually have decided do, how far we've come and what the line of sight is to get to where we are set out to go. We know that there are concerns -- some key concerns that came as a consequence of what we put out in not so much Q3, not so much Q3 in itself, but more what we said about the outlook. Those key concerns will be addressed today. we will share as much granular information as we can without giving too much. But nonetheless, my starting point here will be very much about talking about where we are going. Why and how we will create value doing so. The journey so far is basically what we presented in 2020, a company born out of the Nordics deciding to expand into new markets. I'll come back to the rationale on why we did it and what the alternatives that were available to us to build more value for our company in all aspects of the way. I'll come back to that, a little bit later. But so far, let's remember where we are today. We started out in 2020 when we presented our new strategy with 4 markets. Today, we are in 11 markets. We started in 2020 with 3 million subscribers, we are today aiming at 7.3 million. We have full line of sight to 7.3 million at the end of this year. The increase in sports, the increase in content, the increase in tech investments is what has taken us here. And to make sure that we can continue to invest in those 3 areas are extremely important. What we will show today is that there are synergies in all these areas. There are synergies in being one of the most significant providers of premium sports in the world. Peter will show that later. There are evident and significant synergies in content leverage, operational leverage in content to as many markets as possible, Filippa will show that. Our cost of serving on the platform per subscriber has gone down significantly over the last years because we have expanded. And the operational leverage in going more and more platform-based and less and less local, that leverage still sits ahead of us. I can't present as a sustainable entertainment provider without talking about sustainability at the core of what we do. At CMD last year, I started my presentation talking about the fight for talent in front of the camera, behind the camera in front of the keyboards everywhere. It is a fight for talent. And today, you do not attract the best people. If you're not very, very clear on your purpose, where you're going, how you will do it and why you will do it. I'm very proud to say that we have come a really, really long way in these areas. We have reinvented ourselves, not just one but probably two or three times since we became an independent company in 2018, and that has allowed us to attract the best in the business. That has allowed us to grow our tech staff significantly. That has allowed us to open a new tech hub in Barcelona and get a lot of people who don't have access to the Viaplay product, getting on board and saying, this is really, really exciting, and we want to be part of this journey. This is who we are. And this is a fundamental part of our value proposition to our employees, but also to our investors. Subscriber growth. We are on track. Our guidance on 12 million subscribers in 2025 that is true, that is what we are aiming for hopefully and some. We aim to be at 7.3 million at the end of this year. That is also something that I think we can be very proud of. We have not just met, we have actually beaten our subscriber targets. And we have upgraded, as you know, a number of times. The way to get there will be a bit different, and it will change the coming years as the markets mature, and I will show that in a couple of slides. But it is this situation where we are right now that gives us the operational leverage. To work with pricing, to work with package population, to work with monetization of our content in different ways, you need to have critical mass and you need to be big enough. You don't have to be global. You don't have to have 200 million subscribers, but you have to be significant. That is a fundamental part on the consumer-driven journey in video entertainment from traditional broadcasting to streaming. That's a technology shift. At the end of the day, what we do is what we've always done, we enjoy great series, great movies. We watch our favorite sports. It's the same. It's the way you do it, how you package it and how you create value for the consumers that makes the difference. And to really, really unlock that value, you cannot be insignificant. We think we have the right balance between size and value in this strategy. We also have some wiggling room in how to get there, as you will see during the course of today. We are a growth company investing in profitable growth. We are a tech company by design because we invest in a lot in tech, but we're not a tech company in the sense that we have an open-ended end game on how much money we're going to make. We know very well where we want to land when it comes to profitability, return on our capital employed, return on every investment that we're making. This journey that you're on, and that is now illustrated by these numbers, and we'll come into much more on the numbers when Enrique talks in just a while. But this journey sort of demonstrates where we are going. We are growing. The alternatives available to us back in 2018, when we started to craft what was then Nordic Entertainment into becoming Viaplay Group. The obvious alternative would have been, of course, a double down on the Nordics and stay only in the Nordics. Every single data point we have, every single idea that we could think of said that, that would be an extremely shortsighted strategy. For sure, there will be some capital generation in the short term, which could be dividended out to shareholders, but it would be a runoff strategy with a crazy short runoff because we were subscaled, and we were not technically advanced enough to move in a direction that would allow us to reinvent ourselves in these 5 small Nordic markets. This is a squeeze that some of our colleagues and competitors in various markets around Europe, in particular, where the scale of the markets are limited, they will feel that squeeze, maybe not this year, maybe not next year, but it will come. And then you need to look at the risk balance and risk and reward balance in doing what we could have done or doing what we are doing today. We are, as I said, investing. Our Nordic home turf has stayed profitable. We continue to grow our profits. Yes, we have some headwind now that we have to deal with. We have some operational performance issues, but I'll come back to exactly what it is. in just a short while. And we have taken a strategic decision to exit one of our distribution agreements, which basically means that we have some short-term headwind, but it's the right decision for the long term unless we find a way to revitalize that discussion. This is an investment in our future. What are we investing in? Well, obviously, I would like to claim that we are the busiest team in the industry, but I wouldn't do that. But we stay very, very active. The team is coming with great new ideas, opportunities on a daily basis. If you look at the things we have on screen here, let's start with sports. Since we became an independent company in 2018, we have added 52 -- 5-2, new sports rights, 52. We have extended 48. We have dropped 7, those 7: Champions League in Norway, Champions League in Sweden and NFL in the Nordics. Everything else, we have managed to extend or go into new partnerships based on the scale that we were building. You will see a lot more on what that actually means from Peter later. But this is the hard core numbers of what we have done in sports, whatever you may view. One key challenge from last year, and Filippa will talk more about it was our access to Hollywood content because even if we invest a lot in original content and the original content is what sets us apart, we need the libraries from the Hollywood partners, the volume obviously, the quality in many of the movies that we have on stream. I dare to say that outside the Hollywood Studios ourselves, we have the broadest and most adverse Hollywood portfolio. We have expanded everything that we have wanted to extend. We have more Hollywood content today with one exception, and that's Disney, who are the only ones with a very clear strategy, which is, of course, absolutely fine. That's a destination. We don't have to pay to be at par with anybody else. This has allowed us to monetize in a completely new way. Of course, all the originals that Filippa will talk about the new markets, the acquisition of Premier Sports, which we saw as a obvious opportunity to take around SEK 450 million and invest in a company that will expedite our journey to profitability in the U.K. in a very, very attractive way. And we have continued to build our B2B partnerships. And they will continue to be not only important but actually fundamental to how we see the ability to grow in the future. There is one example here that I will come back to the distributors -- distributors later. There is one example here on the slide, which is Pluto. So Paramount's AVOD product. And one of the questions that I receive a lot these days is, shouldn't you also do advertising on Viaplay. Now that some of the globals are doing it. First and foremost, I'm not so sure it's thought-through strategy, it's a reaction to something. It's a reaction to a problem. Secondly, in the Nordics, it would be immediately dilutive because we have TV where we have high premium prices. And we have this cooperation with Pluto, where we do AVOD and HVOD in a very, very accretive way, adding another layer with Viaplay would just dilute the market. Advertising is about reach. It's about reach and premium. In the Nordics, we can achieve both in the current situation. Just going with the pack and say, well, AVOD or HVOD is the new black. That's not how we see it. That is not how we see it. In our new markets, where we don't have this footprint, we would probably look for an extended partnership like the one we have with Pluto rather than building an advertising product on an inferior reach, which even if we've grown a lot, we still can't compete with the local TV stations. Will a local Swedish advertiser, Clas Ohlson. Will they prefer to pay a massive premium on Netflix? Or will they get something that they know what they're going to get from TV4 Play, from Pluto, or others? U.S., it's a completely different discussion, but that's not really relevant for this discussion. New markets launched since we started. We completed our Nordic footprint with Iceland in 2020. We added the Baltics, Poland and the U.S. B2B, only B2B in 2021. And March this year, we went live in the Netherlands. And just a few weeks ago or a little bit more than a week, we started in the U.K. Viaplay Select, which you would probably hear quite a lot of the coming years has been a contender to monetize our content for quite some time. But in all fairness, the volume and the money has been attractive because it's extremely high margin, but too small to really talk about. That is changing now. This is something that, over time, will be SEK 1 billion business and more. It's our ability to monetize because for every year that goes, our library of content gets bigger. For every new production we do, we have a new opportunity to monetize in markets where we are not direct to consumer. We get our brand, we get our boots on the ground through strong local partners. That is an alternative to do everything yourself in all markets around the world. And the margin is significantly higher, the risk is significantly lower. And streaming has continued to grow. Whenever I here said, well, now streaming it has topped out. It's like going back to the 50s and saying, well, now every second household have a TV set, that's probably as far as we're going to get. It is the same situation now, but maturity has just come so much faster. We started this journey with some 30%, 35% in the Nordics, we're getting close to 60 and Norway way ahead, way ahead versus the market, that will just continue to grow. If we look at the value of the market, that has also continued to grow. And obviously, U.S. is the global leader when it comes to streaming. These numbers are just streaming. And that is typically how we and others tend to see our industry in these kind of verticals. But the way we see it, when I look at the numbers, I look okay, so this is what is called the traditional pay-TV market, and this is the streaming market. That is actually one market because it's the same share of wallet that we will be fighting for. It's the same money, it's the same user benefits that we are aiming for. In the U.S., the average household still spend in addition to streaming EUR 55 per month on traditional TV. In Europe, in our markets, including the U.K., it's EUR 20. But then you have some markets, especially in the Baltics that are extremely low. The number in the U.K. is EUR 30. That's the share of wallet that we and other streamers are fighting for. That is the share of wallet that distributors need to look for, how to reinvent themselves from selling channels over a set-top box to provide an open platform that can source the content that you love through various streaming companies to your carriage consumers. That is what we're seeing. Tele2 here in Sweden, YouSee and Denmark, Verizon in the U.S. take a completely different new approach to distribution. That is also a natural hedge against the obvious clash that has been sort of a theme for some years now when it comes to content between telcos, cable cos and media companies. If you find this new model, that class is irrelevant, unnecessary, value destructive, as I said initially, I will not keep this to 20 minutes. The number of competitors is, of course, growing. People are talking about the streaming wars, which I think is a very, very tired way of describing things. I think it's better to talk about the streaming celebration because this is extremely consumer-friendly. But how relevant is the picture that I have behind me, the number of competitors. How many of them are actually doing what we are doing? How many of them are in the corner of the market where we would like to position ourselves, they're very few. And the fact is that this market picture is also tilting more and more to our advantage. Netflix is the global market leader with some 200 countries covered, 33% of their subs still sit in one country, in the U.S. HBO, Max both fantastic companies. They're in 61 countries as per their latest reports and have indicated further growth, 64% of their subs seat in the U.S. They are pulling back on local productions now, where they started not that long ago talking about the importance of local content, they still do, but in HBO's case, they have openly said we're pulling back. We see it every day. It strengthens our position here. There is basically in this way of describing it, there is one that is getting at least in the Nordics, a bit closer to what we're doing on a pan-Nordic basis, and that is Discovery Plus. They're doing less and less sports and what will happen when they merge with HBO Max is, of course, to be seen. But this gives us a position where we are fighting on a part of the market, not with the market. Positive subscriber growth. We are growing our base. In the Nordics, we say 4.6. And yes, we know that, that lift from Q3 is a high one, but it's on the back of very, very solid agreements made. We expect to get to 4.6 at the end of this year. One of the key indicators, especially in these tougher times is, of course, churn because the organic growth in the market in the light of everything that we see in the macro financial reality around us will go down short term. And the churn is what is really, really important. Our churn is going down and the usage on our platform is going up. The one thing where there is both improvement potential and a need to improve, it's our average revenue per user. As we can see now that with the penetration that we're now hitting, especially in the Nordics, getting to 60%, the longer tail of the market will be covered by distributors. And in B2B agreements that we are really, really fond of, and Kim will talk about them later, the ARPU is lower. And it takes longer to get a flow through of price increases, that needs to be balanced better. As you can see here, B2B is flat during this year. We're growing our D2C because of price increases and package propulsion, and we don't get enough uplift on ARPU. That is a very, very clear indicator of something we have to address, but it's something we can work with. This is any subscription of FMCG business that can see how much you can get out of every single buyer. If you work with your pricing power in a clever way, as long as you have a critical mass of subs, the revenues will come. Right now, we just have to be mindful that when all of us get crazy high electricity bills and the food goes through the roof. Of course, we have to balance how much price increases we are putting out there, so we navigate through in a clever way. On a blended ARPU level, as a group, all markets, we are roughly SEK 4 to SEK 5 behind on blended ARPU where we would have liked to be right now. And that is driving, combined with the macro headwind that we're seeing, some of the revision downwards in the short term, that we're seeing. The flip side to that is that it's something that is very, very clearly something we can address and work with. Would we have -- shouldn't we have seen it coming? Well, yes and no. It depends on the market dynamics and who is successful in their campaigns, especially on the B2B side. If there is a chance to do a very accretive agreement like the ones with Tele2 and Telenor recently, and you know that it's going to be a bit ARPU dilutive in the short term but really strong in the long term, the right decision is to make those deals, and that is something we just have to balance. Our international expansion is on track. We have gone from 0 to top 2 in streaming market share in both Poland and the Netherlands, probably in the Baltics as well if you look at the size of the market. But Baltics are a bit more of a headache, not because of our product and the performance, but because of both the macro impact, but more importantly, the horrible war in the Ukraine and what that has led to in terms of the limitations in Russian language content, which is important in the Baltics, that has basically meant that there our total addressable market in those 3 countries has been reduced, and we're going to have to address that in various ways. That is not a massive problem because of the limited size, but it's a reality. Poland on track, Netherlands clearly ahead of track. Positive for ARPU development because the prices and the CLVs are higher in the Netherlands. And this gives you a little bit of an illustration of what we have ahead of ourselves. The minutes viewed per user in the Nordics is, of course, significantly higher than these less mature and less penetrated markets and the behavior moving from traditional TV over to streaming is still building up. We're investing in future opportunity. I don't think the price points in these markets will it the Nordic levels. We are quite expensive here in the Nordics and so is both content and especially sports rights, but there is pricing power. There is pricing proliferation, there's package proliferation in these very low points that we come from. And that will be manifested in the next couple of years. U.K. just launched very positive a lot of positive media. People think it's very exciting that we're coming. It's an affordable product. Yes, it's difficult times right now everywhere, definitely also in the U.K. I've been told so many times that it's a crowded market. Yes, it's a crowded market, which market isn't? Who in the U.K. is doing what we're going to do? Well, nobody. Great. So it's not so crowded in the part of the market where we want to play. We come to the U.K. to innovate, not to disrupt and to change for those existing players who are making good progress in the market. We're coming to the U.K. to give something new to the market. where there has been a decline, especially in the smaller or more mid-tier sports rights, they've been linked to very high price points for such a long time, so that they're actually declining in viewing and attractiveness. By taking them out, you take out exposure from some of the incumbents and you provide their users with a new opportunity at a much lower price and the Brits love Nordic content. So that's an obvious opportunity for us to just continue to build on the kind of content that we have and partnerships from day one. The expansion journey is continuing. Next up in February, the United States and then in March, Canada direct-to-consumer. Viaplay Select will close this year with 18 markets. We announced a new cooperation today. We will not do Germany, Austria and Switzerland in 2023. And in the numbers, Enrique will present in just a while, we have assumed not to launch in that region during this strategic strategy period. For all the macro financial reasons you can think of, but we can scale up and we can change very, very quickly. But we have taken capital allocation precautions not to be that aggressive in how we spend our money and take a step back. The key drivers for us to get from here to there, from today to 13% EBIT margin on a group level is that the market will continue to grow. There is no doubt about it. Will it be a bit slower in the coming couple of years, probably, not necessarily, but probably. We started the pandemic believing that we're going to go into a downturn. It turned out to be the opposite. Our products are extremely cost efficient, if you want to stay entertained also when you have less money to spend. But we've taken the prudent approach to say markets will come under pressure. The advertising market will come under pressure. We continue to build our content. We continue to work with pricing and packaging. We believe in the power of B2B partnerships. We believe there is joint and shared value to be created. We'll continue our international rollout as per the plan that I just showed you. The changes in the world around us, of course, means we have to rethink a few of the aspects of how we spend our money, where we spend it and how we create sustainable value. These are just some examples. Of course, the horrible tragedy in Ukraine and everything that it has led to is the main theme here. But there has also been disrupted supply chain over a couple of years, still is driven by COVID when it comes to Hollywood movies that we make good money on not just in streaming subscriptions but also through our rental video-on-demand part of Viaplay. That is picking up, but it has dragged on for some time. So we are now adapting our strategy to these new circumstances, this new reality. The power in pricing was always part of the plan, and we're going to continue to pursue exactly that. Operational excellence is something that I think we have always delivered. We'll continue to do exactly that. And we are today announcing the next step in how to achieve operational excellence. And we will double down on our core markets where we have proved that we can become significant in a very short period of time, and we have proved here in the Nordics that we can continue to be a player for many, many years. We just do it more cost efficiently in our new markets. So for this reason, I'm today presenting a slightly adjusted organization for the group. In 2019, we built a full matrix to be able to quickly ramp up and to make sure that decisions came as top down as possible to make sure that things went really, really fast. That was a necessity in the buildup. Now we've come far enough to say that, okay, these 13 direct-to-consumer markets these, whatever the number will be, 30-plus Viaplay Select markets, they need full focus and they need full line of sight on profitability, and we need to decentralize decision-making so we can pull out as much value as possible, while retaining the benefits of the matrix. And it is for this purpose that we have split commercial into regions that will have full line of sight on everything that has to do with our EBIT and our profit generation when it comes to EBIT minus fixed costs. The fixed cost will sit in the central functions, content, sports, product and tech and, of course, marketing and brand, which we will roll out in a unified way through the markets. Two new members of the executive team has been announced today. I think they are here. Alexander Bastin, Alexander can you stand up? So this is Alexander. He has been with us for a long time in various roles. He knows our business in and out. Alexander will move to Amsterdam with his family and take on the responsibility of Central Europe and the Baltics, Continental Europe and the Baltics. And we moved that operation to sit in Amsterdam, which we will now become our European hub. The other is that North America and the Viaplay Select opportunity is very closely tied in various ways in how we monetize our content. And while not being very substantial right now, it will grow fast. One of our best dealmakers in the group and in the industry, Vanda, who I think sits up there, Vanda, can you please stand up? She's been with us for a long time, Vanda will take that one responsibility, and this part of the operation will be operated out of London. Matthew Hooper, who is still Matthew Hooper, and he was here earlier. He is now taking on a very different task in the group. Matthew will lead the operations in the U.K. and over time, hand over the IR responsibility and his other responsibilities in the group. This is a new way of thinking of how we operate, but it's also something that will basically unlock opportunities in energy in the company, especially during this phase that we are in. We have a unique, tailored content offering. Tailored to each market, we are not one size fits all. We are tailoring based on the benefits that we have. But we use a world-class scalable tech platform that serves all markets and gradually brings down the cost for each and every served household. I'm extremely privileged I'm proud to be part of a team that has taken us from a split from MTG to a new company through a pandemic and now in a situation where we are, and we continue to deliver very, very robust, very, very passionate. And the distribution partnership. They are such a crucial part of what we're doing, and they will become the majority of the growth in the coming years to unlock that value, together with the partners is extremely important. I started talking about sustainability. Sustainability stays at the core of everything that we're doing, investing in the company that we are equals investing in sustainable entertainment and a strong voice in the industry to both fix what is broken and need to be fixed and unlock the potential in what has not been addressed, especially in diverse and broader content. These numbers were put out today. I will leave it to Enrique to go through it. We now have a very strong line of sight to what we want to achieve in '23. Every number you will see has a backdrop of thorough work on how to get there, fallbacks on where things could potentially go wrong. This takes us to the ambitions we have and remember that we are dealing with some dollar FX that if it wasn't there, the margin situation would look different. The long-term outlook that we are reaffirming that came out on the back of Q3, full line of sight to those results. And the key takeaways from my way too long, starting here, we are well on track. Yes, bumps in the road, headwind, we're dealing with it. We're adapting to the macro environment. We're taking precautions where they're necessary. The international expansion is on schedule or ahead in some cases. The Nordic opportunity is intact. You shall not believe anything else because we have a slightly weaker growth in the Q4 that is impacted by a few things. Two of them or more of a one-off character and one is something that we know how to address. And the power in the team is significant. With that, I would like to introduce you to our new CFO, who joined in August. He has had his baptism of fire now for some months, and he is more than ready to take the next step in today's presentation. So over to Enrique.

Thank you so much, Anders. So good afternoon all. So I was the newest member of this leadership team up until just a moment ago. So I guess I can't hide behind that now any longer. So I will take you now to Episode 2 of this kind of binge-watching that you are up to for this afternoon. And I think it's an important thing that Anders he outlined some really important things around how do we build a sustainable entertainment provider. And I think it will be really kind of -- it will be a theme across this day. And in that pursuit, we are kind of looking at how do we delight and entertain 12 million homes by the end of 2025. And that's a lot of people, but there is much more around our linear channels as well as radio as well to entertain. Not surprising, I will be focusing on the financials. What types of cost savings do we need to achieve in order to reach our goals. It means what types of constraints we have on what type of prices we need to look at, and how do we -- what type of returns that we should be achieving then. And to have a sustainable strategy really means as well that from a financial standpoint, that our operating cash flows, I mean, that we spend in international be higher than what we spend on than what we generate in the Nordics. It means as well that we have a very strict approach to kind of cost control to looking at business cases in a very kind of disciplined way. Okay. So let's -- and by the way, as well as our markets in international as well have a clear path to profitability. I think that's a very important one in order to have a sustainable business. Okay. So let's go and let me then tell you the things that I'll be focusing on then in the coming 20 minutes or so. We have a very good funding level very -- I mean, it is fully capable of delivering for what we have set for ourselves to achieve in this strategy period. We have a very good line of sight for -- on our cost. I'll talk to that in a moment. We have streamlined our company quite a bit, allowing us to invest really in content, tech and international expansion, and that gives us as well a very good visibility and progress in terms of the goals that we have set for ourselves. So, as a reminder then, in terms of the position that we have and especially around streaming, looking at this chart here, so almost half of our business in the third quarter came from streaming products. Two years ago, that number was 1/3. So it's really a significant growth. On a year-to-date basis, we have a growth of 18%. About half of that growth came from the Nordics, the other half came from international. And international was really SEK 800 million, about that in top line in the first 9 months and essentially versus nothing a year ago. For the dotted box that you see here, we're looking at sales of around SEK 4.5 billion to SEK 4.7 billion in sales in the fourth quarter. That's quite of a meaningful growth that we're looking at. And that's in spite of the downward revision that we discussed a couple of weeks ago in our Q3 report, and that shows a bit of the resilience of our business model. That number includes about SEK 60 million of sales from Premier Sports as well that we consolidate now. Then I find it very interesting as a business case, I would say, it's fascinating, as a leadership team that we got this mandate from the Board to essentially say, go and get capital and take cash flows from the Nordic operation and start building this new business, use the same tech platform, create as many synergies as possible and start building it, and now it is actually up and running. It has this cost. It is very much on the plan that we have set for ourselves. But we are now looking at ways to tweak the plan as a way to kind of mitigate some of the losses that we are seeing. So some of the mitigation actions Anders mentioned here, where we're kind of adapting our plans, and that is in relation to DACH markets in relation to the Baltics. But the good thing is that we are actually getting very good traction in a number of markets. And you will see that our losses in the coming year will be kind of reduced quarter after quarter. For next year, we actually estimate that 2 of our international markets will be EBIT positive and that's even after charging all our central costs. So -- I think an important question out there is why did we adjust now on our Nordic -- well, our outlook for 2022. As a reminder, I should say that we did upgrade actually our outlook for 2022 at the beginning of the year. And I would say that it is a very strong performance that we are delivering on in a very challenging year. First factor here. I think it's -- the exit of the Telia deal was a must. There is no way that we can kind of be providing our content at the low cost. So essentially, we have guided for that this is an impact of about SEK 150 million to SEK 170 million in the quarter. It's a combination of carriage fees subscriptions and ad reach. And this will put pressure as well on us in the beginning of next year. I mean, we could say that we would hope -- I mean that we could -- essentially, we could mitigate this actually by it having continued, but I think as a long-term strategy, we essentially have to take these important steps. So we could have essentially delivered shortly better numbers in the short term. None of our numbers here that we'll talk about for next year assumes that there is a deal, we're looking at an organic recovery of this. Secondly, the ad markets here have been quite tougher. In the third quarter, it was down by about mid-single-digit percentage points, and we see that continuing into Q4 and also into next year. that will clearly have an impact. For the full year, it has an impact of about SEK 200 million. And then thirdly here, and that's the D2C premium pickup that has been slower. Consumers are getting more anxious of what is coming through their mailboxes in terms of electricity bills, mortgage payments and so on. And we see that impact. We see also a bit more impact of growth on the B2B side. And we -- and here, I think it's also that we should talk about that Premier League Norway has gone slower than what we originally anticipated. We are getting good traction with Premier League in Norway. All the core fans, they are on board. However, the bold plan that we had at the beginning of the year, we're not really delivering on that. And we are about 100,000 subs at the end of this year versus where we originally intended. That's a combination of kind of D2C picking up slower as well as that the kind of -- we have had an upgrade within our existing customer base that is giving us less of a kind of a pickup in terms of ARPU. It is still a very good investment. Norway is becoming our second largest market in the Nordics. It is a profitable market for us. And we will continue to build that market relentlessly getting more distribution deals and reaching out to a wider audience on Premier League fans that are out there in our neighboring country. Then during the second half, our teams have been working really hard in terms of offsetting a number of these kind of sales shortfalls that we've had. And that is around cost savings. So we've had that on many, many P&L lines, but -- some marketing savings, we have had also defers on content savings that we have created as well as other general expenses. And we will continue to do that much more thoughtfully. Overall, this will take us for the full year to about SEK 14.2 billion to SEK 14.3 billion of sales for the full year with an EBIT of about SEK 1 billion. And I would say it's quite an achievement of this team to get into this number. It's a lot of savings that we have worked on and a lot of kind of mitigation actions. But we have no plans to stop there. because we know that we -- even if we have this kind of adverse impacts that you see here on the left-hand side of this page, we have some tools to offset these negatives. But let me first mention one important one that we have in front of us, and that is currencies. So essentially, we buy about $300 million worth of content from the U.S. We expect to have an adverse currency effect for next year on the EBIT line of about SEK 350 million. We talked about that one as well. We did mention it in connection with our Q3 report. So what other tools then do we have in order to mitigate? First, the Netherlands is performing clearly ahead of our plans. It will overshoot in our targets. We're taking the learnings there in terms of how do we keep fueling that machine and also coping that to other markets? And then secondly, Premier Sports. The acquisition of Premier Sports will clearly accelerate our entry into the U.K., and we will reach target profitability earlier than originally planned. The U.K. market is also quite open to Nordic noir. So probably the most open outside of the Nordics. And thirdly, very important here now pricing. And I will come back to that one. We have implemented price increases in a number of markets, and we will be doing more of that. So Sweden, Norway and Finland have had price increases quite recently. And we have higher-quality content than we see churn rates being quite good. So it is proving. And I will show you some data points on that. And lastly, we will offer a savings program that I will talk to in a moment. So what does this mean that for 2023? If we start then with the Nordics. We expect to have a growth rate of around 12% to 15% for the full year. You will say about hold on, didn't we just talked about 2022 growing at 10%, and that was also quite in a challenging environment. Yes, that is true. We know that we have a number of factors that can actually offset this and can, [ cash effect ] we can actually continue to grow. And one is we have richer content, we have an underlying subs growth, we have price increases. We have a full year impact of more premium sports content, and we will be looking to recover a majority of that lost Telia customer base. Adding then that international customer base to kind of -- or international sales should get into the level of around SEK 3.5 billion for next year, that translates to 25% growth for next year. That's a significant growth as a total company in quite a challenging environment, 20% for this year, 25% for next year. And that translates to about 9 million subscribers. With a combination of headwinds and tailwinds that we're talking about, the operating expenses that we have, it means that for the Nordic EBIT, we should be landing at around SEK 1.2 billion to SEK 1.35 billion in EBIT. And let me remind you that this is after taking quite some currency headwinds that I was just talking to just a moment ago. So if it wasn't for that, we would be operating at around 10% EBIT in the Nordics. Then for international, as we ramp up the operations there and we get the better cruising altitude, we kind of tweak how we do market interest there. We should be at an operating loss of around in the tune of SEK 1 billion to SEK 1.1 billion for next year. It will take some hard work to get there. It's not a walk in the park. It takes getting traction with consumers, getting new distribution deals. So in other words, actually, our EBIT then for next year for the Nordics will be right on plan actually for what we should have been compared to our previous plan if it wasn't for currencies. And for international, we will be ahead of plan. Then we expect our working capital to continue to increase for next year. We expect SEK 2 billion. This is on the back of further investments on original content on one side and sports, but we also have some adverse impacts like -- like FX. We have a shift of customer mix with more B2B, but then also accelerating the U.K. as well consumes -- as well more working capital. In terms of quarterly phasing, we're seeing Q1 and Q3 having more working capital needs versus the other quarters. So now -- so if you put it into your financial models, you will kind of factor in that we're probably ending the year with a net debt for this year of around SEK 1.3 billion to SEK 1.5 billion. And if you add all these -- the numbers, then you will probably land at around SEK 3 billion and we'll talk more about that as well. Another way to illustrate this -- the journey then for next year is that have a number of kind of the factors that I was just mentioning around currencies, software and markets and so on, but we do have a number of factors that are then pointed to that we can do better for the Nordics. And then I also want to show you this chart for the trajectory where we expect to be at a lower margin in the first part of the year. And then when our mitigation actions kick in, we should be kind of trading at a clearly significantly higher EBIT level for the second half of the year. Then to something very important for us to deliver on this on the target that we have for next year. And that is on cost. Cost inflation will come very uninvited to us. So we're putting in place a cost mitigation plan that we have communicated internally. It's SEK 1 billion are looking to offset and that's against the long-term plan that we communicated at the CMD of last year. And let me then give you -- unpack this a bit for you. First, content savings. So we're looking at savings in content that we are -- that we have in the pipeline. We are looking at existing productions as well, and we will be looking to sublicense more. This is a bit more than 50% of the total savings that we're looking at. Secondly, we will reprioritize the market entries, especially DACH postponement has a very meaningful impact. We're looking at ways to mitigate our losses and go slower in the Baltics. And that market is about 1/4 of the total savings. We will ramp up our FTEs much slower than what we originally planned in our long-term plan. And that will -- essentially, we will be protecting the tech investments where we are in a very important transition phase and that's -- so that will be the third one. And then the last one will be really a number of planned initiatives that we have at corporate level expenses on studios and sports production that we'll be holding back on. So that, in addition to adding much more rigor around a number of areas on cost control such as procurement. So in total, this is a SEK 1 billion program that we should be essentially will be very fundamental for us to deliver on our target in 2023. We have very, very good line of sight of delivering on this plan. Yes, then on costs, let me just show you this one as a reminder of the 70% that is now our cost base that is content. And for context, we really have fixed prices where we have a very good line of sight on that cost. And that is for originals and for -- and well, acquired content and sports. And for scripted originals, we essentially expense this over a 6-year period. So a key takeaway from this is that we have a very kind of good way to predict our cost base. And should it be needed, we can be looking at sublicensing more or deferring for [ when ] to air content. Then I will say the other one, even more important factor than to deliver on this strategy is on pricing. Let me show you some data points here on the very strong pricing power that we have -- that we both have and that we will have to continue to execute on. In our home turf in the Nordics, you see here that we have been able to increase prices with anything between 5% and 25%. And in the case of Norway, we have essentially doubled the price for the Premier Sports package. And the good thing is that kind of we see more consumers still signing up for us. So the economics now between customer acquisition cost, price, and churn are kind of -- are looking quite -- I mean they're pointing in all those arrows are pointing in the right direction. So the key takeaway is really that we have a strong pricing power, and we will continue to execute on prices in 2023. And on pricing, let me just give you some additional data points on the value for money that we have. And that is -- this is for the Swedish market, not too different from other Scandinavian markets. Our packages cost anything between SEK 129 and SEK 549. And you compare it to -- and that's for a 1-month nonbinding period. You compare it with other types of entertainment that is for a single location. I mean, if I would take my kids to a football game, it would cost me SEK 1,000, and then I wouldn't be able not to spend some money on the stadium. And I wouldn't know if it was a good game after all. So but I think then taking it on a more macro level, we haven't seen the recession yet that we think that is coming. But I think I'm very convinced that consumers will be looking for a way to kind of retain their kind of favorite streaming provider. And we've seen from previous recessions as well that you kind of prefer the in-home entertainment versus out-of-home entertainment in downturn situations. Now another way to kind of create value for stakeholders is to focus on the core and where we reduce distractions and free up resources. We created a joint venture with Telenor back in 2020 and Allente was created. It has a very good financial profile. It generates good cash conversion EBITDA of SEK 1.3 billion. And we expect them to continue to generate good dividends for us in the future or we may find other ways to monetize that asset. For 2023, we expect approximately SEK 300 million to SEK 350 million of profit contribution and SEK 400 million in dividends from Allente. During 2021, we as well sold our majority of our studio business. In a couple of weeks ago, we closed the deal to acquire Premier Sports. And that journey will continue around focusing on the core. And on that and looking at the middle part of this slide, those select deals that Anders was mentioning and we'll talk more about that actually in a moment, we will continue. I hope that you saw the deal with Australian broadcaster last week and the announcement earlier today for East Europe, we essentially capitalize on essentially already produced content is essentially it's already paid for and we become exporter of Scandinavian drama and culture to new territories and monetize that asset. In the Baltics, with the war at the footstep, the circumstances have changed. We will be looking at ways of mitigating our losses there. And for DACH, we will be looking for more of that -- of that or [ DACH ] being more select deal led at this time. So in a nutshell, we will continue to build our long-term strategy on own content on strong reliable tech platform and then a very well-executed international strategy. This all will result in additional working capital, I mean, both in '22 and '23 before we turn the page in '24 and become cash flow positive. Now, we are fully funded for the strategy and for what we have set for ourselves to do. A few important points on this is that we did raise capital. In addition, we won a court case earlier this year in Denmark. We have also the yearly dividends from Allente actually a profitable operation right here in the Nordics. And we will essentially continue to deploy capital into those investment areas that I was mentioning. And then we expect actually our EBITDA to continue to grow and get into quite healthy levels in 2024, where we then get into this positive cash flow situation for that year. Then in terms of our financing profile, we are -- we had, at the end of September, net debt of SEK 550 million in that area, and we expect this number, as I was mentioning before, to get into the 1.3 to 1.5 level at the end of 2022. That will mean that we will be above our leverage policy of 2.5x. And with net debt and getting into the SEK 3 billion territory for the end of 2023, it would mean around 3 to 3.5x. However, and very important, and I think it's a very important point is that we're well within our debt covenants here. And that is 3.5x against the EBITDA for the Nordics, so excluding the international losses. And that's also for just a minor part of our debt. So what I want to leave you with this is also that we have a very good funding situation for what we have set for ourselves to do. And we're not shying away from -- or that we will be at 2.5x leverage investment-grade company in the long term. Now we could not navigate this without having a strong culture purpose and values. And actually, as a CFO, I think a prerequisite for strong value creation is to have strong values. So to create an international streaming challenger that will operate in 13 countries and entertain millions of homes, it requires a lot of what we call BEAT. So bravery, equality, appreciation and trust. This comes to life actually in lots of daily situations in our company from budget discussions around savings around pricing, contract negotiations and also business review meetings where all the way from Anders wanted to hear opinions from colleagues a few notches on the organization about their opinions. For me as well, meeting with new teams like the Premier Sports team, or the Barcelona [indiscernible] Cup team and getting -- having them to tell me about the good openness that they see is a very important testimony for me on that. Then I would say that as we kind of reorganize our sets and decentralize the organization, we essentially build -- lean on the trust element. And that's very important for me as the CFO because I think there is a lot of hidden cost of that opportunity cost where we can actually run much faster with this new setup. So in summary then for the numbers, we will grow at about 20% for this year. And for next year, we have a number of factors pointing up to that. We can do better. We can grow at 25%. And on the profit side, we will see the Nordic EBIT growing and where our international losses will be coming down to the SEK 1 billion to SEK 1.1 billion level. And these 2 years will result in relatively low cash flow we will turn into cash flow positive in 2024. And then for our long-term plans, they remain unchanged versus the Q3 report. We're looking at strong growth -- for strong sales growth momentum, albeit a bit lower level versus before. But in terms of profitability, we're right there in terms of those plans. We're well on track to deliver on at an EBIT level well north of SEK 3 billion in 2025. So in summary, we are fully funded for our growth plans. We're taking tough actions on cost and price. We have great visibility on our cost base. We're taking a very kind of conscious portfolio approach regardless if it is expansion countries, content rights in different parts of our business. And then for 2025, our targets remain largely unchanged. It's essentially the trajectory of how we get there, that has changed. This team has demonstrated a lot of what we call BEAT. And I'm convinced that we have actually all this the right ingredients in terms of commercial acumen, tech platform, content funding, culture and so on to go and deliver on this very important mission that we are on to fuel this machine and to get there and to reach the mission of the lighting and entertaining 12 million households by the end of 2025 in a sustainable way. Thank you so much.

Thank you very much, Enrique. Good. So we're going to take some questions now. We have now, I think, around 360 people online. So you can post your questions there. I've got two so far. So I'm hoping you can be a bit more active than that. So please do put some questions there. If anyone in the audience has questions, we'll have the microphones. So who would like to start in the audience, Martin down here, can we come to the front? And just do introduce yourself if you could. Same for people online actually, if you could put your name and company name in the [ Mentibox ] I'd be grateful.

Martin Arnell here with DNB Markets. My first question is actually, if we could go back to the thing in Norway, where you didn't see that uptick as you expected. You had a good uptick, but not high as you expected. It feels a little bit like we're missing something here in terms of the explanations. I think you mentioned that you know how to address it in your presentation. If you could give some more flavor on that.

Sure. Martin, Norway is a combination of 2 things that has led us to feel not entirely happy with the development. One is an ARPU uplift on the entire base, the new base that became a bit lower, around 50,000 subs upgraded from the existing base, suggesting that they paid for 2 packages. And we simply underestimated that number. The other is once we hit the kind of number that the previous rights holder had, which we have done now we anticipated there a massive campaigns, Erling Haaland, all of those things because we had them. You remember, you and I talked in August when it was early days, and it was selling like hot cakes. Then it came to once all the fans were on board, the projection to close around 100,000 subs higher than we are currently anticipating, that's the delta. So 50,000 worth of half ARPU uplift and 100,000 subs, too low, basically, which means we have a run rate into next year that is lower than anticipated. The fan base is growing. We're bigger now on Premier League than it has been in the past, but of course, we wanted more. The way to deal with it, it could be a combination of repackaging and preference or package proliferation. We have a massive interesting content base in Norway. That's one way it's not going to happen overnight. The other one, more obvious one is to work with the price. And we came in a bit lower than the previous rights holder. The first thing is, of course, to go back to that level and maybe some. And then we are quite quickly in the first half of next year coming back to Enrique's point on the uplift in the second half of the year. Then we're back to the kind of run rate that we anticipate. This is -- in everything that we have talked about that has led to the revision and the outlook, this is the one most obvious operational mix that we that's just the way to see it. We underestimated upgrades, and we anticipated the market to grow faster than we managed to do.

And just briefly on -- you mentioned also that you expect markets to come out of pressure eventually. And at the same time, you have your guiding for '23, '25, if you could just elaborate a little bit on the timing for such a scenario in the context of your guidance?

We have assumed that markets will go into a recession, there the pressure on inflation based on every insight we have. I mean we don't know more obviously than you. But we have assumed that '23 and '24 will be tough, that's what we've built into these numbers. And we can give you 2 firm examples. We have pulled down the expectations on ad sales more next year than what the market sort of the media agencies are suggesting they're talking about 3% to 4% down next year, we think 5% to 10% is maybe realistic, and we've taken sort of that into account. The organic growth to come to the 80% or so penetration in the Nordics on streaming, would assume that on the back of '22, [ DACH ] will grow by 10% to 12%. We've taken that down to half for at least 2023 and '24. But do we believe that this means that penetration of streaming services will just stay at 65%. No, of course, not. It's going to take a bit longer, hence, the need for austerity measures and ways are working with our costs.

Just one final before I let the others in. On Enrique, the cost-saving program, you mentioned SEK 1 billion as you did in relation to Q3 results. Do you expect a full impact from that in '23?

Yes. I mean when you are growing at these levels, I think it's not possible to kind of get that full impact to be just a 1-year impact. So it's against the previous plan that we have, we -- you can estimate around 20%, 25% is really kind of, I would say, these are cost outs that we are having already in our 2022 P&L. So it's essentially things that we will not do that we had set ourselves to do.

Just to add to that because I read in one of the notes from one of the more prominent analysts in addition to you, Martin saying that they saved SEK 700 million during COVID. Can they really save another SEK 1 billion. But this is not really how we operate. We are stopping investments when the markets are soft, especially on linear TV, protecting tech and original content investment, that has been reinvested after COVID. Now we will stop again. And that is those 50% that Enrique talk about. And then there is another bucket of things that we can do a bit differently. And then there is the classic sort of haircut on a few things that we're doing to make sure we navigate. So the run rate from the savings program is not SEK 1 billion. It is SEK 1 billion until we say differently. If the market gets more sort of benign sooner than anticipated. So it's deferrals, non-investments and savings, just to make that very, very clear. .

Okay. So we can take one online now, if I may. It's probably for you, Anders. Streaming is benefiting from structural growth still your DTC -- streaming is benefiting from structural growth. Still, your D2C subscriber base in the Nordics is declining. Why is that? And how do you think about the long-term split between B2B and D2C?

Well, it's not declining, but it's sort of shifting in mix. So the growth is coming from B2B and some of the D2C customers. are now doing what I think is quite natural to expect instead of buying piece by piece, you find a good aggregator and you put sort of the services on that aggregation platform. that's where the growth comes. So there is both those who haven't had streaming services before, remembering, that's 45% of the households in the Nordics. There are some previous D2C customers that has moved over to this, especially in the Tele2 scenario. We have taken a lot of D2C customers and made a deal with Tele2 obviously cannibalizes to some extent, but it's a very conscious decision because it's user-friendly, it's future proof and you move things. And that is structural growth. So I think one have to sort of look at the whole picture on how you develop the market in the best possible way.

Okay, who's next, yes. Here we go.

Yes. So Klas Danielsson from Nordea. Just starting off on the B2B ARPU side. That was, as you said, it was quite unchanged during the recent period. So I was just trying to kind of unpack that. When should we actually start to see that following the growth in the direct-to-consumer ARPUs as well?

Yes. Klas, thanks. Now the key in any B2B agreement is how you get sort of price increases and price adjustments to flow through. And this differs between different providers because of the lock-in periods that you have in these kind of contracts. So what we have done now, which is basically completed. Now with the exception of London, all of this has been renegotiated. So which means what would otherwise take 6 to 12 months, it should now take 3 to 6 months. to get sort of price increases to flow through. But that is something that has taken quite some time and hard work from Kim and team to get into a new way of getting price increases to flow through. That's why the uplift has been lower than it should have been. That's one very key component. Then to transfer the ability to sign up quickly in B2B is something that has been developed and has actually taken a lot of investments from our partners Tele2 to Telenor, YouSee in Denmark, if we talk about the Nordics. It's a very different game when it comes to B2B outside the Nordics because there is no legacy. There are no TV channels, there are no big carriage agreements. It's a streaming service, you download the app, we keep around 90% of the revenues off we go. It's accretive from day 1. In the Nordics, we have to reshape the market. But it's in everybody's interest that we reshape the market. But it's taken a bit longer.

So by Q4, Q1, we should expect those ARPU levels to come out.

Come again? Which quarter?

By Q4, Q1?

By Q4, Q1.

Which is expected to go up again, you're saying.

Yes, correct.

Okay, okay.

Just making sure I don't give you the wrong quarter there. No, that's correct.

One more. So I think it's a bit easier to understand the kind of levels in subscribers internationally for some of the sports-led markets. So Netherlands and the U.K. and so forth and where you're getting those numbers from. But I guess looking at the U.S., Canada and so forth, how are you actually getting to the kind of target numbers that you're aiming for? And what are you driving that off? How much visibility can we actually be sure that you have on these markets?

U.S. and Canada are very opportunistic because our exposure on cost to those huge markets is the lowest around all markets. Is less than 20% of our entire investment in the expansion outside the Nordics. Because, as Enrique mentioned before, similar to the select agreements, most of it is paid for already. I talked about 19% penetration in households in our European footprint, excluding the U.K. In the U.S., we need 0.5% to 1% penetration to start to make meaningful money. And the journey between 0 and 20-plus percent margin in those markets is very short. So -- but if we wouldn't get there, it doesn't mean that much for the overall international case. But indications are very positive. You will hear Kim talk later about a new distribution agreement in the U.S. that will come sort of become go live very soon. We're going direct-to-consumer with some very interesting agreements with a few providers. We can get to volume quite quickly because it's so big. So -- but I wouldn't sort of subscribe too much risk to those markets as part of the international. We -- it is about Netherlands and Poland in that order. And then you get U.K. from '23 and onwards. And that's basically what we've achieved. Netherlands, ahead of plan, Poland in line with plan. U.K. derisked, we've added some risk now with the new head of U.K., but apart from that, we're on track.

Very cheap risk. Right, we'll go back online now. So this is a question from one of our shareholders in New York and Yan Lager age from Franklin Templeton. And this is one for you, Enrique, probably. So if we can just talk about the working capital change on guidance in '23. How much of that is FX? How much is extra U.K. content investments? And how much is other content investments?

I wish I could kind of give a very different answer. But I mean, FX is about 10% of the total. So say about SEK 200 million of that total. Then in terms of the change because we had [ 1.5 ] before. So FX has a very meaningful impact in terms of that change. Then I would say the customer mix shift so it's probably -- I mean clearly less than that, then it's essential that we are accelerating. I mean, as we kind of expand in the U.K., it will also consume more working capital. So it's essentially accelerating in some international markets as well that generates more working capital. And that is essentially our original content in sports for that.

Good. Another question from the room. So if we move over to the left-hand side.

Rasmus is there with the mic. We should probably let him.

You've got a mic, already, all right. Rasmus, go on.

Rasmus, Handelsbanken. So the 2 questions really. Select is that an investment? Or how soon is it accretive?

Select is an addition to the returns on every single production. So it is accretive from day 1. So basically, just how it works. Some just to explain it. We take all of our originals that we have the rights for. We curate some content from other partners around the Nordics at a very low cost and then we sell it as a package, which means we take this much of extra cost and it's paid for upfront immediately on this level. And then there are growth levels on top of it. So it's -- it's the Hollywood model in essence, with the difference that we require a Viaplay branding on it, so we get sort of insight, and we require data from the markets.

Secondly, when it comes to the margin potential in Poland relative to the Netherlands. Is that also fisted towards the Netherlands?

Yes.

Right. And then...

At least, sorry, Rasmus, just to say, yes, if we talk about the current strategy period up to 2025, but there are 6 million households more in Poland, which means that the operational leverage as that market mature is higher because the costs are also lower cost -- marketing cost of sports rights, everything is on a different level in Poland. But for the benefit of the strategy period, yes.

And just a final question on the savings. But did I understand it correctly that 25% hard savings, the rest is foregone investment or cost increases.

Yes, roughly. Yes, that's -- you can put it in that way, yes.

Okay. We're just going to take 2 questions on hour. I know there's a lot in the room here. We're going to run out of time here in this section, but we will add more later to deal with it. So don't worry. Just on the -- the 2 others that are coming online, one for you, Anders. The first one for you, Enrique is, is it correct that of the SEK 1 billion of cost savings, slightly to Rasmus' point, is 3/4 of that in the Nordic region and 25% from the international non-launching?

Yes, I would say that it is roughly correct, right? Because I mean, as kind of deferring the investments in international markets, it's about 25% of that. Then I mean we haven't really broken up that kind of deferral of content investment, so to speak, but that at some point, we will make that allocation between the markets. So probably a bit more than a quarter, but ballpark is correct.

Sure. Okay. And then the one for you, Anders and this is London calling here. So can you provide some more color on Telia deal negotiations. This is from Tower House Partners. I think it's probably in 2 contexts: one, in terms of what happened and then in terms of what the status is now.

Well, I think we talked a lot about what happened. I don't want to overcomplicate it. I mean, we have had a very sort of successful partnerships with all of our distribution partners for a long time, including Telia. But when you sit down and compare numbers and say, well, we want to get paid and what somebody is ready to pay is simply can't make it work, then it's not value accretive for any of the parties. So you have to have a win-win. Otherwise, it's not a good because there is always an element of growing basis and growing numbers, you have to believe in that. And among all of our partners, and we're talking about the Nordics here alone, Telia is the one who has decided to invest in sports rights and to buy media assets and those kind of things, which means their cost exposure to content is very different. And they've chosen a different route, and that's just something -- said that we have to respect and accept in the same way they have to respect and accept. But we cannot sell our content in a way that is dilutive in less than 6 to 12 months just to make a deal. That's as easy as it is. And Enrique said it very clearly, we have assumed no deal in the guidance that we're putting out now. Is there a discussion to be had, I hope so, but we'll see.

Very clear. Kim is going to talk about win-win partnerships and an actual concrete example will be sitting in the room with us later. So I think we've got time for one more. So here, is that -- I can't actually see is that Derek or -- next door, so okay, either one of you. Go ahead.

Tom here from Citi. I'll ask a question on FX. SEK 300 million headwind is -- what happens when you reach the end of the current contract with Hollywood studios? Does it -- is there a chance to recoup some of that FX loss because ultimately, the currency move is just the currency move order is the negotiating position is such that the U.S. studios can keep that as a permanent sort of increasing cost for content being sold in the Nordic region.

Do you want answer?

Well, I mean, this is content that is required in U.S. dollars, right? So it is -- we have taken the position that, I mean, it is a cost coming in the U.S. dollar. So essentially, we're kind of taking the cost, but as well, what kind of -- I mean, what we need to do is both work on our hedging and look at mitigation actions and where pricing is a very important leader then to offset that. Anders that answers your...

Yes. Sorry, at the end of the contract, I mean, okay, the last contract was priced in U.S. dollars, but if the dollar/SEK rate has fundamentally changed?

We've done -- I can just jump in, Enrique. So as we can be speaking from history, the way we've seen this, and we've dealt with, as you know, dollar headwinds in the past for many, many years. And then there is a decision to be struck where you want to renew the contract and rehedge and derisk or if you actually see the markets going in a different direction, you can actually reduce your cost. We have done both in the past. We now expect a run rate that we build into our guidance so that we can deal with it. But of course, it can turn in the other direction quite quickly as we have seen in the past. And I think the way the markets and the macro situation and geopolitical situation is changing, things can go very quickly here. So yes, it can get worse before it gets better, which we have assumed. It can also get better sooner than we anticipated.

Okay. Thanks, Tom. So Derek.

Derek from ABG. I was wondering how big of an issue would you say that account sharing is for you? And are you doing anything or planning to take any measures to reduce this? And is this in any way a part of the sort of the slower uptake in Norway, given the sort of slightly elevated price point?

Well, yes, in Norway, no, because there is only one concurrent stream on Premier League, but there are some loopholes sometimes that we haven't been able to close completely. But I that we just have to look at how we grow the market in different of that to your core question is account sharing an issue. Yes, it is an issue, but it's a trade-off between sort of [ billing ] new and different ways of charging our customers into your proposition early or later, depending on the maturity of the market. I would put that into the sort of bucket of pricing opportunities in the future, where you can bring some prices even down with less concurrent streams and then up with some additional concurrent streams. Right now, we just want to keep it very, very simple. We see that as a great opportunity also in -- if there's only one concurrent stream in the Netherlands as an example, on F1, but there's a lot of account sharing still. So that is something that we and others will have to crack right now. I'm more concerned about getting into as many households as possible and become sticky, then we can work with that material. But of course, it's something that the industry will have to deal with.

Good. Okay. We're going to have 2 more questions, and then we'll move on. First one, I think, again for you, Anders. Your full year '22 guidance to reach 4.6 million subscribers in the Nordics suggests about 371,000 net adds in Q4 and obviously a lot more than that if you exclude Telia as a 200 more [indiscernible]. Can you explain why you expect such a strong entity this year, in fact, is a record quarter?

It is B2B-driven, and Kim and his team has inked or will soon ink the majority of that volume, which means we can sort of afford to say we're going to deliver on that. The ARPU will not grow as a consequence of that. It will be flat, which we've said over the quarters. But it allows us to go into next year with more households, more addressable, a bigger addressable base to work with in line with our expectation. Remember that we started the year saying 4.3 million. So even if we would get 300,000 out of those 600,000 that we need to get to 4.6 million even those 300,000 were or just SEK 1 ARPU. It will still be accretive versus what we said in the beginning of the year. So to get there is well within our line of sight. We wouldn't guide for such a big number otherwise.

Great. And then the final question, I understand you've made some personal capital allocation decisions in the last day or so. In terms of...

You mean at dinner last night?

Not the dinner, we were [ hiring ] into a new role actually, that's still far more interesting. Yes. Maybe you could just tell us a little bit.

But I'm fully invested from a private of view in our company. And today, on the back of our releases, I bought another 15,000 plus shares for slightly north of SEK 3 million. I think it's a fantastic investment and opportunity, but it's maybe not tomorrow or maybe not the day after tomorrow, but that's a company we build. And we have a policy in our group management team that there is a shareholder requirement as it should be. And I've gone way above and beyond that. It's a good investment opportunity.

Great. Skin in the game.

Skin in the game.

Good.

All the skin, I think.

Yes. I have to have more and more IR meetings with him, our largest shareholder, there. Good. Okay. I think that's it, gentlemen. So thank you very much, indeed. We'll have opportunities later in the day to take other questions, but really appreciate that. Okay? Thank you.

Thank you.

Thank you.

Okay. So now we're going to shift gear a bit. We're a little bit behind schedule I'm afraid but time well spent, I hope you'll agree. We're moving into a phase now, which is going to be a little bit more like podcasts or Ted Talks. We're doing 50 sections and then 50-minute panel and Q&A discussions. So next up is our second debutant of the day. We're going to be talking tech now. So I'd like to welcome on stage our Chief Technology and Product Officer, Philip Wågnert. Come on, Philip.

Thank you, Matthew, and great to be on stage here. Usually, I get the blame when tech is late and things like that, but it wasn't the case today. So I have the privilege to be CTO, CPO, from Viaplay. And what we try to do is really take all of this content that you'll also hear more about this afternoon and really package that into a platform and a product that people really enjoy using. And what we'll go through here today is a little bit about the history where we've been as a platform, where we've taken that platform, how we're remaining competitive in this ever-increasing competitive market and also what we're looking ahead. So let's dig straight into it. So just a few years ago, it's quite interesting with Viaplay's ambitions have grown and been upgraded basically on an annual level. First, we were the Nordic streaming champion. Then we became the European streaming champion. And now we're obviously at a place where we're the international streaming challenger. And that's also how our platform development has developed because we started off with this journey, and we'll also get more into kind of the platform side of that, being a Nordic platform. And then we need to break the boundaries into the European stage. And we did that also latest last week when we entered into the U.K. market, which is our first actually non-EU market as well that we've gone into. And now we then go into U.S. and Canada in the beginning of next year. So this means that we need to also break down the borders and even the continental borders as well for our platform so that we can serve any customer anywhere with the great content that we have. And of course, what we want to do ultimately with our platform is to ensure that it's so flexible and capable that we can serve any customer anywhere with the content that we have depending on where those commercial opportunities may lie at a very, very quick pace. So speaking of the different content types, I think that this is also something worth mentioning here that this is something unique and a big strength with Viaplay. Whilst many other global competitors are focusing on the first pillar that you see here with the SVOD content. On top of that, we don't only have that. We also have the live sports, we have rental content, we have content available for purchase, pay-per-view, et cetera, and also linear TV channels on our platform. And this, of course, brings a lot of opportunities to bring customers in with one content type, and then we cross-promote with other content that we have to ensure they consume the big breadth of the Viaplay offering so that they will stay loyal to Viaplay for a long time, for their whole families as well. But of course, this also puts a pressure on the platform and how we build a platform so that it can cope with all of these different content types. And as an example, I'll just show as well what a typical Sunday can look like. And on the left-hand side here, you can actually see how VOD users come in and consume content on our platform. quite an even distribution across the day, of course, a little bit more in the eating. And when people have time off to actually sit down and relax and watch the Viaplay content. With sports, it's very different. The sports customers, they want to see Verstappen when the lights go off in the Formula 1 race. They want to see whole on straight when the Manchester City game starts. And so they want to see the live action when it actually happens. And that puts a completely different pressure on our platform. And as you can see on the right-hand side here in the slide, then you can actually see that just over the course of a very short time, the amount of traffic on our platform actually multiplies by more than 11 times. And so we need to ensure that we have the capacity to actually get all of these customers in during the same time. And over the past year, with all of these new sports rights that we have acquired and the expansion that we've done into new markets, we've actually increased the concurrent users on the platform this year versus previous years by 3.5x. So this platform, we've really scaled it up over the past year to be able to cope to deliver a really stellar experience with all of this traffic coming on board. And Anders talked about the increase in competition in the market, and it's also a more fragmented marketplace with even more SVOD players out there. How do we then remain competitive? And there's a lot of talk about one key currency being money is, of course, an important one. But no matter how much inflation there is or exchange rate pressures, macroeconomic turmoil even potentially. There is one thing that stays constant and that's the number of hours available during a day. The day will still only have 24 hours. So I think that one key currency for us and that where we need to be really competitive versus others, is how do people want to invest their disposable time. So we always want the customer to choose to invest that their disposable time into Viaplay. And that means that we need to have the content and the service that actually gives them value for that investment. And we can see here on the left-hand side, it's actually some external market data as well around people in the Nordics are investing their time. We see that whilst global giants are actually losing share of viewing amongst SVOD players, we see that Viaplay is going in the opposite direction. So we're actually increasing the share of viewing in the Nordics. So it means that, in turn, if we're looking at the churn numbers here that if we get customers to come in more frequently to the product, start more streams, have more active days, it also translates into a lower churn. So we're very actually happy to see double-digit reduction in churn across both film and series customers, also sports customers and the total customer base in itself, we're seeing double-digit reductions in churn, 11 -- more than 11% on the total customer base. And why are they doing this? Why do they want to come back and invest their time in Viaplay? Well, we believe it's also thanks to our great content that we have. We see over the past 2 years, that the share viewing of our sports viewing, has increased by 150%. 150%, Viaplay Originals consumption has gone up by 75% in share. So that means that we have the content then available and we're putting it at the fingertips of the customers, making it relevant and so on so that they're finding this content and they want to consume their disposable time with Viaplay. Now, I'll also go into 3 areas that we've been focusing on so that we can remain even more competitive in this market. The first one that I'll get into in just a few seconds, is how we're increasing personalization and relevance because we need to address the paradox of choice. There is so much content out there. There's so much both series, movies and sports content that we need to ensure that the right content finds the right customer because now we have such a broad customer base different tastes, and we, therefore, need to find the right content for each of these different customer types, and we'll get into that. The second piece is how we're now when we're transferring over all of these great sports rights, from the linear broadcast feeds into the streaming world, well, how are we enhancing that viewing experience. How can we make it even more engaging so that people actually prefer to view it on streaming versus the linear broadcast. And finally, we'll get into how we're using partnerships, both B2B partnerships that Kim will also get into in a second or later on this afternoon and also device partnerships to increase the reach of our products. So starting then with personalization. This is actually some data from a recent multi-variance test that we did on our Here, we actually tested different algorithms for how we're recommending things in our so-called feature box, which is the hero at the front when you're starting Viaplay up. And here, we did different algorithms to see how we could actually increase the viewing and adoption of our different titles. And the top one here versus the control group actually increased the conversion of the feature box by 48%. So ensuring that we hit the right content to the right user at the same -- that we have here can really have a big impact in terms of the conversion. And overall conversion then increased by 1.4%. And we will continue to invest in this. We'll also have one of our colleagues working with the data science side exactly with this because it's with the data that we have that we can exploit that and put the right recommendations at the hands of our customers. Looking at the sports engagement then. Of course, we've been in linear broadcasting for decades and decades in the company. So we have great broadcast. We have commentary, great studio productions. But with the streaming kind of technology, we have a lot of more opportunities to actually enrich it. There are some basic things, of course, that you can up whenever you want. So you have catch up. But one thing that we've worked on over the past years and really excelled in is with our highlight clips. So we are doing advanced machine learning-based highlight clips actually, that's available just within seconds after the game is finished. And the adoption of that has just been through the roof, with 1.7 million users actually consuming these. And why are we doing that then? Well, first of all, it's again giving value for that time that you're actually investing into having Viaplay, so you can consume those games in the morning potentially after the games have been during the night because we have it on Premier League, we have it on ANHL, a lot of different sports rights, but we're seeing also that it's increasing the number of days that you're spending with Viaplay. So these customers that have consumed the highlight clips are also spending 4.7% increased number of sports days on our platform. Again, another example of this is what we've done both with our winter sports. We've now done at -- laid also with our Formula 1, where we're really adding additional value also in the product, so you can have exclusive interviews, you can have stats. We have a lot of interactive aspects into it and analyses. And this has also been really successful. Now latest with Formula 1, we've put in results, stats, rankings, results and so on. And there, we actually see already in the first season, 18% adoption of these enhancements in the Viaplay product. And this is how we can really enrich what has previously been a very static linear broadcast in the traditional space. Now when it's coming into Viaplay and where we're enriching it, it's making it even more engaging and the customers are engaging more with that right as well. And when it comes to our partnerships, Kim will, of course, talk more about our B2B partnership later on this afternoon. But from a product side, we really also want to enrich this experience so that when customers enter into the universes of our partners, we also want them to have a really great experience. So that they can search for, they can find all of our different content within the universe of that operator. And then when customers actually want to view all of the Viaplay content, they're getting sent to the Viaplay application, which means that we've also spent a lot of effort and time to actually also integrate into set-top boxes for these different partners so that we get that end-to-end experience for all users, even though they're -- Viaplay users through an operator, they should get that really high-quality user experience. And here, we're also continuing to develop this so that we can make that experience even more personal also if they're in the universe of the partner. And speaking of increasing reach and so on, we know that the device coverage that we have is really important to drive this usage and get into even more households as well around in our markets. So if we're looking at the usage -- for those that have been covering Viaplay for a very long time, you know that we're basically on all devices where customers want to consume content. And we're seeing that, that's shifting as well in terms of how they choose to consume Viaplay. More than 2/3 of our customers right now are actually consuming Viaplay on the big screen. So they're shifting, they're cord cutting and cord shaving and so on, getting into Viaplay on the big screen devices, the in-home entertainment devices. So 2/3, 70% actually are on now big screen devices and in home entertainment devices, which is also why we're focused on getting out onto even more devices. So here, actually, we're happy to also announce that we have a new partnership also with Roku. So we will be on Roku devices weather application in the beginning of next year in the markets where Roku is offering their service. And also, we announced yesterday that Hisense, the second largest TV manufacturer were also on their devices. And in the Nordics, we'll even have a Viaplay remote control button so that the entertainment that we're actually providing with Viaplay is at the fingertips of your homes. We've also deepened our relationships with Google on top of Android TV. We're now also Google TV certified, and we've done a number of different set-top box integrations as well so that we're getting out with our application into even more households throughout Europe. This, of course, also puts a pressure on how we're developing our platform. So when we started off, and looking back 10 years, we're seeing that we've built a lot on our devices and relied a lot on third parties, of course, because we needed to get going and get this product out. As time has evolved, we've brought a lot of these key competencies also into the in-house development. So now we're developing both in terms of our own platform and also working with the best in breed, and that's also where we're going even more in the future so that we're choosing the right partners to partner up with and where we also see an opportunity to be different and unique and where we need to have even more control of that development, then we're bringing that in-house so that we actually have that expertise internally. This gives us even more flexibility in our platform. And of course, we'll also continue to invest even more in the cloud so that we can actually have even more resilient platform. And going into that even more here, we've obviously been cloud-based for many, many years. But here, we're also looking at how we can move even more of our live streaming to the cloud as well, so that we can get even more resilience and even more capacity when we're needing it. And also, it can be much more global so that we can serve any kind of content anywhere in the world in the future. We're also looking into serverless hosting so that we can become even more elastic. Today, we're using quite traditional methods in terms of how we're scaling up, pre-warming et cetera. And also from a sustainability perspective, it's also very good to actually go into new technologies so that we can scale up and down within milliseconds, making our platform even more elastic and thereby also even more cost efficient. And then finally, also cell-based architecture. We're now growing both in terms of users and also regions we really need to become even more robust when it comes to this. This gives us even more resilience and reducing the blast radius if something were to happen with our platform. So just to sum up then, what we've done to date is really to scale up our current platform to where it is today to manage all of that traffic that we have, 3.5x as much concurrent this year than previous years. We've reduced churn by more than 11% and year-over-year by increasing the engagement on our platform. And then we've also invested a lot in increasing the relevancy and desirability of Viaplay, both in our own platform, with our sports and also how we're working with our partners. And then finally, we're continuing to invest in our tech so that we can have a really resilient and strong product for our current customers and also tomorrow's customers. Thank you.

Great. Thank you, Philip. There we go. So we're going to combine this Q&A and panel session. So we're walking on stage Jeff Chen, who's one of the most important people in the organization. He's our VP of Data Science. Jeff, maybe you could just introduce yourself a little because I gather you've worked in some quite interesting places before you came here.

Sure. So I'm a statistician, data scientist by trade but have worked in various settings like NASA and the [ Obama White House ] New York City Fire Department. I've advised the United Nations on various issues, soccer teams. The overall story is that I've worked with data and used data science to drive outcomes.

Great. And we will talk about data sciences a little bit like drinking from a firehose in terms of the stream that's flying at you. Can you give us a little bit of context around that because it's a lot to deal with, and a lot to process.

Absolutely. So for a firehose as well, having worked at the fire department, so firehose, it refers to the volume of data that's coming through the house, through the door. So then we're trying to capture that data and use it for something useful. Historically, when you look at data technology, it's been [ batch ]. So you take this data daily and then you have a long feedback cycle. But now we've made many investments at Viaplay to ensure that this data is real time. So for a recommendation engine, some of them can actually update rather than 24 hours just a couple of seconds. So this is a really, really rapid change. We've also seen dramatic changes in our data quality. And that means that we can actually have even more confidence in our decisions. And also now with real time, we have this there's a resolution that allows us to investigate and analyze our customers' behavior in ways that we couldn't do before. And that means customer experience is just going up.

Good. Okay. If you think about the sort of wide range and fragmentation of audiences and customer bases, how do we know that we're hitting the right customers with the right products at the right time and sort of tailoring that experience in the right way?

That's a very good question. And I think one thing to keep in mind with our customer base is that they're not a monolith. There are many different types of customers. And to tell that story, I want to first take a look at the tech side of the house, and then I'll turn my attention to the content side. So the tech side, one of the key pillars that Philip has mentioned is personalization. So we want to make sure that when people are coming in the door, we're connecting them to the content that they're interested as fast as possible. And so that personalization experiments that yielded a 50% conversion in our future box viewing is really good. But let's dig into the numbers. When we look at our age, generations, so let's say, the digital natives, we're talking about Gen Z, millennials, they were 70% more likely to start watching from the feature box. And then we look at our more mature audiences, it's in the range of 30% to 50%. So these are market increases that mean that we're able to get people's attention as they're coming in the door. Now let's look at content. Now content has a different model, but the key thing to note is that for every single original, there's a target audience. And so if we're able to get the targeting audience to really engage with that content, then we're hitting the mark. So let's take the example of The Dreamer and Thunder In My Heart. Now those folks, the digital natives, once again, they were 60% more likely to watch that than any other content on the service. And that's really good news. So we can take those 2 pieces together, the tech content and sports and we're able to produce an experience where we're driving traffic onto the service, we're getting people's attention. We're connecting them to the content, and the content is fit for them.

Great Okay. Good. I think I've got various questions here, and I'll take one from the audience in a minute. I think, first of all, Philip, you talked about the Roku deal, you can't get away with that superficial description of a deal of that size and importance. So maybe you could just unpack it a little bit more.

Yes, of course. No. So it's actually a 2-part deal. So of course, we'll both have our application on Roku devices in the markets where we're in. And another part of it is that we'll also be a Roku channel in the U.S. and Canada, launching very soon. More details about it will, of course, come as well shortly. But this is, of course, a very big market for us, Roku, I think, around 64 million, 65 million customers out there. So -- and we're very proud to be partnering up with them, of course.

Good. Okay. I'll open up to the floor now. So does anyone have any questions for Jeff or Philip, any hands going up. I'm relying on the people with the microphones to find you.

All crystal clear.

Yes. You can't wait for the coffee break.

Exactly. We're standing behind you and the coffee, right?

I think one -- I've got another one here. How do you deal with technology-related issues that are outside of your control such as third parties, capacity, hardware or technology limitations?

I think it's a brilliant question and with a little bit of time constraints to cut down a little bit on it. But it's quite interesting because we've been in linear for a very long time. And there you control a very big chunk of the whole value chain and getting that content out to the customer. With streaming over the open Internet, that brings in a whole set of different challenges. Of course, it's with the bandwidth that's available in that area to that house, how many others are actually streaming at the same time, how have you built up your Wi-Fi at home, how are you connecting it, et cetera. So -- and we've seen some challenges with that now as well when we've gone out into new markets. I think that we can see also in the Nordics, we're very far ahead when it comes to some of these aspects. But what we're working with is bringing the point of delivery closer to the customer all the time so that we can ensure that we have the best potential quality at the closest single drop off point to that customer. That's what we need to do all the time and also educate to a certain extent, how can customers actually set up the gear to get the best kind of quality at home. But here is also a maturity in the market. And when we have the kind of the content that we have, there's also a bigger demand and need for this. So I think it's also something with time. But we are investing also in technologies, again, to bring that final drop-off point closer to each user.

Okay. Great. Thank you, Philip. Yes, Martin, can we bring a microphone down here?

Yes. So I want to ask you, when you look at your main competitors among the local players, streaming players, what do you see when you compare your own tech versus theirs and if you could give any comments.

Don't necessarily want to review the others, so to say, per se. But what I do see is that we -- given what we've done also now over the past year or so, when we've drastically really increased the capacity for entering into Poland, Netherlands, whole different. You saw also there the peak with live sports and so on. It's put a lot of pressure on how we're optimizing our platform each and every second. I don't know exactly how the others are doing that. But what we can see is that we're getting a lot in return for having done all of that work, the scale-up work. And we're also seeing the kind of technologies that we're adopting with our close partners are really at the forefront. And that means that we believe that we are very far ahead when it comes to the technologies that we are adopting to ensure that we always have high resilience and a good coverage also now on a global footprint because we've also seen that now, very different ball game playing Nordics only versus going into more global marketplace.

One more. I noted that you had some negative press in the Netherlands. If you could just comment when that was and if it was only external factors or if there was something from your end as well?

So good question. And we've had a few incidents. I mean, again, we're at [ lay ] numbers at 99.98, and so on. But when that incident happens, we do see that it has a big impact. What we can now see which is very different from where we've been also in the past, is that now when we have an incident actually reduced a lot fewer customers. So a lot of customers are still actually viewing it being able to enjoy the race or the football game or whatever it may be, and we can contain it to fewer customers. And they can return also to the service without any challenges. But we have constantly worked on also improving on that technology, and we're seeing now that it's been really good result here also in the Formula 1s where we've also now reached new records as well. But of course, doing that shift up to 3.5x has had some hiccups in the early days, but where we're now seeing a big, big, big return on those investments.

And I guess maybe underlying that question a little bit is, is there an education job here to be done in some markets where effectively streaming is still at more at an earlier stage, and we're comparing this with 4K fixed cable infrastructure, viewing experiences.

What's actually interesting is that I think that we've been in this business for such a long time. And a lot of the users that we've had early on are early adopters. They know the technology, they know how to set this up and they know how to optimize it, and they know also what to expect. And whether they're booking, I heard this morning, a train ticket for Christmas and the whole services goes down. So they kind of got accustomed to that. The users that we're now getting on to our platform, they're used to watching linear. They're used to having a note that when we're controlling the end-to-end chain, and it's very uninterrupted. And with that comes a new set of expectations that there shouldn't be any kind of buffering, no interruptions or anything. So that means that we need to be on our toes to ensure that we're building a service that can live up to those linear expectations. So that's actually what we're also doing now and what we're aiming for in the future is really to get into that linear expectation and being able to reach those kind of deliveries because that's what customers are now expecting. Now we're not just with the early adopters, now we're actually with the mainstream. Now we're in all of the households, and that puts additional pressure on us.

Good. I never thought we were going to get away with somebody who works in the White House, for NASA, or the fire department, or for soccer teams not getting more questions, but you should grab him during the break coffee right now and ask any more questions you have. We're going to take a 15-minute break now. Please could we stick to that? We are running behind schedule. We've got a lot to get through. But do you grab these gentlemen to join the break and ask any other questions you have. So 15 minutes. Thank you very much. Coffee at the top. [Break]

We're up to over 400 people with us now online, and I think we have around 100 in the room. So thank you again for your time and your attention and for your questions. I'm not getting through all of the questions, but I'm asking you as many of them as I can. Apologies to some of you. But if the question has already been answered through the slides, and I'm tending to ignore that, I hope you'll forgive me for that. So now we're going to shift up a gear again and we're moving on to talk all things content. And first, on stage to talk about our content offering and the changes and developments we've had is our Chief Content Officer, Filippa Wallestam. Filippa?

Thank you very, very much. It's fantastic to see you here actually in person this time. And since we met last year, a lot has happened both in the world around us and more specifically in our streaming markets. The streaming market in the Nordics is still growing, and so is competition. We welcome new competitors such as HBO Max and Sky Showtime. But it's very important to remember that there is still no other player like Viaplay. Our combination of a superior portfolio of sports rights, very strong acquired content and of course, our very own Viaplay Originals, makes our offering and our position unique. And this is also the reason why we continue to gain share. Last year, I explained that our own originals is what makes people sign up to Viaplay. This, together with sports is what drives the sales on the platform. And what we're starting to see now as we're building our inventory on originals is that now our own shows is also starting to have a real impact also on consumption. Here, I would like to share with you 1 example. This is series in the Nordics, and the red is our own original content. The gray is acquired series. And if we look at sort of the performance, we can see that our own shows are clearly overperforming, representing around 12% of volume, but 60% of sales. And maybe even more encouragingly is that when we look at consumption, our own shows is now up to nearly 30%. This is a clear proof that our strategy of focusing on returning series and building our inventory really is working. But when it comes to retention, I've said before, it is important to have a mix. Our own shows are extremely important, but we also still need strong acquired content. And as we can see, when it comes to series, acquired content is still the majority of the consumption on Viaplay. So how are we then making sure that we are securing enough strong acquired content. This was, I think, probably one of your main questions last year at Capital Markets Day, given that so many of the U.S. studios are now having their own D2C platforms. And I'm very pleased to say that over the last year, we've managed to secure a lot more strong acquired content than we had originally planned. The 2 largest deals we closed during the year is a multiyear extension on our existing agreements with both Sony and NBC Universal. These deals are covering both series and movies and giving us really strong brands such as Outlander, Spiderman and the Chicago franchise. But in addition to this, we have also secured a lot of cherry pick deals with pretty much all other studios. This gives us both a combination of the volume that we need and also the new must-see series and movies. And one example of this is one of our most successful acquired series this year, Gaslit, starting both Julia Roberts and Sean Penn. And it is sort of a proof that we are getting the best, the most talked about shows even on the acquired side. And today, as a result of all of these extensions and new deal, our acquired offering is very, very strong. I would also like to share an example on the movie side. And here, we are looking at new movies in the Nordics. In 2021, we premiered 115 new movies on Viaplay. The same number for '22 is 200 , meaning that we are actually increasing the number of new movies with 75%. And of course, the question is, what about the quantity -- sorry about the quality. It's not all about the quantity, but do we have the right movies. And again, I'm very pleased to say that our extensions with Sony, and NBCUniversal, as well as a new deal with Nordisk Film and some smaller deals gives us the right combination of both the big blockbusters such as Spiderman, Fast and Furious and BOSS Baby as well as the more targeted movies that is more specific to certain audiences. And this is exactly what we need now when our base is so broad. And today, we have an offering that is reaching a much broader audience. I would also just like to mention that our definition here of a new movie is a movie that is less than 2 years old and exclusive on Viaplay. So in addition to this, we also have a very strong library of library movies, and they're also extremely important for our customers, but they tend to be on more of a nonexclusive basis. So as you can see, our acquired offering really is just getting stronger. But moving on from acquired to the very heart at our offering, our own Viaplay Originals. And when we say Viaplay to many people, this is, in most cases, what they think of besides sports. And we have ramped up our original content significantly and become a major player in this area in a relatively short time. And 2022 is no exception. We are planning to premier 70 Viaplay originals around half of them are documentaries and half of them are scripted shows. But each one of them is delivering something unique to our customers. And I'm extremely proud of all of them. If we're looking at 2023, our goal is to maintain our current position in the Nordics, but ramp up in our new markets, more specifically in Netherlands and Poland. And our strong focus on original local content really is our strategic advantage, especially now as many of the global players are actually starting to pull back from their ambitions to produce locally, HBO Max being one example. And if we look at our competitive situation, it is, of course, possible for the global competitors to compete with us on our strong acquired offering, and they can very well match and compete with our Spiderman. But when it comes to our original content, they are nowhere near us. They don't have the experience and they don't have the same ambitions. So this truly is our key differentiator. And the good news is that our original content is constantly getting better and better. When we take a step back and reflect and look at what we've achieved, it is actually quite astonishing. No one is producing as much content as we do in the Nordics. And our team is starting to get some significant experience both when it comes to what our customers want but also how we can make each and every show just a little bit better. And it's very much starting to pay off. In fact, we now have an international reputation for what we do. And we can also see that international talents are increasingly wanting to come and work with us. And last week, when we announced that we are doing our very first U.K. Viaplay Original, Rebus written by the Scottish author Ian Rankin. I was so happy to hear him explaining of how it was quite natural for him to move his baby projects from BBC to this new player Viaplay because he felt that our editorial team shared more of his vision for what he -- what we wanted the series to be. To me, that is a fantastic quality stamp and made me very, very proud. And today, our shows have been sold in more than 130 markets, they received numerous nominations and awards and they are constantly being remade most recently in Australia and in the U.K. The strength of our own shows and their potential to gain audiences way beyond the Nordics is really the fundamental driver behind our international expansion. So how are we going to raise the bar further in 2023. There are 4 main areas where we are strengthening our position. Firstly, we have been working on the big Nordic stories that can travel for quite some time. This year's highlights include The Dreamer about Karen Blixen and Lasse Hallström's movie, Hilma, about the Swedish artist, Hilma af Klint. But next year, we are finally bringing our adaptation of Astrid Lindgren's, Ronja the Robber's Daughter to all of our markets. And all I can say is looking simply fantastic, and it's way more ambitious than anything we've previously done. And we're also going to continue to build on our international shows. This year, we've been very successful with Billy The Kid, especially in the Netherlands and Poland. And next year, we are bringing the ecological thriller, The Swarm to our markets. The Swarm is created by some of the very best talent in the industry, and it's produced by one of the producers from the Game of Thrones and the topic just couldn't be more current. 2023 is also going to be the year of the unique sports documentaries this is a scenario that is extremely exciting and where my team is working very closely with the sports team to make the most of all of the fantastic sports rights and connection to talents in the sports world that we have through those rights. I'm not going to talk a lot about that because Peter will get into it in his presentation. But of course, I have to say that we are extremely excited about our 3-part documentary about Max Verstappen. And lastly, as mentioned before, next year, we're also really ramping up our ambitions when it comes to local productions in Netherlands and Poland. The aim is to premier 8 to 10 shows in each market. And it's going to be a combination between scripted and nonscripted shows as well as documentaries. This is clearly a proof that we are serious about producing local content in these markets and entertain our large audience base with non-sports content. And when it comes to financing, we work with 3 main models: we have prebuys, which is a cost-efficient way of securing high-quality content by getting involved early and securing it before it reaches their market. The second is coproductions, which is our chance to be part of the really big productions. This is the model used for Billy The Kid and The Swarm as mentioned earlier. Here, we work together with a co-production partner, but we're also very much involved in editorial process. And thirdly, we have the area that we are increasing the most at the moment. It is where we take the global rights for the shows. And hence, we finance the majority of the show. We have the control. We then work with partners and content sales to maximize the return while retaining the long-term value. And one effective way of maximizing the value of our Originals inventory is through Viaplay Select. This year, we've launched this innovative branded content concepts leveraging our industry knowledge and building Viaplay's brand in every corner of the world. The offering comprises hundreds of hours of both our own and third-party curated content, and we always have the opportunity to scale up genres and volume depending on the partner preference. Our very first deal with Viaplay Select was WOWOW in Japan. And since then, we've signed deals with CINDIE, Latin America; SBS in Australia and now most recently also with Pickbox, covering 7 markets in the [ Balkan ] region, launching later this year. And I know that you are very interested in how much each of these deals are worth and how many more deals of this kind we want to make, Anders hinted on some ambitions earlier. But in the beginning of this year, we said that we would be present in 5 markets with Viaplay Select by the end of this year. And so far, we have secured deals for 18 new markets and the ambition for next year is to launch an additional 10 new markets. So we are clearly on the right track. Another point I would like to make is by increasing our ambitions for originals and securing more and more global rights, we are clearly also building value for the future. When we amortize our costs, we take the full cost at play out for non-scripted over 3 years for documentaries and over 6 years for scripted shows, but we always secured a license periods for much longer. This means that as we build our library shows, we will have more and more content for free as the years pass. And as we're entering into new markets, a lot of this content will also be new to the market. So that is, of course, a great upside for the future. Producing as much content as we do comes with a large responsibility of producing sustainably and raise awareness with our storytelling. This is an area extremely close to our heart and where we very much are at the forefront. Since last year, we stepped up our game when it comes to climate conscious productions. We now offer green production training to our partners, and we've set the goal of start measuring emissions in all of our productions by 2026. We've also implemented a short Pulse survey on our production to be able to check in on the working environment while the production is still ongoing, and we still have an ability to make changes and impact. And lastly, we have crowned the first winners of the Viaplay Original Talent Awards. This is a pan-Scandinavian initiative to support new creators and find new local storytelling, and we've already started with the next year's addition. I'd like to point out that finding these new stories working with new creators and producing sustainably and raising sort of uncovered topics is really delivering value. Last year, we had a great success with our movie Suedi, which is a comedy but raising some very important topics on belonging and exclusion. And as a result, it was a real commercial success. Another great example is our series Honour that we're going to talk a little bit more about shortly. And these type of stories are important and they reach very large audiences, which is the ultimate proof that sustainable content -- responsible content really is good content. And to sum up, despite the challenging working challenging market conditions, fireplace content is better than ever. Our acquired offering is strengthening by the day, and I'm expecting this to continue as we see more and more studios now starting to sell their content despite their own D2C services. Our originals are constantly getting better. And as we are gaining global recognition, we are raising our storytelling ambitions and finding new ways of monetizing them. And when we do this, we create an even bigger opportunity to reach more viewers, tell more important stories and share the values that we believe in. And that is content that travels. Thank you very much.

Thank you very much, Filippa. So we're just going to do a quick Q&A now and then we have a second special guest panelists. So does anyone have any questions from the audience initially, yes, Klas. Can we bring a microphone down here to the middle.

So just a quick one from my side. Kind of how much of the viewership and the local content series and your originals is basically within the backlog of the [ series ] and how much is on the new titles? And is it kind of required for you to keep ramping the reinvestment rates in users all the time to increase that viewership or how should we think about this as a long-term strategy?

Yes. It's a very good question, and it depends on a lot of factors, as you can imagine. But it is, of course, when we're premiering a new series and we have a big marketing campaign around that, and we make a big push of that, then we, of course, see a peak. But we also see a strong peak on previous seasons when we launched a returning season. So now if we take -- we're going to talk more about Honour soon, but if we take Honour now that we've just premiered the third season, we see a clear uplift on the first and the second season as we are launching the third. And then since our base is still growing, there is still a lot of customers that may not have seen some of our earlier originals. So it is a little bit depending on how much we're pushing them, how we're packaging them and if we are making them sort of stand out more. And then, of course, this is the Nordics. If we then look at now the U.K., where we launched last week, there we have sort of definitely a second bump on all of our shows because most of them are new to the market.

Yes. And as a Brit, who loves Nordic drama along with many others, I can certainly testify to that. So be a lot of interest around that. Martin, you go next.

My question is, first, could you describe your typical target customer with these Originals?

The target customer for Originals or just in general?

For Originals.

Originals, yes. That's also -- now it's a little bit tricky now because we're in so many markets. So it's a little bit different if we're looking at the Nordics compared to if I look at Netherlands and Poland. But if we start with the Nordics, here, we have a very broad offering. So we want to be broad. So we will continue to do sort of the broad genres such as crime and drama that is targeting sort of broad. But then here, we also have quite a lot of the younger audience. So we need enough content to target for those and also some -- a little bit older. So in the Nordics, we're pretty much covering across the base in terms of the customers. And in the Netherlands and Poland, where we are a bit newer, there we're going in sort of safer in a way because there we are more focusing on the broad shows that will appeal to, of course, our sports customers but also preferably to their sort of other members of the household, if that makes sense.

Yes. And in those different genres like the youngs and the old, and where do you have the best traction?

So the broadest genres is always sort of crime thrillers and big dramas based on true stories based on true events, et cetera. Young adult is per definition, a little bit more narrow. So for young adult shows, they also are typically smaller shows, lower production budgets, and they don't need to reach -- the same reach to sort of make the return back. But I think -- personally, I think that's an area where we can really gain internationally, not as the first priority. First priority will always go for crime, and then sort of broaden out from there.

And finally, the size of the average budget, if you compare it like 3 years ago, if you compare it today, how much has it changed? I mean, I guess it has increased quite a bit.

Yes and no. So it's sort of -- yes, we have seen a bit of an increase. And of course, then we have the pandemic to make things a little bit more complicated where most of our production got a little bit more expensive to manage all of the security measures and everything around that and to be able to continue to shoot. But we also learned a lot during that process. Now I think it's more kind of coming back to healthy sustainable levels. It is a little bit less demand in the market as many of the globals that were very aggressive a few years ago and sort of who bring the market for anything local, they could find they've now taken a step back, which helps in that sense.

Great. I mean, I guess, again, underlying that a little bit is this sort of arms race we've seen in U.S. content at late. I mean it isn't the case that budget equals success, right, that you can often find the most successful shows are the ones that come from left field and a great surprise.

Definitely. So if it was sort of the most expensive shows wins in a way, it would be relatively easy. That would be just taking a lot money, for Enrique, but then you sort of -- you know that if you have the right talent and you have, but you can have everything right. All the ingredients right, the very best talents, the biggest budgets and still, there's no kind of -- nothing special with the show. And we've seen that some of our best shows like take Pørni as an example, our biggest hit in Norway, it is a very reasonable budget, and it's just hitting exactly on the right sort of nail, so it's even traveling beyond Norway. Pørni is a good example, because when we did the case for Pørni, it didn't have to be successful outside of Norway. The budget was sort of small enough, so a smash hit in Norway would be good enough. And then now what we've seen is that since that is so right, it is really traveling. And it's now starting to work very well here in Sweden. It's already been in the Netherlands, et cetera. So sometimes that happens, and then we just try and cling on for as many seasons as possible.

Okay. Yes, Karl [indiscernible]. So just comparing this to retail, as sort of the behavior where you go to shop and watch a pair pink running shorts and then you buy a black pair. I mean the data on having Hilma then actually, they're moving watching below deck -- and what is the kind of consumer behavior? And over time, what does that mean with the value of the back-end catalog?

Yes, I'm not 100% sure I understand the question.

Well, I guess the point is that when you go into a retail store, you buy a specific product and you want to buy that. The question is how people move around between the different content types we have. And specifically, when you look at the back catalog, when someone comes in, how much usage then do you get through that?

Yes. Okay. Good. Sorry, good question. So that is really also where Philip and his team comes into the question. Because the beauty of streaming, if we compare to the linear world is that content continues to list. So we can be sort of if we lift things again or if you have watched a series and then the product tell that then actually these other series that we produced 5 years ago, but it's still a really good series may also be suitable for you. So the better we can get at sort of personalization and recommendation, the more value we're also going to be able to get out of our library. So I think that is an amazing opportunity, and I'm very excited about building sort of the library of our shows because sometimes we tend to be a little bit too focused on the new ones. And the ones that we produced a few years ago, some of them are extremely good. And they deserve to be listed again. And also, if you pick something in the store, if Viaplay is working the way it should, you should be recommended the other shows that are sort of similar to that.

Okay. I want to leave some time for an important discussion, which that is a beautiful segue towards actually. And I'd like to ask on stage our next guest analyst, Eva Rosa. So Eva, can I welcome you up.

You're more on brand, more on brand than me.

Yes. Yes. There we go, light you up a long day.

Good. Okay. So we want to focus a little bit now on sustainability, because it's something you raised during your presentation, and it is a very important part of what we're doing. And I wanted to ask you, given the involvement you've had in honor and over a number of seasons, your role is a very prominent an outspoken exponent of diversity, equality, inclusion and all aspects of those subjects. Maybe you could just help us think a little bit about how important those areas are for the industry and the development of content creation.

Well, as you can guess, in my opinion is that it's very important because culture and entertainment meets a reflection of our time, but it also has the power to shape our world and to determine who has a voice and who is voiceless, who is unseen, who is powerless. And also, I mean, whose stories do we tell, who gets our support. So what -- if you can see her, you can be her. You can remember the Kamala Harris quote. And I think that's the environment that I'm working in. That's what I'm focusing on. So what we actually can put on display for the viewers, for the audience, we decide what is the norm, what's the standard? Are we upholding a culture of canon? Is it traditional or are we breaking new grounds? So it's extremely important that also culture and entertainment can show a broader perspective and include different stories, different worlds, different shapes of people, colors, yes.

Just unpacking that a little bit. I mean during COVID, we saw a massive consumption of content, and arguably a move into consuming different types of content, more international, different subject matters. Is that something where you noticed more of a proliferation of interesting ideas and thoughts around these type of subjects? Or do you think you were just kind of return to stereotypical norms? I mean how do you think that at all?

No, I don't think it can ever return -- I mean to the old -- I mean the old, and it cannot. It cannot because now we open the windows. We open the curtains, and we have seen, I mean, what's out there. So we are still looking for new stories -- I mean that's how I really believe that. We are no longer interested in what we had. We also want to break new grounds as I said. So yes, the power of the entertainment industry, talking about these issues, is enormous. And we need to know also that we -- I mean, we need to be aware of the power that we have, telling the stories. And also, I mean, what is the thought behind the story? If we are the storytellers and we are the creators, we really need the support to tell the stories and also have to include people with different perspectives. So I mean I think we cannot go back because people are looking for just for new things.

Yes, and it's being driven by the audiences. So I think -- I mean, when you come to editorial decision-making for, Filippa, I mean, do you see more and more projects coming through with interesting story lines that are much more challenging in terms of what we expect from the audiences?

Yes, for sure. We are also very actively searching for it. But definitely, and it is, as Eva says, sort of it is very important. We have a wide reach with our platform. And what we are deciding to show at our audiences is also setting the new norms. So if we are just telling the same stories with the same type of characters, we are not really helping changing stereotypes. And that's something we're trying to do all the time. It can be the stories that we pick, but also within the stores that we pick make sure that we don't have sort of stereotypical roles in the roles that you expect them to be. Those kind of things are also very important, both in the selection of the shows and then sort of how we are then working with them.

Yes. And I mean, if we look at Honour specifically, I mean 3 seasons now, I mean it's been enormously successful, fantastic sort of feedback from the audiences. What aspects do you think lay behind the success of the format? And what do you think it is driving through successive seasons here?

I think if we talk just about Honour, I do think the success behind the series is, of course, I mean, the storyline and it's interesting with the moral, is for lawyers fighting for justice for women and justice, human rights and blah, blah, blah, but they have a -- they have a great lack of moral themselves, which is interesting. I mean, when it comes to cracking in people, as super hero with the -- the dark past and so on and so on and so on. But I think just for this specific series, the fact that we, the 4 talents, also had a voice of talking about the issues that we were addressing with the series, that actually made the series. We had -- we got some credibility in actually the knowledge of the topics that we wanted to address. And we already had -- we're really, really, really into using our platforms for change as private persons and as creators. So when we said this is important for me as a person, but when I put myself up on stage and use my platform, say, this is the content we create, these issues that we really believe is super important for people right now in the society. And then we had already people listening. And then we said, let's make this super political, interesting, extremely important issues and make it into content, make it into drama really. Can we do that? Yes, we can because we know what we are talking about. We lived it. We see it. We have the audience. We have a really close contact with our viewers. They're sending letters, they're sending DMs on social media platforms that's exploding. I never been -- never ever imagine anything like this. So we have, I think, the trust that the audience showed us -- and they -- I think we -- I think they relied on us, that we know what we are talking about. And when we don't know, we do our homework, we do our research. We keep close contact with our sources, with the knowledge that we lack. So when we were actually creating something, it wasn't only fiction. It was actually fiction coming from fire that we never ever stop, that I can promise you. And I do think actually that this, you know that Filippa because we have every time we meet, we have this and this and this and this. Unfortunately, I mean, the topic is extremely wide, talking about oppression of women or human rights or blah, blah, blah. But it's not as political as we say in Sweden, [indiscernible] politically correct, blah, blah, blah, assuming that you'll be boring. It's not. And because we have this fire and we have the humor, we have the knowledge, we can actually -- and we get the trust from Viaplay to actually use this, use us. We have this. We are storytellers, and that's actually been amazing [Foreign Language].

Collaboration.

Collaboration, yes. I would love to talk about later. Because you need people to actually trust you and to believe in you and say, okay, let's go -- maybe this is a very narrow topic or maybe this is too political. But then when we showed -- I mean, people would like to see it because we also can turn it into fiction and to drama, even though when you turn off the tele, maybe you had something more. And you can talk with your friends or your boyfriend or your father and that's what we noticed with the contact with the viewers.

Great.

Can I say something what I think on the success because I think you're kind of saying all of the things that is important. I think with the topic itself, you really found a story that should have been told a lot earlier. It is a little bit of an untapped potential. And you could see like it's not just some view sort of on fire. There are so many people out there that were just waiting for these type of stories to be brought up to the surface. And that's what I mean with -- when you find the untold stories that deserves to be told, they also gain a very broad audience. So that's, I think, 1 important aspect. And then, of course, the passion. Like you have 4 creators here that are extremely passionate. And coming back to sort of production budgets and all of that, if you don't have the passion, it doesn't matter how much money you have. That -- if we can find one common denominator for all of our most successful shows, it always comes down to passion. It sort of is someone going to put themselves sort of at the forefront for this? Is someone going to drive this? And here, we have 4. And that's, of course, extremely valuable.

And a beautiful connection back to the values, to bravery, to trust, the things we talked about earlier.

One more thing. If I can say one more thing. It is also that when you do something like this, Honour is bringing some very heavy topics, and you can do that in a quite sort of, I don't know, hard way so you don't even want to watch. But it's really, really kind of nerve wracking, you're sitting like this. It is really sort of entertaining and that's, of course, also important.

Good. Well, listen, I think we've got time for some questions from the audience. So does anyone have anything they would like to ask, Eva or Filippa. Or our online audience? Yes. A question here, Tom.

Yes. Tom from Citi. The question is around whether the type of content that you make is -- has changed as a function of people watching it in a nonlinear environment. Does the fact that you don't have advertisers to keep on board, make you more bold? Like does it change the format of the content?

Yes, there is quite a big difference between the content on linear and Viaplay in some cases. But I wouldn't say so much depending on the advertisers. It's more sort of the way you consume different type of content. And sort of in a way, a lot of the shows that we show on Viaplay, they require a bit more from the viewers, and that they don't always work very well on linear. Because linear, you're kind of leaning back and you're expecting to see something that is relatively easy to digest. Some of our shows work on both. But when you come into more sort of I don't know, focused or harder topics, it is a bit different between streaming and linear. But it's not so much -- it's due to the advertisers, but more sort of how people are consuming content differently on linear and on streaming.

Good. Any other questions? No, I don't think anything else from the audience. So maybe just closing with you. I mean this is a subject, I think we could all talk about for a long time as a lot of things to discuss. When you look forward now and think about what lies ahead in terms of storytelling more generally, you've highlighted some areas where you think more can be done. Do you think the industry is moving fast enough? So do you think enough is being done to accelerate this? And what do you think could be done?

No, no, no.

What stimulates that? What can more be done?

I know that people have tried. How long time do you have?

But you need to do this quickly.

I mean it's all about -- I mean, people are getting work that we know, but also it has a lot to do about I mean getting your whole team into the issues that people have -- you have to educate your team, you have to educate the people that you are working with in companies. I mean all of our companies, production companies, you really -- it's not just talking about -- I mean, some polish on the surface. You really need -- the people that you're working with, they really need to be educated in these topics. -- to actually see that this is important. It's not just something we do because it looks good. So I mean, if you ask me, are we doing enough? I say no. But you also need -- as we and the creators for Honour, when we get from Viaplay, this absolute trust and the support that we actually -- I mean for us, it's been unique because we have been working with a lot of production companies, of course. And to get this artistic freedom, to -- actually to be able to create what we want to create and say, no, no, it has to be done this way. No, we cannot. We can -- I'm sorry, we cannot compromise. We cannot because this is too important. And to get the trust from Viaplay has been very, very important for us to be able to continue. I mean we've done 3 seasons. And to have the right people, people that actually are brave enough and know how to listen. Are you with me?

Completely.

I mean that's the most important. I'm sorry. No offense. I mean it's so important that we have something important to say.

Probably I'm with 400 people who want to ask you questions.

But yes, I think you're absolutely right. And when it comes to -- it's different aspects of this also, like I think when it comes to sort of gender balance and those kind of things. I think we're pretty good. Like we worked a lot now with female creators. We've seen a lot of fantastic women creators. Also, it's not -- I don't think it's a coincidence that some of our most successful shows have been created by women with women in the lead roles. So we've come very far there, both as an industry, and we've, of course, worked very hard on it. But there are a lot of fantastic strong voices out there that we're just waiting for someone to let them -- to give them a platform pretty much. Where I think we're struggling, both Viaplay and as an industry, is kind of lead general side a little bit. But finding the other sort of minority cultures, the other stories that we are not really getting enough sort of pitches in around sort of. And it's almost hard because it's kind of the most interesting stories is the ones that I never get pitched, that they don't even reach me. And there we are going out and trying to find them ourselves and trying to find creators that are credible in different fields. But I think that's sort of portraying different cultures, different parts of our society. There, we have a lot more work to do.

Good. There's a few more questions coming through online there, but I think we're going to have to take those separately. Thank you both so much. We're going to move on now, but please show your appreciation.

Thank you.

Thank you.

Good. Okay. So we're moving pace again. Now we're going to end to the world of sports. We have our very own Mr. Sports, Mr. Peter Norrelund, who's going to come on stage. Fast and furious tennis is what is now required, Peter. So here we go. Over to you.

Thank you. Thank you. Buckle up and fasten your seatbelts, partly because of Mr. Hooper, who has been harassing me for the past hour, pushing my time. But mainly because of we are going to -- I'm going to speak a lot about Formula 1. I will reveal some amazing viewing numbers on Viaplay, on sports. And then there is a couple of interesting insights from some of the most influential persons in the world of sports. But if we start with what we discussed last year at the virtual -- virtual CMD. What does it take to have a good sports offering? Obviously, good rights, AAA rights, which had the characteristics you know, but then also production. Production, curation, how we treat the provinces are super important, and we have some great advantages by being in multiple countries. Looking at the portfolio, we also discussed last year our 3-pillar strategy. We want to have AAA rights within 3 categories of rights: Football, in any given country, if you want to run a subscription service, you need strong football; Motorsports, and Formula 1 in particular, is also a very, very interesting sports right when it comes to existing subscribers. Formula One, Motorsports attracts a bit of different audience than football hence, the importance. And then we have what we call local rights. So we need a local rights like NHL, FIS, Sweden, Finland, Hamburg, Norway, Dutch, Netherlands. And we had a good example from the past year on how we work with this. If we look at Poland, Bundesliga, Premier League, Europa League, Conference League, big fat thick tick in the box of football. Formula 1 coming next year, ticking that box, but we needed some local content. In Poland, there's an MMA operator called KSW, actually the second largest in the world after USC because of the amazing shows they do, primarily locally in Poland. They had a event-by-event deal with Pulsat that being on pay for view, 4 to 5 events a year. We approached them and said, can't we work a little bit our product. If you can do 12 events instead of 4, 5 we can do a 5-year deal. Then we work with different tiers of events, but we need an event every month in order to avoid churn. And the results have been amazing. Biggest D2C sales driver, and KSW is responsible for 1/3 of the sales D2C in Poland. Pretty strong. But I want to speak primarily today about our core properties, Premier League, which we have in 9 countries, 6-year deal done early 2020. The first 6-year deal Premier League did in Nordics, was with us. And Formula 1, which we -- from next year, will have in 10 countries. And if we start with Premier League, I don't have the slide down here, so I need to talk about the production and the advantage of scale. Obviously, as we are broadcasting the matches in 9 countries, we can do a lot of shared content. We get interviews with all the best players on Tobias Casemiro from Manchester United. We have had Kevin De Bruyne, Mohamed Salah, everyone. We can actually have that reporter outside this tapium that you would never do if you were only broadcasting into 1 territory, but as we are broadcasting into 9 territory, it makes sense to give a bit of the atmosphere outside the stadium. We have the logo rooms. We are on the pit before the game. We have pit side studios. We have camera at our commentary positions. So a very, very comprehensive coverage but where we take advantage of shared content done centrally and then curate it locally in the local studios. And the results so far have been amazing. For the first 12 rounds this season, more than 1.4 million have watched Premier League on Viaplay alone. And they have watched almost 2 billion minutes. To put that into perspective, if we take Norway, which is a very important Premier League country, a strong Premier League country, each viewer have an average watched almost 3,000 minutes, 32 matches or almost 3 matches per round. In a world where the most scarce resource is time, that's a lot of time spent on a product. If we dig a little bit more into the Norwegian numbers, as Anders mentioned in his presentation, we got all the Premier League diehard fans immediately. That we also see in the viewing numbers, Manchester United, Liverpool on top, traditional very, very popular clubs in Norway. But now we see the highland effect, Manchester City picking up, almost as big in viewing as the 2 big clubs. And that is, of course, because some people who would not think they will buy a high premium Premier League subscription. A year ago, now need to follow this adventure with adding Ireland, 18 goals and 12 games. I can tell a lot about how good we are, but I would rather have someone else to do it. Paul Molnar has been with Premier League for the past 2 decades. He is Chief Media Officer so responsible for all right sales. So he has been a part of the journey of Premier League becoming, I would say, the most valuable global product. I know NFL gets more money and license fees, but 95% plus of that money comes out of 1 market. Sports revenues comes 45% from U.K. and the rest from international markets, and it goes like this. So I asked him how we see Viaplay as a partner and what defines a good partner for him. [Presentation]

It's interesting how important it is to him how it is covered. And that's, of course, they will always get their license fees when you have such a strong property. There will always be a company with a deep progress or a man with a fat wallet who is able to buy the rights. But can they also deliver what is actually important for Premier League going forward and retaining the brand and building the brand, building the popularity around the product. The same applies for Formula 1, but that is even easier for us to produce that. Because with Formula 1 for next season, we are talking about 24 races, 24 circuits, 10 teams, 20 drivers, common language, English. So there, we are doing a lot of on-site productions, which we then can insert in our local productions. We have Viaplay experts, Mika Häkkinen two-time world champion from Finland; David Coulthard, 21 country wins, I think it is, and some presence the 9 times. Imagine. One of those will always be at the service reporting back to the countries. And that is where we had the local creation in the conference from the studios, securing a local touch. Nothing mentioned. But you could imagine a sports broadcaster who said, now we have a studio in English from tennis court, and we just put that out in all the markets we can think of. That is not a good curation of content, but it is okay to choose in English and then use it in the Danish dots on Norwegian Studio. Mike Häkkinen is also interesting the way he has never done broadcast in Finland. It's one of the biggest years there. He has never done a Formula 1 broadcast. But when we came with this production, we found it interesting to be out in 9 markets this year, 10 markets next year. Looking at the Formula 1 viewing on Viaplay. So not on linear channels in any countries. During this season, almost 1.7 million unique users who have spent more than 4 billion minutes. And if we put that to perspective, time spent in average per user for the different countries are on the slide, 20 hours in Denmark, the lowest one, still a lot of time to spend on Formula 1 for one user, an astonishing 53 hours in Netherlands. And Netherlands is also special with Formula 1. They have the world champion -- the biggest sponsor Häkkinen is from Netherlands. So we are quite brave of the person behind me, Ian Holmes, Director of Media at Formula 1, that he actually sold us the rights even before we had launched a product. So I started asking Ian about his thought process around that. [Presentation]

Ian, also an old-timer in the business, have been there for plus 20 years, working for Formula 1, is responsible for media sales in all markets. Actually, I forgot a number, and it's actually the most interesting number. You probably all saw it because you're numbers people. But on the Premier League slide, there was a viewing number on Premier League in Netherlands. And that's a bit interesting. Because Premier League was last season, on a linear channel called [indiscernible], 55% penetration. I think [indiscernible] have told you that we have 1.1 million subs in Netherlands, so that's around 15% penetration. I've taken an average of the 25 most viewed games on [indiscernible], the entire last season and compared them with the 25 most viewed games on Viaplay this season on unique users. There, we are 20% -- 18% to 20% to be precise, up compared to the viewing on the linear channel [indiscernible]. That is a fantastic story for me. Because I'm always met with the penetration of linear channels, and it's nice to be on linear channels. But this shows actually that if you have an OTT platform and if you have the right customers on that OTT platform, and if you have people like [indiscernible] who are able to make sure that the customers, while they are on the platform also get on to the other stuff, then that's much better than being on a linear channel, which could have 55% penetration, but it's in a channel package with 67 channels to 70 channels or 40 channels. Super important to mention that. Sorry, Matthew, it took a bit of my time, but I think it was important. Moving on, still being in the Formula 1 space, Max Verstappen. Just won the second world championship, 14 wins so far this season. One better than the best on Sebastian Vettel and Michael Schumacher, who had the previous record, still 2 races to go. Brazil this week and then Abu Dhabi, so he can end at 16 wins. We have a fantastic cooperation with him and a very extensive cooperation. As you can see, he is doing commercials for us. He's an ambassador. We have done programming, Lion Unleashed, about his world championship last season. 550,000 unique has watched that first beat off the track, a day with him in a simp where he drove all circuits in Formula 1 have had 300,000-plus unique on Viaplay and has been used in our studio preshows in all countries. This, of course, doing a lot of -- with us join the GP [indiscernible] sit-downs, et cetera. Three days after he won the championship in Japan, we had a day at [indiscernible] where we produced 3 programs. It's One Talk with Verstappen, Max's machine, a comparison between the Formula 1 Red Bull racer we had there and a street car. And Lion Unleashed, Part 2. As Filippa said, content has throughout the year been worked on a 3 episode documentary and same of a champion. Luckily, he won the championship once again. I think that will be dropped on Viaplay in the beginning of March or something like that. We're also working with them on a bigger movie to be released in 3 years' time, not when he has retired. While he is still on top of his sport. And then we also have Viaplay on his helmet and we'll have it on his cap next year. You will see that, and we can use them for promotion in all markets, also select markets, which is attractive for partners there. This is a very, very comprehensive arrangement with an active sport star. I would say he will probably be a main sports star this year, and that will probably continue many years ahead. So I asked Raymond Vermeulen his manager, why they have entered such a partnership.

Max is doing a lot more than just driving quick laps on the track. And it is for us important to have Viaplay as a partner to create great content and that we can give an insight of Max, also his private life. And for us, it's important that we get Max in as many households as possible. And that's why Viaplay with the streaming platform, what they're running, expanding drift what they have in various countries. This is the perfect match to work together. We entered the partnership with Viaplay, of course, after they were the rights holder in Netherlands for broadcasting Formula 1, we start conversations, how we could work together in the paddock, but also to work with Max outside the paddock. So yes, that was a natural fit. And the first conversation went well and the partnership was basically closed in a very rapid mode and happy that everyone was on the same level and thinking of the same basic. We see Viaplay as a partner for the long term. Of course, we are both ambitious. That was the brand in the first place. We are ambitious with Max and built his worldwide brand. Viaplay is very ambitious in expanding in countries. So yes, we are working together, and we are working on a base that we both want to expand and that we both want to bring a lot of nice content. And even I think with Viaplay as a streaming platform, expanding in many countries, that is the perfect fit for us.

I think we will see much more of those kinds of collaborations in the future. It really, really goes hand-in-hand also commercially for the assets. Of course, if we can help Max and Raymond in opening up the U.S. market for him, then it will turn into a totally different business in that market. We also have a deal and best deal with Erling Haaland. The only problem with him is that he is not Danish, and fantastic driver. We did a documentary, which I hope you have seen. he could have chosen any in Europe. He choose Manchester City, 450,000 [ uniques ] have seen that so far. We can't do exactly the same amount of programming around him. He is a part of a club Manchester City, as you know, which also have restrictions, that is easier with individual sport stars. But we are looking into doing much more of this in the future, combine the staff and the platform. Now I have 35 seconds left. And I keep my slot, Anders. Next off, U.K. Fantastic, fascinating. Anders spoke about the acquisition of Premier Sports have giving us a good start and gives us a bit of time to set up exactly the right sports offer in that market. And it is actually not so crowded when it comes to sports. If we take away 2 or 3 huge properties which are driving the big pay platform that is in that country, then there is actually a lot of valuable sports content for reasonable money. But we have a good start with Premier Sports, Nation League games, home matches of Scotland, Wales, Northern Ireland. We have LaLiga. We have United Rugby Championship, which is the premier rugby league for Scotland, Ireland, Wales, Italy and South Africa. And we will build on that and build on the customer base that Premier Sports has today and the good distribution deals that they have. Key takeaways. Well, no, I need to be quick. Our portfolio is in the place. Matthew actually wanted me to run through our sports rights in all of the different countries we have. First of all, has taken 40 minutes, and it would have been super boring because you know our portfolios. They are super strong within football, motorsports and local sports. I think we have unique partnerships with key partners. I actually not -- I haven't paid them to say what they said about us, but those are probably the most 2 influential persons in the world of sports, and they like what we are doing. Massive viewing on Viaplay, massive viewing. And then OTT outperforming linear. Really, really interesting takeaway. We are doing paid productions. We are getting synergies out of it, and we are doing it very well. And we have the new unique partnerships that will end better for us. Thank you.

Thank you, Peter. You've got to love this guy because he does its own panel discussions, but he record them first, so makes it easier, right? So well done, and you got us through it in time. We must have lots of questions from the audience. I've got 2 online here to say quickly first. From Omar Sheikh at Morgan Stanley, how easy do you think it will be for new entrants like Netflix to acquire sports rights in your footprint?

Super difficult. I think when we hear Paul and Ian, we also give the answer on why it is difficult for a global platform to enter the world of sports. And let's not even talk about the value and that they perhaps have to change their packaging and things like that, but they need to have a local sports organization to do the productions. And that is super important. So it is not easy, and we have met them. You know Amazon, that has been popular now, it wasn't last year. Amazon tried to get a Formula 1 rights in Netherlands. But they are global, but am I afraid to meet them in the markets we're in? No. Because we're doing a good job. We have a great heritage with the right ones.

Good. And then the second question from Omar. F1 has been hugely important for the success of Viaplay. Is it critical to your strategy to renew your contracts and when is the next tender due?

It will be nice. We had the rights until '24, '25, and I'm confident we will continue with the rights.

Okay. Very clear. So let's -- here we go, Saim over here. So can you bring the microphone on the front.

Saim from Berenberg. Just a quick one on Denmark. You've not any country you have the National Football League rights in as up for exploration renew rather quite soon. Is that a pretty key right of that country? Or is that something you're willing to let go, it hasn't reached the ROI you want on that.

That's a good local rights coming back to my football, motor sport local rights. is a good local in Denmark. It has been since '98 when we acquired the rights, and I'm sure we also will see Super League on our platform in the future in Denmark.

Okay. Are we going to continue Saturday Night Live with Martin Arnell. I think we asked who we are...

I must ask you about the big near-term elephant in the room, and that's the Football World Cup coming up. It's a 1 month. And I think you mentioned that you need a big event every month in order to protect your churn. What do you really expect here? How are you?

Yes [indiscernible] Kim Poder. I hope you can have a great laugh on that one. Our Chief Commercial Officer for Nordics. I'm really, really happy that Premier League will start playing again the 26th of December. So I don't think we will see a huge impact.

Okay. Second question I have is actually, what do you think about your infrastructure of the biggest cross-border leagues and what's Viaplay's views on all of that?

Yes. We need to see -- and I guess you are referring to the changes with the Champions League going forward. We have challenged a bit with the excitement in group phase of Champions League. Now they try to change that. Let's see how that works. It will be a long table of 32 clubs. So there will be a little bit of explanation in the studios. But let's see, I think it is fine that they try to innovate and develop the product.

Good. Any other questions from the audience? Yes?

[indiscernible] from Deutsche Bank. I thought I'd ask a question with the women empowerment section, but here I am asking about sports instead. Just a quick question on key person risks. So there's a lot of content around Max Verstappen, et cetera. And we hope that his career flourishes from here on. But what is the experience you have when sort of World Champion is no longer a World Champion. I mean, is the traction in that market still as strong once you've had a footprint there like the Netherlands going forward? That's question one. And question 2 would be what other sports rights would you love to get your hands on? Or you have in mind which would maybe be the next step of ARPU increases perhaps that Viaplay can then generate. So question 2.

Yes. If I take your first question first, obviously, Max Verstappen in Netherlands gives a fantastic boost to Formula One, but he is also listing Formula One as a sport and the interest for Formula One. So I think we are never buying any rights because there is a local element in it. Because you have wins and you have losses on that. Sometimes you have people in who are performing from a country, sometimes not. The interesting part is if we talk about peak of Champions League matches, for example, in Denmark, where we have had Champions League many years when I started and that's also many years ago, 20 years ago, we always picked a [ Dane in action ] then it didn't matter of the other clubs. But there have been a globalization of football. And if you see your kids today, they talk about the big European clubs. So today, we never pick matches for our main channels because of local presence in the matches. We pick them after the most interesting matches on a global basis. And that is the globalization we have seen with football, which are benefiting off there. Formula One has actually a globalization now. Also with a colleague in the business, Netflix, we had done to try to survive and, of course, increase the interest for that. Then you asked about what I would like to have and if there are things, and it will be wrong to say that. Because we have also competitors. And the beauty with the launch in Netherlands was no one knew we would come in. So it was a shock. The same in Poland. No one knew we would be there. So that -- I have a list, but that I would stick to myself, if that's okay.

Good. And I think you'll probably remember those statistics that Anders quoted at the beginning of the day about the number of new sports rights we acquired and number of [indiscernible] which is a lot. Only 7 missing, I think, was the small number at the end. Any other questions from anyone? No. In which case, I think that was fast and furious, just over 10, but thank you very much indeed. And yes, good to see you. Thank you.

Right. And now we're changing gear again. So we're going to start talking about the partnership structure now. And this has been raised in questions throughout the day. So we're going to have our Chief Commercial Officer, Kim Poder, come on stage. He's going to be joining by guest in due course as well. So welcome, Kim.

Thank you, Matthew. Thank you all of you for still being here. And you're going to start releasing your seatbelt again after 20 minutes with Peter because now you're in a safe phase again with me, about to talk about how we strike and make certain agreements with the distribution partners. So this is my focus today. And I'll mainly talk about Viaplay, but just mindful about the fact that we also have a linear challenge, which is also part of our toolbox in the Nordics in particular. I'll try to explain to you the pros and the cons when we consider entering these partnerships or when we consider renewing those partnerships. What is weighing against and what is weighing pro a certain partnership. And I'll give you 3 concrete examples today, is about new agreement with Tele2 in Sweden is about CANAL+ in Poland and it's about Ziggo in the Netherlands. And I'm happy to take questions about all the partnerships if you find it relevant. I think it's important to say that D2C offering is always relevant for us. And that's will be extremely important to our success in all markets. But it's not either all. And in all markets, I would say that we don't have to make agreements with the B2B division partner, but it's a great opportunity of them. So we would like to do it, but we don't have to do it. And that's why if you look at the markets, you obviously that we have multiple partners because we have found many interesting opportunities in a way to grow our partnerships in these markets. I think if we start looking at how we weigh the pros and cons, obviously, the flip side of doing a partnership is that we have to share our revenues with a partner. That's the flip side. That's the downside. Obviously, our partner expects to get a little bit of the revenues in return for offering more sales. But if you look at the opportunities, and they are quite enormous actually. It's about reaching segment that wouldn't necessarily have chosen Viaplay without help from a distribution partner. It's about growing faster in certain segments there, and it's about often getting into a package where you can reach a higher penetration than what we would normally be able to do. Often, you also see that these types of segments have a low churn. So it's not always about ARPU. We have discussed a little bit today, the importance of ARPU, but it's also relevant to discuss about the lifetime of a customer. You bring them in after the hard work and marketing for how long will they stay until they decide for some reason to leave you again. So ARPU is important, but also lifetime value is super, super so important. So we try to weigh all these factors in and try to see how can we find an interesting partnership with the relevant distribution operator in the best markets. It's not always easy, but if we are willing to make individual partnerships to make sure that it fits the operating strategy, we can start to find something which is a win-win to us and to the partners. That's important. If we look at our footprint, at least some of it, and this is where I will assume it on. It's the Nordics and it's the Continental Europe. That's where I will give you a few examples. Obviously, in the Nordics, we have a more complex offering, giving the linear the presence in a little bit more simple structure in the markets outside the Nordics. Let me start by looking into the Nordics, where you have the population of 12 million households, of which the partners represent roughly 10 million households. So our -- the potential partners in the Nordics represent almost 10 million households, where TV and mobile and what have you not. We are working with all partners, not in all the markets, but we are working [indiscernible] all partners in the Nordics, and they represent a value of around for Pay-TV roughly SEK 35 billion. So they represent 10 million households and total value of nothing less than SEK 35 billion spend. Every year on great content, sports, movies and local content as well. And that's, of course, an interesting opportunity for us. If I can give you a few examples, a little bit start here in Sweden. It's a well-known partner of us of Tele2 and we recently renewed the partnership. And luckily, we find a completely new way of distributing our content on Tele2's various products. And I must say that Tele2 decided to completely change their proposition recently when they announced that part of all the TV packages, they now include Viaplay. So disregard whether deciding a key package that prices of SEK 299 or a more expensive premium package at the price of SEK 749 -- SEK 799, I'm sorry, you get Viaplay included. So that means 100% penetration within Tele2's universe within their segment. That's, of course, extremely interesting for us because even us being a super business, reaching 100% is a quite interesting penetration for Viaplay. In that way, you reach families that have not necessarily considered buying Viaplay, but over time, we'll start using the service and hopefully we'll really, really fall in love with a Viaplay and enjoy our service, but also stay longer with Tele2 and hopefully, more customers will join Tele2 because of Viaplay in the future. Super interesting. That was a bold move by Tele2. And I must say they migrated all their customers into new price points and new packages. That's a quite troublesome exercise. And of course, for new sales, they now have different types of packages, which attracts more customers already proven. But they also have a -- they also have a universe outside the TV business, which is broadband and on mobile. Hundreds of thousands of households who haven't bought a TV package, but have mobile broadband. And before this agreement, they offer their own streaming service called Tele2 Play+. And since June, they have added Viaplay into the same streaming office. That means if you buy a Tele2 play service, you get all their streaming content plus a Viaplay in a bundle at a low price point, which is SEK 149, it used to be SEK 89. But by increasing the price from SEK 89 to SEK 149, you get Viaplay included. It's a very attractive price point. It's a very new journey, and they only just begun, but I think it has amazing opportunity for Tele2 and also from Viaplay to be in such package when the consumer start to get in to know this product. If we leave the Nordics for -- until we return to the conclusions, I would like to talk about 2 of the bigger markets, which in size actually has a combined value, which is higher than the Nordic markets, the pay-TV market is roughly SEK 38 billion in Netherlands and in Poland. And in size of household is, of course, a fantastic opportunity for us being a new services in these markets. In Netherlands, we have 4 partnerships. We basically represented in almost 100% of the households technically. And in Poland, we work with roughly 44% of the households via the partners we have in these markets. Let me just start looking at a new partner, we just -- we welcome when we introduced our service in the Netherlands. It was actually the former holder of the Formula 1 race in that market. So you can imagine that the first meeting was a little bit special since we took over the Formula 1 rights, but they are super, super professional. So we actually quite soon got into in constructive discussions about how could Viaplay service be a perfect fit into their offering. It is offered as a la carte service, where you buy it on top of a TV tier which was -- it was proven to be an amazing success from the very beginning when we launched in March. What we did in Netherlands was on top of launching Viaplay because we knew that streaming on support was relatively new in that market, we decided to launch Viaplay which is a linear channel. So instead of just launching a streaming service with our linear exposure, we decided to launch also a linear channel, which was a way you could argue to educate the viewers in Netherlands, trying to migrate them slowly from linear TV into the Viaplay service. What you get in this channel is the Formula 1 races, but you don't get all the movies, all the local content and you don't get [ family ]. So obviously, the value for the service is much higher when you watch the Viaplay -- when you watch the content on Viaplay. But really, really interesting in learning how you can use the linear channels to migrate customers from the linear world into the streaming world, and that is something that we have really, really taken with us. When we acquired Premier League just before the start of the season here in August, we actually signed a very, very interesting and agreement with a new partner in Poland mainly with CANAL+. CANAL+ is a bouquet of sports channels and movie channels, but it's also a service via satellite. So they are a leading seller provider in the Netherlands. When we acquired Premier League, we were discussing with CANAL+ on trying to find a structure dealer, which actually allow them to give access to Premier League which was, of course, key to them because they have been the right holder of Premier League for quite some time. For us, it was interesting to tap into the territory and give them a chance to offer Viaplay to their customers. So what we decided and agreed was that they have the right to select 2 matches from Premier League from each round, and also the bundle Viaplay as a hard bundle into all the premium segments. So over time, all the premium subscribers from CANAL+, they will enjoy Viaplay. That's an amazing opportunity for us in a relatively new market to be able to get in contact with so many customers from CANAL+. So that's really, really, really a major, major, major opportunity for us and hopefully also for CANAL+ and their customers. That is, of course, as important. If we leave Italy, Poland and actually the size of 2 other markets, such as U.K. and also North America, it deserves full attention. But given the time constraints, I will not dwell too much at it, which is a little bit unfair to the size of the market and also a little bit unfair to the -- due to the interest on the popularity of Nordic content in U.K. and in the U.S. But it's important to say with the acquisition of Premier Sports, we already have a footprint with access to customers. Our partner, Sky, Virgin and actually also Amazon, they are reaching roughly 87 million percent of the -- sorry, 84% of the households in the U.K. market. So this is a new opportunity for us. Hopefully, we believe we can build the Premier Sport experience now with Viaplay and more sports rights, but it's also a great opportunity for us to be able to offer the Nordic content to this huge population in the U.K., really, really interesting. If we focus on the North American market, which hasn't really started yet. We have not yet launched our app in this territory, but we will. Let me just comment a little bit on what Philip mentioned earlier on today. We have -- we have now signed a dealer agreement with Roku. And as Philip explained, is basically 2 types of agreements: One, allowing us and them; two, wherever we are present and wherever they're present with the Roku device, our app is integrated on their device. Just similar to when you use a chromecast as a way to watch Viaplay on your big screen devices. I'm even more excited about the opportunity to work with Roku in the U.S. They represent almost 65 million households in the U.S. market. They are, as far as I know, the most successful channel partner in that market. They really know what they're doing. And of course, we're super proud about our content we have it all so much believe in our content. But these guys, they would not have done deal with us if they didn't believe and know that there is a huge appetite for Nordic content. So that's going to be really, really interserting to see how much value we can drive out of that deal with Roku in U.S. So I'm happy to talk more about that when we see each other next time. I think we have launched in the U.S. If I can summarize a few of the key takeaways. We strongly believe that B2B agreements distribution partnerships is a very interesting complement to our D2C business. We are mindful about how we make them right. So they fit the strategy of the partners is not a one-fit-all. We want to do it in a way. So we're mindful about reducing the churn, increasing the lifetime and creating value for the partner and for the customers. And we have proven we can do it in the Nordics, where we work with our lead channels and Viaplay. We can actually modernize the way that content is packaged in the Nordics, increasing the value of us and the partner. And we have proven that we actually successfully can launch streaming service in new markets where streaming is a little bit less mature. But of course, we will learn with help from us, obviously, how to enjoy great content on Viaplay. That was all for now. I think I had to sit down now.

Thank you very much, Kim. Grab a seat. There we are. And we have our final special guests in this organized part of the session anyway. So Bjørn Ivar Moen comes from a -- CEO of Telenor in Sweden, so one of our established partners. So before I get to your questions, I guess, a couple for you, if I may.

You've obviously decided to partner with us with Viaplay Group, not to pursue acquiring content on your own rights, if you like. What drives that decision? And how do you think about the partnership moving forward?

Yes. Thanks, and thank you for having me. Good to be here. A couple of reasons, really. We are a mobile operator. That is a massive task, right? We're moving from 4G to 5G. We're building our base stations all over the country. We need to apply by security rules. We need to comply to frequency regulations, there are a ton of things to do just on the network side. On top of that, we obviously need to provide a good service itself to our customers. So that's a massive undertaking. But that's also what we really need to be best that. That's where we play. That's where we need to win. And we see that there are other players, for instance, Viaplay, a partnership that goes back a long time, but does content a lot better than we can do. So they are good at what they do. We are good at what we do and the combination we feel is really, really strong. And that enables us to then take out good offers into the market when building on both sides from -- on strong from both sides.

Okay. great. And then maybe just take that a step further. I mean as we head into a period now where consumer spending is going to be under more pressure. People are going to be looking at that wallets digital and otherwise, with more attention. How important is content for you in the mix of what you provide to your customers?

And you're right, of course. It is a demanding market or isn't it? It's a changing environment and it's changed really fast. But what we see is, of course, that communication is still going to be really important. Some people are not going to stop using their mobile phones. But their preferences might change a little bit. They're looking for that good deal. They're looking for good offers. And when they are consuming mobile services as well as content, great content, then we're looking for that good deal. So we need to adjust to that to make sure that we have the right packages available for our customers and also promote that good, strong bundle that creates value for the customers, both with respect to great mobile services, great content and that good deal, if you will.

Great. Okay. well, so I'm going to open up to the audience now. So does anyone have any questions for Bjørn Ivar or for Kim? Again, you're going to have to raise your hands quite -- anything here? Yes, down here, sorry. Saim, So kind of the bottom.

Maybe if we just go back to the B2B ARPU graph from the beginning of the presentation where it was going to be flat over the course of the year. I remember Enrique mentioned that the previous time it took to renegotiate or get those price increases in those packages is 6 to 12 months. So I think about Q3. If the finished price increase was in Q1, has that just not gone through B2B subscribers packages by that point in Q3 or is it more just a mix effect? That's just my first question.

Yes, which I guess is for you. Well, let's do the first 1 first.

I think -- yes. if I can just start by coming on the 6 to 12 months because it is unfortunately a bit more complex than so if you can just try to explain that we have 2 types of deals. We have the hard where as an operator knows that the entire base will get access to Viaplay, let's say, for 3 years. In these types of deals, we have pre-agreed inflation. Already we have agreed what will be in a phase in year-on-year. And then you have the la carte agreement, where a customer decides to buy a Viaplay on top. In these types of agreements, we normally have a very short notice that we work with price increases, most agreements here, the price is related to the retail price. So when we increase the price by 10%, you would normally see a price increase with no longer notice, which will go up with the same amount. The exception, of course, new deals. So when we do sign new agreements in this quarter or in any other quarter, obviously, there is an introduction offering which can affect the ARPU short term. But over time, it's just stabilize.

Okay. Great. And if we're thinking about Tele2 now, on the earnings call, they said that a lot of the migration on the finished for that year. But of the remainder of the subscriber base, how much of a tailwind come we expect into next year? I mean, has the majority of it been done this year? Are there only a very small amount into next year?

End of this year, the majority of the Tele2 base is migrated. There will still be a few in 24 months binding, but obviously, they're trying to migrate them as well because it's also appealing for them to go to the new packaging structure with Viaplay. But the majority of the subscribers they have migrated this year is from Tele2. And obviously, we hope that the streaming proposition will be successful, so they can bring in new customers as well.

Any other questions in the audience?

There was a question about churn, if I can remind the person. Sports churn.

Okay. I'm just taking a look when you have anything else online.

So I'm going to ask Peter about the sports churn. If I can ask that while you find the next question? Is that okay? There was a question around if we are concerned about sports churn during the World Cup and I'm mindful, I'm not concerned. And I'm mindful because I know, of course, it is a risk, but it's a known risk and we can plan for the risk. We know exactly what these households [ enjoyed or watched ]. So we can plan what we launched in Norway and Sweden and in Denmark, making sure that they still have a great service. In Norway's example, we are launching [indiscernible] we're launching the third season of [indiscernible] It doesn't have to be sports to retain them. Doesn't have to be sports. And there's still a lot of sports to enjoy. And also remember that we have a lot of learnings from the summer churn, which is actually quite low. So I'm not concerned, but mindful.

Okay. Good. Glad we covered that. A question from [indiscernible] with Morgan Stanley. How do you ensure that your B2B partners are incentivized to sell Viaplay packages as well as or instead of their own content packages?

If they make a cost -- save the revenue, they are incentivized, of course. And they also incentivized because it's proven that churn is reduced. If you add a Viaplay to a TV package, churn will be reduced because you enjoy a Viaplay, so you're watching more and you stay with the service. I strongly believe and it's proven that Tele2 will get a lower churn going forward after Viaplay is added to other tiers.

Maybe I can ask you the same question. I mean when you think about the soft versus hard bundle structure, how do you think about that from your perspective in terms of what you're offering customers and how you structure the arrangements?

Based on the agreement that we have, we're really building on what we have been doing so far, right? So we have had this content in our packages earlier. Now we're basically taking it 1 step further with the new agreement. So we also -- we're bundling and Viaplay as a service into a lot of our packages. And what we see is that when we engage our customers on that, when we have that bundle in place, people do engage in it and engage customers usually are also giving our churn rates.

Okay. Great. Maybe a slightly provocative question again from Morgan Stanley. Your B2B agreements are good for scaling the Viaplay platform now. Wouldn't it make more sense to wholly on the customer eventually?

The last part?

Okay. I mean basically saying the B2B agreements are good for scaling the platform now, but ultimately doesn't it make more sense to own the customer directly in a D2C environment?

No. No, I don't think so. So first of all, you have to respect and it's proven that we reach customers that you wouldn't necessarily reach via the D2C offering. And secondly, it's very important for our decision making is that improving the duration of the lifetime is extremely important to us. It's not just the ARPU. If they stay 2 years, 3 years instead of 1 year, it has a major upside for us, it is very important.

Great. Okay. Any other questions from the audience? No. Then I think just one final one for you, Bjørn, if I may. The obvious one, your favorite Viaplay [indiscernible].

I like a lot of the content. I'm Bundesliga fan, I love the sports and the fact that you are distributing Bundesliga and that right was actually without the taker in Norway for a little while, that was terribly frustrating. So very good that [indiscernible]. On the original side, I love the show of Henry. And I think that's really, in my mind, it's a little bit representative of what you do well because it's a show that is depicted in the region of Norway. It's a small city. It really is a crime drama. But it tells the story also about the conflict in a small society about the opinion on [indiscernible], right, on the whole [indiscernible] topic, where somebody wants to defend it, make sure it thrives and somebody only sees it as a danger. And it was really my wife come from that region where it was and was filmed and it was spot on. I think it was really, really well made. And it's one of those shows that we just had to consume like that. Very good.

Okay. Thank you very much. Great way to end. Thank you both very much, indeed. Thank you Okay. And we're now on to what we build as the series finale. So back to where we started, Anders is this going to come on stage to wrap up, and then I'll come back afterwards. So Anders welcome.

Thank you very much. [Technical Difficulty] Yes. I spent a little bit extra time in the beginning, so I will not spend much time at the end. I just want to say thank you, first and foremost, to all of you here and all of you out there online. It's been a very well attended CMD again. Thank you very much for your interest in our company. I started out saying that we hope to be able to demonstrate how we are building a sustainable entertainment provider. I hope that we have achieved that goal. I also hope that we have achieved the ambition to address some of the concerns in the short to midterm perspective to explain what it is we're building over time. But mostly, I'm proud of my team here today for everything that they have put through and everything that they have told you to sort of bring you on board on everything that we are doing. So thank you, everybody that has worked so hard today, and thank you to the organizers as well. I would like to stop by saying something positive about us. But I thought it better if I had somebody else saying something positive about us. So I decided to ask a world champion to do it. Thank you very much for today.

Hi. My name is Max Verstappen and I'm the reigning and double F1 World Champion. I'm very happy with my cooperation with Viaplay and will create a lot more upgrade content together. They're fast, they're innovative and they're winners. I hope you have enjoyed the CMD, and have a great evening.

So thank you very much for today.

Great. We've had a little name card upstairs all day with Max Verstappen written on it. Everyone's been saying, "Is he coming". I said, yes, yes. Well, he's come, but he hasn't come physically, but digitally. What we're going to do now is going to move into club lounge and let just around here. We've got various people coming in [indiscernible] and Alexander Adalah initially with Philip just taking a short interview talking about some of the things that we were exploring earlier on the sustainability. And then we've got an exclusive performance by Eagle-Eye Cherry. So I hope you will stay around for the next hour or so, have a drinks and food with us and enjoy those performances. So please move through when you're ready. Thank you so much.