Netflix rival Viaplay ousts chief and issues profit warning

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

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

The Swedish conglomerate, which sees itself as Netflix’s European rival, said it now expected to report an operating loss of SKr400mn-SKr700mn ($37mn-$65mn) and was refocusing on its plans for sales, subscriber and profit growth. Withdrawn long-term guidance.

It attributed this to factors including lower demand for streaming subscriptions, an “accelerated decline” in Nordic TV and radio advertising, and the slowing of its cost-cutting programme.

Shares of the company fell nearly 60 per cent in early trade on Monday.