Pitch: Subscription streaming (Viaplay) and pay-TV provider in Europe. No.5 player in European SVOD, far behind $NFLX. The thesis mostly based on the continued expansion of the streaming market and Viaplay (35% of revs) being the key ’add-on’ to Netflix due to local original content and sports options. Much cheaper on a revenue basis compared to Netflix.
Valuation: Trades at 11x consensus EBITDA FY24 vs 16x for NFLX. On FY24 revenue multiples NENT is at 1.2x vs 4.3x for Netflix. Assuming a doubling of revenues in 3 years, a fourfold increase in Viaplay subscribers and 20% terminal EBITDA margin delivers DCF target of 615sek/share.
Exp. gain: 80%+
Full NENT-B.ST write-up (free guest account required):