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Síminn hf. – Results for the fourth quarter of 2024 and for the year 2024

Written by Customer Service on . Posted in Public Companies.

Financial highlights Q4 2024

  • Revenue in the fourth quarter (Q4) of 2024 amounted to ISK 7,431 million compared to ISK 6,659 million in the same period of 2023 and increased by 11.6%. Revenue from Síminn’s key products – mobile, data and TV services – increased by 5.3% during the quarter.
  • EBITDA amounted to ISK 2,071 million in Q4 2024, an increase of ISK 457 million or 28.3% compared to the same period in 2023. The EBITDA margin was 27.9% in Q4 2024, compared to 24.2% in the same period of 2023. Operating profit (EBIT) amounted to ISK 944 million in Q4 2024, compared to ISK 634 million in the same period of 2023.
  • Net financial expenses amounted to ISK 306 million in Q4 2024, compared to ISK 120 million in the same period of 2023. Financial expenses in Q4 2024 amounted to ISK 489 million, financial income was ISK 195 million, and foreign exchange losses totaled ISK 12 million.
  • Profit in Q4 2024 amounted to ISK 517 million, compared to ISK 414 million in the same period of 2023.
  • Interest-bearing debt, including lease liabilities, amounted to ISK 17.2 billion at the end of 2024, compared to ISK 10.5 billion at the end of 2023. Cash and cash equivalents stood at ISK 0.8 billion at year-end 2024, down from ISK 1.8 billion at year-end 2023. The loan portfolio of Síminn Pay amounted to ISK 3.3 billion at the end of 2024. Net interest bearing debt / 12M EBITDA  by the end of 2024 was 1.72.
  • Síminn’s equity ratio stood at 44.0% at the end of 2024, with total equity of ISK 18.1 billion.

María Björk Einarsdóttir, CEO:

“We are pleased with the fourth quarter results, which was also the strongest quarter of the year. There was a strong boost in TV subscription sales during the quarter, thanks to our focus on producing the highest quality Icelandic drama content. Almost 50,000 households were subscribed to Síminn Premium at year-end, underscoring the popularity of the service.

In telecommunications services, we also saw an increase in subscribers, especially in mobile services. Internet subscriptions have increased more slowly, but the positive news is that we have seen churn rates decrease following a change in service policy. This includes an increased emphasis on using data and proactive measures to ensure the best possible experience for customers when it comes to the stability and quality of internet connections in homes. In parallel with this change in emphasis, churn rates have decreased, which is positive, as it is well known that the cost of acquiring a new customer is many times higher than retaining an existing customer.

Advertising sales were strong during the quarter, partly due to the parliamentary elections, which were added to the traditional discount days and Christmas shopping. Síminn TV service and Billboard have established themselves among the most powerful advertising media in the country, and we can now offer advertisers unique visibility through the interaction of television and environmental media.

We continued our fintech product development and the Síminn Pay corporate card has been a great success since its official launch in the autumn. In December, we finally took over the operations of Noona Iceland and now in February 2025 we are preparing to take over loan portfolio that we acquired. After the change, Síminn Pay’s loan book will stand at 5 billion ISK. One of the main tasks for 2025 will be to further integrate and develop Síminn and Noona’s fintech solutions while developing a clear long-term vision for the business segment.

A few weeks ago, we announced changes to the company’s organizational chart, which are intended to support the new company strategy that is being implemented in the company. At the same time as we intend to safeguard the strong core operations that Síminn has been known for, we intend to find ways to grow and develop in the future, both through internal and external growth. At the same time, we want to ensure an excellent experience of Síminn’s products and services and create a digital community of smart solutions for people and businesses.”

Investor Presentation 19 February 2025

An investor presentation will be held on Wednesday 19 February 2025 at 8:30 am at Síminn‘s headquarters in Ármúli 25, Reykjavík. During the meeting, María Björk Einarsdóttir CEO and Óskar Hauksson CFO will present the financial results. The meeting will be held in Icelandic. Presentation materials will be available on Nasdaq Iceland‘s news platform and on the company’s investor relations website https://www.siminn.is/fjarfestar/quarterly-results.

The meeting will be live-streamed on: https://www.siminn.is/fjarfestar/fjarfestakynning.

The English version of the consolidated financial statements will be available at https://www.siminn.is/fjarfestar/quarterly-results later this month.

For further information:

María Björk Einarsdóttir, CEO (maria@siminn.is)
Óskar Hauksson, CFO (oskarh@siminn.is)

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