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Síminn hf. – Results for the second quarter of 2024

Written by Customer Service on . Posted in Earnings Releases And Operating Results.

Financial highlights Q2 2024

  • Revenue in the second quarter (Q2) of 2024 amounted to ISK 6,871 million compared to ISK 6,283 million in the same period 2023 and increased by 9.4%. Revenue from Síminn’s core services, mobile, data and TV services increases by just over 5% from Q2 2023. The operations of the acquired companies in the advertising market are fully included in the operations of the group in Q2 with revenue just under ISK 400 million.
  • EBITDA amounted to ISK 1,726 million in Q2 2024, up by ISK 316 million or 22.4% compared to the same period 2023. The EBITDA ratio was 25.1% in Q2 2024, compared to 22.4% in the same period of 2023. Operating profit EBIT amounted to ISK 636 million in Q2 2024 compared to ISK 362 million in the same period of 2023.
  • Net financial expenses amounted to ISK 320 million in Q2 2024, compared to ISK 145 million in the same period of 2023. Financial expenses amounted to ISK 501 million, financial income ISK 178 million and foreign exchange gain of ISK 3 million.
  • Profit in Q2 2024 amounted to ISK 244 million compared to ISK 179 million profit in the same period of 2023.
  • Interest-bearing debt including lease liabilities amounted to ISK 15.7 billion at the end of Q2 2024, compared to ISK 10.5 billion at the end of 2023. Most of the increase is explained by the purchase of companies in the advertising market. Cash at the end of Q2 2024 amounted to ISK 1.6 billion, compared to ISK 1.8 billion at the end of 2023. The balance of loans at Síminn Pay was ISK 3.0 billion at the end of Q2 2024 and increased slightly in the quarter.
  • Síminn’s equity ratio was 46.3% at the end of Q2 2024 and equity was ISK 18.3 billion.

Orri Hauksson, CEO:

„The second quarter was eventful and fortunate for Síminn. Revenue, EBITDA and EBIT from the company’s core operations grew in an acceptable manner, and new activities in the field of digital signage advertising were added to our product offering, which further strengthened the operation. There was a lot of movement in the telecommunications market, especially at the beginning of the year. Síminn succeeded in bringing in new customers, but there was also considerable churn, which has now decreased again following targeted countermeasures regarding service and experience. The number of foreign tourists was below expectations at the beginning of the main tourist season but increased as the summer progressed. Managing the company’s costs has been successful, which is particularly pleasing since large cost items are indexed and prices have generally risen during the year, as is well known.

Síminn updated its TV portal, and, for example, the English Premier League content has been moved into a folder format in the company’s Premium streaming product, which makes the content more accessible than before. On the other hand, traditional TV channels are on the decline at Síminn, like elsewhere in the world. A new high-quality international series set in Iceland, will soon be shown. It is called Dimma and is based on Ragnar Jónasson’s book, but the series is produced in collaboration with Síminn, CBS and Paramount. More Icelandic programs will also be shown this autumn, such as the second series about the boy band IceGuys and the children’s program Lubbi finnur málbein. Thus, Síminn remains the company in Iceland that produces and shows by far more Icelandic content than any other in the market.

Last June, it was announced that Síminn’s competitor had secured the right to broadcast the English Premier League from the season that begins in the fall of 2025 and the right extends until spring 2028. Síminn will thus lose income next year but will also save costs. Síminn has signed an agreement on the resale and distribution of content that includes the English Premier League starting in autumn 2025. Income will decrease, but the impact on earnings will probably not be significant since the company’s investments will decrease significantly in the coming years.

On June 8 this year, Síminn signed an agreement for the purchase of all shares in Noona Iceland, which manages the domestic operations of Noona Labs. In the future, Síminn’s subsidiary, Síminn Pay, will manage the joint operations of the companies in Iceland, as well as develop new solutions for Síminn Pay within the Noona ecosystem, for the benefit of customers. Síminn’s goal with the purchase of Noona is to further strengthen Síminn’s group as a leading digital service company. The Competition Authority is considering the purchase, and we expect it to be completed before the end of the year.

In the coming days, María Björk Einarsdóttir will take over as the CEO of Síminn, but she has worked as the CFO of Eimskip for the past few years. I will leave the company when María arrives, after almost eleven years as CEO of Síminn. I would like to thank my colleagues at Síminn, customers, investors and other partners of Síminn for a pleasant partnership.”

Investor meeting 28 August 2024

An investor presentation will be held on Wednesday 28 August 2024 at 8:30 am at Síminn‘s headquarters in Ármúli 25, Reykjavík. During the meeting, Orri Hauksson CEO and Óskar Hauksson CFO will present the financial results. The meeting will be held in Icelandic. Documents for the meeting are available in Nasdaq‘s Iceland company news and on the company’s investor relations website https://www.siminn.is/fjarfestar/quarterly-results.

The meeting is webcasted on: https://www.siminn.is/fjarfestar/fjarfestakynning.

Further information:

Orri Hauksson, CEO (orri@siminn.is)
Óskar Hauksson, CFO (oskarh@siminn.is)

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