Sýn hf.: Significant Milestones Completed
Sýn hf.’s Consolidated Interim Financial Statement for the first nine months of 2023 was approved by the board of directors on November 8th, 2023.
Operating profit (EBIT) for the first nine months (9M) of 2023 amounted to ISK 1,594 million, an increase of 32% compared to the same period in the previous year. EBIT for the third quarter (Q3) amounted to ISK 592 million compared to ISK 486 million in Q3 2022.
Profit after taxes for 9M 2023 amounted to ISK 804 million compared to ISK 454 million in the same period in 2022.
Ljósleiðarinn’s purchase of Sýn’s core network was approved by the Icelandic Competition Authority. The core network was formally handed over on October 4th and the first payment according to the purchase agreement was received on the same day. The agreed purchase price is ISK 3,000 million and the estimated capital gain from the sale is approximately 2,400 million that will be fully entered into the company’s books in the fourth quarter of 2023.
The purchase of Já.is was completed in early October. A new business unit will subsequently be established within Sýn called “Web Media and Radio”. The new business unit will include Sýn’s media units, except “Stöð 2”, along with Já.is, Bland and related brands. It is estimated that the annual income of the new unit will amount to ISK 3,000 million. The integration of Já and related units with the advertising media of Sýn will strengthen the product offering and advertising space within Sýn’s online media. “Stöð 2” will be an independent unit with a focus on subscription revenue and domestic programming. The newsroom for Vísir, Stöð 2 and Bylgjan will work across these units.
Share buyback program determined, up to a maximum of ISK 300 million.
EBIT guidance for 2023 amounting to ISK 2,200-2,500 million, remains unchanged.
Páll Ásgrímsson, CEO:
“Operating profit continues to grow from previous year and there is a good development in revenues from core activities. Advertising revenue is growing and our subsidiary Endor is doing well.
At the beginning of October, important milestones took place with the delivery of Sýn’s core network to Ljósleiðarinn, together with the formal completion of the purchase of Já. With the purchase of Já and the marketplace Bland.is, we see great opportunities within advertising and other services to further strengthen our position in that market. We continue on the path of sharpening revenue-generating business units and split our media units into two independent units, “Web Media and Radio” and “Stöð 2”. Web Media and Radio includes Vísir and related websites, Bylgjan and other radio stations and the podcast group Tal together with Já.is, Bland and related brands. “Stöð 2” continues to show quality content with an emphasis on domestic production and sport. The newsroom will work across these units.
Vilborg Helga Harðardóttir will direct “Web Media and Radio” and Eva Georgs. Ásudóttir will manage “Stöð 2”. Erla Björg Gunnarsdóttir will continue to administer the news on Stöð 2, Vísir and Bylgjan.
The reaction to the variety of telecommunications and entertainment packages that were launched in August has been good, and we see a positive trend in subscription numbers. The latest surveys show that Vodafone is increasingly becoming the first choice among customers, and that satisfaction with the service is on the rise. To further strengthen its service offering, Vodafone has introduced a new service, Smart Visit, which has been very well received.
In the last quarter of the year, there will be a lot of exciting things going on at Stöð 2. This includes the 2nd series of Idol, broadcasting of national matches, along with diverse content, e.g., through our Viaplay offering.”
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