Síminn hf. - Results for the third quarter of 2024
Financial highlights Q3 2024
Revenue in the third quarter (Q3) of 2024 amounted to ISK 6,955 million compared to ISK 6,501 million in the same period 2023 and increased by 7%. Revenue from Síminn's core services, mobile, data and TV services increases by just over 3% from Q3 2023.
EBITDA amounted to ISK 1,915 million in Q3 2024, up by ISK 104 million or 5.7% compared to the same period 2023. The EBITDA ratio was 27.5% in Q3 2024, compared to 27.9% in the same period of 2023. Operating profit EBIT amounted to ISK 864 million in Q3 2024 compared to ISK 765 million in the same period of 2023.
Net financial expenses amounted to ISK 292 million in Q3 2024, compared to ISK 126 million in the same period of 2023. Financial expenses amounted to ISK 476 million, financial income ISK 178 million and foreign exchange gain of ISK 6 million.
Profit in Q3 2024 amounted to ISK 449 million compared to ISK 507 million profit in the same period of 2023.
Interest-bearing debt including lease liabilities amounted to ISK 16.1 billion at the end of Q3 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 Q3 2024 amounted to ISK 1.1 billion, compared to ISK 1.8 billion at the end of 2023. The balance of loans at Síminn Pay was ISK 3.2 billion at the end of Q3 2024.
Síminn's equity ratio was 45.5% at the end of Q3 2024 and equity was ISK 18.2 billion.
María Björk Einarsdóttir, CEO:
“The results for the third quarter were overall good and the results clearly show the resilience and strength of the company. We saw healthy revenue growth in the main telecommunications services as well as TV services, where the number of subscribers has continued to increase. Also, our investments in advertising sector have met the expectations that were made at the time of the purchase and have had a significant positive effect on the share of advertising revenue in the company's operations.
In September, changes were made to the company's organization chart, where one support division was closed, and two new divisions were created. The goals of the changes are, on the one hand, to further strengthen sales and marketing of the company's products, and on the other hand, to increase the focus on product and business development. Considerable costs followed these changes, and they were added to the accrued costs due to the change of CEO, which was also charged in the quarter.
As a result of the changed focus in operations, we began to review the company's strategy, and these plans will be presented in more detail in the coming months. It is clear that the company intends to continue moving forward, and we will focus on broadening the company's revenue base by developing and adding to our product offering new digital services and solutions that fit well with our customers' needs."
Investor meeting 23 October 2024
An investor presentation will be held on Wednesday 23 October 2024 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. 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:
María Björk Einarsdóttir, CEO (maria@siminn.is)
Óskar Hauksson, CFO (oskarh@siminn.is)
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