Síminn hf. - Results for the fourth quarter of 2023 and for the year 2023

Financial highlights Q4 2023 Revenue in the forth quarter (Q4) of 2023 amounted to ISK 6,659 million compared to ISK 6,233 million in the same period 2022 and increased by 6.8%. Revenue from Síminn's core services, mobile, data and TV services increases by just under 7% during the quarter.EBITDA amounted to ISK 1,614 million in Q4 2023, down by ISK 19 million or 1.2% compared to the same period 2022. The EBITDA ratio was 24.2% in Q4 2023, compared to 26.2% in the same period of 2022...

Reykjavik, 20/02/2024 (informazione.it - comunicati stampa - telecomunicazioni)

 

Orri Hauksson, CEO:

"The year 2023 went well for Síminn, the first full year after the sale of Míla. The transformation of Síminn's group into an asset-light service company is the biggest change that has taken place in the company's 118-year history. Revenue growth was mainly in the second half of the year, especially in the mobile and TV segments, while internet revenues showed moderate growth. One of the main projects of this year will be to strengthen this company's largest revenue source.

Inflation during the year put pressure on service contracts with Síminn's suppliers, but most of these contracts are indexed directly or indirectly. Síminn got through this crisis well and it is clear that with stable prices going forward, the company has good tools to manage operating costs.

The efforts of recent years in investments resulted in improved customer service and record utilization of the company's products. Multiple reforms were undertaken in Síminn's operations, such as the updating of various internal systems and the continued development of the 5G system in collaboration with Míla. According to a recent study by a German measurement company commissioned by the Telecommunications Agency, Síminn offers the best mobile network in Iceland. Internet quality was also improved in homes and companies, as well as investing heavily in TV content that Icelandic consumers appreciate. Síminn also recently acquired three companies that work in the field of environmental advertising, which will greatly strengthen the company's product offering in the field of advertising.

Investments are now rapidly decreasing again and will be significantly lower than depreciation in the years 2023 and 2024. That development strengthens cash flows and capital formation. Low leverage has allowed Síminn to direct funds to the purchase of its own shares, while there is a lack of external growth opportunities. Despite the high level of interest rates in Iceland, Síminn has been able to finance itself with methods that are well suited to the development of the company's operations. We use bonds, notes and bank loans on terms that are among the best available in Iceland.

Síminn continued to increase its lending to individuals through the revolving card Léttkort. Loans amounted to three billion ISK at the end of the year and they continue to grow. An electronic order book for purchasing authorization is now offered for purchases between companies, which customers have received very well. This service is based on the issuance of a new credit card for businesses, which is expected shortly.

Popularity of Síminn's TV service has never been higher and over million orders were made each week throughout last year. In particular, we are proud to support Icelandic productions, but Síminn premiered four national TV series of the six that were produced nationwide. This year, six of the eleven seriesin Iceland will be produced by Síminn. It should be noted that Síminn itself does not benefit from any state subsidies, but the company's main competitors in this field are state-owned companies on the one hand and state-subsidized private companies on the other.

Development project with two of the biggest sport associations of Iceland,HSÍ and KSÍ, on live broadcasts from sport games, both domestically and abroad, began this winter and will increase in quality in the near future. Next Saturday, a record will be set in the field of AI-controlled television broadcasts in Iceland, when Síminn conducts 17 live broadcasts on the same day.

The person who has one of the greatest honors for this leadership role of Síminn in the field of Icelandic media in recent years, Magnús Ragnarsson the CMO, will leave Síminn shortly. In addition to his key role in the transformation and remarkable growth of Síminn's media in recent years, Magnús has led the company's product development and innovation in many other areas. Magnús will be regretted, and it will be our remaining task to take over the good development he has carried out."

 

Investor meeting 21 February 2024

An investor presentation will be held on Wednesday 21 February 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.

 

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

 

Further information:

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

Attachments