Financial highlights Q1 2024
- Revenue in the first quarter (Q1) of 2024 amounted to ISK 6,575 million compared to ISK 6,298 million in the same period 2023 and increased by 4.4%. Revenue from Síminn's core services, mobile, data and TV services increases by just over 7% from Q1 2023.
- EBITDA amounted to ISK 1,435 million in Q1 2024, up by ISK 120 million or 9.1% compared to the same period 2023. The EBITDA ratio was 21.8% in Q1 2024, compared to 20.9% in the same period of 2023. Operating profit EBIT amounted to ISK 431 million in Q1 2024 compared to ISK 318 million in the same period of 2023.
- Net financial expenses amounted to ISK 195 million in Q1 2024, compared to ISK 1 million in the same period of 2023. Interest expenses have increased, but there was also interest income from a bond due to the sale of Míla in Q1 2023. Financial expenses amounted to ISK 375 million, financial income ISK 183 million and foreign exchange loss of ISK 3 million.
- Profit in Q1 2024 amounted to ISK 171 million compared to ISK 246 million profit in the same period of 2023.
- Interest-bearing debt including lease liabilities amounted to ISK 16.2 billion at the end of Q1 2024, compared to ISK 10.5 billion at the end of 2023. Cash at the end of Q1 2024 amounted to ISK 2.0 billion, compared to ISK 1.8 billion at the end of 2023. The balance of loans at Síminn Pay was ISK 2.9 billion at the end of Q1 2024 and increased slightly in the quarter.
- Síminn's equity ratio was 44.4% at the end of Q1 2024 and equity was ISK 18.1 billion.
Orri Hauksson, CEO:
"Revenue, EBITDA and EBIT increase year-on-year in the first months of the year, which is according to plan. There was an unusually high level of movement in the telecommunications market, which is normally very lively, but the first quarter was characterized by a lot of new sales at Síminn, but also more churn than before. Generous entry offers from certain market participants had a considerable effect there for several weeks.
On the expense side of the operation, most things went as expected, except for the retirement of one executive officer, whose severance agreement was recorded as expenses. Recent collective bargaining agreements were in line with our expectations and most cost items were predictable and in line with expectations. Síminn continues to be low leveraged company, although company acquisitions during the quarter were partially funded with new loan. Interest rate in the company's last bond issue is one of the most favorable known in Iceland. However, the high interest rates of the Central bank have a considerable effect on the company's cost of capital.
Síminn made changes to its product offering in the residential market last year with the aim of serving more target groups than before. As a result, the number of individual products sold by Síminn has decreased, but the number of different bundles has increased. At the beginning of the year, continuous improvements were made to Síminn's mobile network, which according to an auditor appointed by the Telecommunications Agency, was the best in Iceland. New and updated Wi-Fi technology has also been adopted that will improve the wireless Internet experience in homes and businesses. Síminn also premiered three new national drama series on television during the quarter, as well as offering, in collaboration with The Icelandic Football Association (KSÍ), live broadcasts from the matches of Iceland's junior national teams and junior club teams. Constant improvements and innovations are the common thread in our service to homes.
Soon, a stronger product range than before will be offered in the corporate market, including a new corporate credit card, updated telephone services and improved networks. Product offerings for advertisers changed with Síminn acquiring Billboard and related companies. Going forward, the group can thus offer advertisers diverse ways to reach the target groups they choose. We welcome the new members to the Síminn family and update our guidance for 2024 accordingly."
Investor meeting 24 April 2024
An investor presentation will be held on Wednesday 24 April 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)
