Consistent Performance Amidst Challenges
Key Highlights for the Second Quarter:
- Total revenue for the second quarter of 2024 reached 3.228 billion ISK, remaining steady.
- Service revenue amounted to 2.519 billion ISK, marking a 3.6% increase compared to the previous year.
- EBITDA was recorded at 961 million ISK, slightly down from 973 million ISK during the same period last year; the EBITDA margin for this quarter was 29.8%, down from 30.3% last year.
- The profit for the second quarter stood at 108 million ISK.
- Operating cash flow for the quarter was 536 million ISK.
- Net financial expenses for the quarter were 264 million ISK, reflecting a 7.0% decrease from last year.
- The equity ratio at the end of the quarter was 40.2%, with total equity amounting to 9.375 billion ISK.
- This year, our customer base continues to expand in both mobile and fixed-line services.
Insights from Margret Tryggvadóttir, CEO of Nova
“As we reach the midpoint of the year, it's an opportune moment to assess our standing. Our operations remain robust. While total revenues are similar to last year, a closer examination shows that Nova is strengthening its future outlook, which is always our aim. Although product sales have slowed down in a challenging environment, our operating profit remains unaffected. Service revenues are on the rise, and our customer base is expanding.”
“Investing in infrastructure development is vital for us, as strong infrastructure boosts our competitive edge. This allows us to grow our customer base across the country while ensuring that our customers feel safe, satisfied, and well-connected. Given the reduced number of people in the market, maintaining positive relationships with customers is more crucial than ever. We have also continued to construct 5G towers nationwide to enhance our current systems and create new locations to minimize dead zones in our mobile network. So far this year, we have invested over 800 million ISK in infrastructure development. At Nova, we have celebrated and engaged in partnerships aimed at improving mobile networks, where there are significant opportunities for cost savings through shared infrastructure.”
“We also see potential for better utilization of public funding, particularly for further enhancing mobile networks in sparsely populated regions. Mobile networks can be as effective as fiber-optic connections, and investing in this development is often more economical, progresses faster, and ensures mobile connectivity in those areas.”
“Technology itself is not an end goal; it serves as a means to simplify and enrich lives. We will continue to focus on mental wellness and our rewards club, FyrirÞig. We have promoted various screen-free gatherings with Busltónleikum and free swimming trips throughout the summer. Customers who enjoy life and maintain good relationships are satisfied customers, which is the most important aspect for us at Nova. We eagerly anticipate the second half of the year.”
Investor Presentation
A presentation for investors discussing the financial results will take place tomorrow. Margret Tryggvadóttir, CEO, along with Þórhallur Jóhannsson, CFO, will present the results and answer questions. A live stream, along with presentation materials, will be accessible on Nova's official website.
Contact Information for Further Inquiries
If you need more information about the report, please reach out to:
Margret Tryggvadóttir, CEO, margret@nova.is, tel. +354 770 1070
Þórhallur Jóhannsson, CFO, thorhallurj@nova.is, tel. +354 770 1090
Frequently Asked Questions
1. What were the total revenues for Nova Klúbburinn in Q2 2024?
Total revenues were 3.228 billion ISK in the second quarter of 2024.
2. How much did service revenues increase by?
Service revenues grew by 3.6% year-over-year, totaling 2.519 billion ISK.
3. What was the EBITDA margin for Nova Klúbburinn in the second quarter?
The EBITDA margin was 29.8% for the second quarter of 2024.
4. How many 5G towers has Nova Klúbburinn invested in this year?
Nova has invested over 800 million ISK in infrastructure development, including building 5G towers.
5. What is the equity ratio of Nova Klúbburinn?
The equity ratio was 40.2% at the end of the quarter, with total equity amounting to 9.375 billion ISK.
