Síminn hf. Records Impressive Financial Growth in Q4 2024

Financial Performance Highlights for Q4 2024

In a dynamic quarter, Síminn hf. achieved impressive financial milestones during the fourth quarter of 2024. Revenue soared to ISK 7,431 million, marking a significant increase of 11.6% compared to ISK 6,659 million in the same quarter last year. This growth was primarily fueled by enhanced performance in mobile, data, and TV services, which saw a 5.3% uptick during the quarter.

Increased Profitability Metrics

Síminn's adjusted EBITDA reached ISK 2,071 million in Q4 2024, an increase of ISK 457 million or 28.3% from the previous year. This robust growth translated to an EBITDA margin of 27.9%, outperforming the 24.2% margin recorded in the same quarter of 2023. Operating profit (EBIT) also showed promising growth, totaling ISK 944 million, compared to ISK 634 million from the prior year.

Financial Expense Overview

Net financial expenses in Q4 2024 were ISK 306 million, which increased compared to ISK 120 million in 2023. Breaking it down, financial expenses amounted to ISK 489 million with financial income at ISK 195 million, resulting in nominal foreign exchange losses of ISK 12 million.

Net Profit and Equity Revealed

The profit for the fourth quarter of 2024 stood at ISK 517 million, an improvement from ISK 414 million achieved during the same period last year. At year-end, Síminn’s interest-bearing debt, including lease liabilities, registered at ISK 17.2 billion, rising from ISK 10.5 billion the previous year. By contrast, cash and cash equivalents decreased to ISK 0.8 billion, down from ISK 1.8 billion at the end of 2023.

Debt-to-EBITDA Ratio Insight

Analyzing the debt scenario, the net interest-bearing debt in relation to the trailing twelve-month (TTM) EBITDA at the end of 2024 was calculated to be 1.72. Síminn's equity ratio was healthy at 44.0%, reflecting total equity amounting to ISK 18.1 billion.

CEO Insights and Strategic Developments

María Björk Einarsdóttir, the CEO of Síminn, shared her enthusiasm regarding the quarterly results, describing Q4 as the most successful period of the year. She highlighted a remarkable surge in TV subscriptions, attributed largely to the focus on enhancing Icelandic drama content, which attracted nearly 50,000 households to subscribe to Síminn Premium.

Telecommunications Growth

In the realm of telecommunications, Síminn experienced an uptick in mobile service subscribers, with a more gradual increase in internet subscriptions. A key positive development was the notable decrease in churn rates, following a strategic shift in service policy aimed at enhancing customer experience through improved data management and internet connection reliability.

Advertising Performance and Opportunities

The quarter also benefitted from robust advertising revenue, spurred by parliamentary elections and seasonal shopping sprees. Síminn TV and Billboard have cemented their positions as leading advertising platforms, providing advertisers with exceptional visibility through integrated media approaches.

Fintech Initiatives Transitioning Forward

Síminn is making headway in fintech product advancements, with the Síminn Pay corporate card gaining considerable traction following its launch. The recent acquisition of Noona Iceland's operational assets positions Síminn to strategically manage and optimize its loan portfolio, now projected to grow to ISK 5 billion by early 2025. A central focus for the coming year will be the seamless integration of Síminn and Noona's fintech services, aiming to enhance service offerings further.

Company Restructuring for Future Growth

Recent organizational chart modifications are set to bolster the new strategic direction of Síminn. While maintaining robust core operations, the firm is keen on exploring growth avenues, both through internal innovations and potential external collaborations. The drive for excellence not only in product offerings but also in creating a thriving digital ecosystem for users remains a top priority.

Frequently Asked Questions

What were the main financial highlights for Síminn in Q4 2024?

Revenue reached ISK 7,431 million, with a 28.3% increase in EBITDA compared to 2023.

How did Síminn's profit trend in Q4 2024?

Profit grew to ISK 517 million, a rise from ISK 414 million in the same quarter of the previous year.

What strategies contributed to the growth in TV subscriptions?

The focus on quality Icelandic drama content significantly boosted subscriptions to Síminn Premium.

What is Síminn's approach to customer retention?

Síminn improved its service policies, which led to a reduction in churn rates through a better customer experience.

What strategic initiatives are planned for 2025?

Síminn plans to enhance its fintech services and further integrate with Noona's offerings while exploring growth opportunities.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

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