Síminn hf. Reports Strong Growth in Q2 Financials
Financial Highlights of Síminn hf. in Q2 2024
In the second quarter of 2024, Síminn hf. achieved impressive financial results. Revenue grew significantly, amounting to ISK 6,871 million, reflecting a 9.4% increase from ISK 6,283 million during the same period in 2023. This growth was driven primarily by Síminn's core services, including mobile, data, and TV, which reported an over 5% increase compared to Q2 2023. Additionally, the company fully integrated the revenue from its acquisitions in the advertising sector, adding nearly ISK 400 million to the group's overall revenue.
EBITDA and Profit Growth
EBITDA for Q2 2024 reached ISK 1,726 million, an increase of ISK 316 million, marking a 22.4% rise compared to the prior year. The EBITDA margin improved to 25.1% this quarter, up from 22.4% in Q2 2023. Operating profit (EBIT) also saw a substantial increase, amounting to ISK 636 million, compared to ISK 362 million in the previous year.
Net financial expenses for the quarter were reported at ISK 320 million, a rise from ISK 145 million in Q2 2023. Financial expenses totaled ISK 501 million, while financial income was recorded at ISK 178 million, complemented by a foreign exchange gain of ISK 3 million. The profit for Q2 2024 stood at ISK 244 million, reflecting a growth from ISK 179 million during the same period the previous year.
Debt and Equity Position
By the end of Q2 2024, Síminn's interest-bearing debt, including lease liabilities, totaled ISK 15.7 billion, increasing from ISK 10.5 billion at the end of 2023. This increase was primarily attributed to the acquisition of companies within the advertising market. Cash reserves at the end of Q2 were reported at ISK 1.6 billion, slightly down from ISK 1.8 billion at the end of the previous year. The balance of loans at Síminn Pay rose to ISK 3.0 billion as of the end of Q2 2024.
Furthermore, Síminn's equity ratio stood at 46.3%, with total equity valued at ISK 18.3 billion, indicating a stable financial position as it continues to expand its operations.
Strategic Insights from the CEO
CEO Orri Hauksson shared insights on the company's performance: "The second quarter was eventful and fortunate for Síminn. We experienced solid growth in revenue, EBITDA, and EBIT from our core operations, while also enhancing our product offerings, particularly in digital signage advertising. Despite challenges in the telecommunications market, including churn, our strategic measures have successfully mitigated these issues. The influx of tourists during the summer season also provided a boost to our services."
Innovative Changes in Broadcasting
Síminn also updated its TV portal, making Premier League content more accessible through a new folder format within its Premium streaming service. However, traditional TV viewership has decreased, similar to trends seen globally. Enhancements include upcoming high-quality series produced in collaboration with CBS and Paramount, showcasing Icelandic talent and stories.
Future Plans and Acquisitions
In June, Síminn announced the acquisition of Noona Iceland, a move aimed at bolstering its digital service offerings through its subsidiary, Síminn Pay. This acquisition is subject to approval from the Competition Authority and is expected to finalize within the year.
In leadership news, María Björk Einarsdóttir will succeed Orri Hauksson as CEO following his departure after an eleven-year tenure. The transition is anticipated to facilitate ongoing growth and innovation at Síminn.
Upcoming Investor Meeting
On August 28, 2024, Síminn will hold an investor presentation at its headquarters. This meeting will feature presentations by CEO Orri Hauksson and CFO Óskar Hauksson, who will discuss the financial results in Icelandic.
Contact Information
For further inquiries, please contact:
Orri Hauksson, CEO (orri@siminn.is)
Óskar Hauksson, CFO (oskarh@siminn.is)
Frequently Asked Questions
What were the key financial highlights for Síminn in Q2 2024?
In Q2 2024, Síminn reported revenues of ISK 6,871 million, EBITDA of ISK 1,726 million, and a profit of ISK 244 million, showing substantial growth from the previous year.
How did Síminn's acquisitions impact its growth?
The acquisitions in the advertising sector contributed nearly ISK 400 million to Síminn's revenue in Q2 2024, further enhancing its financial performance.
What strategic changes has Síminn implemented recently?
Síminn has expanded its product offerings, particularly in digital signage advertising, and updated its TV portal to improve customer accessibility to premium content.
Who is the new CEO of Síminn?
María Björk Einarsdóttir will be taking over as CEO, succeeding Orri Hauksson after his nearly eleven-year tenure.
When will the investor meeting take place?
The investor meeting is scheduled for August 28, 2024, at Síminn’s headquarters, where the financial results will be presented.
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