Síminn hf. Reports Third Quarter Results and Growth Prospects

Financial Highlights for Síminn hf. in Q3 2025

Síminn hf. recently reported results reflecting a steady performance in the third quarter of 2025. Revenue reached ISK 7,062 million, which represents a modest increase of 1.5% compared to ISK 6,955 million during the same period in 2024. This steady growth demonstrates the resilience of Síminn in an evolving market landscape.

Key Financial Insights

Although revenue from telco and TV services saw a slight decline of 1.1% year-over-year, advertising revenue surged to ISK 609 million, marking a notable increase of 12.8%. This increase signifies the growing importance of advertising as an additional revenue stream for the company.

EBITDA and Profit Analysis

For the third quarter, Síminn's EBITDA amounted to ISK 1,848 million, reflecting a decrease of ISK 67 million or 3.5% from the previous year. The EBITDA margin experienced a slight decline to 26.2%, compared to 27.5% from the prior year. Despite this, EBIT showed positive growth, reaching ISK 1,025 million, which is an 18.6% increase compared to ISK 864 million in Q3 of 2024.

Net Profit and Financial Position

Net profit for the quarter was reported at ISK 622 million, a significant rise over the ISK 449 million recorded in the same period last year. Accordingly, earnings per share climbed to ISK 0.26, increasing from ISK 0.18 year-over-year.

Balance Sheet Highlights

At the close of the third quarter, Yes, the company reported interest-bearing debt, inclusive of lease liabilities, amounting to ISK 19.0 billion, an increase from ISK 17.2 billion at the end of 2024. Meanwhile, cash and cash equivalents rose to ISK 1,116 million, up from ISK 835 million.

Equity Ratios

The equity ratio for Síminn stood at 40.3%, and total equity reached ISK 17.1 billion, reflecting a robust financial foundation. This financial strength is essential for sustaining growth and investing in future opportunities.

CEO Insights and Strategic Directions

CEO María Björk Einarsdóttir highlighted that this quarter was marked by solid operations and improving profitability. A successful refinancing initiative, paired with the company's strong balance sheet, paves the way for continued expansion in the upcoming quarters.

Interestingly, revenue from mobile and advertising sectors demonstrated growth, propelled by the company’s strong positioning in fintech and an expanding portfolio of services. The advertising segment in outdoor and television media notably increased by nearly 13% compared to the previous year.

New Developments in Service Offerings

Síminn has made strides in enhancing its service offerings, recently entering into an agreement to deliver Starlink satellite solutions to enterprises via its subsidiary Radíómiðun. This move aligns with the company’s strategic focus on robust product development in the B2B market.

Television and Media Challenges

While Síminn’s television services faced a revenue drop of 5% year-on-year, attributed largely to a competitor stopping the resale of Síminn Premium, the company successfully managed to mitigate associated costs while adapting to the changing market dynamics.

Content Strategy and Customer Engagement

Encouragingly, the company recently reported over one million streams from its reality content on its TV platform since the launch of Hayu late last summer. Additionally, HBO Max subscriptions have seen over ten thousand activations, further solidifying Síminn Premium as a leading television service in Iceland. With two new domestic series on the horizon, the content offering is thriving, promising to engage a broader audience.

Refinancing Efforts

Síminn’s completion of refinancing its bank loans established improved terms and increased access to funding, which will be instrumental in supporting its growth initiatives.

Organizational Changes for Future Growth

To continue fostering growth, Síminn plans to implement a fresh organizational structure. This involves the formation of a new subsidiary focusing on telecommunications and media operations, while the parent company will concentrate on supporting developmental services and shared resources.

Conclusion and Future Outlook

Looking ahead, Síminn aims to cultivate a collection of digital service companies that cater to the diverse requirements of both individuals and businesses. The robust foundations laid today position the company for scaling efficiently and responding effectively to market demands.

Frequently Asked Questions

What were the key financial highlights for Síminn in Q3 2025?

In Q3 2025, Síminn reported revenue of ISK 7,062 million and a net profit of ISK 622 million, reflecting positive growth despite slight declines in some sectors.

How did EBITDA and EBIT perform in Q3 2025?

The EBITDA was ISK 1,848 million, a decrease of 3.5% year-on-year. However, EBIT rose to ISK 1,025 million, indicating an 18.6% increase compared to Q3 2024.

What changes are being made to Síminn's organizational structure?

Síminn plans to create a new subsidiary for telecommunications and media operations, while the parent company will focus on supporting development and shared services.

What are Síminn's strategies for growth?

The company emphasizes enhancing its service offerings, particularly in fintech and advertising, while also expanding its product range in the B2B sector.

How is Síminn positioned in the Icelandic media market?

Síminn Premium is recognized as a leading television service in Iceland, with significant growth in content offerings and a commitment to high-quality Icelandic programming.

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