Síminn hf. - Continued revenue growth in core services

Financial highlights Q2 2023

• Revenue in the second quarter (Q2) of 2023 amounted to ISK 6,283 million compared to ISK 6,036 million in the same period 2022 and increased by 4.1%. There is still steady revenue growth in Síminn's core services where income from mobile, data and TV services increases by almost 9% during the quarter. Equipment sales decreased by 17.5%.
• EBITDA amounted to ISK 1,410 million in Q2 2023, up by ISK 11 million or 0.8% compared to the same period 2022. The EBITDA ratio was 22.4% in Q2 2023, compared to 23.2% in the same period of 2022. Operating profit EBIT amounted to ISK 362 million in Q2 2023, compared to ISK 682 million in the same period of 2022.
• Net financial expenses amounted to ISK 145 million in Q2 2023, compared to ISK 165 million in the same period of 2022. Financial expenses amounted to ISK 263 million, financial income ISK 124 million, and foreign exchange loss ISK 6 million.
• Profit in Q2 2023 amounted to ISK 179 million compared to a ISK 410 million profit of continuing operation in the same period 2022.
• Interest-bearing debt including lease liabilities amounted to ISK 8.8 billion at the end of Q2 2023, compared to ISK 8.9 billion at the end of 2022. Cash in the end of Q2 2023 amounted to ISK 0.7 billion, compared to ISK 3.7 billion at the end of 2022. The balance of loans at Síminn Pay was ISK 2.2 billion at the end of Q2 2023, but was ISK 1.7 billion at the end of 2022.
• Síminn's equity ratio was 55.1% at the end of Q2 2023 and equity was ISK 18.2 billion.

Orri Hauksson, CEO:

"The year 2023 is the first year that Síminn operates as a service company, after selling Míla last year. Following such fundamental changes, it is pleasing to see the revenue of our core products (internet, TV, and mobile) significantly growing year-on-year. Television's advertising revenue is an example of that increase, and that service still has a lot to offer due to the new possibilities that have started to be offered to advertisers. Lending through our revolving credit card Léttkort is also enjoying healthy growth, and therefore Síminn's financial income is increasing. In today's high-interest rate environment, financial expenses are also increasing, but the company's moderate leverage is beneficial in the current situation. Income from fixed voice continues its predictable decline, and equipment sales were also lower than the same period last year.