Síminn hf. - New product offering generates revenue growth

Financial highlights Q3 2023

• Revenue in the third quarter (Q3) of 2023 amounted to ISK 6,501 million compared to ISK 6,210 million in the same period 2022 and increased by 4.7%. Revenue from Síminn's core services, mobile, data and TV services increases by over 7% during the quarter.
• EBITDA amounted to ISK 1,811 million in Q3 2023, up by ISK 21 million or 1.2% compared to the same period 2022. The EBITDA ratio was 27.9% in Q3 2023, compared to 28.8% in the same period of 2022. Operating profit EBIT amounted to ISK 765 million in Q3 2023, compared to ISK 986 million in the same period of 2022.
• Net financial expenses amounted to ISK 126 million in Q3 2023, compared to ISK 84 million in the same period of 2022. Financial expenses amounted to ISK 303 million, financial income ISK 161 million, and foreign exchange loss ISK 16 million.
• Profit in Q3 2023 amounted to ISK 507 million compared to a ISK 718 million profit of continuing operation in the same period 2022.
• Interest-bearing debt including lease liabilities amounted to ISK 10.2 billion at the end of Q3 2023, compared to ISK 8.9 billion at the end of 2022. Cash in the end of Q3 2023 amounted to ISK 2.0 billion, compared to ISK 3.7 billion at the end of 2022. The balance of loans at Síminn Pay was ISK 2.5 billion at the end of Q3 2023, but was ISK 1.7 billion at the end of 2022.
• Síminn's equity ratio was 52.4% at the end of Q3 2023 and equity was ISK 18.0 billion.

Orri Hauksson, CEO:

"From the first two quarters of the year, revenues, EBITDA and EBIT are now increasing significantly. External cost increases have been rapid in recent seasons, and we have barely managed to keep income growth in line with increased expenses. The third quarter of this year was more profitable than before, which is often the case but that change is especially noticeable now, in addition to the fact that EBITDA grows slightly year-on-year, and EBITDA grows slightly year-on-year. We are still in the middle of the amortization process of our increased investments from the past two years, primarily due to contracts for popular TV content and new technologies with a short amortization period. In the long term, those investments will benefit the company, but have taken EBIT down significantly in recent quarters. The bottom has now been reached and EBIT has resumed its growth curve.