Síminn hf. - Results for the fourth quarter of 2023 and for the year 2023

Financial highlights Q4 2023

• Revenue in the forth quarter (Q4) of 2023 amounted to ISK 6,659 million compared to ISK 6,233 million in the same period 2022 and increased by 6.8%. Revenue from Síminn's core services, mobile, data and TV services increases by just under 7% during the quarter.
• EBITDA amounted to ISK 1,614 million in Q4 2023, down by ISK 19 million or 1.2% compared to the same period 2022. The EBITDA ratio was 24.2% in Q4 2023, compared to 26.2% in the same period of 2022. Operating profit EBIT amounted to ISK 634 million in Q4 2023 compared to ISK 703 million in the same period of 2022. Without cancelation of the competition fine in the amount of ISK 200 million, EBITDA in Q4 2022 was ISK 1,433 million (23.0%) and EBIT ISK 503 million.
• Net financial expenses amounted to ISK 120 million in Q4 2023, compared to ISK 389 million in the same period of 2022, but in Q4 2022 there was a negative change in the fair value of a bond due to the sale of Míla, amounting to ISK 382 million. Financial expenses amounted to ISK 287 million, financial income ISK 195 million and foreign exchange loss of ISK 28 million.
• Profit in Q4 2023 amounted to ISK 414 million compared to ISK 381 million profit from continuing operation in the same period of 2022.
• Interest-bearing debt including lease liabilities amounted to ISK 10.5 billion at the end of 2023, compared to ISK 8.9 billion at the end of 2022. Cash at the end of 2023 amounted to ISK 1.8 billion, compared to ISK 3.7 billion at the end of 2022. The balance of loans at Síminn Pay was ISK 2.9 billion at the end of 2023, but was ISK 1.7 billion at the end of 2022.
• Síminn's equity ratio was 52.1% at the end of 2023 and equity was ISK 17.6 billion.

 

Orri Hauksson, CEO:

"The year 2023 went well for Síminn, the first full year after the sale of Míla. The transformation of Síminn's group into an asset-light service company is the biggest change that has taken place in the company's 118-year history. Revenue growth was mainly in the second half of the year, especially in the mobile and TV segments, while internet revenues showed moderate growth. One of the main projects of this year will be to strengthen this company's largest revenue source.

Inflation during the year put pressure on service contracts with Síminn's suppliers, but most of these contracts are indexed directly or indirectly. Síminn got through this crisis well and it is clear that with stable prices going forward, the company has good tools to manage operating costs.