Nova Klúbburinn (NOVA) Q2 2024 earnings summary

Executive summary

• Total revenue increased by 0.4% in Q2 2024 and 0.2% for H1 2024 year-over-year, reaching ISK 6,426 million, driven by service revenue growth despite lower product sales.

• EBITDA for H1 2024 was ISK 1,865 million, with margin declining to 29.0% due to higher costs and lower product sales.

• Net profit for H1 2024 was ISK 241 million, down ISK 39 million year-over-year.

• Equity at June 30, 2024 was ISK 9,375 million, with an equity ratio of 40.2%.

• The company operates in telecommunications and related services.

Financial highlights

• Service revenues grew by 3.6% in Q2 2024 and 4.0% in H1 2024 year-over-year, while product sales declined by 7.8% in Q2 and 9.2% in H1 2024.

• Operating profit margin (EBIT) was 12.5% in Q2 2024 and 11.9% for H1 2024.

• Free cash flow for H1 2024 was ISK 954 million, up ISK 126 million year-over-year, representing 14.8% of total revenue.

• Operating cash flow for H1 2024 was ISK 959 million, down from ISK 1,128 million in H1 2023.

• Cash at period end was ISK 273 million, down from ISK 497 million at year-end 2023.

Outlook and guidance

• 2024 revenue is projected between ISK 13,100–13,700 million, with EBITDA expected in the range of ISK 3,800–4,100 million.

• Capital expenditures are planned at 12–14% of total revenue for the year.

• Continued share buybacks and stable equity ratio indicate confidence in ongoing operations.