Nova Klúbburinn (NOVA) Q4 2024 earnings summary

Executive summary

• Total revenue for 2024 increased by 2.5% year-over-year to 13,314 m.kr., with service revenue up 6.4% and product sales down 6.8%.

• EBITDA rose 3.8% to 4,128 m.kr., with EBITDA margin improving to 31.0%.

• Net income for the year was 807 m.kr., up 10.7% from 2023, and EPS increased by 14.6%.

• Free cash flow (FCF) for the year was 2,486 m.kr., a 15% increase year-over-year.

• Nova maintained its position as the market leader in customer satisfaction for the 16th consecutive year.

Financial highlights

• Q4 2024 revenue grew 5.2% year-over-year to 3,501 m.kr.; service revenue up 9.0%, product sales down 1.1%.

• Q4 EBITDA increased 10.8% to 1,065 m.kr., with margin at 30.4%.

• Net income in Q4 was 244 m.kr., up 33.9% year-over-year.

• Cash from operations for 2024 was 3,107 m.kr., up 3.1% from 2023.

• Free cash flow to firm after lease payments (FCFFAL) was 1,211 m.kr., up 64% year-over-year.

Outlook and guidance

• 2025 revenue guidance: 13,700–14,000 m.kr.; continued customer growth expected.

• EBITDA projected at 4,000–4,400 m.kr.; investment spending to remain in line with prior year.

• Capex expected at 11–12% of revenue, with focus on digital services and network upgrades.