Síminn (SIMINN) Q2 2024 earnings summary

Executive summary

• Revenue grew 9.4% year-over-year in Q2 2024 and 6.9% in H1 2024, reaching ISK 13,446 million, driven by core services and new advertising subsidiaries.

• EBITDA increased 22.4% in Q2 and 16% in H1, with EBIT up 75.7% in Q2 and 56.9% in H1, reflecting strong operational leverage.

• Net profit for H1 2024 was ISK 415 million, with EPS up to ISK 0.16.

• Major acquisitions included BBI ehf., Dengsa ehf., Billboard ehf., and Noona Iceland ehf., expanding advertising and fintech services.

• Síminn Pay agreed to take over a credit card loan portfolio from Rapyd Europe, pending regulatory approval.

Financial highlights

• Q2 2024 revenue: ISK 6,871 million; H1 2024 revenue: ISK 13,446 million.

• Q2 2024 EBITDA: ISK 1,726 million (25.1% margin); H1 2024 EBITDA: ISK 3,161 million (23.5% margin).

• H1 2024 operating profit: ISK 1,067 million; net profit: ISK 415 million.

• Total assets at June 30, 2024: ISK 39,544 million; equity: ISK 18,318 million; equity ratio: 46.3%.

• CAPEX in H1 2024: ISK 2,063 million, with significant investment in TV content rights and infrastructure.

Outlook and guidance

• 2024 guidance unchanged: EBITDA ISK 7.0–7.3 billion, EBIT ISK 2.7–3.0 billion, CAPEX ISK 3.3–3.6 billion (excluding licenses/spectrum).

• Pro-forma estimates from acquisitions project annual revenue increase of ISK 1,450 million and EBITDA growth of ISK 800 million.

• Integration of acquired companies expected to strengthen service offerings in advertising and fintech.

• Revenue and sales are tracking in line with plan; autumn sales off to a strong start.

• Noona and loan portfolio acquisitions not expected to impact 2024 operations.