Síminn (SIMINN) Q3 2024 earnings summary

Executive summary

• Revenue grew 7.0% year-over-year in Q3 2024 and 6.9% for the nine-month period, with strong performance in TV and mobile segments.

• EBITDA increased 5.7% in Q3 and 11.9% for 9M 2024, while EBIT rose 12.9% in Q3 and 33.6% for 9M.

• Net profit for 9M 2024 was ISK 864 million, up 9.7% year-over-year, but declined 11.4% in Q3; EPS flat in Q3 and up 9.7% for 9M.

• Major acquisitions included BBI ehf., Dengsi ehf., Billboard ehf., and a pending purchase of Noona Iceland ehf.; integration is on track.

• CEO transition in August 2024 led to one-time costs of 160 m.kr. in Q3 and 215 m.kr. YTD; María Björk Einarsdóttir appointed as new CEO.

Financial highlights

• Q3 2024 revenue: 6,955 m.kr.; 9M 2024 revenue: 20,401 m.kr. (up from 19,082 m.kr. in 2023).

• Q3 EBITDA: 1,915 m.kr. (margin 27.5%); 9M EBITDA: 5,076 m.kr. (margin 24.9%, up from 4,536 m.kr. in 2023).

• Q3 EBIT: 864 m.kr.; 9M EBIT: 1,931 m.kr. (up from 1,445 m.kr. in 2023).

• Q3 net profit: 449 m.kr. (down from 507 m.kr.); 9M net profit: 864 m.kr. (down from 932 m.kr. in 2023).

• Cash at period end: 1,148 m.kr.; net cash from operations for 9M: 3,842 m.kr. (up from 3,413 m.kr. in 2023).

Outlook and guidance

• 2024 guidance unchanged: EBITDA 7.0–7.3 ma.kr., EBIT 2.7–3.0 ma.kr., CAPEX 3.3–3.6 ma.kr. (excluding frequency licenses).

• Revenue and sales trends align with expectations; integration of acquisitions proceeding as planned.

• Noona Iceland and loan portfolio purchase not expected to impact 2024 operations; integration with Síminn Pay to drive new solutions, pending approval.