Sýn (SYN) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ISK 11,416 million, with a net loss of ISK 339 million and EBIT of ISK 169 million.

• Revenue declined 1% year-over-year, mainly due to lower IoT and Endor equipment sales.

• Strong growth in advertising sales and home internet connections; TV ad sales up 67% year-over-year.

• Integration of Já into the group underway; Endor unit in sales process expected to close in Q3.

• Share buyback program completed, reducing share capital to 247,648,960 shares.

Financial highlights

• EBIT for H1 2024: ISK 169 million, down from ISK 1,002 million in H1 2023.

• Revenue for H1 2024: ISK 11,416 million, down from ISK 11,493 million in H1 2023.

• EBITDA margin for H1 2024: 21.2%, down from 28.1% in H1 2023.

• Free cash flow for H1 2024 was negative ISK 180 million, compared to positive ISK 325 million in H1 2023.

• H1 2024 loss per share was ISK 1.40, compared to earnings per share of ISK 1.75 in H1 2023.

Outlook and guidance

• EBIT guidance for 2024 remains unchanged at ISK 900–1,100 million.

• Management expects improved operating profit in H2 2024 as efficiency projects deliver results.

• New strategy to be announced at investor day on November 7.

• Uncertainty persists regarding inflation and interest rate trends in Iceland.