Sýn (SYN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was ISK 5,265m, down 2% year-over-year, mainly due to lower IoT and equipment sales, while core telecom business and consumer mobile showed growth.

• Net income for Q3 2024 was ISK 17m, compared to ISK 321m in Q3 2023; for the first nine months, net loss was ISK 322m.

• EBIT for Q3 2024 was ISK 363m, down from ISK 590m in Q3 2023, impacted by one-time costs and higher amortization of content rights.

• Sale of part of Endor ehf.'s operations to Hexatronic generated a profit of ISK 160m.

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

Financial highlights

• Cost of goods sold increased by over 8% year-over-year, mainly due to one-off costs from selling older phone inventory.

• Operating expenses decreased by nearly 1% year-over-year.

• EBITDA for the first nine months was ISK 3,854m, down from ISK 4,747m year-over-year.

• Free cash flow for Q3 2024 was ISK 838m; for the nine months, ISK 412m.

• Net interest-bearing debt at September 30, 2024, was ISK 19,073m.

Outlook and guidance

• Management expects financial expenses to decrease as interest rates fall and debt reduction continues.

• Revenue growth in core segments expected to continue, supported by increased home and mobile subscriptions.

• Sale of Endor ehf. operations expected to strengthen future solution offerings through partnership with Hexatronic.

• Ongoing integration of Já and Endor, with further efficiency and cost control measures planned.

• Strategic focus on growth in core telecom, digital media, and leveraging new content rights, including Premier League broadcasting.