Nova Klúbburinn (NOVA) Q4 2024 earnings summary

Executive summary

• 2024 revenue rose 2.5% to 13,314 m.kr.; EBITDA increased 3.8% to 4,128 m.kr., with margin at 31.0%.

• Net income reached 807 m.kr., up from 729 m.kr. in 2023; EPS was ISK 0.22 versus ISK 0.19.

• Annual free cash flow was 2,486 m.kr., up 15%; operating cash flow was 3,107 m.kr., up 3.1%.

• Year-end equity was 9,664 m.kr. and the equity ratio was 40.6%; net debt/EBITDA improved to 2.67x from 2.80x.

• Ranked first in customer satisfaction for the 16th consecutive year, with recognition for employee well-being and sustainability.

Financial highlights

• Q4 revenue rose 5.2% to 3,501 m.kr. and EBITDA increased 10.8% to 1,065 m.kr.; EBITDA margin was 30.4%.

• Q4 service revenue increased 9.0%, while product sales declined 1.1%; full-year service revenue rose 6.4% and product sales fell 6.8%.

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

• FCFFAL was 1,211 m.kr., up 64% year-over-year; year-end cash and equivalents were 1,031 m.kr.

Outlook and guidance

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

• EBITDA guidance is 4,000–4,400 m.kr.; investment spending is expected to remain in line with the prior year.

• Capex is expected at 11–12% of revenue, focused on digital services and network upgrades; priorities also include customer experience and operational efficiency.

• Sustainability initiatives will continue, with further assessment of opportunities for environmentally sustainable operations.