Síminn (SIMINN) Q2 2024 earnings summary

Executive summary

• Revenue grew 9.4% year-over-year in Q2 2024 and 6.9% in 1H 2024, reaching ISK 13,446 million, driven by core services and new advertising subsidiaries.

• EBITDA increased 22.4% in Q2 and 16% in 1H, reaching ISK 3,161 million, with EBIT up 75.7% in Q2 and 56.9% in 1H, 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., Dengsi ehf., Billboard ehf., and pending deals for Noona Iceland ehf. and a credit card loan portfolio.

• Mobile, TV, and internet segments posted revenue growth, while equipment sales declined.

Financial highlights

• Q2 2024 revenue: ISK 6,871 million; 1H 2024 revenue: ISK 13,446 million.

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

• Net cash from operating activities in H1: ISK 2,738 million; cash at period end: ISK 1,634 million.

• CAPEX in 1H 2024: ISK 2,063 million, with significant investment in TV content rights and infrastructure.

• Total assets as of June 30, 2024: ISK 39,544 million; equity at ISK 18,318 million.

Outlook and guidance

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

• Acquisitions in advertising expected to increase annual turnover by ISK 1,450 million and EBITDA by ISK 800 million.

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

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

• New service agreements expected to strengthen offerings.