Earnings Release • Apr 29, 2025
Earnings Release
Open in ViewerOpens in native device viewer
Financial press release – Síminn hf. Q1 2025
1 12M EBITDA includes 12M pro forma EBITDA of Noona
María Björk Einarsdóttir, CEO:
"Strong core operations, considerable revenue growth from advertising, and continued development of the fintech business with significant customer growth characterized the quarter. Síminn Premium TV (Sjónvarp Símans Premium) maintained its strong momentum, with subscriber numbers now 10% higher than at the end of Q1 2024, totaling around 50,000. Production of high-quality Icelandic TV programming has never been more ambitious. An unexpected Supreme Court ruling affects the quarter, as the verdicts of the District Court and the Court of Appeals in the "English Premier League case" were overturned, resulting in a fine of ISK 400 million. Three additional legal settlements cases resulted in payments of approximately ISK 60 million in addition to ISK 35 million in late interest. Legal uncertainty is significantly reduced with the resolution of these cases.
Advertising media is becoming a strong revenue pillar for Síminn. The company now operates 41 billboards and 620 digital screens in bus stops in an expanding network. Síminn's strong outdoor and television media create unique value for customers through high visibility, while the outdoor media also deliver benefits to partners in sports clubs and local councils in the capital area.
We continue to expand and strengthen our portfolio of top-tier fintech solutions. 118 companies, including many of Iceland's largest employers, have adopted Síminn Pay's corporate cards, following the product's launch last year. Additionally, nearly 150,000 registered users are now active on the Noona app, which became part of the Síminn Group in 2024. Through Noona's platform, users book over 200,000 service appointments each month, with annual turnover processed through the system amounting to tens of billions..
Twelve new Icelandic TV series are currently in production for Síminn Premium TV. During Easter, the premiere of Reykjavík 112 attracted over 52,000 viewers within its first week on air. Production of Icelandic children's programming also continues, with a strong focus on promoting and preserving the Icelandic language. In addition, major partnerships with HBO, Paramount, Showtime, MGM, and ITV ensure that Síminn customers enjoy year-round access to top-tier international content — a key driver behind the platform's steadily growing popularity.
The rollout of our new corporate strategy has been a central focus in recent months. Although we are still in the early stages of this journey, the results are already becoming evident, with a clear and positive correlation between rising employee satisfaction and increasing customer satisfaction. Both metrics are formally and regularly measured within Síminn. I would like to take this opportunity to sincerely thank all my colleagues for the ambition and dedication they have shown in advancing the strategy across every part of the company. It is by no means a given to secure such strong support during a major transition period, especially while maintaining the daily operation with diligence and an unwavering focus on our customers' interests."
Total revenue in Q1 2025 amounted to ISK 7,173 million compared to 6,575 million in Q1 2024, up by 9.1%. Looking at the company's main telecommunications services (mobile, data and TV services), revenue growth is 2.3%.
Revenue from mobile amounted to ISK 1,685 million, up by ISK 57 million or 3.5% between periods. Revenue from data services (internet & network) amounted to ISK 2,067 million, up by ISK 3 million or 0.1% from last year. Revenue from TV services excluding advertising income amounted to ISK 1,901 million, increasing by ISK 65 million or 3.5% between periods. Revenue from a new business segment, advertising2, amounted to ISK
| Income statement | Q1 | |||
|---|---|---|---|---|
| 2025 | 2024 | Change | % | |
| Net sales | 7.003 | 6.417 | 586 | 9,1% |
| Cost of sales | ( 4.526) | ( 4.180) | ( 346) | 8,3% |
| Gross profit | 2.477 | 2.237 | 240 | 10,7% |
| Other operating income | 170 | 158 | 12 | 7,6% |
| Operating expenses | ( 1.997) | ( 1.964) | ( 33) | 1,7% |
| Administrative fine and damages | ( 461) | 0 | ( 461) | |
| Operating profit (EBIT) | 189 | 431 | ( 242) | -56,1% |
| Financial income | 192 | 183 | 9 | 4,9% |
| Financial cost | ( 513) | ( 378) | ( 135) | 35,7% |
| Net financial items | ( 321) | ( 195) | ( 126) | 64,6% |
| (Loss) Profit before tax | ( 132) | 236 | ( 368) -155,9% | |
| Income tax | ( 56) | ( 65) | 9 | -13,8% |
| (Loss) Profit | ( 188) | 171 | ( 359) -209,9% | |
| EBITDA | 1.272 | 1.435 | ( 163) | -11,4% |
| EPS | (0,08) | 0,07 | (0,15) -214,3% |
563 million and increased by ISK 390 million between periods. The main driver of this increase was Billboard's revenue, as the company became part of the group at the beginning of Q2 2024. Revenue from user equipment sale amounted to ISK 415 million, down by ISK 9 million or 2.1% between periods. Other revenue amounted to ISK 542 million, up by ISK 92 million between periods.
The cost of sales amounted to ISK 4,526 million, increasing by ISK 346 million or 8.3% from the same period in 2024, primarily due to new subsidiaries that joined the group in Q2 2024. Operating expenses amounted to ISK 2,458 million, increasing by ISK 494 million or 25.2% compared to the same period in 2024, with 400 million attributable to the Supreme Court ruling and over ISK 60 million in operating expenses related to the settlement of three other legal disputes during the quarter.
Depreciation and amortization amounted to ISK 1,083 million in Q1 2025 compared to ISK 1,004 million in Q1 2024, up by ISK 79 million.
2 Includes TV advertising revenue, which previously belonged to TV Services, and Billboard advertising sales, which were previously classified under Other Revenue.
Operating activities amounted to a total of ISK 1,283 million in Q1 2025 compared to ISK 1,456 million in Q1 2024. The change in operating-related assets and liabilities in Q1 2025 amounted to a reduction of ISK 122 million.
Cash generated by operation was ISK 1,161 million in Q1 2025 compared to ISK 1,279 million in Q1 2024. After interest and taxes, net cash from operating activities amounted to ISK 872 million in Q1 2025 compared to ISK 1,121 million in Q1 2024.
Adjusted for the settlement related to legal cases, cash flow before interest and taxes amounted to ISK 1,621 million, and ISK 1,367 million after interest and taxes.
| Cash flow | Q1 2025 | Q1 2024 |
|---|---|---|
| Operating profit | 189 | 431 |
| Depreciation | 1.083 | 1.004 |
| Items not affecting cash flow | 11 | 21 |
| Total operating activities | 1.283 | 1.456 |
| Changes in current assets and liabilitites | ( 122) | ( 177) |
| Cash generated by operation | 1.161 | 1.279 |
| Interest income received | 184 | 175 |
| Interest expenses paid | ( 420) | ( 243) |
| Payments of taxes during the period | ( 53) | ( 90) |
| Net cash from operating activities | 872 | 1.121 |
| Investing activities | ( 1.993) | ( 5.143) |
| Financing activities | 683 | 4.240 |
| Changes in cash and cash equivalents | ( 438) | 218 |
| Translation effects on cash | ( 4) | ( 2) |
| Cash and cash equivalents at the beginning of the period | 835 | 1.810 |
| Cash and cash equivalents at the end of the period | 393 | 2.026 |
In Q1 2024, Síminn acquired Billboard, which affects investment and financing movements during that period. In Q1 2025, Síminn acquired a loan portfolio, which impacts the same items.
Total assets amounted to ISK 42,135 million at the end of Q1 2025 but were ISK 41,182 million at the end of 2024.
Interest-bearing liabilities, including lease obligations, were ISK 18,884 million at the end of Q1 2025 compared to ISK 17,168 million at the end of 2024. Cash at the end of Q1 2025 amounted to ISK 393 million compared to ISK 835 million at the end of 2024. Net interestbearing liabilities with lease obligations and Síminn Pay consumer loans were ISK 13,763 million at the end of Q1 2025 compared to ISK 13,021 million at the end of 2024.
| Balance sheet | 31.03.2025 | 31.12.2024 | Change | % |
|---|---|---|---|---|
| Property, plant and equipment | 3.638 | 3.543 | 95 | 3% |
| Right-of-use assets | 1.750 | 1.844 | ( 94) | -5% |
| Intangible assets | 25.713 | 26.243 | ( 530) | -2% |
| Other financial assets | 980 | 638 | 342 | 54% |
| Non-current assets | 32.081 | 32.268 | ( 187) | -1% |
| Inventories | 1.329 | 1.339 | ( 10) | -1% |
| Accounts receivables | 2.403 | 2.503 | ( 100) | -4% |
| Loans (Síminn Pay) | 4.278 | 3.204 | 1.074 | 34% |
| Other assets | 1.651 | 1.033 | 618 | 60% |
| Cash and cash equivalents | 393 | 835 | ( 442) | -53% |
| Current assets | 10.054 | 8.914 | 1.140 | 13% |
| Total assets | 42.135 | 41.182 | 953 | 2% |
| Equity | 16.916 | 18.116 | ( 1.200) | -7% |
| Equity | 16.916 | 18.116 | ( 1.200) | -7% |
| Borrowings | 14.129 | 12.733 | 1.396 | 11% |
| Lease liabilities | 1.484 | 1.571 | ( 87) | -6% |
| Deferred tax liabilities | 578 | 686 | ( 108) | -16% |
| Non-current liabilities | 16.191 | 14.990 | 1.201 | 8% |
| Bank loans | 2.484 | 2.084 | 400 | 19% |
| Accounts payables | 3.787 | 3.760 | 27 | 1% |
| Current maturities of borrowings | 787 | 780 | 7 | 1% |
| Other current liabilities | 1.970 | 1.452 | 518 | 36% |
| Current liabilities | 9.028 | 8.076 | 952 | 12% |
| Total equity and liabilities | 42.135 | 41.182 | 953 | 2% |
Equity amounted to ISK 16,916
million at the end of Q1 2025, and the equity ratio was 40.1%.
The guidance for the group has been updated to reflect the outcome of the Supreme Court ruling in the case between Síminn and the Competition Authority on 26 February 2025. The Supreme Court overturned the previous rulings of the Reykjavík District Court and the Court of Appeal, upheld the original decision, and imposed a fine of ISK 400 million on Síminn.
The outlook for 2025 includes:
An investor presentation will be held on Wednesday 30 April 2025 at 8:30 am at Síminn's headquarters in Ármúli 25, Reykjavík. During the meeting, María Björk Einarsdóttir CEO and Óskar Hauksson CFO will present the financial results. The meeting will be held in Icelandic. Presentation materials will be available on Nasdaq Iceland's news platform and on the company's investor relations website https://www.siminn.is/fjarfestar/quarterly-results.
The meeting will be live-streamed on: https://www.siminn.is/fjarfestar/fjarfestakynning.
Participants who wish to submit questions are kindly requested to send them to [email protected]. Responses to submitted questions will be provided at the end of the meeting."
| Q2 2025 Interim Report | 19 August 2025 |
|---|---|
| Q3 2025 Interim Report | 22 October 2025 |
| Full Year 2025 Results | 17 February 2026 |
| Annual General Meeting 2026 | 12 March 2026 |
María Björk Einarsdóttir, CEO ([email protected]) Óskar Hauksson, CFO ([email protected])
Note: This English version is a translation of the Icelandic text that accompanies the Q1 2025 results of Síminn hf.
3 Excluding the impact of amortization of intangible assets from business acquisitions.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.