Síminn — Interim / Quarterly Report 2025

Apr 29, 2025

Síminn

Condensed Consolidated Interim Financial Statements

1 January to 31 March 2025

Síminn hf.
Ármúla 25
108 Reykjavík
Kt. 460207-0880

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Contents

Page

Endorsement and Statement by the Board of Directors and the CEO... 2
Consolidated Income Statement... 3
Consolidated Statement of Financial Position... 4
Consolidated Statement of Changes in Equity... 5
Consolidated Statement of Cash Flows... 6
Notes to the Consolidated Financial Statements... 7-11
Quarterly Statements... 12

Siminn hf. - Condensed Consolidated Interim Financial Statements 31 March 2025

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Endorsement and Statement by the Board of Directors and the CEO

The Condensed Consolidated Interim Financial Statements of Síminn hf. and its subsidiaries (together referred to as "Síminn" or the "Company") for the period 1 January to 31 March 2025 are prepared and presented in accordance with International Financial Reporting Standards (IFRS) for Interim Financial Statements (IAS 34) as adopted by the EU. The Financial Statements are neither audited or reviewed by the Company's auditors.

Net loss for the first three months of the year amounted to ISK 188 million, compared to profit of ISK 171 million for the same period in 2024. Total sales for the first three months of the year amounted to ISK 7.173 million according to the Income Statement, compared to ISK 6.575 million for the same period in 2024. Total assets amounted to ISK 42.135 million and total equity amounted to ISK 16.916 million according to the Statement of Financial Position. The Company's equity ratio was 40,1%.

On 18 February, Síminn hf. published its financial guidance for the year 2025. The EBITDA forecast was ISK 7.0–7.4 billion, and the EBIT forecast was ISK 3.6–4.0 billion. On 26 February, the Supreme Court of Iceland issued a ruling in the case between Síminn and the Icelandic Competition Authority, upholding the Authority's decision no. 25/2020. A split Supreme Court thereby overturned the rulings of both the District Court of Reykjavík and the National Court, which had previously annulled the decision. Síminn was fined ISK 400 million, which has been expensed in the company's accounts and paid. In light of the Supreme Court's ruling, Síminn has updated its EBITDA forecast to ISK 6.6–7.0 billion and its EBIT forecast to ISK 3.2–3.6 billion for the year 2025. Additionally, damages relating to the outcome of three legal cases, totalling ISK 61 million, were expensed during the quarter.

On August 27 2024, Síminn Pay reached an agreement with Rapyd Europe hf. that Síminn Pay would take over card loans and payment distributions for VISA and MasterCard cardholders that were set up and operated by Valitor. At the end of February, the card loans of about nine thousand customers for about ISK 1.500 million was transferred to Síminn Pay.

The Annual General Meeting of Síminn approved on 13 March 2025 a share capital decrease to cancel out own shares which amounted to ISK 175 million in nominal value. The same Annual General Meeting approved a share buyback program allowing buyback for up to ISK 247.5 million in nominal value and a proposal to pay ISK 500 million in dividend to shareholders, the dividend was paid on March 28. Based on the approval of the Annual General Meeting in 2024 and 2025 the Company has this year purchased own shares for nominal value ISK 38 million, market value ISK 525 million.

Statement by the Board of Directors and the CEO

According to the best of our knowledge the Condensed Consolidated Interim Financial Statements of Síminn hf. are prepared and presented in accordance with International Financial Reporting Standards (IFRS) for Interim Financial Statements (IAS 34) as adopted by the EU. It is our opinion that these Condensed Consolidated Interim Financial Statements give a true and fair view of the consolidated financial performance of Síminn hf. for the three months ended 31 March 2025, its assets, liabilities and consolidated financial position as at 31 March 2025 and its consolidated cash flows for the three month period ended 31 March 2025. Further, in our opinion the Condensed Consolidated Interim Financial Statements give a fair view of the development and performance of Síminn's operations and its position and describes the principal risks and uncertainties faced by Síminn hf.

The Board of Directors and the CEO have today discussed the Condensed Consolidated Interim Financial Statements of Síminn hf. for the period 1 January to 31 March 2025 and confirm them by means of their signatures.

Reykjavík, 29 April 2025

Board of Directors

Jón Sigurðsson, Chairman

Sigrún Ragna Ólafsdóttir, vice chairman

Arnar Þór Másson

Bjarni Þorvarðarson

Valgerður Halldórsdóttir

CEO

María Björk Einarsdóttir

Siminn hf. - Condensed Consolidated Interim Financial Statements 31 March 2025

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Consolidated Income Statement and other comprehensive income for the period 1 January to 31 March 2025

	Notes	2025	2024
		1.1.-31.3.	1.1.-31.3.
Net sales	5	7.003	6.417
Cost of sales	6	( 4.526)	( 4.180)
Gross profit		2.477	2.237
Other operating income		170	158
Operating expenses	7	( 1.997)	( 1.964)
Administrative fine and damages		( 461)	0
Operating profit		189	431
Finance income		192	183
Finance cost		( 517)	( 375)
Net exchange rate differences		4	( 3)
Net financial items	8	( 321)	( 195)
(Loss) profit before tax		( 132)	236
Income tax		( 56)	( 65)
(Loss) profit for the period		( 188)	171
EBITDA		1.272	1.435
Earnings per share
Basic earnings per share		( 0,08)	0,07
Diluted earnings per share		( 0,08)	0,07

The notes on pages 7 to 11 are an integral part of these consolidated financial statements

Siminn hf. - Condensed Consolidated Interim Financial Statements 31 March 2025

All amounts are in millions of ISK

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Consolidated Statement of Financial Position as at 31 March 2025

	Notes	31.3.2025	31.12.2024
Assets
Non-current assets
Property, plant and equipment		3.638	3.543
Right-of-use assets		1.750	1.844
Intangible assets		25.713	26.243
Other financial assets	9	980	638
Non-current assets		32.081	32.268
Current assets
Inventories	10	1.329	1.339
Accounts receivables	11	2.403	2.503
Loans (Siminn Pay)	12	4.278	3.204
Other assets	13	1.651	1.033
Cash and cash equivalents		393	835
Current assets		10.054	8.914
Total assets		42.135	41.182
Equity
Share capital		2.445	2.483
Statutory reserve		612	621
Other reserve		919	828
Retained earnings		12.940	14.184
Equity		16.916	18.116
Liabilities
Non-current liabilities
Borrowings		14.129	12.733
Lease liabilities		1.484	1.571
Deferred tax liabilities	14	578	686
Non-current liabilities		16.191	14.990
Current liabilities
Bank loans		2.484	2.084
Accounts payables	15	3.787	3.760
Current maturities of borrowings		429	429
Current maturities of lease liabilities		358	351
Taxes to be paid		367	255
Other liabilities	16	1.603	1.197
Current liabilities		9.028	8.076
Total liabilities		25.219	23.066
Total equity and liabilities		42.135	41.182

The notes on pages 7 to 11 are an integral part of these consolidated financial statements

Siminn hf. - Condensed Consolidated Interim Financial Statements 31 March 2025

All amounts are in millions of ISK

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Consolidated Statement of Changes in Equity 1 January to 31 March 2025

	Share capital	Reserves	Other statutory reserve	Translation- and other reserve	Retained earnings	Total equity
Total equity 1.1.2024	2.517		629	570	13.884	17.600
Net profit for the period					171	171
Payment of dividends (0,2 per share)					( 500)	( 500)
Buyback of ordinary shares	( 19)		( 5)		( 167)	( 191)
Sold ordinary shares	101	899				1.000
Other changes				( 33)	33	0
Share option charge					21	21
Total equity 31.3.2024	2.599	899	624	537	13.442	18.101
Total equity 1.1.2025	2.483	0	621	828	14.184	18.116
Net profit (loss) for the period					( 188)	( 188)
Payment of dividends (0,2 per share)					( 498)	( 498)
Buyback of ordinary shares	( 38)		( 9)		( 478)	( 525)
Other changes				91	( 91)	0
Share option charge					11	11
Total equity 31.3.2025	2.445	0	612	919	12.940	16.916

The notes on pages 7 to 11 are an integral part of these consolidated financial statements

Siminn hf. - Condensed Consolidated Interim Financial Statements 31 March 2025

All amounts are in millions of ISK

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Consolidated Statement of Cash Flow 1 January to 31 March 2025

	Notes	2025	2024
		1.1.-31.3.	1.1.-31.3.
Cash flow from operating activities
Operating profit		189	431
Operational items not affecting cash flow:
Depreciation		1.083	1.004
Other items not affecting cash flow		11	21
		1.283	1.456
Changes in current assets and liabilities:
Changes in inventories		10	3
Changes in operating assets		(509)	(498)
Changes in operating liabilities		377	318
	Changes in current assets and liabilities	(122)	(177)
	Cash generated by operation	1.161	1.279
Interest income received		184	175
Interest expenses paid		(420)	(243)
Payments of taxes		(53)	(90)
	Net cash from operating activities	872	1.121
Investing activities
Investment in property, plant and equipment		(363)	(281)
Investment in intangible assets		(184)	(1.020)
Proceeds from sale of property, plant and equipment		0	9
Changes in loans (Siminn Pay)		(1.446)	(119)
Acquisition of subsidiary, net of cash acquired		0	(3.732)
	Investment activities	(1.993)	(5.143)
Financing activities
Dividend paid		(498)	0
Buyback of ordinary shares		(525)	(191)
New borrowings		1.500	4.500
Payments of non-current liabilities		(107)	0
Payment of long term lease		(87)	(69)
Bank loans, decrease		400	0
	Financing activities	683	4.240
(Decrease) increase in cash and cash equivalents		(438)	218
Effect of exchange rate fluctuations on cash held		(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

The notes on pages 7 to 11 are an integral part of these consolidated financial statements

Siminn hf. - Condensed Consolidated Interim Financial Statements 31 March 2025

All amounts are in millions of ISK

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Notes to the Consolidated Financial Statements

1. Reporting entity

Síminn hf. (the "Company") is a public limited liability company domiciled in Iceland. The address of the Company's registered office is Ármúli 25, Reykjavík. These condensed consolidated interim financial statements ('interim financial statements') for the three months ended 31 March 2025 comprise the Company and its subsidiaries (together referred to as "Síminn" or the "Company"). The subsidiaries are Síminn Pay ehf., Radíómiðun ehf., Billboard ehf., BBI ehf. and Noona Iceland ehf.

The company's core operations are in the fields of telecommunications, fintech, and media.

2. Basis of accounting

2.1. Statement of compliance

These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, and should be read in conjunction with the Company's last annual consolidated financial statements as at and for the year ended 31 December 2024. They do not include all the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company's financial position and performance since the last annual financial statements.

The Company's last annual consolidated financial statements is available on the company's website, www.siminn.is, and in the company news release distribution network of Nasdaq Nordic: www.nasdaqomxnordic.com.

These interim financial statements were authorised for issue by the Company's board of directors on April 29, 2025.

2.2. Basis of measurement

These interim financial statements have been prepared on the historical cost basis.

2.3. Presentation and functional currency

These interim financial statements are presented in Icelandic Krona (ISK), which is the Company's functional currency. All financial information presented in ISK has been rounded tho the nearest million unless otherwise stated.

2.4. Use of judgements and estimates

In preparing these interim financial statements, management has made judgements and estimates that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

3. Changes in accounting policies

The accounting policies applied in the interim financial statements are the same as those applied in the Company's consolidated financial statements as at and for the year ended 31 December 2024.

Siminn hf. - Condensed Consolidated Interim Financial Statements 31 March 2025

All amounts are in millions of ISK

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Notes to the Consolidated Financial Statements

4. Operating segments

An overview of operating segments is set forward in same manner as regular reporting to the Board of Directors.

The Company operates within six segments that sell services and equipment in different markets. The operating segments are as follows:

Operating segment:	Description:
Mobile:	Revenue from mobile services domestic and abroad, whether traditional GSM service, satellite service or other mobile service.
Internet & network:	Revenue from data service, incl. xDSL service, GPON, Internet, IP net, local loop and access network.
TV:	Revenues form TV content, subscriptions, traffic and advertising on the company's media platform.
Advertising:	Revenue in outdoor advertising and TV.
Equipment sales:	Revenue from sale of telco equipment.
Other revenue:	Revenue from i.e. other telco service and finance.
Operating segments 1.1.-31.3.2025	Internet &
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	Mobile
Revenue	1.685
Expenses
EBITDA
Depreciation
Net finance cost
Taxes
Net earnings for the period
Capital additions
Assets 31.3.2025
Liabilities 31.3.2025
Operating segments 1.1.-31.3.2024	Internet &
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	Mobile
Revenue	1.628
Expenses
EBITDA
Depreciation
Net finance cost
Taxes
Net earnings for the period
Capital additions
Assets 31.3.2024
Liabilities 31.3.2024

• A change has been made to the Company's operating segment reporting. Advertising has up until now been under the segment TV, but from 2024 Advertising is a separate segment. Comparative figures have been adjusted accordingly.

Siminn hf. - Condensed Consolidated Interim Financial Statements 31 March 2025

All amounts are in millions of ISK

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Notes to the Consolidated Financial Statements

5. Net sales

Sales of service and goods is specified as follows:	2025	2024
	1.1.-31.3.	1.1.-31.3.
Sales of service	6.012	5.786
Advertising sales	551	173
Sales of goods	440	458
	7.003	6.417

No customer comprises more than 10% of net sales.

6. Cost of sales

Cost of sales is specified as follows:

Salaries and related expenses	421	247
Cost of service sold	2.831	2.670
Interconnecting fees	137	145
Cost of goods sold	395	402
Capitalised work	( 46)	( 40)
Depreciation cost of sold services	788	756
	4.526	4.180

Cost of service sold consists of; material costs, service contracts, license fees, purchased services and telecommunications costs.

7. Operating expenses

Operating expenses is specified as follows:

Salaries and related expenses	959	1.024
Marketing and sales expenses	174	136
Housing and transportation expenses	74	69
IT-Expenses	257	257
General and administrative expenses	239	229
Depreciation operating expenses	294	249
	1.997	1.964

8. Financial income and expense

Financial income and finance costs are specified as follow:

Finance income
Interest income	52	68
Interest income from loans	140	113
Dividend received	0	2
	192	183
Finance expense
Interest on borrowings	( 397)	( 281)
Interest expense from lease liability	( 42)	( 10)
Loan write-downs	( 30)	( 67)
Other finance expenses	( 48)	( 17)
	( 517)	( 375)
Net exchange rate differences	4	( 3)
Net financial items	( 321)	( 195)

Siminn hf. - Condensed Consolidated Interim Financial Statements 31 March 2025

All amounts are in millions of ISK

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Notes to the Consolidated Financial Statements

9. Other financial assets

Other financial assets are specified as follows: 31.3.2025 31.12.2024

Investment in other companies 8 8
TV programs 522 522
Loans (Síminn Pay) 450 108
Other financial assets total 980 638

10. Inventories

Inventories are specified as follows:

Finished goods 665 710
TV programs 664 629
Inventory total 1.329 1.339

11. Accounts Receivables

Accounts receivables are specified as follows:

Accounts receivables 2.535 2.617
Allowances for doubtful accounts (132) (114)
Accounts receivables total 2.403 2.503

12. Loans (Síminn Pay)

Loans consist of loans from Company's subsidiary, Síminn Pay ehf. They are loans to individuals, between 1-36 months.

Loans 31.3.2025:	Gross carrying amount	Moved to Non-current	Loss allowance	Loans current
Loans, from 1 - 36 months	2.032	( 450)	( 36)	1.546
Creditcard, flexible payments	2.872	0	( 140)	2.732
	4.904	( 450)	( 176)	4.278
Loans 31.12.2024:
Loans, from 1 - 36 months	678	( 108)	( 40)	530
Creditcard, flexible payments	2.807	0	( 133)	2.674
	3.485	( 108)	( 173)	3.204

13. Other assets

Other assets are specified as follows: 31.3.2025 31.12.2024

Prepayments 1.006 701
Other current assets 645 332
Other assets total 1.651 1.033

Siminn hf. - Condensed Consolidated Interim Financial Statements 31 March 2025

All amounts are in millions of ISK

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Notes to the Consolidated Financial Statements

14. Deferred tax

Analysis of movements in the net deferred tax balances during the period is as follows:	31.3.2025	31.12.2024
Deferred tax at the beginning of the year	686	232
Acquisition of subsidiaries	0	336
Income tax posted to the income statement	56	381
Taxes to be paid	( 164)	( 255)
Prior year correction	0	( 8)
Deferred tax liability at the end of the period	578	686

15. Payables

Payables are specified as follows:

Payables	3.082	2.980
Accrued expenses	705	1.281
Payables total	3.787	4.261

16. Other liabilities

Other liabilities are specified as follows:

Accrued expenses	718	587
Salaries and related expenses	425	217
VAT	460	393
Other liabilities total	1.603	1.197

17. Legal proceedings

The status of the following legal case has not changed since the publication of the 2024 financial statements.

The Financial Supervisory Committee of the Central Bank of Iceland decided to fine Siminn by 76.5 million ISK on the basis that the Committee considered that Siminn had not disclosed alleged inside information or taken a decision to postpone the publication of the alleged inside information on 31 August 2021 in connection with the sale of the subsidiary Mila ehf. Siminn appealed the case to Reykjavik District Court to have the decision overturned. The District Court upheld the Central Bank's decision. Simin appealed the District Court Judgement to the National Court. The Company has paid the amount but has not expensed in profit or loss.

18. Events after reporting date

There are no subsequent events to report.

Siminn hf. - Condensed Consolidated Interim Financial Statements 31 March 2025

All amounts are in millions of ISK

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Quarterly Statements

Summary of the Company's operating results by quarters:

	Q1 2024	Q2 2024	Q3 2024	Q4 2024	Q1 2025
Net sales	6.417	6.708	6.773	7.291	7.003
Cost of sales	( 4.180)	( 4.527)	( 4.166)	( 4.455)	( 4.526)
Gross profit	2.237	2.181	2.607	2.836	2.477
Other operating income	158	163	182	140	170
Operating expenses	( 1.964)	( 1.708)	( 1.925)	( 2.032)	( 1.997)
Administrative fine and damages	0	0	0	0	( 461)
Operating profit	431	636	864	944	189
Net financial items	( 195)	( 320)	( 292)	( 306)	( 321)
Profit (loss) before tax	236	316	572	638	( 132)
Income tax	( 65)	( 72)	( 123)	( 121)	( 56)
Profit (loss) for the period	171	244	449	517	( 188)
EBITDA	1.435	1.726	1.915	2.071	1.272

Siminn hf. - Condensed Consolidated Interim Financial Statements 31 March 2025

All amounts are in millions of ISK