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Síminn Investor Presentation 2025
2203_rns_2025-04-29_1147dd7b-1e74-405c-9df7-9bd88835dd83.pdf
Investor Presentation
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Investor Presentation 01 2025
María Björk Einarsdóttir and Óskar Hauksson
Operations
Operations
Q1 – Strong Operations New Growth Pillars
Strong Core Operations and Positive Revenue Trends in Key Products
- Increase in mobile subscriptions while internet subscriptions remain stable
- Síminn Premium TV users grow by 10% year-on-year
Advertising Becomes a Strong Operational Pillar
- Successful acquisition and integration of Billboard in 2024
- Outdoor media and TV create unique value for customers
Síminn's Fintech Business Taking Shape
- 150,000 registered users on Noona Iceland
- Over 100 companies adopt Síminn Pay's new corporate card
- Acquired 9,000 loan agreements worth ISK 1.5 billion
Continued Strong Cash Flow from Core Operations
- Shareholder distributions totalled ISK 1,023 million in Q1
Siminn | Investor Presentation Q1 2025
Operations
Results Marked by Supreme Court Judgment
Results Affected by Unexpected Supreme Court Judgment
- Supreme Court overturned the judgments of the District Court and Court of Appeal and ordered Siminn to pay a fine of ISK 400 million
- Outcomes of three additional legal disputes led to settlements totalling ISK 60 million, along with ISK 35 million in default interest
- Legal uncertainty significantly reduced with the resolution of these cases
Siminn | Investor Presentation Q1 2025
S
Operations
Income Statement Q1 2025
Total Revenues Amounted to ISK 7,173 Million, an Increase of Almost ISK 600 Million from the Previous Year
- Increase largely due to the inclusion of Billboard and Noona Iceland, which were not part of the group in Q1 2024
- Revenue growth in television and mobile, while data transmission remains stable
Cost of Goods Sold Increased by ISK 346 Million Year-on-Year
- Higher costs driven by new subsidiaries and increased infrastructure supplier costs; Other items remain similar year-on-year
Operating Expenses Increased by ISK 494 Million Year-on-Year
- Legal settlements accounted for approximately ISK 460 million
Net Finance Costs Increased by ISK 126 Million Year-on-Year
- Finance income remained stable across the group, while interest income from Síminn Pay loans increased by 9% year-on-year
- Finance costs increased by ISK 135 million, reflecting higher debt levels related to acquisitions
- Default interest on payments due to legal disputes amounted to approximately ISK 35 million
| Income Statement | Q1 2025 | Q1 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% |
Siminn | Investor Presentation Q1 2025
S
Operations
Revenue
Q1 2025
Revenue by Segment
Revenue Development by Segment
Siminn
Investor Presentation Q1 2025
65
Operations
Revenue Q1 2025
Mobile
- Increase in subscriber numbers and revenues compared to the previous year
- Roaming revenues increased by nearly 13%, mainly due to usage by foreign tourists in Iceland
Internet & network
- Slight increase in subscriber numbers, but average revenue per user is trending downward
TV
- Strong year-on-year revenue growth
- Seasonal churn after Q4, but 10% growth in customer numbers year-on-year
Advertising
- Billboard became part of Síminn's group at the end of Q1 2024, and therefore revenues are not included in comparison figures
- Billboard's revenues in Q1 2025 amounted to ISK 370 million
| Segments | Q1 2025 | Q1 2024 | Change | % |
|---|---|---|---|---|
| Mobile | 1,685 | 1,628 | 57 | 3,5% |
| Internet & network | 2,067 | 2,064 | 3 | 0,1% |
| TV | 1,901 | 1,836 | 65 | 3,5% |
| Advertising | 563 | 173 | 390 | 225,4% |
| Equipment sales | 415 | 424 | -9 | -2,1% |
| Other | 542 | 450 | 92 | 20,4% |
| Total | 7,173 | 6,575 | 598 | 9,1% |
Síminn | Investor Presentation Q1 2025
Mobile: Mobile services, including traditional GSM services, satellite services, or other mobile services. Internet & network: Data transmission services, including xDSL services, GPON, Internet, IP networks, access lines, and access networks. TV: Distribution of television content, subscriptions, and usage of the company's media services. Advertising: Advertising revenues from outdoor media and television. Equipment Sales: Sale of telecommunications equipment and accessories. Other: Revenues related to other telecommunications and financial services.
Operations
KPI's Q1 2025
EBITDA
EBIT
FCF*
Profit
Siminn | Investor Presentation Q1 2025
- Cash flow from operations, net of investments
** Adjusted for a settlement of ISK 460 million relating to fines and damages
*** Adjusted for a settlement of ISK 495 million relating to fines and damages
Operations
Fintech
Lending
- Síminn Pay took over Valitor's loan portfolio in February, increasing lending by ISK 1.4 billion
- Modest growth in credit cards, while lending through loans has been declining
- Turnaround expected in loans following acquisition of loan portfolio
Corporate Card
- Strong growth in the number of corporate card users
- 118 companies had implemented the solution by the end of March, with an additional 60 companies in the process of implementation and testing
Noona Iceland
- Noona's operations integrated into Síminn's Fintech Division following its inclusion in the group in December 2024
- Noona's booking and point-of-sale solutions have now become part of Síminn's broader fintech offering
Síminn Pay Loan Portfolio
Síminn Pay - Interest income
Siminn | Investor Presentation Q1 2025
Balance Sheet and Cash Flow
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Balance Sheet and Cash Flow
Balance Sheet
- Goodwill and other intangible assets decreased mainly due to amortisation of broadcasting rights. No investments were made in new television content in Q1
- Lending increased by ISK 1.4 billion, related to the acquisition of a loan portfolio
- Increase in other short-term receivables mainly due to Siminn Pay corporate cards and an increase in prepaid costs, which is standard practice for Siminn in Q1 and relates to contracts with key suppliers
- Long-Term debt increased by ISK 1.5 billion as the acquisition of the loan portfolio was financed with long-term borrowing
- Short-Term debt increased by ISK 400 million
Net interest bearing debt with lease liabilities and Pay
Equity ratio
| 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 (Siminn 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% |
Siminn | Investor Presentation Q1 2025
Net Interest-Bearing Debt Includes Interest-Bearing Liabilities and Lease Liabilities, Net of Cash and Siminn Pay Loans. 12M EBITDA 2024 Includes 12-Month Pro Forma EBITDA for Billboard and Noona. 12M EBITDA Q1 2025 Includes. *12-Month Pro Forma EBITDA for Noona, Adjusted for the ISK 460 Million due to legal settlements.
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Balance Sheet and Cash Flow
Cash Flow
- Strong cash flow from underlying operations, but the quarter was marked by ISK 495 million in fines and damages including default interest
- Interest payments increased as leverage has grown since Q1 2024
- Significant reduction in investments in intangible assets compared to the previous year, when 20% of the three-year English Premier League broadcasting rights were capitalised in Q1; No investments in broadcasting rights in Q1 this year
- Shareholder payments totalled ISK 1,023 million in Q1, of which share buybacks accounted for ISK 525 million
- Short-Term debt increased by ISK 400 million due to higher outflows in Q1
| 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 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 |
| Net investment in non-current assets | (547) | (1.292) |
| Changes in loans (Siminn Pay) | (1.446) | (119) |
| Acquisition of subsidiaries, net of cash acquired | 0 | (3.732) |
| Investment activities | (1.993) | (5.143) |
| Dividend paid | (498) | 0 |
| Buyback of ordinary shares | (525) | (191) |
| Payment of long term lease | (87) | (69) |
| Net Financing activities | 1.793 | 4.500 |
| Financing activities | 683 | 4.240 |
| Changes in cash and cash equivalents | (438) | 218 |
| Effect of exchange rate fluctuation 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 |
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Simon
Investor Presentation Q1 2025
5
Investments
Investments
Siminn | Investor Presentation Q1 2025
Growing Digital Ecosystem
Growing Digital Ecosystem
S
Síminn Premium TV
Leader in Icelandic Production
- 10% growth in customer numbers year-on-year
- Biggest year in Icelandic TV programming, seasons including Reykjavík 112, IceGuys, Friðarhöfn, Reykjavík Fusion, and Vesen
- 12 Icelandic TV series currently in production
- Over 52,000 viewers watched the first episode of Reykjavík 112 during its first week on air
- Production of Icelandic children's content continues, with a focus on strengthening the Icelandic language
- Major agreements with HBO, Paramount, Showtime, MGM, and ITV secure high-quality television content for Síminn throughout the year
- Síminn received the Áran Award, the marketing achievement prize from ÍMARK, for outstanding success with IceGuys
Siminn | Investor Presentation Q1 2025
Growing Digital Ecosystem
S
Fintech
Opportunities in an Expanding Revenue Stream
118 Companies Using Síminn Pay's New Corporate Card
- Includes many of the country's largest companies
- 60 companies currently in implementation and testing
Almost 150,000 Registered Users at Noona
- Around 78,000 people book 200,000 appointments each month
- Noona Iceland processes billions of ISK in annual transaction volume
- Noona's vendor base is 1,016, with 89 new vendors added since January
Pilot Project with Artificial Intelligence for Call Handling and Appointment Booking
Electronic Expense Request Solutions from Síminn Pay in Municipal Operations
- Agreements finalised with some of Iceland’s largest municipalities, implementation underway in Reykjavík and Hafnarfjörður
118
Síminn Pay – Companies Using Corporate Card
60
Síminn Pay – Companies Implementing and Testing the Corporate Card
5.000
m.ISK. – Síminn Pay Loan Portfolio
200.000
Noona – Appointments Booked Per Month
150.000
Noona – Registered Users
ICELANDAIR
BLUE LAGOON
ICELAND
SORPA
Mosfellsbær
EIMSKIP
samkaup
SECURITAS
Siminn | Investor Presentation Q1 2025
Growing Digital Ecosystem
18
Outdoor Media (OOH)
BUZZ Bus Stops
- 620 Screens in an Expanding Network
- Wide Coverage Across the Capital Area
- Innovation in Advertising and Public Transport Services
Simin
Investor Presentation Q1 2025
Growing Digital Ecosystem
Innovations Enhance Security in Fish Farming
- First private 5G network in Iceland secures reliable bandwidth for Arnarlax 7 km offshore
- Mobile core and base station located in Patreksfjörður
- Reliable transmission backbone for streaming from dozens of cameras at farming sites
- Accident prevention through surveillance and remote control of equipment over the 5G network by Radlómiðun
- Similar solutions under development in other parts of the country
radiomidun
Siminn | Investor Presentation Q1 2025
Growing Digital Ecosystem
Focused Strategy Delivers Results
- Implementing the new strategy is a top operational priority
- Clear link between growing employee satisfaction and customer satisfaction
Customer Recommendation Rate
Employee Recommendation Rate
Simin
Investor Presentation Q1 2025
*Proportion of Customers Giving a Score of 7 or Higher in the Service Survey on a Scale of 1–10. Customers Are Asked How Likely They Are to Recommend Simi.
+Proportion of Employees Giving a Score of 8 or Higher in the Employee Satisfaction Survey on a Scale of 1–10.
Shareholders
RINPOLE TRAVEL
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Shareholders
- Shareholders totalled 891 at the end of Q1 2025
- Dividend of ISK 498 million paid on 28 March 2025
- Share capital reduced by 175,000,000 treasury shares on 24 March 2025, with share capital amounting to ISK 2,475,000,000 after the reduction
- Share buybacks in Q1 2025 totalled ISK 525 million
- Síminn's share price has increased by 33.3% over the past 12 months, and by 0.7% since the beginning of the year
| Shareholders 28.4.2025 | Position | % O/S |
|---|---|---|
| Stoðir hf. | 461.194.170 | 18,63% |
| Brú Lifeyrissjóður starfs sveit | 274.877.095 | 11,11% |
| Lifeyrissj.starfsm.rík. A-deild | 258.771.439 | 10,46% |
| Lifeyrissjóður verzlunarmanna | 163.922.187 | 6,62% |
| Gildi - lífeyrissjóður | 149.446.085 | 6,04% |
| Söfnunarsjóður lífeyrisréttinda | 88.830.504 | 3,59% |
| Birta lífeyrissjóður | 81.415.261 | 3,29% |
| Stefnir - innlend hlutabréf hs. | 72.055.439 | 2,91% |
| Brú R deild | 71.407.033 | 2,89% |
| Lifeyrissj.starfsm.rík. B-deild | 60.306.152 | 2,44% |
| Top 10 shareholders | 1.682.225.365 | 67,97% |
| Other Shareholders | 749.602.173 | 30,29% |
| Shares outstanding | 2.431.827.538 | 98,26% |
| Own shares | 43.172.462 | 1,74% |
| Total number of shares | 2.475.000.000 | 100,00% |
12 Month Price Trend
Stoðir hf
Brú lífeyrissjóður starfs sveit
Lifeyrissj. Starfsm.rík. A-Deild
Lifeyrissjóður verzlunarmanna
Gildi - lífeyrissjóður
Söfnunarsjóður lífeyrisréttinda
Birta lífeyrissjóður
Stefnir - innlend hlutabréf hs.
Brú R deild
Lifeyrissj. Starfsm.rík. B-deild
Other shareholders
Own shares
Siminn | Investor Presentation Q1 2025
5
Outlook 2025
Outlook 2025
E
Earnings Outlook for 2025
- Earnings outlook for EBITDA and EBIT lowered by ISK 400 million on 24 February following the Supreme Court ruling
- Forecast foundations otherwise remain unchanged
- Forecast uncertainty greater than usual as the Premier League broadcasting rights agreement expires in May
- Some uncertainty regarding impact, but current plans assume a positive effect on cash flow and EBIT, and a negative effect on EBITDA
- This year's plan assumes that reduction in amortisation will outweigh potential negative revenue impacts
- Noona Iceland's operations consolidated at the beginning of the year, loan portfolio acquisition completed in early March
- Investments are set to decrease significantly compared to 2024 due to lower investment in broadcasting rights
6,6–7,0 BN.ISK.
EBITDA
3,2–3,6 BN.ISK.*
EBIT
2,8–3,1 BN.ISK.
Investments
Siminn
Investor Presentation Q1 2025
- EBIT forecast excludes amortisation of acquisition-related intangibles
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Disclaimer
Information contained in this presentation is based on sources that Síminn hf. ("Síminn" or the "company") considers reliable at each time. Its accuracy or completeness can however not be guaranteed. This report contains forward-looking statements that reflect the management's current views with respect to certain future events and potential financial performance. Although the management believe that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct.
The forward-looking information contained in this presentation applies only as at the date of this presentation. Síminn does not undertake any obligation to provide recipients of this presentation with any further information on the company or to make amendments or changes to this publication should inaccuracies or errors be discovered or opinions or information change. Other than as required by applicable laws and regulation.
This presentation is solely for information purposes and is not intended to form part of or be the basis of any decision making by its recipients. Nothing in this presentation should be construed as a promise or recommendation. Statements contained in this presentation that refer to the company's estimated or anticipated future results or future activities are forward looking statements which reflect the company's current analysis of existing trends, information and plans. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially depending on factors such as the availability of resources, the timing and effect of regulatory actions and other factors.
By the receipt of this presentation the recipient acknowledges and accepts the aforesaid disclaimer and restriction
Siminn