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Syn Interim / Quarterly Report 2024
2210_rns_2024-08-28_ca108d88-6372-405c-ad4e-f66f185a3249.pdf
Interim / Quarterly Report
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Sýn hf.
Condensed Consolidated Interim Financial Statement
1 January to 30 June 2024
vodafone
visir
SPORT
BYLGJAN
2023
ENDOR
Sýn hf. Suðurlandsbraut 8 108 Reykjavík kt. 470905-1740
Table of contents
| Page | |
|---|---|
| Endorsement and Statement by the Board of Directors and the CEO | 3 |
| Review Report on Interim Financial Information | 4 |
| Key figures | 5 |
| Income Statement and Statement of Comprehensive income | 6 |
| Statement of Financial Position | 7 |
| Statement of Changes in Equity | 8 |
| Statement of Cash Flows | 9 |
| Notes | 10 |
| Appendices: | |
| Quarterly Statements | 14 |
Report by the Board of Directors and CEO
Sýn hf. is a fully comprehensive communications and media provider. The Company operates various of the most powerful media platforms in Iceland such as Stöð 2, Stöð 2 +, Stöð 2 Sport, Bylgjan Radio, Visir.is, FM957, the X and other well-known media. The Company provides individuals, companies, institution and public bodies with all the core aspects of communication services under the brand of Vodafone Iceland and its subsidiary Endor. The Company works in close global co-operation with Vodafone Group, which is one of the largest multinational communication companies in the world.
The Condensed Consolidated Interim Financial Statements contains the Interim Financial Statements of Sýn hf., the Interim Financial Statements of the Company's subsidiaries Endor ehf. and Já hf. (subsidiary of Eignarhaldsfélagið Njála) along with a share in the joint operation of Sendafélagið ehf, which are referred to combined as "the Group". These Condensed Consolidated Interim Financial Statements have been prepared in accordance with IAS 34, as adopted by the European Union and additional requirements in the Icelandic Financial Statement Act. The Condensed Interim Financial Statements of the Group from 1 January to 30 June 2023 have been reviewed by the Company's auditors.
First half year results
According to the Income Statement, revenue from goods sold and service provided amounts to ISK 11,416 million. Loss for the period amounts to ISK 339 million. According to the Statement of Financial Position, assets of the Company amounts to ISK 34,037 million. The equity position at the end of the period on 30 June 2024 amounts to ISK 9,864 million. There of share capital amounts to ISK 2,476 million. The nominal value of each share is 10 ISK. The equity ratio at period end is 29%.
The change in the company's performance between periods is primarily explained by fluctuating revenues from IoT services on one hand and a one-time discount on broadcasting license rights purchases last year due to a settlement with suppliers on the other hand. There is continued revenue growth in advertising sales and home connections.
Uncertainty remains regarding how well the government and market parties will succeed in controlling inflation and reducing interest rates. These continue to be general risk factors in Sýn's external environment, as well as for other companies in Iceland. For further discussion of uncertainties, reference is made to the company's 2023 annual report.
Reduction of share capital
On November 9, 2023, a share buyback program was initiated, which concluded on February 16, 2024. The company purchased 1,598,815 shares for ISK 76 million. On April 11, the share capital was reduced in accordance with the number of shares, resulting in 247,648,960 issued shares in the company after the reduction. Registration with Nasdaq of the issued share capital took place on May 13, 2024.
Statement
According to the best knowledge of the Board of Directors and the CEO, these Condensed Consolidated Interim Financial Statements of Sýn hf. are prepared and presented in accordance with International Financial Reporting Standards for Interim Financial Reporting, IAS 34, as adopted by the EU and additional requirements in Icelandic laws and regulations for listed companies. It is the Board of Directors and CEO opinion that these Condensed Consolidated Interim Financial Statements give a true and fair view of the financial performance of the Group for the six month period ended on June 30th 2024, its financial position as of June 30th 2024 and the Group's cash flows for the period.
The Board of Directors and the CEO of Sýn hf. have today discussed the Consolidated Condensed Interim Financial Statements of the Group for the period from January 1st to June 30th 2024 and confirm them by means of their signatures.
Reykjavík, 28 August 2024
Board of Directors
Hákon Stefánsson, Chairman of the Board
Rannveig Eir Einarsdóttir, Vice Chairman of the Board.
Páll Gíslason
Petrea Ingileif Guðmundsdóttir
Ragnar Páll Dyer
CEO
Herdís Dröfn Fjeldsted
Condensed Consolidated Interim Financial Statement of Sýn hf. 30. June 2024
Amounts are in ISK millions.
Review Report on Interim Financial Information
To the Board of Directors and Shareholders of Sýn hf.
Introduction
We have reviewed the accompanying condensed consolidated statement of financial position of Sýn hf. as at 30 June 2024, the condensed consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows for the six month period then ended, and notes to the condensed consolidated interim financial information". Management is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with IAS 34, 'Interim Financial Reporting'. Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial information is not prepared, in all material respects, in accordance with IAS 34 "Interim Financial Reporting".
Reykjavík, 28 August 2024
KPMG ehf.
Hjördís Ýr Ólafsdóttir
State Authorized Public Accountant
Condensed Consolidated Interim Financial Statement of Sýn hf. 30. June 2024
Key Figures
| | 2024
Q2 | 2023
Q2 | 2024
6M | 2023
6M |
| --- | --- | --- | --- | --- |
| Financial information | | | | |
| Revenue | 5.482 | 5.632 | 11.416 | 11.493 |
| Operating profit (EBIT) | 50 | 574 | 169 | 1.002 |
| EBITDA for the period | 1.042 | 1.583 | 2.421 | 3.080 |
| (Loss) profit before tax | (276) | 277 | (476) | 496 |
| (Loss) profit for the period | (186) | 269 | (339) | 483 |
| (Loss) profit per share | (0,77) | 1,07 | (1,40) | 1,75 |
| Investments | 598 | 686 | 1.041 | 1.246 |
| Investments in broadcasting license rights | 567 | 414 | 1.067 | 975 |
| Free cash flow | (449) | 272 | (180) | 325 |
| Cash generated by operations | 391 | 1.094 | 1.283 | 2.014 |
| | 30.6.
2024 | 31.3.
2024 | 31.12.
2023 | 30.6.
2023 |
| Net interest bearing debt | 19.346 | 18.765 | 18.596 | 17.899 |
Condensed Consolidated Interim
Financial Statement of Sjn hf. 30. June 2024
Amounts are in ISK millions.
Income Statement and Statement of Comprehensive Income
1 January to 30 June 2024
| Notes | 2024 Q2* | 2023 Q2* | 2024 6M | 2023 6M | |
|---|---|---|---|---|---|
| Revenue from sales of goods and services | 5 | 5.482 | 5.632 | 11.416 | 11.493 |
| Cost of sales | 6 | (3.664) | (3.540) | (7.746) | (7.331) |
| Gross profit | 1.818 | 2.092 | 3.670 | 4.161 | |
| Operating expense | 7 | (1.768) | (1.518) | (3.501) | (3.159) |
| Operating profit | 50 | 574 | 169 | 1.002 | |
| Finance income | 6 | 7 | 22 | 26 | |
| Finance expense | (327) | (297) | (667) | (572) | |
| Net exchange rate differences | (5) | (6) | (0) | 40 | |
| Net financial expense | (326) | (296) | (645) | (506) | |
| Profit before tax | (276) | 277 | (476) | 496 | |
| Income tax | 90 | (8) | 137 | (13) | |
| Profit for the period | (186) | 269 | (339) | 483 | |
| Other comprehensive income | |||||
| Items that may subsequently be reclassified to profit or loss | |||||
| Translation difference | (6) | (1) | (10) | (18) | |
| Profit for the period | (191) | 268 | (349) | 465 | |
| (Loss) profit per share | (0,77) | 1,07 | (1,40) | 1,75 |
*Quarterly information has not been reviewed by auditors.
Notes on pages 10 to 13 are an integral part of these Condensed Consolidated Interim Financial Statements.
Condensed Consolidated Interim
Financial Statement of Sjn hf. 30. June 2024
Amounts are in ISK millions.
Statement of Financial Position
30 June 2024
| Notes | 30.6.2024 | 31.12.2023 | |
|---|---|---|---|
| Non-current assets | |||
| Right-of-use assets | 7.709 | 8.420 | |
| Property, plant and equipment | 3.281 | 3.290 | |
| Goodwill | 9.090 | 9.097 | |
| Other intangible assets | 5.228 | 4.976 | |
| Long term lease receivables | 132 | 141 | |
| Shares in other companies | 175 | 174 | |
| Total non-current assets | 25.614 | 26.098 | |
| Current assets | |||
| Broadcasting license rights | 2.201 | 2.008 | |
| Inventories | 456 | 628 | |
| Trade receivables and other short term receivables | 9 | 5.363 | 5.576 |
| Assets classified for sale | 10 | 267 | 0 |
| Cash and cash equivalents | 136 | 624 | |
| Total current assets | 8.423 | 8.837 | |
| Total assets | 34.037 | 34.935 | |
| Equity | |||
| Share capital | 2.476 | 2.493 | |
| Statutory reserves | 542 | 602 | |
| Other reserves | 337 | 274 | |
| Retained earnings | 6.509 | 6.920 | |
| Total equity | 9.864 | 10.288 | |
| Non-Current liabilities | |||
| Interest bearing debt | 11 | 4.294 | 4.461 |
| Lease liabilities | 11.597 | 11.964 | |
| Deferred tax liabilities | 17 | 152 | |
| Total non-current liabilities | 15.908 | 16.577 | |
| Current liabilities | |||
| Interest bearing debt | 11 | 2.963 | 1.779 |
| Lease liabilities | 629 | 1.016 | |
| Accounts payable and other short term liabilities | 12 | 4.393 | 5.275 |
| Liabilities classified for sale | 10 | 280 | 0 |
| Current liabilities | 8.264 | 8.070 | |
| Total liabilities | 24.172 | 24.647 | |
| Total equity and liabilities | 34.037 | 34.935 |
Notes on pages 10 to 13 are an integral part of these Condensed Consolidated Interim Financial Statements.
Condensed Consolidated Interim
Financial Statement of Sjn hf. 30. June 2024
Amounts are in ISK millions.
Statement of Changes in Equity
1 January to 30 June 2024
| Other reserves | ||||||
|---|---|---|---|---|---|---|
| Share Capital | Statutory reserve | Translation difference | Statutory Reserves | Retained earnings | Total equity | |
| 1.1. to 30.6.2023 | ||||||
| Total Equity 1.1.2023 | 2.668 | 806 | 50 | 79 | 5.866 | 9.469 |
| Profit for the period | - | - | - | - | 483 | 483 |
| Translation difference | - | - | (18) | - | - | (18) |
| Comprehensive Income | 0 | 0 | (18) | 0 | 483 | 465 |
| Own share purchased | (158) | (772) | (930) | |||
| Paid dividends | (281) | (281) | ||||
| Statutory reserves | 595 | (595) | 0 | |||
| Profit of associate in excess of dividend received | 0 | 0 | 0 | 57 | (57) | 0 |
| Total Equity 30.6.2023 | 2.510 | 629 | 32 | 136 | 5.417 | 8.724 |
1.1. to 30.6.2024
| Total Equity 1.1.2024 | 2.493 | 602 | 48 | 226 | 6.920 | 10.288 |
|---|---|---|---|---|---|---|
| Loss for the period | - | - | - | - | (339) | (339) |
| Translation difference | - | - | (10) | - | - | (10) |
| Comprehensive loss | 0 | 0 | (10) | 0 | (339) | (349) |
| Own shares purchased | (16) | (60) | - | - | - | (76) |
| Profit of associate in excess of dividend received | 0 | 0 | 0 | 73 | (73) | 0 |
| Total Equity 30.6.2024 | 2.476 | 542 | 38 | 299 | 6.509 | 9.864 |
During the first half of the year the Company bought 1,598,815 shares for ISK 76 million. Before the purchase the Company owned 1,753,979 shares. On 11 April, the share capital was reduced in accordance with the number of own shares and after the reduction the number of issued shares in the company are 247,648,960. Registration with Nasdaq of the issued share capital took place on May 13, 2024.
Notes on pages 10 to 13 are an integral part of these Condensed Consolidated Interim Financial Statements.
Condensed Consolidated Interim
Financial Statement of Sjn hf. 30. June 2024
Amounts are in ISK millions.
Statement of Cash Flows
1 January to 30 June 2024
| Notes | 2024 Q2 | 2023 Q2 | 2024 6M | 2023 6M | |
|---|---|---|---|---|---|
| (Loss) profit for the period | (186) | 269 | (339) | 483 | |
| Adjustment for non-cash items: | |||||
| Depreciation and amortization | 8 | 992 | 1.010 | 2.252 | 2.078 |
| Net financial expense | 326 | 296 | 645 | 506 | |
| Income tax | (90) | 8 | (137) | 13 | |
| Cash generated from operating activities | 1.043 | 1.583 | 2.421 | 3.080 | |
| Change in working capital: | |||||
| Change in inventories | 101 | (60) | 172 | (323) | |
| Change in other operating assets | 244 | 230 | 216 | 588 | |
| Change in other operating liabilities | (672) | (380) | (881) | (800) | |
| Cash generated by operations before interest and tax | 716 | 1.373 | 1.928 | 2.545 | |
| Interest income received | 6 | 7 | 22 | 26 | |
| Interest expense paid | (331) | (286) | (667) | (558) | |
| Cash generated by operations | 391 | 1.094 | 1.283 | 2.014 | |
| Investment activities | |||||
| Investment in property, plant and equipment | (255) | (419) | (362) | (731) | |
| Investment in intangible assets | (343) | (267) | (679) | (514) | |
| Investment in broadcasting license rights | (567) | (414) | (1.067) | (975) | |
| Investment activities | (1.165) | (1.101) | (2.108) | (2.220) | |
| Financial activities | |||||
| Paid dividends | 0 | (281) | 0 | (281) | |
| Purchased own shares | 0 | (0) | (76) | (930) | |
| Instalment of interest bearing debts | (84) | (85) | (169) | (217) | |
| Change in revolving credit facility | 1.125 | 822 | 1.184 | 942 | |
| Instalment of lease liabilities | (188) | (320) | (600) | (638) | |
| Financial activities | 853 | 136 | 339 | (1.123) | |
| Change in cash and cash equivalents | 79 | 129 | (485) | (1.329) | |
| Cash and cash equivalents at the beginning of the period | 58 | 603 | 624 | 2.063 | |
| Effect of exchange rate changes on cash held | (1) | (4) | (3) | (5) | |
| Cash and cash equivalents at the end of the period | 136 | 729 | 136 | 729 |
*Quarterly information has not been reviewed by auditors.
Notes on pages 10 to 13 are an integral part of these Condensed Consolidated Interim Financial Statements
Condensed Consolidated Interim
Financial Statement of Sjn hf. 30. June 2024
Amounts are in ISK millions.
Notes
1. The Company
Sýn hf. (“the Company”) is an Icelandic limited liability company. The address of its registered office is Sudurlandsbraut 8, Reykjavik. The main operation of the Company is communication and media service. The Condensed Consolidated Interim Financial Statements of the Company for the six months ended on 30 June 2024 contain the Interim Financial statements of the Company, the Company’s subsidiary Endor ehf., Eignarhaldsfélagsins Njálu ehf., and share in the joint operation of Sendafélagið ehf. which are referred to combined as “the Group”.
2. Summary of Significant Accounting Policies
a. Basis of accounting
These Condensed Consolidated Interim Financial Statements have been prepared in accordance with IAS 34, as adopted by the European Union and additional requirements in the Icelandic Financial Statements Act. These Condensed Consolidated Interim Financial Statements for the period from January 1st to June 30th, 2024 have been reviewed by the Company’s auditors.
The Condensed Interim Financial Statements are prepared in accordance with the same accounting principles as the Financial Statements for 2023. The Condensed Consolidated Interim Financial Statements does not include all the information required for complete set of IFRS financial statements and should be read in the context of the Company’s Financial Statements for 2023. The Financial Statements for 2023 can be found on the Company’s website www.syn.is. and on Nasdaq Nordic; www.nasdaqomxnordic.com.
These interim financial statements were authorised for issue by the Company’s board of directors on August 28, 2024.
b. Critical accounting judgments and key sources of estimation uncertainty
In the application of the Company’s accounting policies, management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The difference between fair value and book value of financial assets and financial liabilities is insignificant.
3. Functional and presentation currency
The Condensed Consolidated Interim Financial Statements are presented in Icelandic krona, which is the functional and presentation currency of the Group. All amounts are rounded to the nearest million, except when otherwise indicated.
4. Segment reporting
The group defines business segments based on internal reporting to management, and the group as a whole is considered to be a single business segment.
5. Net sales
| 2024 | 2023 | 2024 | 2023 | |
|---|---|---|---|---|
| Sales of goods and service is specified as follows: | Q2 | Q2 | 6M | 6M |
| Sales of goods | 252 | 282 | 540 | 611 |
| Sales of service | 5.230 | 5.350 | 10.876 | 10.882 |
| Total sales of goods and service | 5.482 | 5.632 | 11.416 | 11.493 |
| Revenue | Media | Broadband | Mobile | Fixed line |
| --- | --- | --- | --- | --- |
| 1.1. to 30.6.2024 | ||||
| Revenue | 4.789 | 2.307 | 2.115 | 208 |
| 1.1. to 30.6.2023 | ||||
| --- | --- | --- | --- | --- |
| Revenue | 4.393 | 2.204 | 2.445 | 227 |
Condensed Consolidated Interim Financial Statement of Sýn hf. 30. June 2024
Amounts are in ISK millions.
Notes, continued:
6. Cost of sales
| Cost of sales is specified as follows: | 2024 | 2023 | 2024 | 2023 |
|---|---|---|---|---|
| Q2 | Q2 | 6M | 6M | |
| Cost of goods and service sold | 2.241 | 2.151 | 4.623 | 4.494 |
| Salaries and related expense | 763 | 724 | 1.565 | 1.451 |
| Capitalised work | (41) | (59) | (109) | (115) |
| Depreciation and amortization | 701 | 724 | 1.666 | 1.501 |
| Total cost of sales | 3.664 | 3.540 | 7.746 | 7.331 |
7. Operating expense
| Operating expense is specified as follows: | 2024 | 2023 | 2024 | 2023 |
|---|---|---|---|---|
| Q2 | Q2 | 6M | 6M | |
| General and administrative expense | 416 | 409 | 861 | 812 |
| Sales and marketing expense | 101 | 81 | 225 | 175 |
| Salary and related expense | 1.035 | 946 | 2.005 | 1.875 |
| Capitalised work | (75) | (203) | (175) | (280) |
| Depreciation and amortization | 291 | 285 | 585 | 577 |
| Total operating expenses | 1.768 | 1.518 | 3.501 | 3.159 |
8. Depreciation and amortization
| 2024 | 2023 | 2024 | 2023 | |
|---|---|---|---|---|
| Depreciation and amortization are specified as follows: | Q2 | Q2 | 6M | 6M |
| Depreciation of fixed assets | 213 | 152 | 423 | 378 |
| Amortization of intangible assets | 187 | 174 | 374 | 353 |
| Amortization of right-of-use assets | 207 | 332 | 581 | 666 |
| Amortization of broadcasting license rights | 386 | 525 | 874 | 1.047 |
| Renegotiations with key suppliers* | 0 | (173) | 0 | (366) |
| Total depreciation and amortization | 992 | 1.010 | 2.252 | 2.078 |
*Renegotiations with key suppliers lead to lower depreciations during the year 2023.
9. Trade receivables and other receivables
| Trade receivables and other receivables are specified as follows: | 30.6.2024 | 31.12.2023 |
|---|---|---|
| Trade receivables | 3.485 | 3.269 |
| Receivable from sale of core network | 1.570 | 2.000 |
| Other receivables | 347 | 333 |
| Lease receivables | 29 | 28 |
| Allowance for trade receivables | (68) | (53) |
| Total trade receivables and other receivables | 5.363 | 5.576 |
Condensed Consolidated Interim Financial Statement of Sjn hf. 30.June 2024
Amounts are in ISK millions.
Notes, continued:
- Assets and liabilities classified for sale
Hexatronic Group has signed a letter of intent to acquire part of the operations of Endor hf., which is owned by Sýn hf. The operations being sold are related to integrated IT solutions for larger companies and institutions. The sale of this business will have an insignificant impact on the consolidated EBIT. The operations in question are not considered discontinued operations, but their assets and liabilities are classified under a separate item on the balance sheet.
| Assets classified for sale | 30.6.2024 |
|---|---|
| Right-of-use assets | 262 |
| Receivables from subsidiaries | 5 |
| Assets classified for sale total | 267 |
| Liabilities classified for sale | 30.6.2024 |
| --- | --- |
| Lease liabilities | 278 |
| Obligation related to subsidiaries | 2 |
| Liabilities classifed for sale total | 280 |
- Interest bearing liabilities
| Interest bearing debts are specified as follows: | 30.6.2024 | 31.12.2023 |
|---|---|---|
| Liabilities to financial institutions | 7.256 | 6.240 |
| Current maturities of borrowings | (2.963) | (1.779) |
| Total interest bearing long-term liabilities | 4.294 | 4.461 |
| Liabilities due to financing activities | ||
| --- | --- | --- |
| Starting balance | 6.240 | 5.174 |
| Instalment | (169) | (375) |
| Operating loan | 1.184 | 1.441 |
| Final balance | 7.256 | 6.240 |
| Instalment of long-term liabilities are specified in the following years: | 30.6.2024 | 31.12.2023 |
| --- | --- | --- |
| Payments in 2024 | 1.968 | 1.779 |
| Payments in 2025 | 995 | 337 |
| Payments in 2026 | 337 | 337 |
| Payments in 2027 | 337 | 337 |
| Payments in 2028 | 337 | 337 |
| Later payments | 3.281 | 3.113 |
| Total | 7.256 | 6.240 |
- Operating liabilities
| Operating liabilities are specified as follows: | 30.6.2024 | 31.12.2023 |
|---|---|---|
| Trade payables | 2.473 | 3.261 |
| VAT payable | 240 | 251 |
| Pre-collected revenues | 543 | 591 |
| Accrued expense and other short-term liabilities | 1.137 | 1.173 |
| Total operating liabilities | 4.393 | 5.275 |
- Other matters
English Premier League
Sýn has secured the broadcasting rights for the English Premier League from the 2025/2026 season to the 2027/2028 season. A confirmation fee has been paid, but no liability related to the English Premier League has been recorded in the company's interim financial statements.
Condensed Consolidated Interim Financial Statement of Sýn hf. 30.June 2024
Amounts are in ISK millions.
Notes, continued:
13. Other matters, continued:
Electrical fire in equipment room
This summer, an electrical fire occurred in the company's equipment room in the rear building at Ármúli 9. The company has notified its insurance provider of the damage to personal property and equipment. The insurance company has acknowledged liability and confirmed that compensation will be paid under the applicable insurance policies. The impact of the fire on the company's equipment is still being assessed, and it is therefore not possible to determine the value of the affected assets at this stage, although it is clear that the settlement will be unfavorable for the company, but the impact on the company's operations is insignificant. Due to the uncertainty regarding the value and functionality of the assets in the equipment room, the assets have not been written off, nor has a claim against the insurance company been recognized in the balance sheet.
Litigation
Sýn hf. ("Company") is engaged in legal proceedings with individuals, other companies, and regulatory authorities concerning the Icelandic telecommunication and media market. The Company recognizes obligations arising from legal proceedings when future payments can be reliably estimated. Due to uncertainties regarding the future development of legal proceedings, judicial decisions, rulings, appeals, and settlements, the outcomes may result in additional commitments and costs for the Company. For further information on the legal proceedings of Sýn hf., please refer to note 29 in the 2023 annual report and the first quarter 2024 interim report, as no significant changes have occurred since the end of the first quarter.
The Company cannot reliably estimate future obligations or claims that may arise from the outcomes of the previously mentioned legal proceedings, in part because it can take a long time to reach a conclusion in such cases, and because cases may develop in different directions. As a result, no obligations or claims have been recorded in the Company's interim financial statements for the second quarter due to these disputes.
Condensed Consolidated Interim Financial Statement of Sýn hf. 30.June 2024
Amounts are in ISK millions.
Quarterly Statements*
| | 2023
1Q | 2023
2Q | 2023
3Q | 2023
4Q | 2024
1Q | 2024
2Q |
| --- | --- | --- | --- | --- | --- | --- |
| Revenue from sales of goods and services | 5.860 | 5.632 | 5.730 | 6.253 | 5.934 | 5.482 |
| Cost of sales | (3.791) | (3.540) | (3.594) | (4.736) | (4.082) | (3.664) |
| Gross profit | 2.069 | 2.092 | 2.136 | 1.517 | 1.852 | 1.818 |
| Gain from sale of core network | - | - | - | 2.436 | - | - |
| Operating expense | (1.641) | (1.518) | (1.544) | (2.002) | (1.733) | (1.768) |
| Operating profit | 428 | 574 | 592 | 1.950 | 119 | 50 |
| Finance income | 19 | 7 | 7 | 12 | 16 | 6 |
| Finance expense | (275) | (297) | (313) | (327) | (340) | (327) |
| Net exchange rate differences | 46 | (6) | 41 | (48) | 5 | (5) |
| Net financial expense | (210) | (296) | (265) | (363) | (319) | (326) |
| Income tax | (5) | (8) | (6) | (281) | 46 | 90 |
| Profit for the period | 213 | 269 | 321 | 1.306 | (153) | (186) |
| Translation difference | (17) | (1) | 5 | 11 | (5) | (6) |
| Profit for the period | 196 | 268 | 326 | 1.317 | (158) | (192) |
| EBITDA | 1.497 | 1.583 | 1.668 | 3.538 | 1.379 | 1.042 |
| EBITDA % | 25,5% | 28,1% | 29,1% | 56,6% | 23,2% | 19,0% |
*Quarterly information has not been reviewed by auditors.
Condensed Consolidated Interim Financial Statement of Sjn hf. 30. June 2024
Amounts are in ISK millions.