December 1, 2023

Bobbys Brane

Bobbys Brane – Business & Tech Blog

Sýn hf. reports significant growth in 9M 2023 financial statement By

2 min read

© Reuters.

Today, Icelandic telecommunications company Sýn hf. reported a substantial increase in its operating profit (EBIT) for the first nine months of 2023. The EBIT for this period reached ISK 1,594 million, marking a 32% year-on-year growth. This positive trend was also reflected in the company’s Q3 EBIT, which rose to ISK 592 million from ISK 486 million in the same quarter of 2022.

The after-tax profit for the first nine months of 2023 also saw a significant surge, reaching ISK 804 million, up from ISK 454 million during the same period in the previous year.

On October 4, Sýn’s core network was successfully transferred to Ljósleiðarinn following approval from the Icelandic Competition Authority. The transaction was valued at ISK 3,000 million and is expected to result in a capital gain of approximately ISK 2,400 million for Sýn, which will be reflected in the company’s books for Q4.

Earlier in October, Sýn finalized the acquisition of Já.is and established a new business unit called “Web Media and Radio”. This unit integrates Já.is, Bland, and related brands under Sýn’s media units. Excluding “Stöð 2”, this new unit is projected to generate an annual income of ISK 3,000 million.

Sýn has also initiated a share buyback program with a cap of ISK 300 million. Despite these significant developments, the EBIT guidance for 2023 remains unchanged at ISK 2,200-2,500 million.

CEO Páll Ásgrímsson expressed satisfaction with the growth in operating profit and core activities revenues. He highlighted the successful transfer of Sýn’s core network to Ljósleiðarinn and the acquisition of Já.is. He also noted that Vodafone (NASDAQ:), a subsidiary of Sýn, is becoming increasingly popular among customers, with its new service, Smart Visit, receiving positive reviews.

The company’s television channel, “Stöð 2”, will continue operating as an independent unit under Sýn, focusing on subscription revenue and domestic programming. The channel plans to broadcast the second series of Idol and national matches through its Viaplay offering.

The newly established “Web Media and Radio” unit will include Vísir, Bylgjan, and Tal among others. Advertising revenue from these platforms is growing and contributes significantly to Sýn’s income.

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