Sýn hf.: Continued operational improvement in a challenging environment

·2-min read
Sýn hf.
Sýn hf.

Sýn hf.’s Consolidated Interim Financial Statement for the first quarter of 2023 was approved by the board on May 10th, 2023.

  • Operating profit (EBIT) for the first quarter (Q1) amounted to ISK 428 million and increases by 6,7% from last year.

  • Healthy year-on-year revenue growth despite a strong comparative quarter for 2022.

  • Profit after tax amounted to ISK 213 million compared to ISK 207 million for the same period last year.

  • The EBIT guidance for 2023 remains unchanged, with operating profit (EBIT) expected to amount between ISK 2,200 to ISK 2,500 million.

  • The results of the Icelandic Competition Authorities regarding Ljósleiðarinn’s purchase of Sýn’s core network are expected this summer. The agreed purchase price is ISK 3,000 million.

  • Sýn hf. has reached an agreement on the purchase of 100% share capital of Njála, the parent company of Já hf. which operates the website ja.is. The agreement is currently under review by the Icelandic Competition Authorities.

  • During the quarter, a total of ISK 1,211 million was returned to the company’s shareholders.

Yngvi Halldórsson, CEO:

"Operating profit (EBIT) increases by 7% year-over-year despite challenging competitive conditions in all of our business segments. We see healthy revenue growth, but Q1 2022 was particularly strong due to irregular mobile revenue. Our emphasis on cost efficiency, with the strategic streamlining last fall, has enabled us to keep our operating costs stable despite multiple challenges in the environment. As part of our ongoing efforts to improve our operations, we achieved good results in negotiations with key suppliers, which will have a positive impact on our business this year.

We remain committed to the transformational journey that has been marked. We have had very good and stable performance in the corporate market, and have initiated new marketing initiatives in the individual market. We expect a lot from our marketing efforts, where the major task is to increase Vodafone’s market share in the household telecommunications sector.

We have two matters under review by the Competition Authority. We expect to receive the results of the sale of the core network and the acquisition of Já this summer. Já is an exciting addition to Sýn‘s operations and services. There are significant opportunities that come with powerful solutions and Já's workforce. Especially now when there is opportunity to make the most of the changes in the advertising market.

The EBIT guidance for the year remains unchanged, and there are significant opportunities in all of Sýn‘s business units where we will be introducing various new products and solutions in the coming months."