Sýn hf.: Continued operational improvement and growing margins
Sýn hf.’s Condensed Consolidated Interim Financial Statement for the first nine months of 2022 was approved by the board of directors on November 2nd 2022.
- Operating profit (EBIT) in the third quarter of 2022 amounted to ISK 486M and profit after tax ISK 181M.
- Operating profit amounted to ISK 1,209M in the first nine months of the year, but was ISK 406M in the same period in 2021. Profit after tax in the first nine months was ISK 454M while the company reported a loss of ISK 176M during the same period last year.
- An agreement was signed with Ljósleiðarann ehf. on private negotiations regarding the sale of Sýn’s transmission network to Ljósleiðarinn. The purchase price is ISK 3,000M. In addition, operational improvements will follow with lower future investments. A service agreement is a part of the transaction, not a leaseback requirement, and sales gain will be fully recognized on the day of sale.
- Sýn’s board of directors has decided to initiate a buyback program for up to ISK 300M. The program will start in November and more details on the program will be announced by then.
Yngvi Halldórsson CEO:
“We are happy to see continuing operational improvements and growing operating profit. Revenue growth in the first 9 months of the year amounts to 8.7%, which is driven by an increase in mobile revenues and a good performance of the media business. Sýn’s business is diverse and there are great opportunities for growth and increased margins.
In the past three years the business has improved dramatically. Furthermore, significant changes have taken place in recent weeks. A new board of directors and a new CEO have been appointed. Together we are determined to build on the operational improvement that has already taken place. We will soon announce exciting new product offerings and at the same time we are working on improving our margins and operation as a whole. We will focus on reducing our investment in foreign broadcasting rights while strengthening our domestic production, which will result in continued operational improvement.
The agreement between Sýn and Ljósleiðarinn is an exciting development for the company and the transaction process on track. We will free up significant funds while achieving operational efficiencies. Therefore, the company is in a good position to return additional capital to its shareholders.
Sýn runs a strong telecommunication company that serves, among others, the majority of the country's largest companies and a large part of Icelandic households. The company has valuable infrastructure and a strong international support from the Vodafone Group. We run the largest and most diverse media operation in the country with continued focus on production of Icelandic content. Our IT company Endor is growing, and its operation will be strengthened in the near future.
Our mission is to make Sýn an even more attractive investment option. We would like to see a significant increase in the number of shareholders and will clearly present our journey as well as the potential of the company."