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Published: 2022-08-30 17:58:41 CEST
Sýn hf.
Half Year financial report

Sýn hf.: Record operating profit

Sýn hf.‘s Condensed Consolidated Interim Financial Statement for the first half of 2022 was approved by the board of directors on August 30th 2022.

Main results:

  • Revenue for the second quarter (Q2) of 2022 amounted to ISK 6,009M, an increase of ISK 720M compared to the same period in 2021. Revenue for the first half (1H) of 2022 amounted to ISK 11,691M, an increase of 13.6% compared to 1H 2021.
  • EBITDA for Q2 2022 amounted to ISK 1,607M, compared to ISK 1,488M in Q2 2021. The EBITDA margin was 26.7% in Q2 2022 compared to 28.1% in Q2 2021. EBITDA for 1H 2022 amounted to ISK 3,317 a 15.3% increase compared to the same period in 2021.
  • Profit in Q2 2022 amounted to ISK 66M compared to ISK 117M loss in Q2 2021. Profit for 1H 2022 amounted to ISK 273M compared to ISK 348M loss in 1H 2021. A loss of ISK 179M was recognized in 1H 2021 in relation to the sale of the Company‘s share in its Faroese associate Hey.
  • Cash generated by operations in Q2 2022 amounted to ISK 1,580M compared to ISK 1,431M in Q2 2021, an increase of 10%. Cash generated by operations in 1H 2022 amounted to ISK 2,688M compared to ISK 1,975M in 1H 2021, an increase of 36%.
  • Total investments in 1H 2022 amounted to ISK 1,830M, thereof ISK 740M in property, plant and equipment and intangible assets (excluding broadcasting license rights) and ISK 1,086M in broadcasting license rights.
  • Negative cash flow from financial activities for 1H 2022 amounted to ISK 2,809M compared to ISK 1,748M in 1H 2021. Included in the financial activities in 2022 is the purchase of own shares for the amount of ISK 1,860M.
  • In the beginning of 2022, the board of directors decided to initiate a buyback program. The program started with a reverse tender offer on January 7th to January 9th followed by regular buyback of shares from January 13th to March 3rd. A total of 28.064.512 shares were purchased or 9,47% of total shares for the amount of ISK 1.860 million.
  • The equity ratio was 27.3% at the end of 1H 2022.
  • The Annual General Meeting on March 18th approved the board’s proposal of reducing the Company’s issued share capital in accordance with the number of own shares. The share capital decrease was implemented on April 12th and the updated total number of shares is 268.376.962.

Heiðar Guðjónsson CEO:

„Operating profit rises by 740 million and the operating profit is the highest in history. We manage to hold down costs while revenues increase by 14%. I am confident we will increase revenues further while costs will rise much slower and we are well on our way to reach recurring 100 million monthly profitability.

We have invested heavily in our IT systems in the last three years and that is by far our largest investment during that period. We see returns coming with strengthened product offering which will increase revenue and market share. Our foundation is therefore very strong.

We signed an agreement on the build-out of a 5G network with Nova in June which secures the largest countrywide network in Iceland. It also cements our dominant position in IoT where we have over 1 million connections and is promising for the revenue growth in the mobile part of the business.

In media we are showing a considerable increase in subscriptions and advertising revenues. All parts of our media business are growing and profitable.

This is my last earnings announcement and I am extremely proud of our achievements during my time as CEO. We changed the strategy, transformed our IT architechture, turned the business around, refinanced it completely and all this was achieved during a global pandemic. The future is certainly bright at Sýn hf.“


Syn hf. 2022 Q2 - Investor presentation.pdf
Syn hf. Press release Q2 2022 - EN.pdf
Syn hf Consolidated Interim financial statement 1H 2022.pdf