Sýn hf.: Earnings for the fourth quarter and the year 2023
Sýn hf.’s Consolidated Financial Statement for the year 2023 was approved by the board of directors on February 27th, 2024.
Operating profit (EBIT) for the year 2023 amounted to ISK 3,544 million.
Ljósleiðarinn’s purchase of Sýn’s core network was approved in September and formal handover took place on October 4th. The agreed purchase price was ISK 3,000 million and capital gain of 2,436 million was fully entered into the company’s books in Q4 2023.
On February 13th, an announcement was made regarding the impact of certain one-off items and depreciation related to operational optimization, on the results of the year 2023. The impact of those items is ISK 837 million on the Q4 results and the year 2023.
Operating profit of the year 2023, taking into account the aforementioned one-off items and the sale of the core network, amounts to 1,945 million. The operating profit of Q4 amounts to 351 million, taking into account the aforementioned items.
Profit after taxes for 2023 amounted to ISK 2,109 million, compared to ISK 888 million in 2022.
Já’s operation was included in the group in Q4 and a new business unit, Online Media & Radio, was formed. On December 14th it was announced that the future ownership of the business unit Online Media & Radio had been taken into consideration. That process is currently ongoing and news are expected in the spring.
The advertising revenues continue to increase, as well as revenues from hosting and operation solutions and roaming. Advertising revenues increased by 13% during the year. The focus of the year 2024 will be to reduce cost while maintaining the company’s core revenues.
Herdís Dröfn Fjeldsted, CEO:
“It is a pleasure to take over as CEO of Sýn, a workplace with powerful people and where socially important activities take place. Over the past year significant milestones have been reached, but I joined the company in the middle of January this year. Delivery of the core network took place in the fourth quarter and employees from Já.is moved into our headquarters and were welcomed by Sýn. Joining Já.is operations with the business unit Online Media & Radio has gone well.
The business environment is challenging, with notable factors such as the ongoing battle against high inflation which is undeniably impacting Sýn’s operations. In the operating year 2024, we will emphasize debt reduction, cost control, and maintaining the company's core revenues.
Following the sale of the core network, it is natural to review the company's infrastructure assets, and their depreciation will positive affect operations moving forward. The changes in amortization rules for foreign broadcasting licence rights, announced on February 13th, will result in accelerated amortization compared to previous amortization rules. We are emphasizing continued powerful operations, along with enhanced clarity and efficiency, and this depreciation adjustment is a part of that initiative.
Vodafone strengthened its product offering and customer service in the year 2023. This included new product packages and transformation of services in the B2C market, resulting in increase in both sales and customer satisfaction.
In the Media operating units, the year was characterized by good growth in advertising revenue and we are constantly looking for more opportunities in that area. The subsidiary Endor also had a very good year and Endor's operations look very good for the current operating year.
Our commitment to responsibility is at the forefront of the company's new strategy. The company has worked on a strategy in the field of sustainability to protect the road ahead. In the last two years, a sustainability standard has been implemented, which will strengthen the company's infrastructure in that direction.
In light of our ongoing strategic planning with Stöð 2 and the evaluation of the future ownership of Online Media & Radio, as well as emphasis on short-term cost containment and optimization, no guidance will be published for the current year.”
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