Sýn Q2 2025 presentation: Revenue edges up amid continued losses and cost-cutting

Introduction & Market Context

Icelandic telecommunications and media company Sýn hf (ICEX:SYN) presented its second quarter 2025 results on August 26, showing modest revenue improvement amid ongoing efforts to return to profitability through cost-cutting measures and strategic partnerships.

The company’s stock closed at 26.6 kr. on August 25, down 1.48% ahead of the presentation, and currently trades near the middle of its 52-week range of 21.0 kr. to 33.8 kr.

Quarterly Performance Highlights

Sýn reported Q2 2025 revenue of 5,357 million krónur (m.kr.), a slight increase of 1.3% compared to 5,286 m.kr. in the same period last year. However, the company continued to operate at a loss, with a net loss of 174 m.kr. for the quarter, marginally improved from a 186 m.kr. loss in Q2 2024.

As shown in the following key performance indicators chart, Sýn has significantly reduced its investments while maintaining relatively stable EBITDAAL (earnings before interest, taxes, depreciation, amortization, and lease costs):

For the first half of 2025, Sýn’s total revenue reached 10,577 m.kr., slightly down by 0.7% from 10,650 m.kr. in H1 2024. The company’s H1 net loss widened to 518 m.kr. from 339 m.kr. in the same period last year, indicating continued challenges despite cost-cutting efforts.

The revenue bridge analysis reveals that while media revenue increased in Q2 2025, it declined for the first half overall. Internet services showed consistent growth across both periods, while mobile services recovered in Q2 after declining in the first half:

Strategic Initiatives

Sýn is implementing several strategic initiatives aimed at returning to profitability, including a historic merger and rebranding, simplified product offerings, internal efficiency projects, and improvements to its TV viewing experience.

A key development is the Sendafélagið agreement with Nova, which involves transferring distribution networks into a jointly owned entity. This strategic partnership is expected to deliver significant financial benefits, as outlined in the presentation:

The agreement is projected to reduce EBITDAAL by 250 m.kr. annually, cut investments by 200 m.kr. annually, and reduce net interest-bearing debt by 960 m.kr. The joint venture is expected to generate 130 m.kr. in income during its first year of operation while enabling stronger 5G deployment and increased cash flow.

Detailed Financial Analysis

Sýn’s income statement reveals that while revenue increased slightly in Q2, cost of goods sold rose at a faster rate, increasing by 5.8% to 2,222 m.kr. compared to 2,100 m.kr. in Q2 2024. This was partially offset by a 6.5% reduction in salary expenses, which fell to 1,535 m.kr. from 1,642 m.kr., reflecting the company’s workforce reduction from 462 to 414 full-time equivalents:

The company’s segment breakdown shows that the telecommunications division remains profitable at the EBIT level with 246 m.kr. in H1 2025, while the media division posted an EBIT loss of 377 m.kr.:

Sýn’s balance sheet as of June 30, 2025, shows a 3% reduction in total assets to 30,080 m.kr. from 31,050 m.kr. at the end of 2024. The company’s equity decreased by 6% to 8,148 m.kr., while interest-bearing liabilities declined slightly:

The company’s cash flow improved during the first half of 2025, with cash increasing from 264 m.kr. at the beginning of the period to 349 m.kr. by the end. This improvement was primarily driven by reduced investments, which totaled 1,103 m.kr. in H1 2025 compared to 2,108 m.kr. in H1 2024:

Forward-Looking Statements

Sýn has updated its outlook for 2025, projecting EBITDAAL of 4.0-4.2 billion kr., investments of 3.3-3.5 billion kr., and EBIT of 0.8-1.0 billion kr. The company noted that the first half of 2025 was in line with previous market guidance, but faced challenges including rebranding costs, English Premier League expenses, advertising sales difficulties, and declining IoT revenues.

For the second half of 2025, Sýn expects the full impact of its rebranding and English Premier League investments to materialize, while noting a higher than expected number of new subscribers. The company’s key priorities for the remainder of the year include laying the foundation for profitable operations through clear strategy, infrastructure sharing, revenue growth, cost reduction, and improved customer experience.

Despite ongoing losses, Sýn’s management appears confident that its strategic initiatives, particularly the Sendafélagið partnership with Nova, will help the company reduce costs, strengthen its balance sheet, and eventually return to profitability.

Full presentation:

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