Síminn hf. - Results for the first quarter of 2026

Financial highlights Q1 2026

• Revenue in Q1 of 2026 amounted to ISK 7,249 million, compared to ISK 7,173 million in the same period of 2025, representing an increase of 1.1%. Revenue from telecommunications and TV services remained largely unchanged between periods. Revenue from advertising sales amounted to ISK 607 million, compared to ISK 563 million in the same period last year, corresponding to an increase of 7.8%. Equipment sales increased by 8.4% from last year.
• EBITDA amounted to ISK 1,362 million in Q1 2026, an increase of ISK 90 million, or 7.1%, from the same period in 2025. The EBITDA margin was 18.8% in Q1 2026, compared to 17.7% in the same period of 2025. EBIT amounted to ISK 416 million in Q1 2026, compared to ISK 189 million in the same period of 2025. Adjusted for administrative fines, EBITDA amounted to ISK 1,439 million (19.9%) in Q1 2026, compared to ISK 1,733 million in the same period of 2025. EBIT, adjusted for fines and amortization of intangible assets related to acquisitions, amounted to ISK 528 million (7.3%), compared to ISK 677 million in the same period of 2025.
• Net finance costs amounted to ISK 180 million in Q1 2026, compared to ISK 321 million in the same period of 2025. Finance expenses totaled ISK 462 million, financial income was ISK 244 million, and foreign exchange gains amounted to ISK 38 million.
• Profit in Q1 2026 amounted to ISK 171 million, compared to a loss of ISK 188 million in the same period of 2025. Earnings per share were ISK 0.07 for the quarter.
• Interest-bearing debt, including lease liabilities, amounted to ISK 22.7 billion at the end of Q1 2026, compared to ISK 19.5 billion at year-end 2025. Cash and cash equivalents at the end of Q1 2026 amounted to ISK 4,078 million, compared to ISK 980 million at year-end 2025. The carrying amount of the Síminn Pay loan portfolio was ISK 4.3 billion at the end of Q1 2026. Net interest-bearing debt to 12-month EBITDA¹ at the end of Q1 2026 was 2.0.
• The equity ratio stood at 35.4% at the end of Q1 2026, and total equity amounted to ISK 16.7 billion.

¹ 12M EBITDA is adjusted for ISK 77 million due to legal settlements.

María Björk Einarsdóttir, CEO:

"The results for the first quarter were in line with our expectations and reflect the stability that characterizes Síminn's core operations. Although we saw a decline in customers in telecommunications and TV services during the autumn months, revenue from Síminn's core products remained unchanged year-on-year. However, the cost of goods sold increased year-on-year, mainly due to index-linked costs from infrastructure suppliers and wage increases driven by collective agreements.

We are pleased to see continued strong growth in advertising revenue and fintech-related income year-on-year, as diversifying the Company's revenue streams has been a key focus in recent periods. History has shown that revenues from telecommunications operations rarely keep pace with inflation, and the improved profitability in recent years has been driven by well-executed efficiency measures. These actions have resulted in a highly efficient operation today, and we are far from finished in seeking further efficiencies, with current emphasis particularly on leveraging artificial intelligence across various areas of the business.

At the same time, we remain committed to our strategy of increasing revenue streams and thereby making better use of the Company's infrastructure and strengths. In recent months, we have introduced an ambitious transformation journey toward becoming a diversified digital services group under the Ásar brand. In the fourth quarter of last year, we announced the acquisitions of Greiðslumiðlun Íslands, OK, and Öryggismiðstöð Íslands, all of which are companies offering leading digital solutions and maintaining extensive relationships in the corporate market.

In March, we also announced the signing of a term sheet regarding the potential acquisition of Sýn's radio and online media assets, which include well-established media with strong reach and a capable workforce. Should the transaction proceed, we envision that a combined media company under the parent company Ásar would be well positioned to deliver outstanding service in a constantly evolving operating environment. The highly successful acquisition of Billboard, the focused development of our content platform, and our emphasis on advertising technology have created a strong foundation for building such a unit successfully. Statistics Iceland recently published an analysis of the Icelandic advertising market, estimating its size at nearly ISK 30 billion, with foreign media holding around half of the market share. We therefore see significant growth opportunities ahead.

The outlook for operations remains strong, and we are maintaining our guidance unchanged. We have seen a turnaround in telecommunications and TV services, with customer numbers beginning to grow again after the decline in the autumn months. Advertising sales also remain strong, with high demand observed in connection with municipal elections, where both Síminn's TV and outdoor media offer geographically targeted advertising that is particularly well suited for political parties seeking to optimize their advertising spend. The Company's cash flow is strong and leverage is moderate, positioning it well for the journey ahead."

Investor Presentation 29 April 2026

An investor and analyst presentation relating to the Company's financial results will be held on Wednesday, 29 April 2026, at 08:30, at the Company's headquarters, Ármúli 25, Reykjavík. The presentation will be conducted in Icelandic.

At the presentation, María Björk Einarsdóttir, Chief Executive Officer, and Hjörtur Þór Steindórsson, Chief Financial Officer, will present the Company's results and address questions from participants. The presentation materials will be made available via the Nasdaq Iceland news system and on Síminn's website.

The presentation will also be broadcast live via webcast.

Participants wishing to submit questions in advance may do so by emailing [e-mail]. Questions will be addressed at the conclusion of the presentation.

Further Information:

María Björk Einarsdóttir, CEO Síminn ([e-mail])
Hjörtur Þór Steindórsson, CFO Síminn ([e-mail])