The Board of Ljósleiðarinn ehf. approved the company’s annual financial statements for 2024 at its meeting today. The results show that operating revenues increased to approximately ISK 5.67 billion, and operating profit (EBITDA) rose year-on-year, reflecting greater internal strengthening and growing demand for powerful fiber-optic connections. Equity at the end of the year amounted to ISK 14.55 billion, providing an equity ratio of 36.2%.
“The year 2024 was a milestone for Ljósleiðarinn. We were determined to further develop our robust telecommunications infrastructure, and that work is already yielding a stronger position and increased revenues. For instance, we see operating profit up by ISK 300 million from the previous year. At Ljósleiðarinn, we want to be a leading force in telecommunications in this country,” says Einar Þórarinsson, CEO of Ljósleiðarinn.
Increased internal strength despite a loss
The net loss for the year was ISK 731 million, compared to ISK 570 million the previous year. Despite this increase—mainly attributable to extensive development and higher financing costs—EBITDA rose year-on-year, amounting to ISK 3.0 billion (2023: ISK 2.7 billion). Cash flow from operations also increased, reflecting the company’s solid operational foundation and improved cash flow.
“It’s important to keep in mind that the company has never been stronger internally than it is now, as our projects and investments have laid the groundwork for more reliable and faster connections for everyone in the country. We’re seeing very positive signs that this careful yet dynamic approach will yield profitable operations over the long term,” Einar adds.
New financing increases flexibility
As recently announced, Ljósleiðarinn has secured favorable loan financing from the Nordic Investment Bank, totaling ISK 4 billion over seven years. Such a refinancing arrangement strengthens Ljósleiðarinn’s capital structure and helps reduce financing costs.
“With this loan agreement, we’re enhancing our operational strength and laying the groundwork for even faster growth. With powerful infrastructure, 10G technology, and more affordable financing, we’re confident we can further establish ourselves as a mainstay of the Icelandic telecommunications market,” says Einar.
More connections and continually improving service
In 2024, special emphasis was placed on maintenance and upgrades to the core network, including merging infrastructure from Sýn. Additionally, more and more municipalities and neighborhoods joined Ljósleiðarinn’s network. Demand for high-speed internet connections, both for households and businesses, has never been higher, and Ljósleiðarinn continues to focus on improving its telecommunications systems with increased capacity and an enhanced user experience.
“It is clear that customers rely on service stability and quality. By continuing to develop our services and implement the latest technological solutions, we can focus on providing everything residents need for a digital life and the future,” Einar says.
Einar adds that there has been significant investor interest in the company, but at this point, there are no plans to sell shares.
“We have opted to streamline our operations and fund our projects more efficiently. Should the right conditions arise in the future, we are prepared to explore selling equity or other options to further strengthen the company,” says Einar.
Bright Outlook
The positive trend in operating profit, cash flow, and the number of connections gives Ljósleiðarinn considerable scope to expand services and continue to grow. Part of this journey involves strengthening telecommunications security across the country and emphasizing robust collaboration with municipalities and telecom companies.
“I’m convinced that Ljósleiðarinn will continue to make its mark on the country’s infrastructure. We want to be the best in our field, and we already have a very strong foundation for that. The coming months will be exciting, and I’m certain we have the right people, technology, and financing in place to continue doing great things for both the nation and the business sector,” concludes Einar.
For further information, please contact:
- Einar Þórarinsson, CEO of Ljósleiðarinn, email: [email protected]
- Information about Ljósleiðarinn and the company’s services: www.ljosleidarinn.is
Attachment
- Ársreikningur Ljósleiðarans 31.12.2024
