Sýn hf. – Valuation as of 1 Jan 2025

Key assumptions

• Sales grow by an average of 5.4% per year over the forecast period, with the highest growth in the first two years due to a broadcasting rights agreement for the English Premier League that takes effect mid-2025.
• The ratio of salaries and salary-related expenses to operating revenues is 28% throughout the forecast period.
• Depreciation of operating assets, right-of-use assets, broadcasting rights, and intangible assets (excluding goodwill) amounts to 25% per year during the forecast period.
• The average annual cost of interest-bearing debt is 5.9%, consisting of 7.7% interest on bank loans and 5.1% imputed interest on lease liabilities.
• Income tax amounts to 20% per year over the forecast period.
• Invested capital in operating assets, right-of-use, broadcasting rights, and intangible assets generally follows revenue growth, corresponding to average annual investment equal to 19.9% of operating revenues.
• The company will begin paying dividends equal to 60% of the previous year’s total comprehensive income starting in 2030.
• Taking dividend payments into account, the equity ratio increases from 27.9% at year-end 2024 to 33.5% at year-end 2034.
• No terminal growth rate is assumed when calculating the terminal value at the end of the forecast period.
• See other general assumptions under “Valuation.”
• A nominal required return on equity of 10% is assumed when discounting the forecasted results for 2025–2034.

Results

• Based on the above assumptions, the estimated share value is ISK 26.8 as of 1 January 2025.