Nova Klúbburinn posted record Q3 revenue of 5.815 billion ISK and a 24% profit jump, driven by operational efficiencies and the successful integration of Ofar into its growing business ecosystem.
Nova reported record revenue of 5,815 million ISK and a 24% year-over-year profit increase in Q3. The company successfully improved its EBITDA margin to 26.9% from 20.4% in the previous quarter, driven by operational simplification and growth in service and FastNet revenue.
The improvement to 26.9% was primarily driven by operational simplification and growth in high-margin service and FastNet segments.
Ofar was integrated into the Nova group on June 1st, contributing to record consolidated revenues. The company proactively secured inventory ahead of anticipated price hikes and supply shortages, which allowed it to gain new customers who required immediate equipment availability.
By proactively purchasing inventory before price increases and supply shortages, Ofar could guarantee equipment availability when competitors could not.
Kosmos, launched in May, focuses on low-cost 5G wireless solutions with a lean operational model that excludes traditional customer service centers or physical stores. While it did not contribute to Q3 earnings, it is positioned as a key growth driver expected to reach positive EBITDA in 2026.
The company expects Kosmos to deliver positive EBITDA in 2026.
Transfer of Nova's 4G/5G distribution network to Sendafélagið lowers EBITDA but also reduces depreciation and investments.
Ligo started operations in July but its market rollout is taking longer, delaying its positive contribution.
Nova Klúbburinn achieved record-breaking revenue of 5.815 billion ISK in the third quarter, bolstered by the integration of Ofar and strong operational performance. The company saw a 24% year-on-year profit increase, with EBITDA margins improving to 26.9% as service revenue grew across both residential and corporate segments.
The transfer of 4G and 5G distribution networks to Sendafélagið resulted in lower reported EBITDA but simultaneously reduced depreciation and capital expenditure requirements for Nova.
Kosmos and Ligo are currently in the expansion phase. While their rollout has taken longer than initially projected, both are expected to reach positive EBITDA by next year.