Sýn has lowered its profit forecast.
mbl.is/Eggert Jóhannesson
Several employees at the telecommunications and media company Sýn were laid off yesterday as part of a company-wide restructuring effort.
Sýn held an all-staff meeting at 11 a.m. on Friday morning, a day after issuing a profit warning predicting weaker financial results than previously forecast. The company also announced the merger of business divisions and a series of cost-cutting measures.
Newsroom operations to continue unchanged
Speaking to mbl.is, Herdís Dröfn Fjeldsted, CEO of Sýn, confirmed that “several” employees had been laid off but emphasized that the move did not constitute a mass layoff.
“The layoffs affect several departments,” Herdís said, noting that changes will take place in the marketing division among others.
She added that the company will not be rehiring for currently vacant positions as part of its efficiency drive. The newsroom, however, will continue operations without changes.
Profit warning last Thursday
Sýn lowered its earnings forecast for 2025 last Thursday, citing a lack of effective government measures to level the competitive playing field for privately owned media outlets.
The company argues that public and foreign players — such as the national broadcaster RÚV and international streaming platforms — benefit from advantages that make it harder for privately run media companies to remain profitable.
Significantly lower profit outlook
According to Sýn’s updated forecast, operating profit (EBIT) is expected to reach around ISK 280 million in 2025 — a sharp drop from the previous estimate of ISK 800–1,000 million published in August.
EBITDAaL, which measures operating earnings before financial items and depreciation, is now projected at around ISK 3.45 billion, compared with ISK 4–4.2 billion in the earlier forecast.
Decline in TV subscriptions and advertising revenue
The company attributes the downgrade mainly to falling television subscription revenues, delays in bundled service sales, and the impact of a Telecommunications Office ruling granting a competitor transmission rights to all of Sýn’s linear TV programming. The decision, Sýn says, has had a “burdensome impact” on operations and income generation.
Advertising revenues and Internet of Things (IoT) income have also fallen short of expectations.
Calls for fairer competition
Sýn says it is now reviewing its media revenue model, citing difficult market conditions and what it calls government inaction on fair competition — both with respect to RÚV and to international content and social media platforms.
The company’s statement comes as Parliament today approved a media bill reducing state contributions to Sýn and Árvakur, the publisher of Morgunblaðið and mbl.is.