The market showed no reaction

Sýn’s share price has barely acknowledged the company’s decision to shut down its television news operation. The stock stood at 19.8 Icelandic krona on both Monday and Tuesday, unchanged from its closing price on the last trading day before the announcement.

Sýn said on Monday morning that its television news broadcasts and the program Ísland í dag would be discontinued from Sept. 1. The move ends almost 40 years of uninterrupted television news at Sýn and its predecessor companies. More than a dozen employees were laid off as part of the changes.

Chief Executive Herdís Dröfn Fjeldsted said the television news operation had been financially unsustainable for a long time and that shutting it down had become unavoidable. So far, however, investors have not materially changed their assessment of the company.

The shares were also priced at 19.80 krona on Aug. 24, when Sýn announced that talks with Síminn over the purchase of Bylgjan and Vísir had ended without an agreement. Sýn had released its second-quarter results only days before the latest decision. The company reported EBITDAaL profit of 995 million krona, a 39% year-on-year increase, and revenue of 5.6 billion krona, up 2.8%.

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The operation of television news had been unsustainable for a long time, and the decision was unavoidable.