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Síminn hf. - An eventful quarter

Síminn hf.
·6-min read

Financial highlights Q1 2021

In December, Síminn hf. and Crayon Group AS signed a binding agreement on the sale of Síminn‘s subsidiary, Sensa ehf., to Crayon. The settlement of the transaction took place at the end of Q1 2021 and the purchase price was paid in full in April. Profit from the sale amounted to ISK 2,073 million. In the interim financial statements, Sensa's operations fall under discontinued operations and the information in the announcement is based on that change.

  • Síminn‘s revenue amounted to ISK 6,408 million in the first quarter (Q1) of 2021, compared to ISK 6,309 million in the same period 2020. An increase by ISK 99 million or 1.6%.

  • EBITDA amounted to ISK 2,540 million in Q1 2021, compared to ISK 2,638 million in the same period of 2020, down by ISK 98 million or 3.7%. The EBITDA ratio was 39.6% in Q1 2021, compared to 41.8% in the same period of 2020. Operating profit EBIT is down by ISK 69 million or 5,8% compared to same period of 2020.

  • Profit in Q1 2021 amounted to ISK 2,844 million, compared to ISK 762 million in the same period of 2020.

  • Cash generated by operation amounted to ISK 3,010 million in Q1 2021, compared to ISK 3,380 million in the same period of 2020. Net cash from operating activities amounted to ISK 2,574 million in Q1 2021, compared to ISK 3,045 million in the same period 2020.

  • Interest-bearing debt amounted to ISK 16.0 billion at the end of Q1 of 2021, compared to ISK 15.9 billion at the end of 2020. Net interest-bearing debt amounted to ISK 15.3 billion at the end of Q1 2021 compared to ISK 15.2 billion at the end of 2020.

  • Net financial expenses amounted to ISK 187 million in Q1 2021, compared to ISK 233 million in the same period of 2020. Financial expenses amounted to ISK 202 million, financial income ISK 59 million, and foreign exchange loss ISK 44 million.

  • Síminn's equity ratio was 59,8% at the end of Q1 2021 and equity was 39.4 billion.

Orri Hauksson, CEO:

„The year is off to a good start and is in line with our expectations of getting the most out of the balance sheet and operations of various units within the group. Sensa's sale was successfully completed with the acquisition of the company by the international IT company Crayon, in addition to which key projects in the field of Síminn's mobile and network operations were transferred to Míla. The Group is now financed with the aim of maximizing the results of a changed division of tasks within the Group and to set up the balance sheet in accordance with the needs of the relevant business units. At the beginning of April, the company paid substantial funds to shareholders through decrease of share capital and dividends.

Core operations were well acceptable in the first quarter of 2021 and in line with plans. Roaming revenues largely decreased compared to previous year and the Group's expenses in foreign currency increased between years, resulting in a slight decrease in EBIT and EBITDA between years, but the first quarter of 2020 was one of the best in the company‘s history. Total revenue, however, increased, partly due to increased equipment sales, which have a low margin. Net profit increased between periods due to the gain on the sale of Sensa, but in addition, the permanent cost reductions that were undertaken in the spring of 2020 are paying off, and will have full effect this year.

Operations so far this year are promising. Revenue from advertising sales is increasing due to Síminn's changed and customized service to advertisers, who appreciate how it is becoming increasingly easier to reach well-defined target groups. Traditional linear television got wind of sailing when the Saturday show with Helgi Björns broke all viewing records. The Internet, television and domestic mobile services kept their share of revenue, and the implementation of large new customers has been successful despite meeting restrictions due to Covid 19.

As before, Míla's emphasis was on fiber-optic installation throughout the country. However, construction is slowing down, compared to the huge efforts of previous years. There are fewer and fewer homes in the country that do not have fiber optic cables in the basement or the outer wall of their house, whether from Míla or other parties. However, numerous urban areas in the countryside are still left and it is not known when those projects can be completed. The installation of fiber in the remaining buildings is largely based on Míla's co-operation with other developers and municipalities, so that costs in sparsely populated areas around the country do not prevent the connection to homes and companies.

The earthquake and volcanic eruption in Reykjanes called for various measures to ensure the safety of people and telecommunications. New locations had to be connected, new mobile base stations installed and the protection of the trunk network on the south coast of Iceland reconsidered. All of this went well in good cooperation with other electronic communications companies under the guidance of the state-run emergency service company Neyðarlínan. Síminn's next projects are to activate new and improved television services, which will greatly increase flexibility for customers.

As has been stated in detail before, in recent months, systematic efforts have been made to increase Míla's independence within the Síminn Group, including the previously announced transfer of projects and the changes that have been made to the company's financing. Major and rapid developments have taken place in recent months in the composition of telcos in international markets. Domestic and foreign investors are thus showing increased interest in specializing in investments, among other things by separating infrastructure assets from service companies in retail. The investment bank Lazard together with Íslandsbanki have now been hired to advise on Míla's strategic goals and future possibilities. Options regarding future ownership of Míla will be explored with the aim of maximizing the value of Síminn's assets for shareholders and ensuring that the future development of the Group's infrastructure is beneficial to the Icelandic public. It is not clear at the moment what result this project will lead to, but more information will be provided on its progress as soon as there is reason to do so.“

Investor meeting 28 April 2021

An investor presentation will be held on Wednesday 28 April 2021 at 8:30 am. During the meeting, Orri Hauksson CEO and Óskar Hauksson CFO will present the financial results. The meeting will be held in Icelandic. Documents and a recording of the meeting will be available after the meeting on the company’s investor relations website and in Nasdaq’s Iceland company news.

The meeting will be webcasted on

Those who wish to ask questions can send them to and they will be answered at the end of the meeting.

Further information

Orri Hauksson, CEO, tel. +354 550 6003 (

Óskar Hauksson, CFO, tel. +354 550 6003 (