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Síminn hf. - Strong quarter at Síminn

Síminn hf.
·4-min read

Financial highlights Q3 2020

  • Síminn‘s revenue amounted to ISK 7,225 million in the third quarter (Q3) of 2020, compared to ISK 7,098 million in the same period 2019. An increase by ISK 127 million or 1.8%.

  • EBITDA amounted to ISK 2,933 million in Q3 2020, compared to ISK 2,817 million in the same period of 2019, up by ISK 116 million or 4.1%. The EBITDA ratio was 40.6% in Q3 2020, compared to 39.7% in the same period of 2019. Operating profit EBIT is up by ISK 42 million or 3,1% compared to same period of 2019.

  • Profit in Q3 2020 amounted to ISK 1,014 million, compared to ISK 897 million in the same period of 2019.

  • Cash generated by operation amounted to ISK 2,257 million in Q3 2020, compared to ISK 4,024 million in the same period of 2019. Net cash from operating activities amounted to ISK 1,967 million in Q3 2020, compared to ISK 3,590 million in the same period 2019.

  • Interest-bearing debt amounted to ISK 15.4 billion at the end of Q3 of 2020, compared to ISK 16.2 billion at the end of 2019. Net interest-bearing debt amounted to ISK 14.7 billion at the end of Q3 2020 compared to ISK 16.0 billion at the end of 2019.

  • Net financial expenses amounted to ISK 149 million in Q3 2020, compared to ISK 232 million in the same period of 2019. Financial expenses amounted to ISK 181 million, financial income ISK 52 million, and foreign exchange loss ISK 20 million.

  • Síminn's equity ratio was 57,0% at the end of Q3 2020 and equity was 36.6 billion.

Orri Hauksson, CEO:

„The Group's operation is currently progressing well. Revenues and profits increased in the third quarter compared to the same period last year, when the Group's product range is comparable to what it is now. Revenue from foreign tourists is a small fraction of what it was in the previous year, but the Group's domestic revenue streams will have a predictable and in many respects favorable development in the quarter. Thus, digital entertainment and equipment sales grow significantly between years. Revenues from information technology and data connections also grew slightly between the third quarter of the two years, but domestic mobile services remained stable and fixed line telephone services declined as before. The difficult economic situation has not caused significant defaults by the group's customers.

Legal and litigation costs were rather high in the third quarter of the year, but travel expenses, salaries and expenses due to various traditional activities in the operation decreased, among other things due to increased work from home and meeting restrictions. The number of employees in the parent company has decreased by almost 50 during the year, due to continued outsourcing of projects and increased automation in the operations. The EBITDA result for the year is expected to be close to the upper limit of the guidance.

Several planned investment projects for the year were postponed last spring, following the outbreak of the pandemic. The parent company's investments are largely in foreign currency and will therefore be more expensive as the ISK gets weaker. The overall effect of postponed investments and the weakening of the exchange rate is that the Group will be at the lower end of the investment guidance. The fiber-optic project together with innovations in the technical infrastructure of TV products, improved data utilization and the implementation of the distribution agreement with Gagnaveitu Reykjavíkur are the Group's key development projects Siminn's mobile network consists of equipment from the Swedish company Ericsson, and this also applies to 5G technology. "


Investor meeting 28 October 2020

An investor presentation will be held on Wednesday 28 October 2020 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 https://www.siminn.is/umsimann/uppgjor and in Nasdaq’s Iceland company news.

The meeting will only be webcasted on https://livestream.com/accounts/11153656/events/9362628/player.


Further information

Orri Hauksson, CEO, tel. 354 550 6003 (orri@siminn.is)
Óskar Hauksson, CFO, tel. 354 550 6003 (oskarh@siminn.is)

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