Sýn hf.’s Consolidated Interim Financial Statement for the Q1 2022 was approved by the board on May 11th, 2022.
Revenue for the first quarter (Q1) of 2022 amounted to ISK 5,682 million, an increase of ISK 682 million compared to the same period in 2021.
EBITDA for Q1 2022 amounted to ISK 1,710 million, compared to ISK 1,388 million Q1 2021. The EBITDA margin was 30.1% in Q1 2022 compared to 27.8% in Q1 2021. Operating cost increases less than inflation due to cost cutting and gross profit increases also year on year.
Profit in Q1 2022 amounted to ISK 207 million, compared to a loss of ISK 231 million in the same quarter last year. Of the ISK 231 million in loss, ISK 189 million relates to the sale of the Faroese associate Hey sold in end of Q1 2021.
Cash flow from operations in Q1 2022 amounted to ISK 1.107 million compared to ISK 542 million in the same period in 2021, an increase by 104%.
Total investments for the first quarter of 2022 amounted to ISK 819 million, thereof ISK 285 million in property, plant and equipment and intangible assets (excluding broadcasting license rights) and ISK 531 million in broadcasting license rights.
Negative cash flow from financial activities for the first quarter of 2022 amounted to ISK 2.402 million compared to ISK 320 million in Q1 2021, the difference mainly explained by share buyback.
The Company’s equity ratio was 27.2% at the end of the first quarter of 2022.
In the beginning of 2022, the board of directors decided to initiate a buyback program. The program started with a reverse tender offer on January 7th to January 9th followed by regular buyback of shares from January 13th to March 3rd. A total of 28.064.512 shares were purchased or 9,47% of total shares for the amount of ISK 1.860 million.
The Annual General Meeting on March 18th approved the board’s proposal of reducing the Company’s issued share capital in accordance with the number of own shares. The share capital decrease was implemented on April 12th and the updated total number of shares is 268.376.962.
Heiðar Guðjónsson, CEO:
"We are proud to present 14% internal revenue growth year on year. Operating cost increases less than inflation resulting in an ISK 359 million increase in EBIT. We return a profit of over ISK 200 million from regular operations in the first 3 months of the year.
Due to seasonal fluctuations in the Company's operations, profit usually increases as the year progresses. On top of that, growth is expected due to improved services, new product ranges, and the development of 5G and related technologies. Therefore, we are well on our way to achieving a profit from regular operations of up to ISK 100 million per month on average over the year. Free cash flow is also very strong and increases by ISK 603 million during the period.
Several parts of the business that were affected by COVID are now getting back to normal as the year progresses. We can see an increase in Endor's revenue, an increase in roaming, and advertising sales are on the rise.
Concerning media operations, advertisements are sold out on Vísir for the first time during the first quarter of a year. Radio operations are doing well and there is also growth around our television operations, despite negative trends being evident abroad due to reduced COVID restrictions.
We returned around ISK 2 billion to shareholders in the first quarter of the year through share buyback and we aim to continue doing so this year.
Following the changes in the law on publication of financial results for listed companies we will not have a presentation meeting this quarter. We will give detailed presentations on the half-year and annual results. As before, questions can be sent to us or meetings can be requested."