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Published: 2022-10-25 17:31:00 CEST
Síminn hf.
Interim report (Q1 and Q3)

Síminn hf. - Historical quarter

The sale of Míla was completed on 30 September 2022. The sale has a significant impact on the company's interim financial statements.

  • Revenue in the third quarter (Q3) of 2022 amounted to ISK 6,210 million compared to ISK 6,124 million in the same period of 2021.
  • EBITDA amounted to ISK 1,790 million in Q3 2022, up by ISK 163 million or 10.0% compared to the same period 2021. The EBITDA ratio was 28.8% in Q3 2022, compared to 26.6% in the same period of 2021. Operating profit EBIT amounted to ISK 986 million in Q3 2022, compared to ISK 840 million in the same period of 2021.
  • Net financial expenses amounted to ISK 84 million in Q3 2022, but were positive by ISK 29 million in the same period of 2021. Financial expenses amounted to ISK 165 million, financial income ISK 97 million, and foreign exchange loss ISK 16 million.
  • Profit in Q3 2022 amounted to ISK 36,346 million including profit of sale of Míla. Profit from continuing operations in Q3 2022 amounted to ISK 718 million compared to ISK 707 million in the same period of 2021.
  • Interest-bearing debt including lease liabilities amounted to ISK 7.3 billion at the end of Q3 2022, compared to ISK 8.3 billion at the end of 2021. Cash in the end of Q3 2022 amounted to ISK 33.9 billion, compared to ISK 3.5 billion at the end of 2021. Increase in cash is due to sale of Míla in the end of September 2022.
  • Síminn's equity ratio was 80.4% at the end of Q3 2022 and equity was ISK 65.5 billion.

Orri Hauksson, CEO:

„The sale of Míla was finaliazed at the end of Q3. The significant capital gains realized by Síminn with the sale have put a particularly positive mark on the results, the company's balance sheet and return on equity. At the same time, Síminn's underlying operations are extremely strong and with a healthy growth. Thus, revenue in mobile, internet and TV increases over cost, which in turn increases margin and profits.

Síminn is now transformed into an agile service company which will be based on a low asset base and a reduced investment need. The company has selected strategic suppliers both in Iceland and abroad to co-operate with in the future. The certainty and flexibility in the company's wholesale agreement with Míla strengthens Síminn to primarily focus on product development and its customers. The development of telco and TV markets in Iceland has been affected by an ever-increasing competition for the needs of regulatory bodies rather than consumers. Now that the vertical ownership of Síminn and Míla has been broken, various burdensome requirements of the past will no longer apply to Síminn and competitive forces will be better mobilized for the benefit of consumers.

We are very proud that Icelandic content production on Síminn TV recently won 20 Edda awards out of 27 possible, by far the most of all TV companies. The results are particularly pleasing since Síminn is the only major TV company in Iceland that does not receive direct public support. Furthermore, at the end of the year we will be utilizing 80 5G transmitters in the country, which are divided close to evenly between the capital area and rural areas. In three years, 95 percent of households will have access to our 5G system.

Síminn will soon introduce a new fintech solution aimed at making life easier for customers in a digital and flexible way. Síminn's previous loan products have been in steady growth that will be built on to appeal to a larger group than before. Various other exciting projects are underway.

On 26 October, the company holds a shareholders' meeting following the sale of Míla. The Board of Directors proposes that the company's share capital be decreased significantly by cash payment to shareholders, where Icelandic pension funds are majority shareholders.“

Investor meeting 26 October 2022

An investor presentation will be held on Wednesday 26 October 2022 at 8:30 am at Síminn‘s headquarters in Ármúli 25, Reykjavík. During the meeting, Orri Hauksson CEO and Óskar Hauksson CFO will present the financial results. The meeting will be held in Icelandic. Documents for the meeting are available in Nasdaq‘s Iceland company news and on the company’s investor relations website https://www.siminn.is/umsimann/quarterly-results.

The meeting is webcasted on: https://www.siminn.is/fjarfestakynning.

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

Further information:

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

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


Siminn hf. - Consolidated Interim Financial Statements Q3 2022.pdf
Siminn hf. - Financial results Q3 2022.pdf
Siminn hf. - Investor Presentation Q3 2022.pdf