Siminn hf. – Growth of turnover and improvement of results

Siminn hf.

Q1 2022 Financial Highlights

In the interim financial statements of the Síminn Group for the first quarter of 2022, Míla is treated as a discontinued operation. The operations of the Síminn group without Míla are described below.

  • Revenue for the first quarter (Q1) of 2022 was ISK 6,093 million, compared to ISK 6,018 million for the same period in 2021.

  • EBITDA was ISK 1,327 million in the first quarter of 2022, compared to ISK 1,274 million in the same period of 2021, up ISK 53 million or 4.2%. The EBITDA ratio was 21.8% in the first quarter of 2022, compared to 21.2% in the same period of 2021. The operating result EBIT amounted to ISK 574 million in the first quarter of 2022, compared to ISK 504 million in the same period of 2021.

  • Net finance costs were positive by ISK 92 million in the first quarter of 2022, but negative by ISK 31 million in the same period of 2021. Finance costs were ISK 113 million, finance income was ISK 200 million and the exchange gain at 5 million ISK. A change in financial charges is due to a change in financing at the end of Q1 2021 and a capital gain on the sale of Síminn’s shares in Auðkenni in Q1 2022.

  • Profit for the first quarter of 2022 was ISK 553 million, compared to ISK 376 million for the same period of 2021. Profit for the period, together with discontinued operations, was ISK 746 million.

  • Interest-bearing debt, including lease debt, was ISK 8.2 billion at the end of the first quarter of 2022, compared to ISK 8.3 billion at the end of 2021. Net interest-bearing debt , including lease liabilities, amounted to ISK 4.5 billion at the end of the first quarter of 2022 compared to ISK 4.8 billion at the end of 2021.

  • Síminn’s equity ratio was 43.9% at the end of the first quarter of 2022 and shareholders’ equity was ISK 30.9 billion.

Orri Hauksson, CEO:

“The year has started well and is in line with our expectations. Overall, modest growth in revenue, EBITDA and EBIT between the years in the first quarter. We are proud of such a development in the process of transformation that is currently taking place within the group and the difficult competitive environment that prevails in the telecommunications and entertainment markets in Iceland.

The conclusion of the Autorité de la concurrence regarding the acquisition of the French fund management company Ardian from our subsidiary Míla can be expected this summer. Various measures, such as the design of the future balance sheet of Síminn, await the end of the sales process, but we want to make good use of the time in the meantime. Thus, strengthening human resources, service capacity and company organization is now a priority within Síminn. Investments in Síminn’s service infrastructure will be temporarily increased during the year, to strengthen the business for the new times ahead.

We have now announced two new Corporate General Manager positions, Sales and Services and Sustainability and Culture. The Digitization and Media and Marketing division is also new and will be led by Erik Figueras and Magnús Ragnarsson, in addition to which Óskar Hauksson will continue to be the Chief Financial Officer, which will change little from the current structure. The evolution of projects within the company will also affect middle managers and the number of general employees, but the simplification that we intend to achieve will pass through the company and will shorten the communication channels within it.

The group’s workforce has fallen sharply in recent years with outsourcing, disposals of subsidiaries and a change in working methods. Thus, the new organization of the company must reflect this evolution of the company, increase diversity in decision-making and rely on digital customer service in a systematic way. The future of ServCo like Síminn is based on selecting excellent suppliers, working closely with them and managing customer service securely. We are therefore very happy to be able to rely on undisputed technology providers such as Ericsson from Sweden, Cisco from the United States and SAP from Germany. In addition, Míla and Sensa, both soon to be former Síminn subsidiaries, will be among the company’s main suppliers.

We will also take advantage of the year to invest in transformations and the development of various systems and services. These include the 5G core system, enhanced TV services and digitization. We launched a new subscription, which includes internet via optical fiber and a postpaid mobile service, which has been well received. Our range of products for individuals, households and businesses will continue to evolve throughout the year. Síminn is a mature company that operates various legacy systems and now may be the perfect time to shut down many of them.

As previously mentioned, Míla is still owned by Síminn, although in the financial statements it is classified as an asset held for sale. The company has increased investment in bringing fiber to homes, especially in rural areas, and its 5G network is expanding rapidly.

Various external factors are subject to uncertainty, as usual, but to an unusually large degree now. The war in Ukraine, rising prices, the development of the tourism industry in Iceland and the evolution of the exchange rate of the ISK are all factors that cannot be predicted with certainty. So far, these factors combined have had little effect on Síminn’s operations compared to what might be expected, and in our view, no major moves can be expected from such causes throughout the year. This assessment is partly due to the fact that certain external factors interact and thus mitigate the overall possible impact in both directions. On the other hand, the supply chain will continue to be slow due to the pandemic and now also due to the armed conflict. Both lead to delays in the delivery of equipment. However, we can manage and maintain balance in most other aspects of our operations, so we are optimistic about the future after a strong first quarter. “

Investor meeting April 27, 2022

An investor presentation will take place on Wednesday, April 27, 2022 at 8:30 a.m. at Síminn’s headquarters at Ármúli 25, Reykjavík. During the meeting, CEO Orri Hauksson and CFO Óskar Hauksson will present the financial results. The meeting will be held in Icelandic. Meeting materials are available on the Icelandic Nasdaq Company News and on the company’s Investor Relations website

The meeting is webcast:

Those who wish to ask questions can send them to [email protected] and they will receive a response at the end of the meeting.

More information

Orri Hauksson, CEO, tel. 354 550 6003 ([email protected])

Óskar Hauksson, financial director, tel. 354 550 6003 ([email protected])


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