AI assistant
Síminn Interim / Quarterly Report 2019
2203_rns_2019-08-27_27399dff-eed0-4382-84bf-9eea37778716.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
Condensed Consolidated Interim Financial Statements
1 January to 30 June 2019
Síminn hf.
Ármúla 25
108 Reykjavík
Kt. 460207-0880
Endorsement and Statement by the Board of Directors and the CEO
The Condensed Consolidated Interim Financial Statements of Síminn hf. and its subsidiaries (together referred to as "Síminn" or the "Group") for the period 1 January to 30 June 2019 are prepared and presented in accordance with International Financial Reporting Standards (IFRS) for Interim Financial Statements (IAS 34) as adopted by the EU. The Company has made a change in accounting policy for TV rights. See note 3. The Financial Statements are neither audited or reviewed by the Group's auditors.
The total sales for Síminn hf. the first six months of the year amounted to ISK 14.077 million according to the Consolidated Income Statement, compared to ISK 14.027 million for the same period 2018. Net profit for the first six months of the year 2019 amounted to ISK 1.413 million, compared to profit of ISK 1.740 million for the same period 2018. Total assets as at 30 June 2019 amounted to ISK 64.475 million and total equity amounted to ISK 36.285 million according to the Statement of Financial Position. The Company's equity ratio was 56,4%. The Company paid ISK 330 million in dividend to it's shareholders in the year.
The Annual General Meeting of Síminn approved on 21 March 2019 a share buyback program. The share buyback program started in the third quarter of this year and allows buyback up to ISK 1.310 million.
Statement by the Board of Directors and the CEO
According to the best of our knowledge the Condensed Consolidated Interim Financial Statements of Síminn hf. are prepared and presented in accordance with International Financial Reporting Standards (IFRS) for Interim Financial Statements (IAS 34) as adopted by the EU. It is our opinion that these Condensed Consolidated Interim Financial Statements give a true and fair view of the consolidated financial performance of Síminn hf. for the six months ended 30 June 2019, its assets, liabilities and consolidated financial position as at 30 June 2019 and its consolidated cash flows for the six month period ended 30 June 2019. Further, in our opinion the Condensed Consolidated Interim Financial Statements give a fair view of the development and performance of Síminn's operations and its position and describes the principal risks and uncertainties faced by Síminn hf.
The Board of Directors and the CEO have today discussed the Condensed Consolidated Interim Financial Statements of Síminn hf. for the period 1 January to 30 June 2019 and confirm them by means of their signatures.
Reykjavík, 27 August 2019
Board of Directors
Bertrand B. Kan, Chairman
Helga Valfells, vice chairman
Bjarní Þorvarðarson
Ksenia Nekrasova
Sylvía Kristín Ólafsdóttir
CEO
Orri Hauksson
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2019
Consolidated Income Statement and other comprehensive income for the period 1 January to 30 June 2019
| Notes | 2019 | 2018 | 2019 | 2018 | |
|---|---|---|---|---|---|
| 1.4.-30.6. | 1.4.-30.6. | 1.1.-30.6. | 1.1.-30.6. | ||
| Net sales | 5 | 6.808 | 6.921 | 13.581 | 13.677 |
| Cost of sales | 6 | (3.591) | (3.610) | (7.016) | (6.912) |
| Gross profit | 3.217 | 3.311 | 6.565 | 6.765 | |
| Other operating income | 307 | 232 | 496 | 350 | |
| Operating expenses | 7 | (2.246) | (2.280) | (4.676) | (4.555) |
| Operating profit | 1.278 | 1.263 | 2.385 | 2.560 | |
| Finance income | 46 | 52 | 96 | 104 | |
| Finance cost | (301) | (240) | (657) | (481) | |
| Net exchange rate differences | (14) | (2) | (21) | 5 | |
| Net financial items | 8 | (269) | (190) | (582) | (372) |
| Profit before tax | 1.009 | 1.073 | 1.803 | 2.188 | |
| Income tax | (211) | (220) | (390) | (448) | |
| Profit for the period | 798 | 853 | 1.413 | 1.740 | |
| Total comprehensive income for the period | 798 | 853 | 1.413 | 1.740 | |
| EBITDA* | 2.602 | 2.386 | 4.971 | 4.790 | |
| Earnings per share | |||||
| Basic earnings per share | 0,09 | 0,09 | 0,16 | 0,19 |
*Restated, see in Note 3.
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2019
All amounts are in millions of ISK
Consolidated Statement of Financial Position as at 30 June 2019
| Notes | 30.6.2019 | 31.12.2018 Restated* | |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Property, plant and equipment | 23.795 | 18.059 | |
| Intangible assets | 32.662 | 32.473 | |
| Other financial assets | 9 | 496 | 424 |
| Non-current assets | 56.953 | 50.956 | |
| Current assets | |||
| Inventories | 10 | 1.618 | 1.437 |
| Accounts receivables | 11 | 3.465 | 4.313 |
| Other assets | 12 | 1.929 | 882 |
| Cash and cash equivalents | 510 | 1.246 | |
| Current assets | 7.522 | 7.878 | |
| Total assets | 64.475 | 58.834 | |
| Equity | |||
| Share capital | 9.033 | 9.033 | |
| Reserves | 15.552 | 15.552 | |
| Other statutory reserve | 154 | 154 | |
| Other reserve | 462 | 456 | |
| Retained earnings | 11.084 | 10.007 | |
| Total equity | 36.285 | 35.202 | |
| Liabilities | |||
| Non-current liabilities | |||
| Borrowings | 15.046 | 15.631 | |
| Finance leases | 3 | 4.868 | 0 |
| Deferred tax liabilities | 13 | 818 | 898 |
| Non-current liabilities | 20.732 | 16.529 | |
| Current liabilities | |||
| Bank loans | 277 | 450 | |
| Accounts payables | 2.556 | 2.997 | |
| Current maturities of borrowings | 1.150 | 1.150 | |
| Current maturities of finance leases | 3 | 546 | 0 |
| Taxes to be paid | 1.060 | 766 | |
| Other liabilities | 14 | 1.869 | 1.740 |
| Current liabilities | 7.458 | 7.103 | |
| Total liabilities | 28.190 | 23.632 | |
| Total equity and liabilities | 64.475 | 58.834 |
*Restated, see in Note 3.
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2019
All amounts are in millions of ISK
Consolidated Statement of Changes in Equity 1 January to 30 June 2019
| Share capital | Reserves | Other statutory reserve | Translation- and other reserve | Retained earnings | Total equity | |
|---|---|---|---|---|---|---|
| Total equity 1.1.2018 | 9.247 | 16.406 | 201 | 1.041 | 9.386 | 36.281 |
| Net profit for the period | 497 | 1.243 | 1.740 | |||
| Payment of dividends (0,033588 per share) | ( 311) | ( 311) | ||||
| Buyback of ordinary shares | ( 280) | ( 962) | ( 1.242) | |||
| Other changes | ( 188) | 188 | 0 | |||
| Share option charge for the period | 12 | 12 | ||||
| Total equity 30.6.2018 | 8.967 | 15.444 | 213 | 1.350 | 10.506 | 36.480 |
| Total equity 1.1.2019 | 9.033 | 15.552 | 154 | 456 | 10.007 | 35.202 |
| Net Profit for the period | 1.413 | 1.413 | ||||
| Payment of dividends (0,036534 per share) | ( 330) | ( 330) | ||||
| Other changes | 6 | ( 6) | 0 | |||
| Total equity 30.6.2019 | 9.033 | 15.552 | 154 | 462 | 11.084 | 36.285 |
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2019
All amounts are in millions of ISK
Consolidated Statement of Cash Flow 1 January to 30 June 2019
| Notes | 2019 | 2018 | 2019 | 2018 | |
|---|---|---|---|---|---|
| 1.4.-30.6. | 1.4.-30.6. Restated* | 1.1.-30.6. | 1.1.-30.6. Restated* | ||
| Cash flow from operating activities | |||||
| Operating profit | 1.278 | 1.263 | 2.385 | 2.560 | |
| Operational items not affecting cash flow: | |||||
| Depreciation | 1.324 | 1.123 | 2.586 | 2.230 | |
| Gain on sale of fixed assets | (165) | (104) | (165) | (104) | |
| Other items not affecting cash flow | 0 | 6 | 0 | 12 | |
| 2.437 | 2.288 | 4.806 | 4.698 | ||
| Changes in current assets and liabilities: | |||||
| Changes in inventories | 52 | 543 | (124) | 368 | |
| Changes in operating assets | 268 | (205) | (130) | 162 | |
| Changes in operating liabilities | (670) | (188) | (403) | (400) | |
| Changes in current assets and liabilities | (350) | 150 | (657) | 130 | |
| Cash generated by operation | 2.087 | 2.438 | 4.149 | 4.828 | |
| Interest income received | 44 | 48 | 91 | 103 | |
| Interest expenses paid | (309) | (241) | (619) | (487) | |
| Payments of taxes | (87) | (157) | (175) | (313) | |
| Net cash from operating activities | 1.735 | 2.088 | 3.446 | 4.131 | |
| Investing activities | |||||
| Investment in property, plant and equipment | (1.187) | (1.129) | (2.185) | (2.202) | |
| Investment in intangible assets | (537) | (423) | (717) | (533) | |
| Proceeds from sale of property, plant and equipment | 2 | 126 | 3 | 127 | |
| Changes in other investment | 0 | 0 | 28 | 28 | |
| Investment in subsidiaries | 0 | (26) | 0 | (26) | |
| Changes in other investment | 0 | 0 | 2 | 0 | |
| Investment activities | (1.722) | (1.452) | (2.869) | (2.606) | |
| Financing activities | |||||
| Dividend paid | (330) | (311) | (330) | (311) | |
| Buyback of ordinary shares | 0 | (1.242) | 0 | (1.242) | |
| Payments of non-current liabilities | (288) | (288) | (575) | (575) | |
| Payment of long term lease | (133) | 0 | (264) | 0 | |
| Bank loans, increase | 277 | 575 | (173) | 75 | |
| Financing activities | (474) | (1.266) | (1.342) | (2.053) | |
| Increase (decrease) in cash and cash equivalents | (461) | (630) | (765) | (528) | |
| Effect of exchange rate fluctuations on cash held | 5 | 8 | 29 | (7) | |
| Cash and cash equivalents at the beginning of the period | 966 | 805 | 1.246 | 718 | |
| Cash and cash equivalents at the end of the period | 510 | 183 | 510 | 183 |
*Restated, see in Note 3.
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2019
All amounts are in millions of ISK
Notes to the Consolidated Financial Statements
1. Reporting entity
Síminn hf. (the "Company") is a public limited liability company domiciled in Iceland. The address of the Company's registered office is Ármúli 25, Reykjavík. The condensed consolidated interim financial statements as at and for the six months ended 30 June 2019 comprise the Company and its subsidiaries (together referred to as "Síminn" or the "Group") and Síminn's interest in associated companies. The Company is listed on Nasdaq OMX Iceland.
2. Basis of accounting
Statement of compliance
These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, and should be read in conjunction with the Group's last annual consolidated financial statements as at and for the year ended 31 December 2018. They do not include all the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements.
The Group's last annual consolidated financial statements is available on the company's website, www.siminn.is, and in the company news release distribution network of Nasdaq Nordic: www.nasdaqomxnordic.com.
The Group has applied IFRS 16 from 1. January 2019 in the financial statements. Changes to significant accounting policies are described in note 3.
These interim financial statements were approved and authorised for issue by the Company's Board of Directors on 27 August 2019.
Basis of measurement
These interim financial statements have been prepared on the historical cost basis.
Presentation and functional currency
These interim financial statements are presented in Icelandic Krona (ISK), which is the Company's functional currency. All financial information presented in ISK has been rounded to the nearest million.
Use of judgements and estimates
In preparing these interim financial statements, management has made judgements and estimates that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
3. Changes in accounting policies
The accounting policies applied in the consolidated financial statements are the same as those applied in the Group's consolidated financial statements as at and for the year ended 31 December 2018, except for the new significant judgements related to lessee accounting under IFRS 16.
The Group has initially applied IFRS 16 effective from 1 January 2019. The Group also changed its accounting method for TV rights. Previously, TV rights were accounted for as inventories under IAS 2 and expensed as material expense. Due to major changes in the TV business environment and in the Group's business model in recent years the Group's TV rights have been recognised as of 1 January 2019 as an intangible asset in accordance with IAS 38. The Group recognises a depreciation charge for TV rights.
IFRS 16 Leases
IFRS 16 introduced a single, on-balance sheet accounting model for lessees. As a result, the Group, as a lessee, has recognised right-of-use assets representing its rights to use the underlying assets and lease liabilities representing its obligation to make lease payments. Lessor accounting remains similar to previous accounting policies.
The Group has applied IFRS 16 using the modified retrospective approach, with right-of-use assets equal to lease liability at 1. January 2019. Accordingly, the comparative information presented for 2018 has not been restated - i.e. it is presented, as previously reported, under IAS 17 and related interpretations. The details of the changes in accounting policies are disclosed below.
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2019
All amounts are in millions of ISK
Notes to the Consolidated Financial Statements
3. Changes in accounting policies, contd.:
Leases in which the Group is a lessee
The Group has recognised new assets and liabilities for its leases of buildings, cars and fiber optics. The nature of expenses related to those leases has changed because the Group recognises a depreciation charge for right-of-use assets and interest expense on lease liabilities.
Previously, the Group recognised operating lease expense on a straight-line basis over the term of the lease, and recognised assets and liabilities only to the extent that there was a timing difference between actual lease payments and the expense recognised.
The Group presents right-of-use assets in 'property, plant and equipment', the same line item as it presents underlying assets of the same nature that it owns. The carrying amounts of right-of-use assets are as below.
| Telecom equipment | Buildings | Other equipment | Total | |
|---|---|---|---|---|
| Balance at 1.1.2019 | 156 | 5.350 | 61 | 5.567 |
| Balance at 30.6.2019 | 151 | 5.127 | 58 | 5.336 |
The Group presents lease liabilities in non-current liabilities in the statement of financial position.
Leases in which the Group is a lessor
No impact is expected for other leases in which the Group is a lessor.
Impacts for the period
As a result of initially applying IFRS 16, the Group recognised ISK 5.336 million of right-of-use assets and ISK 5.414 million of lease liabilities as at 30 June 2019.
Also in relation to those leases under IFRS 16, the Group has recognised depreciation and interest costs, instead of operating lease expense. During the six months ended 30 June 2019, the Group recognised ISK 333 million of depreciation charges and ISK 137 million of interest costs from these leases. Payment of lease liability was ISK 264 million.
TV rights, a change in accounting policy
The Company's TV right is now presented as an intangible asset in Non-current assets but were previously presented as inventories in Current assets. Because of that change the comparative information 31.12.2018 is restated. ISK 763 million are now presented as intangible asset but were previously presented as inventories and ISK 150 million are now presented in prepayments but were previously presented as inventories.
Also in relation to this change, the comparative information for cost of sales changes for the six months ended 30 June 2018. Cost of service sold, i.e. material cost, is decreased by ISK 343 million and depreciation increases by the same amount. See note 6.
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2019
All amounts are in millions of ISK
Notes to the Consolidated Financial Statements
4. Operating segments
An overview of operating segments is set forward in same manner as regular reporting to the Board of Directors.
The Company operates within seven segments that sell services and equipment in different markets. The operating segments are as follows:
| Operating segment: | Description: |
|---|---|
| Mobile: | Revenue from mobile services in Iceland and abroad, whether traditional GSM service, satellite service, wholesale mobile service or other mobile service. |
| Fixed voice: | Revenue from fixed voice service, fees and traffic. |
| Internet & network: | Revenue from data service, incl. xDSL service, GPON, Internet, IP net, core network, local loop and access network. |
| TV: | Revenues form TV broadcast (fees, traffic and advertisement), TV distribution and Síminn TV. |
| IT services: | Revenue from hosting and operations, advisor fees, sold service and IT related hardware sales. |
| Equipment sales: | Revenue from sale of telco equipment. |
| Other revenue: | Revenue from i.e. sold telco service and hosting. |
Operating segments 1.1.-30.6.2019
| Mobile | Fixed voice | Internet & network | TV | IT services | Equipment sales | Other revenues | Total | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.785 | 924 | 4.278 | 2.631 | 1.872 | 865 | 722 | 14.077 |
| Expenses | ( 9.106) | |||||||
| EBITDA | 4.971 | |||||||
| Depreciation and amortisation | ( 2.586) | |||||||
| Net finance cost | ( 582) | |||||||
| Taxes | ( 390) | |||||||
| Net earnings for the period | 1.413 | |||||||
| Capital additions | ( 2.899) | |||||||
| Assets | 64.475 | |||||||
| Liabilities | 28.190 |
Operating segments 1.1.-30.6.2018
| Mobile | Fixed voice | Internet & network | TV | IT services | Equipment sales | Other revenues | Total | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.038 | 961 | 4.624 | 2.309 | 1.582 | 976 | 537 | 14.027 |
| Expenses | ( 9.237) | |||||||
| EBITDA | 4.790 | |||||||
| Depreciation | ( 2.230) | |||||||
| Net finance cost | ( 372) | |||||||
| Share of earnings of associated companies | 0 | |||||||
| Taxes | ( 448) | |||||||
| Net earnings for the period | 1.740 | |||||||
| Capital additions | ( 2.608) | |||||||
| Assets | 60.042 | |||||||
| Liabilities | 23.562 |
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2019
All amounts are in millions of ISK
Notes to the Consolidated Financial Statements
| 5. Net sales | 2019 | 2018 |
|---|---|---|
| Sales of service and goods is specified as follows: | 1.1.-30.6. | 1.1.-30.6. |
| Sales of service | 11.742 | 11.967 |
| Sales of goods from IT services and telecom | 1.839 | 1.710 |
| 13.581 | 13.677 | |
| No customer comprises more than 10% of net sales |
6. Cost of sales
| Cost of sales is specified as follows: | Restated | |
|---|---|---|
| Salaries and related expenses | 1.773 | 1.742 |
| Cost of service sold | 1.720 | 1.754 |
| Interconnecting fees | 365 | 461 |
| Cost of goods sold | 1.706 | 1.537 |
| Capitalised work | (424) | (459) |
| Depreciation cost of sold services | 1.876 | 1.877 |
| 7.016 | 6.912 |
Cost of service sold consists of; material costs, service contracts, license fees, purchased services and telecommunications costs.
7. Operating expenses
Operating expenses is specified as follows:
| Salaries and related expenses | 2.292 | 2.286 |
|---|---|---|
| Sales and marketing expenses | 289 | 261 |
| Housing and transportation expenses | 364 | 714 |
| IT-Expenses | 455 | 479 |
| General and administrative expenses | 566 | 464 |
| Depreciation operating expenses | 710 | 351 |
| 4.676 | 4.555 |
8. Financial income and expense
Financial income and finance costs are specified as follow:
| Finance income | ||
|---|---|---|
| Interest income | 92 | 102 |
| Dividend received | 4 | 2 |
| 96 | 104 | |
| Finance expense | ||
| Interest on borrowings | (456) | (472) |
| Interest expense from lease liability | (137) | 0 |
| Other finance expenses | (64) | (9) |
| (657) | (481) | |
| Net exchange rate differences | (21) | 5 |
| Net financial items | (582) | (372) |
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2019
All amounts are in millions of ISK
Notes to the Consolidated Financial Statements
-
Other financial assets
30.6.2019 31.12.2018
Other financial assets are specified as follows:
Investment in other companies ... 47 46
TV programs for screening ... 241 149
Prepaid expense ... 14 15
Non-current receivables ... 194 214
Other financial assets total ... 496 424 -
Inventories
Inventories are specified as follows:
Finished goods ... 1.230 1.333
TV programs for screening ... 388 104
Inventory total ... 1.618 1.437 -
Accounts Receivables
Accounts receivables are specified as follows:
Accounts receivables ... 3.622 4.508
Allowances for doubtful accounts ... ( 157) ( 195)
Accounts receivables total ... 3.465 4.313 -
Other assets
Other assets are specified as follows:
Prepayments and accrued income ... 1.510 767
Other current assets ... 419 115
Other assets total ... 1.929 882 -
Deferred tax
Analysis of movements in the net deferred tax balances during the period is as follows:
Deferred tax at the beginning of the year ... 898 817
Income tax posted to the income statement ... 380 825
Taxes to be paid ... ( 460) ( 744)
Deferred tax liability at the end of the period ... 818 898 -
Other liabilities
Other liabilities are specified as follows:
Accrued expenses ... 974 836
Salaries and related expenses ... 362 330
VAT ... 517 562
Other ... 16 12
Other liabilities total ... 1.869 1.740
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2019
All amounts are in millions of ISK
Notes to the Consolidated Financial Statements
15. Legal proceedings
The Company is currently involved in several legal disputes that relate to Competition, Media and Telecommunication Act. Sýn hf. (Vodafone) has sued Síminn for damages due to alleged margin squeeze. The amount of the claim is around 900 million ISK. Inter, an association of ISP, sent the Company a letter in 2015 claiming damages in the amount of three billion ISK due to alleged infringement of the Competition Act. Three companies within the association have requested the appointment of a court appointed assessor to estimate the alleged damages. They also changed the claimed damages to 300 million ISK and have subsequently sued Síminn before the District Court. TSC ehf. has sued Síminn for damages in the amount of one hundred million ISK plus costs and interest due to alleged infringement of the Competition Authority's decision no 10/2005. The District Court of Reykjavík has concluded that Síminn should pay ISK 50 million plus costs and interest. Síminn has rejected the claims in all cases and countersued Vodafone. In the case of Vodafone against Síminn and Síminn's countersue against Vodafone, the District Court acquitted both companies. The case will be appealed to National Court. Síminn also appealed the District Court ruling in the case of TSC ehf. to National Court and TSC has countersued the case to the National Court.
Síminn and Vodafone have been in a dispute regarding distribution of media content. The Competition Authority and Post- and Telecommunication Authority ruled that Síminn breached against media act no. 10/2018 and fined Síminn. The fine, 9 million ISK has already been paid. The Company believes that its actions are fully compliant with the relevant Acts and will appeal. Subsequently Vodafone has filed a claim against Síminn for compensation of 1.9 billion ISK. Síminn rejected the claim and pointed out that in Vodafone claim there are no arguments for compensation, nor an attempt to prove the alleged loss. Síminn believes there is no base for the claim from Vodafone and the District Court dismissed the case due the failure to state the reasoning for the case. Vodafone later filed a motion to appoint two Court appointed Assessors. Gagnaveita Reykjavíkur has filed a claim against Síminn of 1.3 billion ISK. Síminn has rejected the claim and has pointed out that in the claim there are no arguments to conclude that conditions for liability damages existed. Síminn believes there is no base for the claim. Vodafone filed a complaint to the Competition Authority regarding the sale of broadcast from the English Premier League and demanded a mandated wholesale access to SíminnSport. The Competition Authority published its preliminary findings in July and believed that certain arrangements could be an infringement against the Competition Act and related decisions. The Authority emphasised that its opinion could change and requested further data and information. Síminn believes the opinion is in contradiction with earlier decisions of the Authority and is not substantiated with sufficient data. The Company is of the opinion that its sale of service is fully compliant with the competition law and related decisions.
In December 2015 the District Commissioner of the Capital Area approved Síminn's request to impose an injunction against Vodafone due to the distribution of non-liner media content. Síminn consequently initiated a confirmation procedure before the District Court of Reykjavík. The District Court approved the Company's request in April 2017. Vodafone appealed to the Supreme Court of Iceland which on 18 October 2018 confirmed the District Court ruling. The Supreme Court ruled that Síminn had sufficiently demonstrated that financial damage could have been attributed to Vodafone's conduct. Síminn has sued Vodafone for the District Court of Reykjavík and made a claim of 555 million ISK.
Despite the uncertain nature of the outcome of these cases, it is the management opinion that the cases will not result in substantial financial cost. In those cases where the Company might be forced to pay damages, the cost is estimated by the management and recognised in the financial statement.
16. Subsequent event
There are no subsequent events to report.
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2019
All amounts are in millions of ISK
Quarterly Statements
| 1 F 2019 | 2 F 2019 | Samtals | |
|---|---|---|---|
| Net sales | 6.773 | 6.808 | 13.581 |
| Cost of sales | ( 3.425) | ( 3.591) | ( 7.016) |
| Gross profit | 3.348 | 3.217 | 6.565 |
| Other operating income | 189 | 307 | 496 |
| Operating expenses | ( 2.430) | ( 2.246) | ( 4.676) |
| Operating profit | 1.107 | 1.278 | 2.385 |
| Net financial items | ( 313) | ( 269) | ( 582) |
| Profit before tax | 794 | 1.009 | 1.803 |
| Income tax | ( 179) | ( 211) | ( 390) |
| Profit for the period | 615 | 798 | 1.413 |
| EBITDA | 2.369 | 2.602 | 4.971 |
| 1 F 2018 | 2 F 2018 | 3 F 2018 | |
| --- | --- | --- | --- |
| Net sales | 6.756 | 6.921 | 6.828 |
| Cost of sales | ( 3.302) | ( 3.610) | ( 3.371) |
| Gross profit | 3.454 | 3.311 | 3.457 |
| Other operating income | 118 | 232 | 141 |
| Operating expenses | ( 2.275) | ( 2.280) | ( 2.156) |
| Impairment losses | 0 | 0 | 0 |
| Operating profit | 1.297 | 1.263 | 1.442 |
| Net financial items | ( 182) | ( 190) | ( 211) |
| Profit (loss) before tax | 1.115 | 1.073 | 1.231 |
| Income tax | ( 228) | ( 220) | ( 253) |
| Profit (loss) for the period | 887 | 853 | 978 |
| EBITDA* | 2.404 | 2.386 | 2.607 |
*Restated, see in Note 3.
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 June 2019
All amounts are in millions of ISK