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Síminn Interim / Quarterly Report 2023
2203_rns_2023-10-24_abbc4ab6-8bbf-4450-9336-1fbe7cf19b5b.pdf
Interim / Quarterly Report
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Síminn
Condensed Consolidated Interim Financial Statements
1 January to 30 September 2023
Síminn hf.
Ármúla 25
108 Reykjavík
Kt. 460207-0880
Contents
Page
Endorsement and Statement by the Board of Directors and the CEO... 2
Consolidated Income Statement... 3
Consolidated Statement of Financial Position... 4
Consolidated Statement of Changes in Equity... 5
Consolidated Statement of Cash Flows... 6
Notes to the Consolidated Financial Statements... 7 - 12
Quarterly Statements... 13
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 September 2023
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 "Company") for the period 1 January to 30 September 2023 are prepared and presented in accordance with International Financial Reporting Standards (IFRS) for Interim Financial Statements (IAS 34) as adopted by the EU. The Financial Statements are neither audited or reviewed by the Company's auditors.
Net profit for the first nine months of the year 2023 amounted to ISK 932 million, compared to profit of ISK 37.597 million for the same period in 2022. Net profit from continued operations amounted to ISK 932 million, compared to profit of ISK 1.681 million for the same period in 2022. Total sales for the first nine months of the year amounted to ISK 19.082 million according to the Income Statement, compared to ISK 18.339 million for the same period in 2022. Total assets as at 30 September 2023 amounted to ISK 34.262 million and total equity amounted to ISK 17.953 million according to the Statement of Financial Position. The Company's equity ratio was 52,4%.
Part of the selling price of Míla ehf. to Ardian, which was announced on September 30, 2022 was in a form of a bond. The bond was sold to a company owned by Ardian for ISK 15.7 billion at the end of January.
The Annual General Meeting of Síminn approved on 9 March 2023 a share capital decrease. On one hand to cancel out own shares which amounted to ISK 185 million in nominal value, and on the other hand a share capital decrease of ISK 1.625 million with a payment to shareholder of ISK 15.7 billion which the Company paid on March 31. In total the share capital therefore decreased from ISK 4.400 million to ISK 2.775 million. The same Annual General Meeting approved a share buyback program allowing buyback for up to ISK 277.5 million in nominal value and a proposal to pay ISK 500 million in dividend to shareholders, the dividend was paid on March 31. Based on the approval of the Annual General Meeting held in 2022 and 2023 the Company has this year purchased own shares for nominal value ISK 208 million, market value ISK 2.188 million.
At a Board meeting on 16 May 2023 the Board approved a share option plan for managers for a maximum of ISK 75 million shares. The decision is based on approval from the Annual General Meeting of Síminn from 9 March 2023. A share option plan has also been finalized for all employees of the Company and is based on Article 10 of Act no. 90/2003 on income tax. In total employee purchases can be up to ISK 92,6 million shares. Expensing based on those share option plans have begun.
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 nine months ended 30 September 2023, its assets, liabilities and consolidated financial position as at 30 September 2023 and its consolidated cash flows for the nine month period ended 30 September 2023. 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 September 2023 and confirm them by means of their signatures.
Reykjavík, 24 October 2023
Board of Directors
Jón Sigurðsson, Chairman
Sigrún Ragna Ólafsdóttir, vice chairman
Arnar Þór MÁSSON
Bjarni Þórvarðarson
Björk Víðarsdóttir
CEO
Orri Hauksson
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 September 2023
Consolidated Income Statement and other comprehensive income for the period 1 January to 30 September 2023
| Notes | 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|---|
| 1.7.-30.9. | 1.7.-30.9. | 1.1.-30.9. | 1.1.-30.9. | ||
| Net sales | 5 | 6.329 | 6.016 | 18.599 | 17.871 |
| Cost of sales | 6 | ( 4.113) | ( 3.681) | ( 12.378) | ( 11.040) |
| Gross profit | 2.216 | 2.335 | 6.221 | 6.831 | |
| Other operating income | 172 | 194 | 483 | 468 | |
| Operating expenses | 7 | ( 1.623) | ( 1.543) | ( 5.259) | ( 5.057) |
| Operating profit | 765 | 986 | 1.445 | 2.242 | |
| Finance income | 161 | 97 | 545 | 387 | |
| Finance cost | ( 303) | ( 165) | ( 815) | ( 530) | |
| Net exchange rate differences | 16 | ( 16) | ( 2) | ( 14) | |
| Net financial items | 8 | ( 126) | ( 84) | ( 272) | ( 157) |
| Profit before tax | 639 | 902 | 1.173 | 2.085 | |
| Income tax | ( 132) | ( 184) | ( 241) | ( 404) | |
| Profit for the period from continuing operations | 507 | 718 | 932 | 1.681 | |
| Profit from discontinued operation, net of tax | 0 | 35.628 | 0 | 35.916 | |
| Profit for the period | 507 | 36.346 | 932 | 37.597 | |
| EBITDA | 1.811 | 1.790 | 4.536 | 4.516 | |
| Earnings per share | |||||
| Basic earnings per share from continued operations | 0,18 | 0,10 | 0,31 | 0,23 | |
| Diluted earnings per share from continued operations | 0,17 | 0,10 | 0,30 | 0,23 |
The notes on pages 7 to 12 are an integral part of these consolidated financial statements
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 September 2023
All amounts are in millions of ISK
Consolidated Statement of Financial Position as at 30 September 2023
| Notes | 30.9.2023 | 31.12.2022 | |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Property, plant and equipment | 2.472 | 2.466 | |
| Right-of-use assets | 787 | 941 | |
| Intangible assets | 21.276 | 22.122 | |
| Other financial assets | 9 | 581 | 580 |
| Non-current assets | 25.116 | 26.109 | |
| Current assets | |||
| Inventories | 10 | 1.209 | 1.212 |
| Accounts receivables | 11 | 2.284 | 2.045 |
| Loans (Siminn Pay) | 12 | 2.310 | 1.359 |
| Other assets | 13 | 1.364 | 1.048 |
| Bonds at fair value | 14 | 0 | 15.687 |
| Cash and cash equivalents | 1.979 | 3.721 | |
| Current assets | 9.146 | 25.072 | |
| Total assets | 34.262 | 51.181 | |
| Equity | |||
| Share capital | 2.605 | 4.242 | |
| Reserves | 0 | 495 | |
| Statutory reserve | 651 | 1.061 | |
| Other reserve | 550 | 576 | |
| Retained earnings | 14.147 | 28.887 | |
| Equity | 17.953 | 35.261 | |
| Liabilities | |||
| Non-current liabilities | |||
| Borrowings | 7.466 | 5.956 | |
| Lease liabilities | 566 | 731 | |
| Payables | 0 | 639 | |
| Deferred tax liabilities | 15 | 331 | 89 |
| Non-current liabilities | 8.363 | 7.415 | |
| Current liabilities | |||
| Bank loans | 1.909 | 1.929 | |
| Accounts payables | 16 | 4.671 | 4.788 |
| Current maturities of lease liabilities | 269 | 251 | |
| Taxes to be paid | 0 | 577 | |
| Other liabilities | 17 | 1.097 | 960 |
| Current liabilities | 7.946 | 8.505 | |
| Total liabilities | 16.309 | 15.920 | |
| Total equity and liabilities | 34.262 | 51.181 |
The notes on pages 7 to 12 are an integral part of these consolidated financial statements
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 September 2023
All amounts are in millions of ISK
Consolidated Statement of Changes in Equity
1 January to 30 September 2023
| Share capital | Reserves | Other statutory reserve | Translation- and other reserve | Retained earnings | Total equity | |
|---|---|---|---|---|---|---|
| Total equity 1.1.2022 | 7.314 | 3.278 | 154 | 2.020 | 18.313 | 31.079 |
| Net profit for the period | 37.597 | 37.597 | ||||
| Payment of dividends (0,069 per share) | ( 500) | ( 500) | ||||
| Buyback of ordinary shares | ( 228) | ( 2.468) | ( 2.696) | |||
| Other changes | ( 1.427) | 1.427 | 0 | |||
| Total equity 30.9.2022 | 7.086 | 810 | 154 | 593 | 56.837 | 65.480 |
| Total equity 1.1.2023 | 4.242 | 495 | 1.061 | 576 | 28.887 | 35.261 |
| Net profit for the period | 932 | 932 | ||||
| Payment of dividends (0,119 per share) | ( 499) | ( 499) | ||||
| Share capital decrease | ( 1.429) | ( 357) | ( 13.794) | ( 15.580) | ||
| Buyback of ordinary shares | ( 208) | ( 495) | ( 53) | ( 1.432) | ( 2.188) | |
| Other changes | ( 26) | 26 | 0 | |||
| Share option charge | 27 | 27 | ||||
| Total equity 30.9.2023 | 2.605 | 0 | 651 | 550 | 14.147 | 17.953 |
The notes on pages 7 to 12 are an integral part of these consolidated financial statements
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 September 2023
All amounts are in millions of ISK
Consolidated Statement of Cash Flow 1 January to 30 September 2023
| Notes | 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|---|
| 1.7.-30.9. | 1.7.-30.9. | 1.1.-30.9. | 1.1.-30.9. | ||
| Cash flow from operating activities | |||||
| Operating profit | 765 | 986 | 1.445 | 2.242 | |
| Operational items not affecting cash flow: | |||||
| Depreciation | 1.046 | 804 | 3.091 | 2.274 | |
| Gain on sale of fixed assets | (10) | (52) | (15) | (56) | |
| Other items not affecting cash flow | 21 | 0 | 27 | 0 | |
| 1.822 | 1.738 | 4.548 | 4.460 | ||
| Changes in current assets and liabilities: | |||||
| Changes in inventories | 84 | 62 | (157) | (231) | |
| Changes in operating assets | (388) | 946 | (477) | 952 | |
| Changes in operating liabilities | 61 | 170 | 229 | 938 | |
| Changes in current assets and liabilities | (243) | 1.178 | (405) | 1.659 | |
| Cash generated by operation | 1.579 | 2.916 | 4.143 | 6.119 | |
| Interest income received | 125 | 95 | 517 | 274 | |
| Interest expenses paid | (219) | (127) | (617) | (482) | |
| Payments of taxes | (236) | (209) | (630) | (557) | |
| Net cash from operating activities | 1.249 | 2.675 | 3.413 | 5.354 | |
| Investing activities | |||||
| Investment in property, plant and equipment | (153) | (196) | (642) | (573) | |
| Investment in intangible assets | (216) | (1.758) | (2.306) | (2.515) | |
| Proceeds from sale of property, plant and equipment | 27 | 1 | 37 | 5 | |
| Changes in other investment | (351) | (79) | (905) | (248) | |
| Sale of bond | 0 | 0 | 15.685 | 0 | |
| Sale of subsidiaries | 0 | 32.713 | 0 | 32.713 | |
| Changes in other investment | 0 | 0 | 0 | 152 | |
| Investment activities | (693) | 30.681 | 11.869 | 29.534 | |
| Financing activities | |||||
| Dividend paid | 0 | 0 | (499) | (500) | |
| Buyback of ordinary shares | (735) | (805) | (2.187) | (2.696) | |
| Share capital decrease, payment to shareholders | 0 | 0 | (15.580) | 0 | |
| New borrowings | 1.500 | 0 | 1.500 | 0 | |
| Payment of long term lease | (69) | (62) | (198) | (155) | |
| Bank loans, decrease | 0 | 0 | (21) | (1.186) | |
| Financing activities | 696 | (867) | (16.985) | (4.537) | |
| Increase (decrease) in cash and cash equivalents | 1.252 | 32.489 | (1.703) | 30.351 | |
| Effect of exchange rate fluctuations on cash held | 0 | (2) | (39) | (8) | |
| Cash and cash equivalents at the beginning of the period | 727 | 1.365 | 3.721 | 3.509 | |
| Cash and cash equivalents at the end of the period | 1.979 | 33.852 | 1.979 | 33.852 |
The notes on pages 7 to 12 are an integral part of these consolidated financial statements
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 September 2023
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. These condensed consolidated interim financial statements ('interim financial statements') for the nine months ended 30 September 2023 comprise the Company and its subsidiaries (together referred to as "Síminn" or the "Company"). The subsidiaries are Síminn Pay ehf. and Radíómiðun ehf.
2. Basis of accounting
2.1. 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 Company's last annual consolidated financial statements as at and for the year ended 31 December 2022. 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 Company's financial position and performance since the last annual financial statements.
The Company'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.
These interim financial statements were authorised for issue by the Company's board of directors on October 24, 2023.
2.2. Basis of measurement
These interim financial statements have been prepared on the historical cost basis.
2.3. 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.
2.4. 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, liabilities, income and expense. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
3. Changes in accounting policies
The accounting policies applied in these interim financial statements are the same as those applied in the Company's consolidated financial statements as at and for the year ended 31 December 2022.
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 September 2023
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 six 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, local loop and access network. |
| TV: | Revenues form TV broadcast (fees, traffic and advertisement), TV distribution and Siminn TV. |
| Equipment sales: | Revenue from sale of telco equipment. |
| Other revenue: | Revenue from i.e. sold telco service, IT and finance. |
| Operating segments 1.1.-30.9.2023 | |
| --- | --- |
| Mobile | |
| Revenue | 4.854 |
| Expenses | |
| EBITDA | |
| Depreciation | |
| Net finance cost | |
| Taxes | |
| Profit for the period from continuing operations | |
| Profit from discontinued operation, net of tax | |
| Net earnings for the period | |
| Capital additions | |
| Assets 30.9.2023 | |
| Liabilities 30.9.2023 | |
| Operating segments 1.1.-30.9.2022 | |
| Mobile | |
| Revenue | 4.500 |
| Expenses | |
| EBITDA | |
| Depreciation | |
| Net finance cost | |
| Taxes | |
| Profit for the period from continuing operations | |
| Profit from discontinued operation, net of tax | |
| Net earnings for the period | |
| Capital additions | |
| Assets 30.9.2022 | |
| Liabilities 30.9.2022 |
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 September 2023
All amounts are in millions of ISK
Notes to the Consolidated Financial Statements
| 5. Net sales | 2023 | 2022 |
|---|---|---|
| Sales of service and goods is specified as follows: | 1.1.-30.9. | 1.1.-30.9. |
| Sales of service | 17.242 | 16.331 |
| Sales of goods | 1.357 | 1.540 |
| 18.599 | 17.871 |
No customer comprises more than 10% of net sales.
6. Cost of sales
Cost of sales is specified as follows:
| Salaries and related expenses | 710 | 614 |
|---|---|---|
| Cost of service sold | 7.629 | 6.881 |
| Interconnecting fees | 520 | 557 |
| Cost of goods sold | 1.238 | 1.419 |
| Capitalised work | ( 122) | ( 142) |
| Depreciation cost of sold services | 2.403 | 1.711 |
| 12.378 | 11.040 |
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 | 2.494 | 2.360 |
|---|---|---|
| Sales and marketing expenses | 433 | 407 |
| Housing and transportation expenses | 266 | 343 |
| IT-Expenses | 807 | 822 |
| General and administrative expenses | 571 | 562 |
| Depreciation operating expenses | 688 | 563 |
| 5.259 | 5.057 |
8. Financial income and expense
Financial income and finance costs are specified as follow:
| Finance income | ||
|---|---|---|
| Interest income | 543 | 272 |
| Other financial income | 0 | 113 |
| Dividend received | 2 | 2 |
| 545 | 387 | |
| Finance expense | ||
| Interest on borrowings | ( 622) | ( 282) |
| Interest expense from lease liability | ( 36) | ( 33) |
| Loan write-downs | ( 86) | ( 42) |
| Other finance expenses | ( 71) | ( 173) |
| ( 815) | ( 530) | |
| Net exchange rate differences | ( 2) | ( 14) |
| Net financial items | ( 272) | ( 157) |
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 September 2023
All amounts are in millions of ISK
Notes to the Consolidated Financial Statements
- Other financial assets
30.9.2023 31.12.2022
Other financial assets are specified as follows:
| Investment in other companies | 8 | 38 |
|---|---|---|
| TV programs | 365 | 204 |
| Loans (Siminn Pay) | 208 | 338 |
| Other financial assets total | 581 | 580 |
- Inventories
Inventories are specified as follows:
| Finished goods | 734 | 601 |
|---|---|---|
| TV programs | 475 | 611 |
| Inventory total | 1.209 | 1.212 |
- Accounts Receivables
Accounts receivables are specified as follows:
| Accounts receivables | 2.361 | 2.129 |
|---|---|---|
| Allowances for doubtful accounts | ( 77) | ( 84) |
| Accounts receivables total | 2.284 | 2.045 |
- Loans (Siminn Pay)
Loans consist of loans from Company's subsidiary, Siminn Pay ehf. They are loans to individuals, between 1-18 months.
| Loans | 2.663 | 1.795 |
|---|---|---|
| Impairment losses recognised on loans | ( 145) | ( 98) |
| Moved to non-current assets | ( 208) | ( 338) |
| Loans total | 2.310 | 1.359 |
- Other assets
Other assets are specified as follows:
| Prepayments and accrued income | 1.048 | 705 |
|---|---|---|
| Other current assets | 316 | 343 |
| Other assets total | 1.364 | 1.048 |
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 September 2023 10
All amounts are in millions of ISK
Notes to the Consolidated Financial Statements
| 14. Bonds at fair value | 30.9.2023 | 31.12.2022 |
|---|---|---|
| Bonds at fair value are specified as follows: | ||
| Balance at 1.1. | 15.687 | 0 |
| Bought | 0 | 17.500 |
| Fair value assessment upon receipt | 0 | ( 1.431) |
| Fair value assessment at year-end 2022 | 0 | ( 382) |
| Bonds sold | ( 15.685) | 0 |
| Loss of sale | ( 2) | 0 |
| Bonds at fair value | 0 | 15.687 |
The security is an unregistered bond of Sunstone II hf. and was sold in January 2023.
15. 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 | 89 | 604 |
|---|---|---|
| Income tax from discontinued operations | 0 | ( 286) |
| Income tax posted to the income statement | 247 | 345 |
| Taxes to be paid | ( 5) | ( 562) |
| Prior year correction | 0 | ( 12) |
| Deferred tax liability at the end of the period | 331 | 89 |
16. Payables
Payables are specified as follows:
| Payables | 3.271 | 3.281 |
|---|---|---|
| Accrued expenses | 1.400 | 1.507 |
| Payables total | 4.671 | 4.788 |
17. Other liabilities
Other liabilities are specified as follows:
| Accrued expenses | 462 | 508 |
|---|---|---|
| Salaries and related expenses | 181 | 242 |
| VAT | 454 | 210 |
| Other liabilities total | 1.097 | 960 |
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 September 2023
All amounts are in millions of ISK
Notes to the Consolidated Financial Statements
18. Legal proceedings
The Company is currently involved in several legal disputes that relate i.a. to Competition and Media Act.
The Competition Authority concluded in its interim decision no. 30/2023 that Síminn was obliged to renew its agreement with Nova hf. for wholesale of Síminn Sport to Nova which expired in May 2023. Síminn is of the opinion that the interim decision of the Competition Authority is without legal foundation and appealed the decision to the Competition Appeals Committee. The Committee rejected to rule on the appeal, since there is no legal instrument that allows the appeal of interim decision and therefore the case awaits the Competition Authority formal ruling.
The status of the following legal cases has not changed since the publication of the 2022 financial statements.
Síminn and Sýn hf. have been in a dispute regarding distribution of media content. The Competition Authority and Post- and Telecommunication Authority (now Electronic Communication Office) 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 appealed the decision to the District Court of Reykjavík. The Reykjavík District Court ruled on the matter and partially annulled the decision and lowered the fine to 7 million ISK. Síminn, Sýn and the PTA filed brought the case to the National Court, which confirmed the PTA decisions and increased the fine to 9 mkr. Síminn appealed the judgment to the Supreme Court which set the National Court and District Court judgment aside and referred the case back to the District Court for lawful proceedings. After the initial decisions of the PTA Sýn hf. filed a claim against Síminn for compensation of 1.9 billion ISK. Síminn rejected the claim and pointed out that in Sýn hf. 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 Sýn hf. and the District Court dismissed the case due the failure to state the reasoning for the case. Sýn hf. later filed a motion to appoint two Court appointed assessors and has filed a case against Síminn before the District Court and claimed damages of 125 million ISK. Síminn has rejected this claim and has filed its written. Sýn also filed a claim against Síminn of ISK 270 million, Síminn has submitted a statement in which the claim was rejected.
Gagnaveita Reykjavíkur 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.
PTA and Sýn have sued Síminn before the District Court of Reykjavík in order to have the ruling of the Committee for Electronic Communications and Postal Affairs, annulment, whereby the Committee annulled the PTA decision no 27/2019 where the PTA imposed a fine of 9 million ISK on Síminn. Síminn will demand that the ruling of the Committee shall be confirmed.
The Competition Authority reached a decision that Síminn had infringed Competition Authority Decision no. 6/2015 and 20/2015 and fined Síminn for 500 million ISK, which the Company paid. Síminn appealed the decision to the Competition Appeal committee in order to have the CA decision annulled. The CAC annulled that part of the CA decision that related to alleged infringement of Decision no 6/2015 and lowered the fine down to 200 million ISK. Síminn has filed a lawsuit before the Reykjavík District Court with a claim for annulment of the part of the ruling of the Competition Appeals Committee which concerned an alleged infringement of the Competition Authority's decision no. 20/2015. The Competition Authority has also filed a lawsuit before the Reykjavík District Court. In October 2022 the District Court annulled the Competition Authority's decision whereby the Authority was obliged to repay Síminn the remaining 200 million ISK plus interest. The Competition Authority as appealed the decision to the National Court. The Company is, as before, of the opinion that the arrangements for the sale of the Company's services are fully in accordance with the Competition Act and the decisions that the Company has made on the basis of the Competition Act.
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.
19. Events after reporting date
There are no subsequent events to report.
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 September 2023
All amounts are in millions of ISK
Quarterly Statements
Summary of the Company's operating results by quarters:
| Q1 2023 | Q2 2023 | Q3 2023 | Total | |
|---|---|---|---|---|
| Net sales | 6.153 | 6.117 | 6.329 | 18.599 |
| Cost of sales | ( 4.155) | ( 4.110) | ( 4.113) | ( 12.378) |
| Gross profit | 1.998 | 2.007 | 2.216 | 6.221 |
| Other operating income | 145 | 166 | 172 | 483 |
| Operating expenses | ( 1.825) | ( 1.811) | ( 1.623) | ( 5.259) |
| Operating profit | 318 | 362 | 765 | 1.445 |
| Net financial items | ( 1) | ( 145) | ( 126) | ( 272) |
| Profit before tax | 317 | 217 | 639 | 1.173 |
| Income tax | ( 71) | ( 38) | ( 132) | ( 241) |
| Profit for the period | 246 | 179 | 507 | 932 |
| EBITDA | 1.315 | 1.410 | 1.811 | 4.536 |
| Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | |
| --- | --- | --- | --- | --- |
| Net sales | 5.957 | 5.898 | 6.016 | 6.068 |
| Cost of sales | ( 3.762) | ( 3.597) | ( 3.681) | ( 3.874) |
| Gross profit | 2.195 | 2.301 | 2.335 | 2.194 |
| Other operating income | 136 | 138 | 194 | 165 |
| Operating expenses | ( 1.757) | ( 1.757) | ( 1.543) | ( 1.656) |
| Operating profit (loss) | 574 | 682 | 986 | 703 |
| Net financial items | 92 | ( 165) | ( 84) | ( 389) |
| Profit (loss) from discontinued operation, net of tax | 193 | 95 | 35.628 | 289 |
| Profit (loss) before tax | 859 | 612 | 36.530 | 603 |
| Income tax | ( 113) | ( 107) | ( 184) | 67 |
| Profit (loss) for the period | 746 | 505 | 36.346 | 670 |
| EBITDA | 1.327 | 1.399 | 1.790 | 1.633 |
Siminn hf. - Condensed Consolidated Interim Financial Statements 30 September 2023
All amounts are in millions of ISK