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Syn Interim / Quarterly Report 2021
2210_rns_2021-09-01_4c9a79e2-36c3-4619-ab67-0f6ad2e54ae7.pdf
Interim / Quarterly Report
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Interim Financial Statements Q2 and 1H 2021
2nd of September 2021
vodafone
visir
SPORT
BYLGJAN
2021
ENDOR
Key Financial Results
Q2 and 1H 2021
Revenue 1H ISK 10,289M
Q2 2021
ISK 5,289M
EBITDA 1H ISK 2,876M
Q2 2021
ISK 1,488M
Earnings 1H ISK -348M
Q2 2021
ISK -117M
FCF 1H ISK 1,611M
Q2 2021
ISK 1,736M
Income Statement
| Q2 2021 | Q2 2020 | % ch. | 1H 2021 | 1H 2020 | % ch. | |
|---|---|---|---|---|---|---|
| Revenues | 5,289 | 5,387 | -1.8% | 10,289 | 10,418 | -1.2% |
| Cost of sales | -3,759 | -3,752 | 0.2% | -7,134 | -7,138 | -0.1% |
| Gross profit | 1,530 | 1,635 | -6.4% | 3,155 | 3,280 | -3.8% |
| Operating expense | -1,588 | -1,571 | 1.1% | -3,171 | -3,237 | -2.0% |
| EBITDA | 1,488 | 1,364 | 9.1% | 2,876 | 2,719 | 5.8% |
| EBIT | -58 | 64 | - | -16 | 43 | - |
| Net financial expense | -117 | -182 | - | -210 | -623 | - |
| Effect of associates | 20 | 28 | - | -173 | 48 | - |
| Income tax | 38 | 30 | - | 51 | 122 | - |
| Loss | -117 | -60 | - | -348 | -410 | - |
| Gross Margin | 28.9% | 30.4% | 30.7% | 31.5% | ||
| EBITDA | 28.1% | 25.3% | 28.0% | 26.1% | ||
| EBIT | -1.1% | 1.2% | -0.2% | 0.4% |
Key factors impacting Q2 and 1H 2021
- Good growth in revenues from the media and mobile. Decline in revenues in mainly due to decrease in Endor revenues.
- "Fjölskyldupakkinn" our newest bundle has been a success and increased the number of costumers together with the broadcasting of EURO2020.
- Immaterial change in exchange rate from Q1 2021. Exchange rate gain recognised in 1H 2021 was 68m compared to exchange rate loss of 242m in 1H 2020.
- Interest expenses decrease by 106m between periods because of lower interest rate.
-
A loss of 179m was recognised due to the sale of the Faroese associate, Hey. Sales proceeds were used to lower debt.
-
Amounts are in ISK million
Revenue Breakdown
| Q2 2021 | Q2 2020 | % ch. | 1H 2021 | 1H 2020 | % ch. | |
|---|---|---|---|---|---|---|
| Media | 2,116 | 1,875 | 13% | 4,070 | 3,845 | 6% |
| Broadband | 1,116 | 1,148 | -3% | 2,261 | 2,308 | -2% |
| Mobile | 1,061 | 835 | 27% | 2,000 | 1,745 | 15% |
| Fixed Line | 134 | 155 | -14% | 274 | 322 | -15% |
| Hosting and operating solutions | 352 | 944 | -63% | 665 | 1,315 | -49% |
| Retail sale | 311 | 240 | 30% | 604 | 476 | 27% |
| Other revenue | 199 | 190 | 5% | 415 | 407 | 2% |
| Total Revenue | 5,289 | 5,387 | -2% | 10,289 | 10,418 | -1% |
Media
Revenue from media increases by 13% between Q1 2021 and Q2 2020, mainly due to growth in customer in the new product bundle „Fjölskyldupakki" and because of EURO2020 broadcasting in June. Advertising revenue increased by 19% in 1H 2021 compared to 1H 2020, the increase is mostly related to EURO2020 event and significant growth in advertising revenues from „Vísir" which increased by 43% between 1H 2021 and 1H 2020.
Broadband
Revenue from broadband decreases by 2% between 1H 2021 and 1H 2020. Prices were lowered in accordance with the new service strategy DOR which leads to lower churn and happier customers long term but reduces revenue short term.
Mobile
Revenue from mobile increases by 15% between 1H 2021 and 1H 2020 which is mainly due to growth in IoT revenue. At the same time roaming revenue have decreased by 43m between periods. Revenue from roaming have increased between Q1 2021 and Q2 2021 for the first time since the start of the pandemic. The increase is however insignificant.
Hosting and operating solutions
Negative revenue growth in Q2 is mainly due to less sales of technical products because of Covid-19 and unfavorable exchange rate development.
Retail sales
Continuing positive development in retail sales but forecast assumes reduction in revenue growth for 2H 2021 (compared to last year).
- Amounts are in ISK million
Statement of Financial Position
Assets
| ISK m | 30.6.2021 | 31.12.2020 | % ch. |
|---|---|---|---|
| Fixed assets | |||
| Right-of-use asset | 4,651 | 5,227 | -11% |
| Property, plant and equipment | 3,485 | 3,818 | -9% |
| Goodwill | 8,883 | 8,932 | -1% |
| Other intangible assets | 4,456 | 4,403 | 1% |
| Shares in other companies | 121 | 1,398 | -91% |
| Deferred tax asset | 427 | 383 | 11% |
| Fixed assets | 22,023 | 24,161 | -9% |
| Current assets | |||
| Broadcasting license rights | 1,690 | 1,876 | -10% |
| Inventories | 280 | 241 | 16% |
| Trade receivables and other short term receivables | 3,420 | 3,217 | 6% |
| Cash and cash equivalents | 402 | 831 | -52% |
| Current assets | 5,792 | 6,165 | -6% |
| Assets available for sale | 536 | 536 | 0% |
| Total assets | 28,351 | 30,862 | -8% |
Liabilities and equity
| ISK m | 30.6.2021 | 31.12.2020 | % ch. |
|---|---|---|---|
| Equity | 8,084 | 8,549 | -5% |
| Long term liabilities | |||
| Interest bearing debt | 8,632 | 9,492 | -9% |
| Lease liabilities | 4,237 | 4,507 | -6% |
| Other liabilities | 166 | 166 | 0% |
| Deferred tax liabilities | - | 16 | |
| Non-current liabilities | 13,035 | 14,181 | -8% |
| Current liabilities | |||
| Interest bearing debt | 689 | 992 | -31% |
| Lease liabilities | 959 | 1,259 | -24% |
| Accounts payable and other current liabilities | 5,415 | 5,699 | -5% |
| Current liabilities | 7,063 | 7,950 | -11% |
| Liabilities because of assets available for sale | 169 | 182 | -7% |
| Total equity and liabilities | 28,351 | 30,862 | -8% |
| Interest bearing debt | 14,517 | 16,251 | |
| Net interest bearing debt | 14,115 | 15,419 | |
| Equity ratio | 28.5% | 27.8% |
Cash Flow
Cash Flow Q2 2021
Cash Flow 6M 2021
| Q2 2021 | Q2 2020 | % ch. | 1H 2021 | 1H 2020 | % ch. | |
|---|---|---|---|---|---|---|
| Cash generated by operations before interest and tax | 1,572 | 1,930 | -19% | 2,254 | 3,192 | -29% |
| Investment activities | 164 | -857 | -119% | -643 | -1,595 | -60% |
| Free cash flow | 1,736 | 1,073 | 62% | 1,611 | 1,597 | 1% |
- Amounts are in ISK million
Statement of Financial Position - Key Ratios
Equity Ratio
Current Ratio*
Net interest bearing debt
*Current Assets / liabilities and other current liabilities
*Amounts are in ISK million
Sales of passive mobile infrastructure
- Agreement signed on the 31st of March 2021. The total sales price is around 7.1 billion ISK.
- The agreement is subject to approval of the Competition Authority. It is expected to be obtained in the next few days and following that work will begin on transferring the sold assets to the buyer.
- Sale proceeds will be used to pay down loans, repurchase shares and for new investments. Sýn hf. is preparing for additional sales of other infrastructure in the year.
| Asset | Owner |
|---|---|
| 1 Active radio transmission equipment | Vodafone |
| 2 Antennae & cables (fibre / feeders) | Vodafone |
| 3 Physical tower, masts & pole | TowerCo |
| 4 Foundation & fencing | TowerCo |
| 5 Contractual right to occupy site area | TowerCo |
| 6 Power equipment | TowerCo |
| 7 Cooling system | TowerCo |
| Asset | Owner |
| --- | --- |
| 8 Surveillance systems | TowerCo |
| 9 Access facilities | TowerCo |
| 10 Outdoor cabinet | Vodafone |
| 11 Shelter / service rooms | TowerCo |
| 12 Emergency equipment | TowerCo |
| 13 Cable routing (duct) | TowerCo |
| 14 Mounting equipment | TowerCo |
Media
Growth in number of subscribers Stöð 2 og Stöð 2+
Stöð 2 and Stöð 2+ Subscribers development
— Number of subscribers increased by 13% between Q2 2020 and Q2 2021.
Record set for subscribers to Stöð 2 Sport
Stöð 2 sport
Subscribers development
- Strong growth in sport’s subscriptions and the broadcasting of EM2020 was a success.
DEI.DOJ
KØBENHAVNS
KØSSYNNENS
STO
SVENSKENS LEAGUE
EUROPEAN
BIRD
EUROPE
FAM
KAPITAL
LILJAN
LILJAN
LILJAN
LILJAN
LILJAN
LILJAN
LILJAN
EM 2020
- A record in number of subscribers in the 25 year history of Stöð 2 Sport.
- According to Gallup media survey, Stöð 2 Sport channels had 35% share of television view during the week 5th-11th of July. A remarkable success in the history of sports television in Iceland.
- "EM í dag", the evening show presented by Guðmundur Benediktson and Helena Ólafsdóttir became very popular and the viewing of the show was no less than the viewing of the games themselves.
- Well-known individuals were regular guests at „EM í dag“, for example Guðni Th. Jóhannesson, the president of Iceland and Heimir Hallgrímsson, former coach of the Icelandic national football team.
- Over 50 games and 90 shows streamed live.
Blökastið
- „Blökastið“ is the first podcast in a new content platform for podcasts that is being established.
- The radio show „FM95Blö“ has been on the radio station FM957 for a decade. The podcast is based on the show but with other emphases. The podcast will be broadcasted once or twice a month from „Stöð 2“ studio so it will be turned into a TV show in a podcast environment.
- The podcast will be sold by a monthly subscription for ISK 1.390 + VAT. The launch was a success.
- In the coming weeks, more podcasts will be released, both with people inside and outside of the Company.
New business media
- New business media that specializes in news about the Icelandic business and economic environment will be launched in „Vísir“ later this year.
- The media will by subscription based.
- The media will be lead by Hörður Ægisson and Ólöf Skaftadóttir.
- The media intends to be a leader when it comes to coverage of the Icelandic business and economic environment and thus create value for the readers that will not be found in the same way in other media in Iceland.
- Almost 200 thousand people visit „Vísir“ website every day enjoy it content of various kinds. The new business media will be a great addition to all that.
FRÉTTIR | VIDSKIPTI | SPORT | LÍFID | SKODUN | FASTEIGNIR | ÚTVARP | SJÓNVARP
Mest lesni vefur landsins
Thank you
vodafone
visir
SPORT
BYLGJAN 989
KIRIK
ENDOR
Disclaimer
The information in this presentation are based on sources that Sýn hf. deem reliable at the time of publication. However, it is not possible to secure fully that they are completely faultless.
All information in the presentation are the property of Sýn hf. It is prohibited to copy, amend or distribute in any manner, partly or fully, the presentation and the information therein.
The presentation is only for information purposes and not to be used as basis for decision making on part of recipients. Recipients shall not in any manner interpret the content therein as promise or guidance. Sýn hf. is not obliged to provide the recipients with further information nor to amend or correct should the information it is based on change.
Any statement in this presentation that cites future prospects is solely for guidance purposes, based on current evolution, information and projections. Future guidance of the company are subject to numerous risk and uncertainties that can result in being substantially different from the content of this presentation. External factors, such as access to finance, legislation, regulatory actions and otherwise can thus have substantial effects.
Sýn hf. will not update future guidance of the company due to situations that will occur afterwards. Sýn hf. suggest that recipients of the presentation should not trust statements therein at a later stage as they are only relevant at the day of the publication. Subject to this provision, all guidance on future prospects are fully reliable.
The recipients of the presentation acknowledge that they are subject to aforementioned disclaimers and limitations.