AI assistant
Syn Investor Presentation 2018
2210_rns_2018-08-29_f51175cc-0fa1-4823-903a-5d144001329f.pdf
Investor Presentation
Open in viewerOpens in your device viewer
sýn
Key Financial Results Q2 2018
Revenue
5,444 m IKR
61% increase from 2017
EBITDA
718 m IKR
13.2% EBITDA %
Net Loss
4 m IKR
102% decrease from 2017
Equity Ratio
38.4%
Was 39.% in end of 2017
*Amounts adjusted for one-time costs for the acquisition of 365 media hf.
Q2 Highlights
| ISK m | Q2 2018 | Q2 2017 | Change | % change |
|---|---|---|---|---|
| Revenue | 5,444 | 3,386 | 2,058 | 61% |
| Cost of Sales | 3,364 | 1,865 | 1,499 | 80% |
| Gross Profit | 2,080 | 1,521 | 559 | 37% |
| Operating costs | 1,886 | 1,145 | 741 | 65% |
| EBITDA | 718 | 761 | -43 | -6% |
| EBIT | 194 | 376 | -182 | -48% |
| Net Financials | 198 | 78 | 120 | 156% |
| Net Profit | -4 | 239 | -243 | -102% |
| Gross Margin (%) | 38.2% | 44.9% | ||
| EBITDA % | 13.2% | 22.5% | ||
| EBIT % | 3.6% | 11.1% |
Media largest contributor of revenue growth
| ISK m | Q2 2018 | Q2 2017 | Chg. | % chg. |
|---|---|---|---|---|
| Media | 2,229 | 536 | 1,693 | 316% |
| Broadband | 1,226 | 977 | 249 | 25% |
| Mobile | 1,121 | 1,044 | 77 | 7% |
| Fixed Line | 274 | 293 | -19 | -7% |
| Retail Sales | 322 | 329 | -7 | -2% |
| Other Revenue | 272 | 207 | 65 | 31% |
| Total Revenue | 5,444 | 3,386 | 2,058 | 61% |
Q1 Cash flow
^{}[]
| ISK m | Q2 2018 | Q2 2017 | Change | % chg. |
|---|---|---|---|---|
| Cash generated by operations | 365 | 513 | -148 | -29% |
| Investing activities | -854 | -536 | -318 | 59% |
| Financing activities | 564 | 75 | 489 | 652% |
| Change in cash | 76 | 52 | 24 | 46% |
| Cash at beginning of period | 241 | 274 | -33 | -12% |
| Cash at the end of period | 317 | 326 | -9 | -3% |
| Free Cash Flow | -320 | 56 | -376 | -671% |
Q2 2018 Cash Flow changes
Key Financial Results 6M 2018
Amounts adjusted for one-time costs for the acquisition of 365 media hf.
Revenue
10,748 m IKR
65% increase from 2017
EBITDA
1,436 m ISK
13,4% EBITDA %
1.581 m ISK adj.*
4% increase from 2017
Profit
52 m ISK
88% decrease from 2017
168 m ISK adj.*
64% decrease from 2017
Equity Ratio
38.4%
Was 39.9% in end of 2017
6M Highlights
| ISK m | 6M 2018 | 6M 2017 | Change | % change |
|---|---|---|---|---|
| Revenue | 10,748 | 6,527 | 4,221 | 65% |
| Cost of Sales | 6,561 | 3,572 | 2,989 | 84% |
| Gross Profit | 4,187 | 2,955 | 1,232 | 42% |
| Operating Costs | 3,782 | 2,237 | 1,545 | 69% |
| EBITDA | 1,436 | 1,480 | -44 | -3% |
| EBIT | 405 | 718 | -313 | -44% |
| Net Financials | 337 | 169 | 168 | 99% |
| Net Profit | 52 | 440 | -388 | -88% |
| Gross Margin (%) | 39.0% | 45.3% | ||
| EBITDA % | 13.4% | 22.7% | ||
| EBIT % | 3.8% | 11.0% |
6M Highlights
| 6M 2018 | 6M 2017 | Change | % change | 6M '18 adj. | 6M '17 adj. | Change | % change | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 10,748 | 6,527 | 4,221 | 65% | 10,780 | 6,527 | 4,253 | 65% |
| Cost of Sales | 6,561 | 3,572 | 2,989 | 84% | 6,547 | 3,572 | 2,975 | 83% |
| Gross Profit | 4,187 | 2,955 | 1,232 | 42% | 4,233 | 2,955 | 1,278 | 43% |
| Operating costs | 3,782 | 2,237 | 1,545 | 69% | 3,684 | 2,199 | 1,485 | 68% |
| EBITDA | 1,436 | 1,480 | -44 | -3% | 1,581 | 1,518 | 63 | 4% |
| EBIT | 405 | 718 | -313 | -44% | 550 | 756 | -207 | -27% |
| Net Financials | 337 | 169 | 167 | 99% | 337 | 169 | 168 | 99% |
| Net Profit | 52 | 440 | -388 | -88% | 168 | 470 | -302 | -64% |
| Gross Margin (%) | 39.0% | 45.3% | 39.3% | 45.3% | ||||
| EBITDA % | 13.4% | 22.7% | 14.7% | 23.3% | ||||
| EBIT % | 3.8% | 11.0% | 5.1% | 11.6% |
Media largest contributor of revenue growth
| ISK m | 6M 2018 | 6M 2017 | Breyt. | % breyt. |
|---|---|---|---|---|
| Media | 4,428 | 1,053 | 3,375 | 320% |
| Broadband | 2,390 | 1,853 | 537 | 29% |
| GSM | 2,187 | 2,020 | 167 | 8% |
| Fixed Line | 601 | 598 | 2 | 0% |
| Retail Sales | 627 | 611 | 16 | 2% |
| Other Revenue | 515 | 391 | 124 | 32% |
| Total Revenue | 10,748 | 6,527 | 4,220 | 65% |
EBITDA quarterly development
EBITDA quarterly development adjusted for one time items
Balance sheet 30.06.2018
| 30.06.18 | 30.06.17 | Change | % | |
|---|---|---|---|---|
| Operational assets | 5,098 | 4,902 | 196 | 4% |
| Intangible assets | 15,631 | 15,485 | 146 | 1% |
| Shares in other companies | 30 | 16 | 14 | 88% |
| Fixed assets | 20,759 | 20,403 | 356 | 2% |
| Other current assets | 5,488 | 4,656 | 832 | 18% |
| Cash and cash equivalents | 317 | 317 | 0 | 0% |
| Current assets | 5,805 | 4,973 | 832 | 17% |
| Total assets | 26,565 | 25,376 | 1,189 | 5% |
Balance sheet 30.06.2018
| 30.06.18 | 30.06.17 | Change | % | |
|---|---|---|---|---|
| Equity | 10,204 | 10,131 | 73 | 1% |
| Interest bearing debt | 11,155 | 10,732 | 423 | 4% |
| Deferred tax liabilities | 207 | 193 | 14 | 7% |
| Non-current liabilities | 11,362 | 10,925 | 437 | 4% |
| Interest bearing debt | 747 | 618 | 129 | 21% |
| Other current liabilities | 4,252 | 3,702 | 550 | 15% |
| Current liabilities | 4,999 | 4,320 | 679 | 16% |
| Total equity and liabilities | 26,565 | 25,376 | 1,189 | 5% |
| Interest bearing debt | 11,902 | 11,350 | ||
| Net interest bearing debt | 11,584 | 11,033 | ||
| Equity ratio | 38.4% | 39.9% |
Balance sheet KPI's
^{}[]
Equity Ratio
Net Interest Bearing Debet
Current Ratio
Net Debt/EBITDA
* Net Debt/EBITDA is calculated from the consolidated net interest bearing debt at 1Q end 2018 and EBITDA of trailing 12 months.
6M Cash flow
^{}[]
| ISK m | 6M 2018 | 6M 2017 | Change | % chg. |
|---|---|---|---|---|
| Cash generated by operations | 779 | 705 | 74 | 10% |
| Investing activities | -1,371 | -861 | -510 | 59% |
| Financing activities | 592 | 116 | 476 | 410% |
| Change in cash | -1 | -40 | 39 | -98% |
| Effect of exchange rate | 1 | -2 | 3 | -150% |
| Cash at beginning of period | 317 | 368 | -51 | -14% |
| Cash at the end of period | 317 | 326 | -9 | -3% |
| Free Cash Flow | -248 | 22 | -270 | -1227% |
Cash flow 6M 2108
Financial guidance for 2018
^{}[]
EBITDA outlook for 2018 is estimated at ISK 4,000-4,400 million from regular operations. The company' forecast for 2018 is currently in the lower end of the range. One-off items in the first half of the year are ISK 145 million. It is expected that the one-off items will not have material effect on the second half of the year. The estimated capital expenditure ratio is 8-10% of income and will be close to the upper bound considering front-loaded investment in relation to integration projects.
Business highlights
Milestones of the 1H that will contribute to 2H
- Transfer of all mobile clients to SYN's mobile systems and vendor agreements terminated
- Service agreements of international capacity links terminated and transferred under SYN's systems and agreements
- Change in fixed line setup towards vendors that increases efficiency
- Merger of customer services, sales, technical services, on-site services as well as the back office of 365 terminated
- The merger of financial departments and processes – beyond budgeting process for all units in place
- All clients billed from SYN's billing system for all services
- Rationalization of software license agreements that saves costs
- New line up of TV products with lower price points for increased competitiveness
- Wholesale service with regard to premium TV services to other telecom providers
- Approximately 70% of former 365 employees are now working at our HQ at Sudurlandsbraut
Outlook for 1.0–1.1 bn annual synergy realized from Q3 2019
Subscription numbers in accordance to plans
Billed fixed subscriptions from Sýn's billing systems
TV services – stronger price points and bundles...
1.490 kr.
Krakkar
1.490 kr.
Golfstöbin
3.990 kr.
6.990 kr.
9.990 kr.
1.990 kr.
9.990 kr.
11.990 kr.
19.990 kr.
Heima - Media and Telco service bundle for households
- Content from Channel 2
- Unlimited Internet
- New 4K Set-top box
- Landline
Heima customers get 10x more GB for their mobile subscription
SPORT
LUEFA NATIONS LEAGUE™
ÁFRAM ÍSLAND!
Keiktivä yleisiivi
- Mobile – Revenue for use of cell phones, including data transfer with in the mobile network, subscription revenue from individuals, prepaid sim cards, roaming revenue from travelers, interconnection revenues etc.
- Broadband – Revenue from internet service in fixed-line networks, including fiber optic cables, xDSL service and other data connections.
- Media – Revenue from the operation of broadcast media, TV subscriptions, advertisement, distribution systems, set-top boxes, TVOD, SVOD and PPV.
- Fixed line – Revenue from home phone usage and corporate fixed line usage, interconnection revenue from fixed line.
- Retail sale – Revenue from sale of telecommunications equipment and accessories.
- Other revenue – Service revenues and rental of terminal equipment
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 proviso, all guidance on future prospects are fully reliable.
The recipients of the presentation acknowledge that they are subject to aforementioned disclaimers and limitations.