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Syn Investor Presentation 2018
2210_rns_2018-05-16_8f187955-ba32-4fa2-9615-c30d5d4bcdda.pdf
Investor Presentation
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sýn
Key Financial Results Q1 2018
Revenue
5,304 m IKR
69% increase from 2017
EBITDA
718 m IKR
13.5% EBITDA %
833 m IKR
Net Profit
56 m IKR
72% decrease from 2017
150 m IKR adj.*
33% decrease from 2017
Equity Ratio
39.7%
Was 39.9% at year end 2017
Q1 Highlights
| ISK m | Q1 2018 | Q1 2017 | Change | % change |
|---|---|---|---|---|
| Revenue | 5,304 | 3,141 | 2,163 | 69% |
| Cost of Sales | 3,197 | 1,707 | 1,491 | 87% |
| Gross Profit | 2,106 | 1,434 | 672 | 47% |
| Operating costs | 1,896 | 1,092 | 804 | 74% |
| EBITDA | 718 | 719 | -1 | 0% |
| EBIT | 211 | 342 | -130 | -38% |
| Net Financials | 139 | 91 | 48 | 53% |
| Net Profit | 56 | 201 | -145 | -72% |
| Gross Margin (%) | 39.7% | 45.7% | ||
| EBITDA % | 13.5% | 22.9% | ||
| EBIT % | 4.0% | 10.9% |
Q1 Highlights
Adjusted for one-time items
| Q1 2018 | Q1 2017 | Change | % change | Q1 '18 adj. | Q1 '17 adj. | Change | % change | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 5.304 | 3.141 | 2.163 | 69% | 5.336 | 3.141 | 2.195 | 70% |
| Cost of Sales | 3.197 | 1.707 | 1.490 | 87% | 3.183 | 1.707 | 1.476 | 86% |
| Gross Profit | 2.107 | 1.434 | 673 | 47% | 2.153 | 1.434 | 719 | 50% |
| Operating costs | 1.896 | 1.092 | 804 | 74% | 1.827 | 1.064 | 763 | 72% |
| EBITDA | 718 | 719 | -1 | 0% | 833 | 747 | 86 | 12% |
| EBIT | 211 | 342 | -131 | -38% | 326 | 370 | -45 | -12% |
| Net Financials | 139 | 91 | 48 | 53% | 139 | 91 | 48 | 53% |
| Net Profit | 56 | 201 | -145 | -72% | 150 | 223 | -74 | -33% |
| Gross Margin (%) | 39,7% | 45,7% | ||||||
| --- | --- | --- | ||||||
| EBITDA % | 13,5% | 22,9% | ||||||
| EBIT % | 4,0% | 10,9% | ||||||
| 40,3% | 45,7% | |||||||
| --- | --- | |||||||
| 15,6% | 23,8% | |||||||
| 6,1% | 11,8% |
Revenue Growth in Broadband and Media
| ISK m | Q1 2018 | Q1 2017 | Chg. | % chg. |
|---|---|---|---|---|
| Media | 2,199 | 517 | 1,682 | 325% |
| Broadband | 1,164 | 874 | 290 | 33% |
| Mobile | 1,066 | 978 | 88 | 9% |
| Fixed Line | 327 | 305 | 22 | 7% |
| Retail Sales | 305 | 282 | 23 | 8% |
| Other Revenue | 243 | 185 | 58 | 31% |
| Total Revenue | 5,304 | 3,141 | 2,163 | 69% |
EBITDA quarterly development
EBITDA quarterly development adjusted for one time items
Balance sheet 31.03.2018
| 31.03.18 | 31.12.17 | Change | % | |
|---|---|---|---|---|
| Operational assets | 4,922 | 4,902 | 20 | 0% |
| Intangible assets | 15,446 | 15,485 | -39 | 0% |
| Shares in other companies | 27 | 16 | 11 | 69% |
| Fixed assets | 20,395 | 20,403 | -8 | 0% |
| Other current assets | 5,084 | 4,656 | 428 | 9% |
| Cash and cash equivalents | 241 | 317 | -76 | -24% |
| Current assets | 5,325 | 4,973 | 352 | 7% |
| Total assets | 25,720 | 25,376 | 344 | 1% |
Balance sheet 31.03.2018
| 31.03.18 | 31.12.17 | Change | % | |
|---|---|---|---|---|
| Equity | 10,202 | 10,131 | 71 | 1% |
| Interest bearing debt | 10,645 | 10,732 | -87 | -1% |
| Deferred tax liabilities | 206 | 193 | 13 | 7% |
| Non-current liabilities | 10,851 | 10,925 | -74 | -1% |
| Interest bearing debt | 694 | 618 | 76 | 12% |
| Other current liabilities | 3,973 | 3,702 | 271 | 7% |
| Current liabilities | 4,667 | 4,320 | 347 | 8% |
| Total equity and liabilities | 25,720 | 25,376 | 344 | 1% |
| Interest bearing debt | 11,339 | 11,350 | ||
| Net interest bearing debt | 11,098 | 11,033 | ||
| Equity ratio | 39.7% | 39.9% |
Balance sheet KPI's
^{}[]
Equity Ratio
Net Interest Bearing Debt
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.
Q1 Cash flow
^{}[]
| ISK m | Q1 2018 | Q1 2017 | Change | % chg. |
|---|---|---|---|---|
| Cash generated by operations | 419 | 172 | 247 | 144% |
| Investing activities | -522 | -324 | -198 | 61% |
| Financing activities | 26 | 59 | -33 | -56% |
| Change in cash | -77 | -93 | 16 | -17% |
| Effect of exchange rate | 1 | -1 | 2 | 0% |
| Cash at beginning of period | 317 | 368 | -51 | -14% |
| Cash at the end of period | 241 | 274 | -33 | -12% |
| Free Cash Flow | 87 | -52 | 139 | -267% |
Q1 2018 Cash Flow changes
Financial guidance for 2018
^{}[]
- Management estimates that EBITDA will range between ISK 4,0- 4,4 bn. of regular operations in 2018
Outlook for 1.0 – 1.1 bn annual synergy realized from Q3 2019
sýna
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Krciletu a gledinni
A new Samsung UHD Set Top Box being rolled out
Samsung UHD / 4K Set-top box
- Latest generation UHD Set-top box
- 4x the image resolution of our current HD STBs.
- Sharper and more dynamic HD image quality
- UHD linear and non-linear capabilities
- 20x more responsive remote gestures
- Drastically reduced loading periods
- Same monthly fee as for our current HD STBs
Total number of subscribers on mobile networks
^{}[]
Development in number of subscribers
Source: Icelandic PTA (pfs.is) 31.12.2017
Market Share 31.12.2017
Number of broadband connections
Development in number of internet connections
Source: Icelandic PTA (pfs.is) 31.12.2017
Market share 31.12.2017
Total number of IPTV subscribers
^{}[]
Development in number of subscribers
Source: Icelandic PTA (pfs.is) 31.12.2017
Market Share 31.12.2017
TV and Radio market share in April
Capacent: April 2018, sample aged 12-80
Capacent: April 2018, sample aged 12-80
4th Industrial Revolution – New Data Cable opportunity?
The Icelandic DC Industry and connectivity
- Iceland is a great location for data centers (DC) due to its cool climate and renewable electricity generation at competitive prices
- The Icelandic DC industry is however stagnating
- New report by KPMG written for the Data Centers Iceland coalition, defines three areas that should be focused on improving to strengthen the competitiveness of the DC Industry
- Competitive connectivity setup is one of the key areas
Report KPMG um data centers in Iceland: http://www.si.is/media/_eplica-uppsetning/The-Icelandic-Data-Center-Industry-FINAL.pdf
Competition for Data Centres
- Iceland is not the only country with cool climate and renewable electricity production. Therefore other criteria's such as the connectivity become the diversifying factors for DC customers
- Currently Farice ehf. owns, operates and sells bandwidth access over the only fibre pairs from Iceland to Europe, resulting in a monopoly position in the connectivity market to Iceland
- Connectivity is a major concern raised by DC customer prospects, naming bandwidth pricing, lack of carrier diversity, and network reliability as primary factors.
Dual Pricing at Farice
- Farice sells bandwidth to Icelandic ISP like Sýn at higher prices that to DC customers
- The price for bandwidth to ISP is 5-10x the price to DC customers
- For Sýn this is significant cost paid to a monopoly vendor and therefore not acceptable position for Sýn going forward
Farice revenues
Bandwidth price difference
Report KPMG um data centers in Iceland: http://www.si.is/media/_eplica-uppsetning/The-Icelandic-Data-Center-Industry-FINAL.pdf
Opportunity for Sýn that also benefits Iceland
The current position brings questions to the mind of Sýn’ management
- What does a new subsea cable from Iceland to Europe cost?
- Is it feasible for Sýn to build and operate a new cable instead of paying the cost to Farice?
- By bringing competition to the market, can the market grow?
- To get answers to these questions Sýn is running a subsea cable project with support from consultants in the field
- The management of Sýn believes that the results justify further exploration of the project, if completed would greatly improve the current connectivity setup to Iceland
- Cooperation from the Icelandic Government is however needed for Sýn to be able take the project forward for the benefit not only of Sýn but all of Iceland
Proud Partner of KSÍ
vodafone
FYRIRÍSLAND
sýna
vodafone
vísir
BYLGJAN 989
SPORT
FM957
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365
LÉTT BYLGJAN 967
FMX
Tónlist
GULL BYLGJAN 909
Hey
krakkar
BÍÓ
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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.