AI assistant
Syn Investor Presentation 2019
2210_rns_2019-11-06_a8504329-bd2d-48e0-bd65-a4c317fc226d.pdf
Investor Presentation
Open in viewerOpens in your device viewer
sýnka
vodafone
visir
SPORT
BYLGJAN 989
FM957
X
Key Financial Results Q3 2019
Revenue
4,878 m IKR
Earnings
71 m IKR loss
EBITDA
1,623 m IKR
Equity Ratio
36.3%
Key factors affecting Q3 & 9M 2019
- The merger of P/F Hey, Sýn’s subsidiary in the Faroe Islands and Nema, a subsidiary of Tjaldur, was finalized in Q1 2019. After the merger, Sýn owns 49,9% of the merged company which will be accounted for under the equity method from January 1st 2019.
- Broadcasting license rights are now accounted for as intangible assets instead of inventories, comparative figures 2018 have been restated accordingly.
- New accounting standard IFRS 16 was implemented on January 1, 2019. Comparative figures for 2018 are not restated.
- Favourable exchange rate developments in Q3 2019 amounted to ISK 66 million compared to the same period last year.
- Estimated effects of collective agreements amount to ISK 115 million in 2019.
- The impact of one-off items on the first 9 months amounted to ISK 358 million.
Income Statement Q3 Highlights
| ISK m | Q3 2019 | Q3 2018 | Change | % change |
|---|---|---|---|---|
| Revenue | 4,878 | 5,143 | -265 | -5% |
| Cost of Sales | -3,133 | -3,112 | -21 | 1% |
| Gross Profit | 1,745 | 2,031 | -286 | -14% |
| Operating expense | -1,559 | -1,557 | -2 | 0% |
| EBITDA* | 1,623 | 1,785 | -162 | -9% |
| EBIT | 186 | 474 | -288 | -61% |
| Net financial expense | -295 | -210 | -85 | 40% |
| Effect of associates | 16 | -2 | 18 | |
| Income tax | 22 | -55 | 77 | |
| Profit (Loss)** | -71 | 207 | -278 | -134% |
| Gross Margin (%) | 35.8% | 39.5% | ||
| EBITDA % | 33.3% | 34.7% | ||
| EBIT % | 3.8% | 9.2% | ||
| Impact of IFRS 16 on P/L | Q3 2019 | |||
| --- | --- | |||
| Cost of sales | 80 | |||
| Operating expense | 79 | |||
| EBITDA | 159 | |||
| Net financial expense | -48 | |||
| Depreciation | -118 | |||
| IFRS 16 impact on earnings | -7 |
*EBITDA 2018 restated in relation to changes in the accounting treatment of broadcasting license rights.
** Profit 2018 for the period from continuing operations.
Revenue Q3
| ISK m | Q3 2019 | Q3 2018* | Chg. | % Chg. |
|---|---|---|---|---|
| Media | 1,946 | 2,090 | -144 | -7% |
| Broadband | 1,216 | 1,286 | -70 | -5% |
| Mobile | 1,041 | 1,056 | -15 | -1% |
| Fixed Line | 217 | 263 | -46 | -18% |
| Retail Sales | 255 | 257 | -2 | -1% |
| Other Revenue | 203 | 191 | 12 | 6% |
| Total Revenue | 4,878 | 5,143 | -265 | -5% |
*Updated comparative figures in relation to the sale of P/F Hey. Rental of internet routers has been moved from other revenue to broadband.
Cash Flow Q3 2019
| ISK m | Q3 2019 | Q3 2018 | Change | % chg. |
|---|---|---|---|---|
| Cash generated by operations | 1,235 | 1,185 | 50 | 4% |
| Investing activities | -1,119 | -1,184 | 65 | -5% |
| Financing activities | -367 | -45 | -322 | 716% |
| Change in cash | -251 | -44 | -207 | 470% |
| Effect of exchange rate | 0 | -1 | 1 | - |
| Cash at beginning of period | 378 | 351 | 27 | 8% |
| Cash classified as held for sale | 0 | -35 | 35 | - |
| Cash at the end of period | 127 | 271 | -144 | -53% |
| Cash generated by operations before interest and tax | 1,544 | 1,335 | 209 | 16% |
| Investment activities* | -1,109 | -1,176 | 67 | -6% |
| Free Cash Flow | 435 | 159 | 276 | 174% |
- Excluding net investment in share in other companies
Q3 2019 Cash Flow
Key Financial Results 9M 2019
Key Financial Results 9M 2019
Revenue
14,876 m IKR
Profit
384 m IKR
EBITDA
4,100 m IKR
Equity Ratio
36.3%
Income Statement 9M Highlights
| ISK m | 9M 2019 | 9M 2018 | Change | % change |
|---|---|---|---|---|
| Revenue | 14,876 | 15,330 | -454 | -3% |
| Cost of Sales | -9,491 | -9,275 | -216 | 2% |
| Gross Profit | 5,385 | 6,055 | -670 | -11% |
| Operating expense | -5,150 | -5,188 | 38 | -1% |
| EBITDA* | 4,100 | 4,253 | -153 | -4% |
| EBIT | 235 | 867 | -632 | -73% |
| Net financial expense | -810 | -535 | -275 | 51% |
| Effect of associates | 844 | -14 | 858 | |
| Income tax | 115 | -69 | 184 | |
| Profit** | 384 | 249 | 135 | 54% |
| Gross Margin (%) | 36.2% | 39.5% | ||
| EBITDA % | 27.6% | 27.7% | ||
| EBIT % | 1.6% | 5.7% | ||
| Impact of IFRS 16 on P/L | 9M 2019 | |||
| --- | --- | |||
| Cost of sales | 244 | |||
| Operating expense | 227 | |||
| EBITDA | 471 | |||
| Net financial expense | -141 | |||
| Depreciation | -360 | |||
| IFRS 16 impact on earnings | -30 |
*EBITDA 2018 adjusted to changed classification of broadcasting rights
** Profit 2018 for the period from continuing operations
Revenue 9M
| ISK m | 9M 2019 | 9M 2018* | Chg. | % Chg. |
|---|---|---|---|---|
| Media | 6,288 | 6,518 | -230 | -4% |
| Broadband | 3,629 | 3,666 | -37 | -1% |
| GSM | 2,877 | 2,935 | -58 | -2% |
| Fixed Line | 687 | 850 | -163 | -19% |
| Retail Sales | 780 | 796 | -16 | -2% |
| Other Revenue | 615 | 565 | 50 | 9% |
| Total Revenue | 14,876 | 15,330 | -454 | -3% |
*Updated comparative figures for the sale of P/F Hey. Rental of internet routers has been moved from other revenue to broadband.
Cash Flow 9M 2019
| ISK m | 9M 2019 | 9M 2018 | Change | % chg. |
|---|---|---|---|---|
| Cash generated by operations | 3,424 | 3,331 | 93 | 3% |
| Investing activities | -3,053 | -3,879 | 826 | -21% |
| Financing activities | -600 | 526 | -1,126 | -214% |
| Change in cash | -229 | -22 | -207 | 941% |
| Effect of exchange rate | 0 | -1 | 1 | - |
| Cash at beginning of period | 356 | 329 | 27 | 8% |
| Cash classified as held for sale | 0 | -35 | 35 | - |
| Cash at the end of period | 127 | 271 | -144 | -53% |
| Cash generated by operations before interest and tax | 4,163 | 3,823 | 340 | 9% |
| Investment activities* | -3,050 | -3,846 | 796 | -21% |
| Free Cash Flow | 1,113 | -23 | 1,136 | - |
- Excluding net investment in share in other companies
Cash Flow 9M 2019
Statement of Financial Position September 30th 2019
| 30.09.19 | 31.12.18 | Change | % | |
|---|---|---|---|---|
| Property, plant and equipment | 4,928 | 4,785 | 143 | 3% |
| Righ-of-use assets | 3,296 | 0 | 3,296 | - |
| Intangible assets | 15,344 | 15,454 | -110 | -1% |
| Shares in other companies | 1,269 | 48 | 1,221 | 2544% |
| Fixed assets | 24,837 | 20,287 | 4,550 | 22% |
| Other current assets | 5,098 | 5,312 | -214 | -4% |
| Cash and cash equivalents | 127 | 356 | -229 | -64% |
| Assets classified as held for sale | 0 | 1,056 | -1,056 | - |
| Current assets | 5,225 | 6,724 | -1,499 | -22% |
| Total assets | 30,062 | 27,011 | 3,051 | 11% |
Impact of IFRS 16 on assets 30.09.19
Figures are in ISK million
Statement of Financial Position September 30th 2019
| 30.09.19 | 31.12.18 | Change | % | |
|---|---|---|---|---|
| Equity | 10,911 | 10,707 | 204 | 2% |
| Interest bearing debt | 10,600 | 10,874 | -274 | -3% |
| Lease liabilities | 3,168 | 0 | 3,168 | - |
| Deferred tax liabilities | 25 | 138 | -113 | -82% |
| Non-current liabilities | 13,793 | 11,012 | 2,781 | 25% |
| Interest bearing debt | 689 | 687 | 2 | 0% |
| Lease liabilities | 430 | 0 | 430 | - |
| Other current liabilities | 4,239 | 4,167 | 72 | 2% |
| Liabilities related to assets classified held for sale | 0 | 438 | -438 | - |
| Current liabilities | 5,358 | 5,292 | 66 | 1% |
| Total equity and liabilities | 30,062 | 27,011 | 3,051 | 11% |
| Interest bearing debt | 14,887 | 11,561 | ||
| Net interest bearing debt | 14,760 | 11,205 | ||
| Equity ratio | 36.3% | 39.6% |
Impact of IFRS 16 on equity and liabilities 30.09.19
Total equity and liabilities
Figures are in ISK million
Statement of Financial Position - Key ratios
Equity Ratio
Current Ratio*
Net interest bearing debt
Updated comparative figures for the sale of P/F Hey
*Current ratio = current assets / current liabilities
Outlook 2019
^{}[]
Media Statistics
SUNNUDAGA
Viewing statistics
AD UPPRUNANUM
Television - Stöð 2 statistics
Topplisti sjónvarps | V38-41 2019 | 12-54 ára áskrift ST2
| # | Stöð | Dáttur | Dags. | Rtg% |
|---|---|---|---|---|
| 1 | ST2 | Gulli byggir | mán 23.9.2019 | 49,8 |
| 2 | RÚV | Pabbahelgar | sun 13.10.2019 | 47,6 |
| 3 | ST2 | Leitin að upprunanum | sun 13.10.2019 | 38,6 |
| 4 | ST2 | Gulli byggir | mán 7.10.2019 | 36,2 |
| 5 | ST2 | Gulli byggir | mán 16.9.2019 | 35,8 |
| 6 | ST2 | Leitin að upprunanum | sun 6.10.2019 | 33,0 |
| 7 | RÚV | Undankeppni EM karla: Ísland - Frakk | fös 11.10.2019 | 32,2 |
| 8 | RÚV | Kveikur | þri 8.10.2019 | 31,6 |
| 9 | ST2 | Ísskápastrið | mið 9.10.2019 | 30,4 |
| 10 | ST2 | Föstudagskvöld með Gumma Ben | fös 4.10.2019 | 29,8 |
| 11 | ST2 | Gulli byggir | mán 30.9.2019 | 29,0 |
| 12 | RÚV | Sporið | lau 5.10.2019 | 28,0 |
| 13 | ST2 | Ísskápastrið | mið 2.10.2019 | 27,0 |
| 14 | ST2 | Leitin að upprunanum | sun 29.9.2019 | 27,0 |
| 15 | ST2 | Grey's Anatomy | mið 9.10.2019 | 26,3 |
| 16 | ST2 | Ísskápastrið | mið 18.9.2019 | 25,8 |
| 17 | RÚV | Landinn | sun 22.9.2019 | 25,3 |
| 18 | ST2 | Leitin að upprunanum | sun 22.9.2019 | 24,5 |
| 19 | ST2 | Framkoma | sun 22.9.2019 | 24,2 |
| 20 | RÚV | Veröld sem var | sun 22.9.2019 | 24,0 |
Source: Electronic Broadcasting Gallup, V38-41, 12-54 year subscribers to Stöð 2, ratings % views
Television - Rent per week in Maraton
Rent in Maraton | Weeks 40-43 2017-2019
Source: Syn's IPTV cube and Maraton reports from Siminn W40-43 2017-2019, rent per week.
Radio - Share of radio listening
Individual radio stations
Media companies
Source: Gallup electronic surveillance, radio listening share for weeks 40-43 2019, 18-49 years.
News website- Daily coverage
Source: Daily Media Network coverage, Gallup, Q2 2019. Calculated by number
Endor
Acquisition of Endor*
- Endor mixes traditional system operations and cloud services (HybridUT) and has created and advantage and specialized position in the ICT market for the past three years.
- The company’s strength lies in its experience and knowledge of the operation of high-performance computing (HPC) in international data centers.
- The company’s provides strategic consulting and services on everything IT related, from tailored cloud solutions to infrastructure investments.
- Hewlet Packard Enterprise’s Growth partner of the year 2017.
- Lenovo’s partner of the year 2018.
- Certificate as on of Europe’s 25 most promising cloud companies of 2018.
*The acquisition is subject to the approval of the Competition Authority.
Acquisition of Endor
- In 2018, Endor’s total turnover amounted to ISK 1,482 million and EBITDA was ISK 57.3 million.
- The company's revenue has grown significantly in 2019.
- A strong 11-person team with a deep understanding and excellent technical knowledge of the market.
- Major contract with Atos a French multinational information technology company, which is valid until 2022.
Vision – Main focus on increasing international revenue
- Endor has built up reputation both domestically and abroad in the field of cloud and hosting solutions.
- Sýn under the Vodafone brand will immediately start selling and servicing Endor’s standard solutions.
- Main focus on increasing international revenue.
- Vodafone strength will be used to support further growth of the company.
C
Celtic Norse
Celtic Norse
^{}[]
- Connects Norway, Iceland and even Scotland:
- Strengthens significantly Iceland's connection to Europe, Norway and USA through Aqua comms.
- Two fibre pairs from Iceland to Ireland and two pairs to Norway.
- Cooperation within Celtic Norse could lead to 25-30% decrease in the investment in a fibre sea cable to Iceland as well as sharing of backhaul connection in Ireland.
- Project timeline:
- RFP this winter
- Ocean floor survey.
- Construction summer 2021.
- Opening fall 2021.
- Affiliates:
- Norway: Nordavind DC Sites Two, NTE and TronderEnergi. Energy producers, distributors and fibre optic cable owners.
- Scottish Futures Trust: Infrastructure centre of expertise owned by the Scottish Government
- Aqua Comms. Owner and operator of fibre-optic cable in the Atlantic i.a. between Ireland and USA.
Celtic Norse
^{}[]
sýnka
vodafone
visir
SPORT
BYLGJAN 989
FM957
X
Revenue Sources
- Media - Revenue from the operation of broadcast media, TV subscriptions, advertisement, distribution systems, set-top boxes, TVOD, SVOD and PPV.
- Broadband - Revenue from internet service in fixed-line networks, including fiber optic cables, xDSL service and other data connections.
- 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.
- 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.
Changes in the Company's revenue stream as of 4Q 2018 affect comparison between previous presentations. Rental of internet routers has been moved from other revenue to broadband.
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.