AI assistant
Syn Investor Presentation 2019
2210_rns_2019-08-28_eae83664-c4b2-43e9-aa8e-f9becd196a24.pdf
Investor Presentation
Open in viewerOpens in your device viewer
sýn
Key Financial Results Q2 2019
Revenue
5,023 m IKR
Earnings
215 m IKR loss
EBITDA
1,216 m IKR
Equity Ratio
35.6%
Key factors that affect Q2 & 6M 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 and will be accounted for under the equity method.
- Broadcasting license right are now accounted for as part of intangible assets instead of inventories, comparative figures in 2018 have been updated accordingly.
- New accounting standard IFRS 16 was implemented on January 1, 2019. Comparative figures for 2018 are not updated.
- Unfavourable exchange rate developments in 6M 2019 amounted to ISK 70 million compared to the same period last year.
- Estimated effects of collective agreements amount to ISK 115 million in 2019.
Income Statement Q2 Highlights
| ISK m | Q2 2019 | Q2 2018 | Change | % change |
|---|---|---|---|---|
| Revenue | 5,023 | 5,157 | -134 | -3% |
| Cost of Sales | -3,290 | -3,158 | -132 | 4% |
| Gross Profit | 1,733 | 1,999 | -266 | -13% |
| Operating costs | -1,769 | -1,810 | 41 | -2% |
| EBITDA* | 1,216 | 1,270 | -54 | -4% |
| EBIT | -36 | 189 | -225 | -119% |
| Net Financials | -257 | -191 | -66 | 34% |
| Effect of associates | 8 | -8 | 16 | - |
| Income tax | 70 | 1 | 69 | - |
| Loss ** | -215 | -9 | -206 | - |
| Gross Margin (%) | 34.5% | 38.8% | ||
| EBITDA % | 24.2% | 24.6% | ||
| EBIT % | -0.7% | 3.7% | ||
| Impact of IFRS 16 on P/L | Q2 2019 | |||
| --- | --- | |||
| Cost of sales | 84 | |||
| Operating costs | 84 | |||
| EBITDA | 168 | |||
| Net financials | -61 | |||
| Depreciation | -138 | |||
| IFRS 16 impact on earnings | -31 |
*EBITDA 2018 adjusted to changed classification of broadcasting license rights
**Profit (loss) for the period from continuing operations
Revenues Q2
| ISK m | Q2 2019 | Q2 2018* | Chg. | % chg. |
|---|---|---|---|---|
| Media | 2,170 | 2,229 | -59 | -3% |
| Broadband | 1,208 | 1,301 | -93 | -7% |
| Mobile | 944 | 964 | -20 | -2% |
| Fixed Line | 228 | 268 | -40 | -15% |
| Retail Sales | 278 | 278 | 0 | 0% |
| Other Revenue | 195 | 117 | 78 | 67% |
| Total Revenue | 5,023 | 5,157 | -134 | -3% |
*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 Q2 2019
| ISK m | Q2 2019 | Q2 2018 | Change | % chg. |
|---|---|---|---|---|
| Cash generated by operations | 1,219 | 907 | 312 | 34% |
| Investing activities | -799 | -1,412 | 613 | -43% |
| Financing activities | -184 | 576 | -760 | -132% |
| Change in cash | 236 | 71 | 165 | 232% |
| Effect of exchange rate | 0 | -1 | 1 | 0% |
| Cash at beginning of period | 142 | 280 | -138 | -49% |
| Cash classified held for sale | 0 | -33 | 33 | - |
| Cash at the end of period | 378 | 317 | 61 | 19% |
| Cash generated by operations before interest and tax | 1,444 | 1,075 | 369 | 34% |
| Investment activities* | -799 | -1,402 | 603 | -43% |
| Free Cash Flow | 645 | -327 | 972 | -297% |
- Excluding net investment in share in other companies
Q2 2019 Cash Flow changes
Key Financial Results 6M 2019
Key Financial Results 6M 2019
Revenue
9,998 m IKR
Profit
455 m IKR
EBITDA
2,476 m IKR
Equity Ratio
35.6%
Income Statement 6M Highlights
| ISK m | 6M 2019 | 6M 2018 | Change | % change |
|---|---|---|---|---|
| Revenue | 9,998 | 10,187 | -189 | -2% |
| Cost of Sales | -6,358 | -6,163 | -195 | 3% |
| Gross Profit | 3,640 | 4,024 | -384 | -10% |
| Operating Costs | -3,591 | -3,631 | 40 | -1% |
| EBITDA* | 2,476 | 2,468 | 8 | 0% |
| EBIT | 49 | 393 | -344 | -87% |
| Net Financials | -515 | -325 | -190 | 59% |
| Effect of associates | 828 | -12 | 840 | - |
| Income tax | 93 | -14 | 107 | - |
| Profit** | 455 | 42 | 413 | 991% |
| Gross Margin (%) | 36.4% | 39.5% | ||
| EBITDA % | 24.8% | 24.2% | ||
| EBIT % | 0.5% | 3.9% | ||
| Impact of IFRS 16 on P/L | 6M 2019 | |||
| --- | --- | |||
| Cost of sales | 164 | |||
| Operating costs | 148 | |||
| EBITDA | 311 | |||
| Net financials | -94 | |||
| Depreciation | -242 | |||
| IFRS 16 impact on earnings | -25 |
*EBITDA 2018 adjusted to changed classification of license rights
**Profit (loss) for the period from continuing operations
Revenue 6M
| ISK m | 6M 2019 | 6M 2018* | Chg. | % Chg. |
|---|---|---|---|---|
| Media | 4,342 | 4,428 | -86 | -2% |
| Broadband | 2,414 | 2,380 | 34 | 1% |
| GSM | 1,837 | 1,879 | -42 | -2% |
| Fixed Line | 470 | 587 | -117 | -20% |
| Retail Sales | 524 | 539 | -15 | -3% |
| Other Revenue | 412 | 374 | 38 | 10% |
| Total Revenue | 9,998 | 10,187 | -189 | -2% |
*Updated comparative figures for the sale of P/F Hey
Rental of internet routers has been moved from other revenue to broadband.
Cash Flow 6M 2019
| ISK m | 6M 2019 | 6M 2018 | Change | % chg. |
|---|---|---|---|---|
| Cash generated by operations | 2,080 | 2,144 | -64 | -3% |
| Investing activities | -1,826 | -2,694 | 868 | -32% |
| Financing activities | -232 | 572 | -804 | -141% |
| Change in cash | 22 | 22 | 0 | 0% |
| Effect of exchange rate | 0 | -1 | 1 | -100% |
| Cash at beginning of period | 356 | 329 | 27 | 8% |
| Cash classified held for sale | 0 | -33 | 33 | - |
| Cash at the end of period | 378 | 317 | 61 | 19% |
| Cash generated by operations before interest and tax | 2,553 | 2,527 | 26 | 1% |
| Investment activities* | -1,833 | -2,670 | 837 | -31% |
| Free Cash Flow | 720 | -143 | 863 | -603% |
- Excluding net investment in share in other companies
Cash Flow 6M 2019
Statement of Financial Position June 30th 2019
^{}[]
| 30.06.19 | 31.12.18 | Change | % | |
|---|---|---|---|---|
| Property, plant and equipment | 5,036 | 4,785 | 251 | 5% |
| Righ-of-use assets | 3,400 | 0 | 3,400 | - |
| Intangible assets | 15,454 | 15,454 | 0 | 0% |
| Shares in other companies | 1,250 | 48 | 1,202 | 2504% |
| Fixed assets | 25,140 | 20,287 | 4,853 | 24% |
| Other current assets | 4,978 | 5,312 | -334 | -6% |
| Cash and cash equivalents | 378 | 356 | 22 | 6% |
| Assets classified as held for sale | 0 | 1,056 | -1,056 | - |
| Current assets | 5,356 | 6,724 | -1,368 | -20% |
| Total assets | 30,496 | 27,011 | 3,485 | 13% |
Impact of IFRS 16 on assets 30.06.19
Figures are in ISK million
Statement of Financial Position June 30th 2019
| 30.06.19 | 31.12.18 | Change | % | |
|---|---|---|---|---|
| Equity | 10,867 | 10,707 | 160 | 1% |
| Interest bearing debt | 10,856 | 10,874 | -18 | 0% |
| Lease liabilities | 3,280 | 0 | 3,280 | - |
| Deferred tax liabilities | 47 | 138 | -91 | -66% |
| Non-current liabilities | 14,183 | 11,012 | 3,171 | 29% |
| Interest bearing debt | 689 | 687 | 2 | 0% |
| Lease liabilities | 423 | 0 | 423 | - |
| Other current liabilities | 4,334 | 4,167 | 167 | 4% |
| Liabilities related to assets classified held for sale | 0 | 438 | -438 | - |
| Current liabilities | 5,446 | 5,292 | 154 | 3% |
| Total equity and liabilities | 30,496 | 27,011 | 3,485 | 13% |
| Interest bearing debt | 15,248 | 11,561 | ||
| Net interest bearing debt | 14,870 | 11,205 | ||
| Equity ratio | 35.6% | 39.6% |
Impact of IFRS 16 on equity and liabilities 30.06.19
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
Realized Synergies
Realized synergies
The synergy effect for the first half of 2019 is expected to continue in the second half of the year
It is estimated that cost efficiency work executed in the first half of the year will return a monthly savings in excess of ISK 50 million from the beginning of 2020
Figures are in ISK million
Outlook 2019
Number of customers
Number of customers Telecom
Fixed line
May 2019 - August 2019
Mobile subscriptions
May 2019 - August 2019
Customers with access to „Sportpakkins“
May 2018 - August 2018
May 2019 - August 2019
August - YoY +8,6%
Customers +977
Measures taken this summer
Focus Areas
Strategy
Customer Centric Organization
Developing a long term business relationship based on mutual respect and trust
| SIMPLIFY | EXPERIENCE | LOYALTY |
|---|---|---|
New Communications and Brand Strategy
Brand and Communications Strategy
^{}[]
syna
Only used to identify the legal entity
September 6th the fall program for Stöð 2 will be introduced along with a new look
Enhance the visuality of the brand
BYLGJAN
No change to the current strategy
New Organization Chart
Cost Efficiency Work
.
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.