AI assistant
Syn Investor Presentation 2020
2210_rns_2020-02-26_4abb633e-2931-40f6-85b3-a6bcc50811ff.pdf
Investor Presentation
Open in viewerOpens in your device viewer
sýnka
vodafone
visir
SBORT
BYLGJAN
989
FM957
X
Key factors affecting Q4 & 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, the sales profit amounted to ISK 872 million. After the merger, Sýn owns 49.9% of the merged company which will be accounted for under the equity method from January 1st 2019.
- On October 18th 2019, Sýn hf. signed the acquisition of all share capital in the information technology company Endor.
- The Competition Authority approved the acquisition on December 1st 2019. Endor's balance sheet has been fully included in the consolidated financial statements, but the company's operations in December are not part of the consolidated financial statements where there are insignificant amounts.
- 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.
- Effect of collective agreements amount to ISK 115 million.
- The impact of one-off items amounted to ISK 358 million in 2019.
- Negative exchange rate effect on broadcasting license rights between years is around 10%, which is reflected in higher production and broadcasting cost.
vodafone
visir
SPORT
BYLGJAN 989
Key Financial Results 2019
^{}[]
LEITIN
AD UPPRUNANUM
Revenue
19,811 m IKR
EBITDA
5,509 m.kr.
Results
1,748 m IKR loss
Equity ratio
27.5%
visir
SPORT
BYLGJAN
589
X
Key factors affecting Q4 & 2019
^{}[]
Media
- Price changes for Stöð 2 and Risapakkinn following the elimination of the Premier League had an impact on media revenue in 2019.
- Positive development in the number of subscribers to Skemmtipakkinn and Stöð 2 on Q4 2019. In December 2019 the number of subscribers was higher than the same period in the year before.
- Good growth in Marábon this year.
Broadband, GSM and fixed line
- Tough competition on both corporate and retail markets.
- Increase in roaming revenue between years due to favorable contracts.
Retail sales
- One-off sales on Q4 amounting to 119 ISK m and therefore the real decrease of retails sales was 1.5% (decrease between quarters was 0.3%).
Cost of sales
- Continued cost optimization for 365 telecommunications distribution, a decrease by ISK 200 m. between years.
- An increase in labor costs comes as a result of new wage agreements as well as settlement of termination agreements.
- Increase in program and broadcast costs due to higher purchase price of broadcasting rights and increased focus on domestic content.
- Higher depreciation of operational assets due to investments from previous years due to the construction of the new headquarters and investments in media activities.
Operating expense
- Close to a ISK 276 m decrease in operating expenses between years, which is reduced due to settlement of termination agreements and an increase in depreciation of operating assets.
vodafone
visir
SPORT
BYLGJAN
989
Income Statement 2019 Highlights
| ISK m | 2019 | 2018 | Change | % change |
|---|---|---|---|---|
| Revenue | 19,811 | 20,754 | -943 | -5% |
| Cost of Sales | -12,589 | -12,716 | 127 | -1% |
| Gross Profit | 7,222 | 8,038 | -816 | -10% |
| Operating expense | -6,720 | -6,871 | 151 | -2% |
| Impairment | -2,452 | 0 | -2,452 | - |
| EBITDA* | 5,509 | 5,619 | -110 | - |
| EBIT | -1,950 | 1,167 | -3,117 | - |
| Net financial expense | -995 | -702 | -293 | - |
| Effect of associates | 963 | -27 | 990 | - |
| Income tax | 234 | 5 | 229 | - |
| Profit (Loss)** | -1,748 | 443 | -2,191 | - |
| Gross Margin (%) | 36.5% | 38.7% | ||
| EBITDA % | 27.8% | 27.1% | ||
| EBIT % | -9.8% | 5.6% |
*EBITDA 2018 restated in relation to changes in the accounting treatment of broadcasting license rights.
** Profit 2018 for the period from continuing operations.
| Impact of IFRS 16 on P/L | 2019 |
|---|---|
| Cost of sales | 337 |
| Operating expense | 272 |
| EBITDA | 609 |
| Net financial expense | -196 |
| Depreciation | -458 |
| IFRS 16 impact on earnings | -45 |
vodafone
visir
SPORT
BYLGJAN
989
X
Figures are in ISK million
Revenue 2019
| ISK m | 2019 | 2018* | Chg. | % Chg. |
|---|---|---|---|---|
| Media | 8,367 | 8,813 | -446 | -5% |
| Broadband | 4,811 | 4,905 | -94 | -2% |
| GSM | 3,902 | 3,957 | -55 | -1% |
| Fixed Line | 789 | 1,027 | -238 | -23% |
| Retail Sales | 1,122 | 1,258 | -136 | -11% |
| Other Revenue | 820 | 794 | 26 | 3% |
| Total Revenue | 19,811 | 20,754 | -943 | -5% |
*Updated comparative figures for the sale of P/F Hey. Rental of internet routers has been moved from other revenue to broadband.
vodafone
4
visir
5
SPORT
BYLGJAN
989
1992
X
Figures are in ISK million
Key Financial Results Q4 2019
Revenue
4,935 m IKR
Results
2,101 m IKR loss
EBITDA
1,409 m.kr.
Equity ratio
27.5%
vodafone
visir
SPORT
BYLGJAN
589
X
Income Statement Q4 Highlights
| ISK m | Q4 2019 | Q4 2018 | Change | % change |
|---|---|---|---|---|
| Revenue | 4,935 | 5,424 | -489 | -9% |
| Cost of Sales | -3,098 | -3,441 | 343 | -10% |
| Gross Profit | 1,837 | 1,983 | -146 | -7% |
| Operating expense | -1,570 | -1,682 | 112 | -7% |
| Impairment | -2,452 | 0 | -2,452 | - |
| EBITDA* | 1,409 | 1,449 | -40 | - |
| EBIT | -2,185 | 301 | -2,486 | - |
| Net financial expense | -153 | -168 | 15 | - |
| Effect of associates | 119 | -13 | 132 | - |
| Income tax | 119 | 73 | 46 | - |
| Profit (Loss)** | -2,101 | 193 | -2,294 | - |
| Gross Margin (%) | 37.2% | 36.6% | ||
| EBITDA % | 28.6% | 26.7% | ||
| EBIT % | -44.3% | 5.5% |
*EBITDA 2018 restated in relation to changes in the accounting treatment of broadcasting license rights.
** Profit 2018 for the period from continuing operations.
| Impact of IFRS 16 on P/L | Q4 2019 |
|---|---|
| Cost of sales | 93 |
| Operating expense | 46 |
| EBITDA | 139 |
| Net financial expense | -55 |
| Depreciation | -98 |
| IFRS 16 impact on earnings | -15 |
vodafone
visir
SPORT
BYLGJAN
989
X
Figures are in ISK million
Revenue Q4
| ISK m | Q4 2019 | Q4 2018* | Chg. | % Chg. |
|---|---|---|---|---|
| Media | 2,079 | 2,295 | -216 | -9% |
| Broadband | 1,182 | 1,239 | -57 | -5% |
| Mobile | 953 | 968 | -15 | -2% |
| Fixed Line | 174 | 231 | -57 | -25% |
| Retail Sales | 342 | 462 | -120 | -26% |
| Other Revenue | 205 | 229 | -24 | -11% |
| Total Revenue | 4,935 | 5,424 | -489 | -9% |
*Updated comparative figures for the sale of P/F Hey. Rental of internet routers has been moved from other revenue to broadband.
vodafone
4
visir
5
SPORT
BYLGJAN
989
10/12/2019
Figures are in ISK million
Cash Flow Q4 2019
| ISK m | Q4 2019 | Q4 2018 | Change | % chg. |
|---|---|---|---|---|
| Cash generated by operations | 1,953 | 1,358 | 595 | 44% |
| Investing activities | -1,666 | -1,215 | -451 | 37% |
| Financing activities | 220 | -93 | 313 | -337% |
| Change in cash | 507 | 50 | 457 | 914% |
| Cash at beginning of period | 127 | 306 | -179 | -58% |
| Cash at the end of period | 634 | 356 | 278 | 78% |
| Cash generated by operations before interest and tax | 2,141 | 1,533 | 608 | 40% |
| Investment activities* | -1,572 | -1,192 | -380 | 32% |
| Free Cash Flow | 569 | 341 | 228 | 67% |
- Excluding net investment in share in other companies
Q4 2019 Cash Flow
vodafone
visir
SPORT
BYLGJAN
989
X
Figures are in ISK million
Statement of Financial Position December 31st 2019
| 31.12.19* | 31.12.18 | Change | % | |
|---|---|---|---|---|
| Property, plant and equipment | 4,793 | 4,785 | 8 | 0% |
| Righ-of-use assets | 5,828 | 0 | 5,828 | - |
| Intangible assets | 13,435 | 15,454 | -2,019 | -13% |
| Shares in other companies | 1,383 | 48 | 1,335 | - |
| Income tax balance | 97 | 0 | 97 | - |
| Fixed assets | 25,536 | 20,287 | 5,249 | 26% |
| Other current assets | 5,808 | 5,312 | 496 | 9% |
| Cash and cash equivalents | 634 | 356 | 278 | 78% |
| Assets classified as held for sale | 0 | 1,056 | -1,056 | - |
| Current assets | 6,442 | 6,724 | -282 | -4% |
| Total assets | 31,978 | 27,011 | 4,967 | 18% |
Impact of IFRS 16 on assets 31.12.19
*Endor's is part of the consolidated statement of financial position
vodafone
visir
SPORT
BYLGJAN 989
X
Figures are in ISK million
Statement of Financial Position December 31st 2019
| 31.12.19* | 31.12.18 | Change | % | |
|---|---|---|---|---|
| Equity | 8,798 | 10,707 | -1,909 | -18% |
| Interest bearing debt | 10,898 | 10,874 | 24 | 0% |
| Lease liabilities | 5,390 | 0 | 5,390 | - |
| Deferred tax liabilities | 9 | 138 | -129 | -94% |
| Other long term liabilities | 252 | 0 | 252 | - |
| Non-current liabilities | 16,549 | 11,012 | 5,537 | 50% |
| Interest bearing debt | 689 | 687 | 2 | 0% |
| Lease liabilities | 938 | 0 | 938 | - |
| Other current liabilities | 5,004 | 4,167 | 837 | 20% |
| Liabilities related to assets classified held for sale | 0 | 438 | -438 | - |
| Current liabilities | 6,631 | 5,292 | 1,339 | 25% |
| Total equity and liabilities | 31,978 | 27,011 | 4,967 | 18% |
| Interest bearing debt | 17,915 | 11,561 | ||
| Net interest bearing debt | 17,281 | 11,205 | ||
| Equity ratio | 27.5% | 39.6% |
*Endor's is part of the consolidated statement of financial position
Impact of IFRS 16 on equity and liabilities 31.12.19
Total equity and liabilities
Equity ratio Equity ratio without IFRS 16
vodafone
visir
SPORT
BYLGJAN
989
X
Figures are in ISK million
Cash Flow 2019
| ISK m | 2019 | 2018 | Change | % chg. |
|---|---|---|---|---|
| Cash generated by operations | 5,377 | 4,689 | 688 | 15% |
| Investing activities | -4,719 | -5,096 | 377 | -7% |
| Financing activities | -380 | 434 | -814 | -188% |
| Change in cash | 278 | 27 | 251 | 930% |
| Cash at beginning of period | 356 | 329 | 27 | 8% |
| Cash at the end of period | 634 | 356 | 278 | 78% |
| Cash generated by operations before interest and tax | 6,304 | 5,356 | 948 | 18% |
| Investment activities* | -4,622 | -5,038 | 416 | -8% |
| Free Cash Flow | 1,682 | 318 | 1,364 | - |
- Excluding net investment in share in other companies
vodafone
visir
SPORT
BYLGJAN
989
X
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
vodafone
visir
SPORT
BYLGJAN
989
X
2020 outlook – Focus on increased margins
- Management's key focus in 2020 is to achieve increased profitability from the company's operations.
- Effect of collective agreements will increase labor costs in 2020 around ISK 100 m. Agreements with the Journalists' Association are still unfinished.
- Systematic efforts are being made to streamline the company's processes. Continued cost control with emphasis on efficiency.
- Efforts to maximize synergy from the telecommunications and media operations.
- Increased automation and simplification of processes with better information analysis.
- Improved procedures for the assessment of investment options. Emphasis on systematic security and operational efficiency.
- Potential partnerships in 5G development and related projects have a significant impact on the investment outlook for the year.
- Investments will be around 1 ISK bn in 2020.
- In 2020, the company's focus is to increase its EBITDA margin from the previous year.
- The company's goal is to improve cash flow from operation in 2020.
vodafone
visir
SPORT
BYLGJAN 989
5G development
vodafone visir SPORT BYLGJAN 5G5
5G Development
Number of users:
- 1 million around Europe (from the 500 million user market).
- 11 in China and South-Korea.
Number of 5G systems.
- In Europe 40 systems have been negotiated and 27 have been started (19 from Huawei and 8 from Ericsson).
- Worldwide 61 systems have been negotiated (43 from Huawei).
- EU advises telecommunication companies to use more than one supplier.
- A comprehensive system is being developed in Europe, with more than one supplier and effort to maximize security while minimizing waste.
- A 5G system requires a larger number of transmitters based on the current system and greater electricity consumption.
vodafone
visir
SPORT
BYLGJAN
989
Infrastructure
vodafone visir SPORT BYLGJAN 505
Company infrastructure
Nationwide fiber network
IPTV service to 97% of population
Mobile network throughout the country and beyond
Mobile coverage on land and sea
TV broadcasting DVB-T
TV Broadcasting over DVB-T to 99,9% population
Sýn has, during the past 20 years, built major infrastructure throughout the whole country in mobile, TV, radio and fixed network. This ensures a competitive advantage on a highly competitive Icelandic telecommunications market
vodafone
visir
SPORT
BYLGJAN
989
Mobile network system - 4G coverage to 99,7% of population
575 Sites in operation
- 433 2G sites
- 460 3G sites
- 412 4G sites
vodafone
visir
SPORT
BYLGJAN
989
X
Reykjavík DC - New high-tech data center
New high tech Data Center opening in March 2020
Sýn 30% owner
vodafone
visir
SPORT
BYLGJAN
989
X
REYKJAVÍK DC
TV and radio
From production and content procurement, to TV core systems, distribution networks and end-user equipment
Strong infrastructure to produce content:
- Studio (newly rebuilt)
- Broadcasting tech (newly rebuilt)
- Equipment
- Knowledge
Outstanding middleware and distribution systems:
- Co-built IPTV og OTT system
- DTT TV broadcasting to whole of Iceland
- Outstanding FM radio coverage
WE ARE THE BIGGEST MEDIA IN ADVERTISING IN ICELAND
OUR MEDIA REACH 180.000 PEOPLE DAILY
We have a unique position in the Icelandic advertising market
TV
OUR TV STATIONS REACH 81.925 PEOPLE EVERY DAY
RADIO
OUR RADIO STATIONS REACH 79.147 LISTENERS EVERY DAY
WEB
OUR FLAGSHIP NEWS WEBSITE, VISIR IS, REACHES 135.264 READERS EVERY DAY
We boast a wide variety of media that reach 97% of the nation every week
It is a compelling option for advertisers that want to reach various target groups
*Source: Gallup PPM, Q4 2019
WILL ICELAND QUALIFY?
PROBABLY BIGGEST MATCH EVER
Play-Off Semi Finals 26 March
EUR02020
EUR02020 12 JUNE- 12 JULY
- A total of 12 cities across Europe will deliver 51 matches across 31 days of competition.
- All matches live on Stöð 2 Sport
- Media coverage on tv, radio and on Vísir.is
SPORT
sýnka
vodafone
visir
SBORT
BYLGJAN 989
FM957
X
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.
vodafone
visir
SPORT
BYLGJAN 989