Yahoo Finance Síminn hf. - Good results in the third quarter
Financial highlights Q3 2021
Síminn‘s revenue amounted to ISK 6,381 million in the third quarter (Q3) of 2021, compared to ISK 6,420 million in the same period 2020. A decrease by ISK 39 million or 0.6%.
EBITDA amounted to ISK 2,974 million in Q3 2021, compared to ISK 2,805 million in the same period of 2020, up by ISK 169 million or 6.0%. The EBITDA ratio was 46.6% in Q3 2021, compared to 43.7% in the same period of 2020. EBIT amounted to ISK 1,526 million in Q3 2021, compared to ISK 1,338 million in the same period of 2020.
Net profit in Q3 2021 amounted to ISK 1,057 million, compared to ISK 1,014 million in the same period of 2020.
Cash generated by operation amounted to ISK 2,968 million in Q3 2021, compared to ISK 2,213 million in the same period of 2020. Net cash from operating activities amounted to ISK 2,389 million in Q3 2021, compared to ISK 1,927 million in the same period 2020.
Interest-bearing debt including lease liabilities amounted to ISK 32.6 billion at the end of Q3 of 2021, compared to ISK 21.5 billion at the end of 2020. Net interest-bearing debt including lease liabilities amounted to 25.6 billion ISK at the end of Q3 2021 compared to 20.8 at the end of 2020.
Net financial expenses amounted to ISK 218 million in Q3 2021, compared to ISK 143 million in the same period of 2020. Financial expenses amounted to ISK 321 million, financial income ISK 75 million, and foreign exchange gain ISK 28 million.
Síminn's equity ratio was 45.0% at the end of Q3 2021 and equity was 31.3 billion.
Orri Hauksson, CEO:
“The third quarter was profitable in Síminn's and Míla’s operations. Earnings (EBITDA and EBIT) has never been better in one quarter. The reason for this good result is simple; cost control. Revenue generation, on the other hand, is a challenge, as the telecom market in Iceland is one of the country's most competitive markets. Internet & Network and TV services are in the balance, but the slowdown in the worldwide production of TV content is affecting revenue as well as expenses. Equipment sales are also declining, as Icelanders have now to an increasing extent, had the opportunity to buy products during their visits abroad. However, mobile revenue is growing again, which is good news.
After the third quarter, Síminn entered into an agreement with the French fund management company Ardian for the sale of the subsidiary Míla. As announced before, the EV is ISK 78 billion, including Míla's debts which will be taken over by the buyer. The acquisition is subject to the approval of the Competition Authority and is expected to be implemented in the first half of next year. Ardian is a major long-term investor in telecommunications, energy and transport infrastructure, especially in Europe. The company has stated that it intends to involve Icelandic pension funds in the purchase of Míla, accelerate the development of 5G and increase the number of fiber-optic connections in rural areas faster than at present. We believe that this foreign investment is very good news for the country and the nation.”
Investor meeting 27 October 2021
An investor presentation will be held on Wednesday 27 October 2021 at 8:30 am at Síminn‘s headquarters in Ármúli 25, Reykjavík. During the meeting, Orri Hauksson CEO and Óskar Hauksson CFO will present the financial results. The meeting will be held in Icelandic. Documents for the meeting are available in Nasdaq‘s Iceland company news and on the company’s investor relations website https://www.siminn.is/umsimann/uppgjor.
The meeting is webcasted on: https://www.siminn.is/fjarfestakynning
Further information
Orri Hauksson, CEO, tel. 354 550 6003 (orri@siminn.is)
Óskar Hauksson, CFO, tel. 354 550 6003 (oskarh@siminn.is)
Attachments
