Financial highlights Q2 2018
- Síminn‘s revenue amounted to ISK 7,153 million in the second quarter (Q2) of 2018, compared to ISK 7,254 million in the same period 2017. Adjusted for sold operations revenues are similar YoY.
- EBITDA amounted to ISK 2,216 million in Q2 2018, compared to ISK 2,191 million in the same period of 2017, up by ISK 25 million or 1.2%. The EBITDA ratio was 31.0% in Q2 2018, compared to 30.2% in the same period of 2017.
- Profit in Q2 2018 amounted to ISK 853 million, compared to ISK 790 million in the same period of 2017.
- Cash generated by operation amounted to ISK 2,118 million in Q2 2018, compared to ISK 1,986 million in the same period of 2017. Net cash from operating activities amounted to ISK 1,768 million in Q2 2018, compared to ISK 1,864 million in the same period 2017.
- Interest bearing debt amounted to ISK 17.9 billion at the end of Q2 2018, compared to ISK 18.4 billion at the end of 2017. Net interest bearing debt amounted to 17.7 billion ISK at the end of Q2 2018.
- Net financial expenses amounted to ISK 190 million in Q2 2018, compared to ISK 258 million in the same period of 2017. Financial expenses amounted to ISK 240 million, financial income ISK 52 million, and foreign exchange loss ISK 2 million.
- Síminn's equity ratio was 60.8% at the end of Q2 2018 and equity was ISK 36.5 billion.
Orri Hauksson, CEO:
„We are pleased with the group's continuing operational improvements in the second quarter. Margins and profits show a slight increase as compared to last year, and operating expenses continue to decline somewhat. We thus see improving operations in the total first half of the year vis-a-vis last year.
Roaming revenues and mobile traffic were somewhat lower in the spring than at the beginning of the year. Our TV products, fixed connectivity services and information technology, on the other hand, performed well in the quarter. It is also particularly pleasing to mention the success of Þrenna (our flagship pre-paid mobile product, not least aimed at younger customers), as sales thereof continued to increase during the quarter. We are delighted to see a constantly increasing younger customer base in our mobile communications product offering at Síminn. Seasonality in our telecommunications revenues has declined in recent years with an enhanced and simplified product portfolio, and we are seeing Síminn´s TV products in high demand throughout the year, including middle of the summer. In the third quarter, we introduced our latest TV product, Síminn’s Television for Everyone , which will ensure that all Icelanders can access Síminn's subscription service, regardless of which underlying network is being utilized. Síminn's subsidiaries also delivered improved results for the quarter. Sensa's information technology revenues, which tend to fluctuate within the year, increased from the previous quarter. In addition, Míla was successful in gaining new business in the quarter.
The level of infrastructure buildout in the country is high at present, and the group's investments are considerable, especially in fixed infrastructure which will last for decades. The buildout of Míla fiber optic cable in the capital area continues, but the focus has shifted to work in areas where Míla can share the costs of the rollout with Gagnaveita Reykjavíkur. In addition, Míla is offering new fiber optic connections throughout the country where infrastructure work is being carried out. However, after reaching a peak last year, going forward we expect to see the capital expenditure of the Group to slow down, as of this year.
In recent years, the operational focus has been to simplify the group, reduce our product offerings and increase automation. Our operating units are working more efficiently together and activities, which are not considered part of our core operations, are increasingly outsourced. We implemented the European Union's privacy regulations this spring, which again allows our customers to quickly obtain all of their personal information that we have in our possession at any given point in time. We are seeing increased consumer demands towards self-service and automation in addition to demands for foreseeable and transparent billing. We´ve enhanced our focus on the customer experience by establishing a digital taskforce, which works to a large extent on our close co-operation with the international telecommunications giant, Telefonica, is showing to be especially beneficial when implementing some of our key long-term strategy goals, such as further reducing service calls, increase system stability and lowering costs of technological operations.“
Further information
Orri Hauksson, CEO, tel. 354 550 6003 (orri@siminn.is)
Óskar Hauksson, CFO, tel. 354 550 6003 (oskarh@siminn.is)
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