Q1 2020
- Síminn‘s revenue amounted to ISK 7,246 million in the first quarter (Q1) of 2020, compared to ISK 6,962 million in the same period 2019. An increase by ISK 284 million or 4.1%.
- EBITDA amounted to ISK 2,735 million in Q1 2020, compared to ISK 2,369 million in the same period of 2019, up by ISK 366 million or 15.4%. The EBITDA ratio was 37.7% in Q1 2020, compared to 34.0% in the same period of 2019. Effects of Siminn Sport support the increase in EBITDA.
- Profit in Q1 2020 amounted to ISK 764 million, compared to ISK 615 million in the same period of 2019. An increase by ISK 149 million og 24.2%.
- Cash generated by operation amounted to ISK 3,734 million in Q1 2020, compared to ISK 2,062 million in the same period of 2019. Net cash from operating activities amounted to ISK 3,396 million in Q1 2020, compared to ISK 1,711 million in the same period 2019.
- Interest bearing debt amounted to ISK 15.8 billion at the end of Q1 of 2020, compared to ISK 16.2 billion at the end of 2019. Net interest-bearing debt amounted to 14.7 billion ISK at the end of Q1 2020 compared to 16.0 at the end of 2019.
- Net financial expenses amounted to ISK 270 million in Q1 2020, compared to ISK 313 million in the same period of 2019. Financial expenses amounted to ISK 256 million, financial income ISK 47 million, and foreign exchange loss ISK 61 million.
- Síminn's equity ratio was 56.9% at the end of Q1 2020 and equity was 37.4 billion.
„The operations of the Síminn group overall has been quite successful in recent quarters, and the year began exceptionally well, as we saw an increase in revenue on all fronts. Our TV service, both our new Síminn Sports product, and Síminn's main TV product, Síminn Premium, delivered new subscribers from the previous year. Revenue from mobile subscriptions and our pre-paid service Þrenna increased between years, and data transmission revenue is growing at a modest rate, but fixed line telephone calls continued in their slow downwards process. Sensa had a good quarter, but the company increased its revenue and EBITDA slightly from the previous year. Míla's business was stable as usual.
Customers took advantage of our TV and data services to an extent we have not seen before. Traditional mobile and fixed line calls also increased rapidly as the quarter progressed. It should be borne in mind that increased usage of our services by our customers usually results in a small performance improvement, as the prices for our monthly services are mostly fixed. Prices and revenues in the telco sector generally develop slowly between quarters, but most everything moved in the right direction for us for this period. By the end of the quarter, the capacity and load factor on the company's television and network systems was at the highest levels we have seen so far, but the systems and services did, however, meet the needs of our customers except in the most exceptional cases. Overall, the first quarter results are good as revenue, EBITDA, net profit and cash flow from operations grew between years.
The effects of the COVID-19 pandemic were manifested in various ways in March. Revenues from foreign tourists almost evaporated in a few weeks, as well as we closed the company's stores due to quarantine of workers. Síminn's service centers are fully operational as telecommuting effort has been successful, thanks to our patient staff both in technology and service, who transformed their homes to serve our customers. In general, Icelanders have been working from home on a large scale over the past six weeks, which at one time changed the needs of our customers and our own methods as we service them in the best possible way.
As with most other companies, the epidemic and the reactions to it will affect the performance and operation of the
Late paying customers have yet to emerge, but Síminn's experience with previous economic shocks is that there is some time lag until delayed collections to gain weight. The Group is not a major supplier of tourism or restaurants in
It should be mentioned that in recent years we have been rather conservative in spending and borrowing. We therefore now enjoy a strong balance sheet and sustainable operations. Cash balance is solid and we have access to credit lines if needed. The Company is below long-term leverage ratio and has therefore exercised an option to postpone payments of loans in 2020 until final maturity. We will therefore continue our operations, at a somewhat changed pace, but do not require a change of course or refinancing. We therefore think we are well prepared to deal with the uncertainty over the next term. "
Further information
Óskar Hauksson, CFO, tel. 354 550 6003 (oskarh@siminn.is)
Attachments
- Síminn
31.03.2020 EN - Síminn hf - Financial results Q1 2020
- Investor presentation Q1 2020
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