Síminn hf. - Strong core operations deliver a good quarter
In the Interim Financial Statements of the Síminn Group for the second quarter of 2022, Míla is treated as a discontinued operation. The operations of the Síminn Group without Míla are discussed below.
- Revenue in the second quarter (Q2) of 2022 amounted to ISK 6,036 million compared to ISK 5,937 million in the same period 2021.
- EBITDA amounted to ISK 1,399 million in Q2 2022, up by ISK 81 million or 6.1% compared to the same period 2021. The EBITDA ratio was 23.2% in Q2 2022, compared to 22.2% in the same period of 2021. Operating profit EBIT amounted to ISK 682 million in Q2 2022, compared to ISK 543 million in the same period of 2021.
- Net financial expenses amounted to ISK 165 million in Q2 2022, compared to ISK 99 million in the same period of 2021. Financial expenses amounted to ISK 252 million, financial income ISK 90 million, and foreign exchange loss ISK 3 million.
- Profit in Q2 2022 amounted to ISK 410 million, compared to ISK 342 million in the same period of 2021. Profit for the period, together with discontinued operations, amounted to ISK 505 million.
- Interest-bearing debt including lease liabilities amounted to ISK 7.1 billion at the end of Q2 2022, compared to ISK 8.3 billion at the end of 2021. Net interest-bearing debt including lease liabilities amounted to ISK 5.7 billion at the end of Q2 2022 compared to ISK 4.8 billion at the end of 2021.
- Síminn's equity ratio was 44.0% at the end of Q2 2022 and equity was ISK 29.9 billion.
Orri Hauksson, CEO:
"Síminn's operations in the second quarter of the year follow closely behind the first, with both revenue and EBITDA increasing. Mobile revenues are now significantly growing year-on-year, partly due to increased travel to and from the country. Income from TV services and internet also increases somewhat. The operating outlook for the second half of this year is positive.
The main cost items change little between years, but a large part of Síminn's costs is predictable and based on long-term contracts with domestic and foreign suppliers. Exchange rate development has been favourable, but inflation weighs against it and will do so more heavily for the rest of the year. Labour costs increased by almost 5% year-on-year in the second quarter, mostly due to layoffs. Salary increases can be expected in the coming months. To some extent, this is due to more pressure on wages in general, in addition to the fact that the upcoming collective agreements are a major factor of uncertainty in the company's expenses next year.
Síminn's structure was changed during the quarter, with the aim of shortening the company's communication channels and improving customer service. Two new managing directors have been appointed, Berglind Björg Harðardóttir, Sales and Services, and Erla Ósk Ásgeirsdóttir, Sustainability and Culture, and they have already made a positive impact on the business.
Míla, Síminn's subsidiary, performed well in the first half of the year and returned EBITDA results comparable to the same period last year. Síminn signed a share purchase agreement with the French fund management company Ardian on October 23 last year, but the company's sale process will be finalized on September 15 at the latest, when the deadline for the competition authorities to review the purchase will have passed. As stated in Síminn's announcement to the stock exchange last July 22, it has been agreed with the company's buyer that Míla's sale price will drop from ISK 78 billion to ISK 73 billion, as well as other changes to the purchase agreement. Síminn still hopes that Ardian's acquisition of Míla will be approved, as the competition authorities have for a long time believed that the sale of Míla to a third party is positive for competition, and that the acquisition will lead to further investments in telecommunications infrastructure in Iceland. A new arrangement after the sale is based on a solid business agreement between Síminn and Míla and would be beneficial for Síminn's operations and for Síminn's customers in the short and long term."
Investor meeting 24 August 2022
An investor presentation will be held on Wednesday 24 August 2022 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 .
The meeting is webcasted on: .
Those who wish to ask questions can send them to and they will be answered at the end of the meeting.
Further information
Orri Hauksson, CEO, tel. 354 550 6003 ( )
Óskar Hauksson, CFO, tel. 354 550 6003 ( )
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