Síminn hf. - Revenue growth in the first quarter
Financial highlights Q1 2023
- Revenue in the first quarter (Q1) of 2023 amounted to ISK 6,298 million compared to ISK 6,093 million in the same period 2022 and increased by 3.4%. If one-off items are excluded in Q1 2022, Síminn's revenue increased by 5.2%. There is steady growth in Síminn's core services, mainly in TV services, or almost 10%.
- EBITDA amounted to ISK 1,315 million in Q1 2023, down by ISK 12 million or 0.9% compared to the same period 2022. The EBITDA ratio was 20.9% in Q1 2023, compared to 21.8% in the same period of 2022. Operating profit EBIT amounted to ISK 318 million in Q1 2023, compared to ISK 574 million in the same period of 2022.
- Net financial expenses amounted to ISK 1 million in Q1 2023, but were positive by ISK 92 million in the same period of 2022. Financial expenses amounted to ISK 249 million, financial income ISK 260 million, and foreign exchange loss ISK 12 million.
- Profit in Q1 2023 amounted to ISK 246 million compared to a ISK 553 million profit of continuing operation in the same period 2022.
- Interest-bearing debt including lease liabilities amounted to ISK 8.8 billion at the end of Q1 2023, compared to ISK 8.9 billion at the end of 2022. Cash in the end of Q1 2023 amounted to ISK 1.8 billion, compared to ISK 3.7 billion at the end of 2022. The balance of loans at Síminn Pay was ISK 1.9 billion at the end of Q1 2023, but was ISK 1.7 billion at the end of 2022.
- Síminn's equity ratio was 55.3% at the end of Q1 2023 and equity was ISK 18.8 billion.
Orri Hauksson, CEO:
"The year starts off strong. It was gratifying to see that Síminn continues to attract customers with a comprehensive product range. Revenues increased year-on-year in the company's most profitable products, internet, mobile and IPTV. Fintech also continues its rapid growth with the release of a new credit card accessible to all citizens. Síminn's costs also increase between years with salary increases, rapid depreciation of investments and supplier contracts, most of which are linked to exchange rates and price level. In this way, exchange rate, depreciation and inflation ultimately translate into Síminn's costs, and in the current situation we are therefore extremely satisfied with managing to keep EBITDA unchanged from year to year.
The company's mobile network is constantly being developed throughout the country, in cooperation with the company's main suppliers, the Emergency Service (112) and other parties. According to United Nations reports, no country in the world is better connected than Iceland, and such a structure does not come by itself. Within a few years, every home in the country will be connected to a fiber optic cable and in a 5G connection, but following the new frequency allocations, Síminn is the most powerful partner of the authorities (ECOI) in building a mobile network that will reach all main roads and the busiest highland roads in the country in the coming years.
We continue to invest in high-quality TV content, foreign and domestic. Our TV service has grown rapidly and the recent agreement with HBO has caused an explosion in the use of the Premium service. More than 5 million orders per month means that each subscriber uses the service on average more than four times every 24 hours. Such figures are not known by other content providers in the world.
Síminn's digital transformation is on schedule and simpler operations following the sale of Míla will quickly translate to our customers in more agile service, more self-service and faster product development. The future is bright now that the company can start competing on an equal footing instead of being subject to special and increased regulatory control. On the last day of the first quarter of the year, Síminn paid more than ISK 16 billion to its owners and in two years has paid them more than ISK 55 billion as well as share buybacks worth ISK 6.6 billion."
Investor meeting 26 April 2023
An investor presentation will be held on Wednesday 26 April 2023 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: .
Further information
Orri Hauksson, CEO ( )
Óskar Hauksson, CFO ( )
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