Sýn hf.: Business is improving in the first half of 2020
Sýn hf.’s Condensed Consolidated Interim Financial Statements for the first six months of 2020 were approved by the board on August 26th, 2020.
Main results:
• Revenue for the second quarter (Q2) of 2020 amounted to ISK 5,352 million, an increase by ISK 329 million compared to the same period in 2019. Endor ehf. revenue amounted to ISK 943 million in the second quarter. Revenue in the first 6 months increased by ISK 349 million between years, or 3%.
• The quarter’s EBITDA amounted to ISK 1,364 million, compared to ISK 1,216 million in the second quarter of 2019. The EBITDA margin was 25.5% in the second quarter of 2020 compared to 24.2% in Q2 2019. EBITDA for the first half of 2020 was ISK 2,719 million, an increase of ISK 243 million from same period in 2019.
• Loss in the second quarter of 2020 amounted to ISK 60 million, compared to a loss of ISK 215 million in the same quarter last year. Loss in the first half of the year amounted to ISK 410 million compared to a profit of ISK 455 million in 1H 2019. Sale of the Faroese subsidiary Hey amounting to ISK 817 million is included in the 1H 2019 profit.
- Cash flow from operations in the second quarter amounted to ISK 1,753 million compared to ISK 1,219 million in the same period in 2019, an increase of 44%. Cash flow from operations in the first half of 2020 amounted to ISK 2,805 million compared to ISK 2,038 million in the same period in 2019, an increase of 38%.
- Total investments for the first six months of the year amounted to ISK 1,595 million, thereof ISK 520 million in property, plant and equipment and intangible assets (excluding broadcasting license rights) and ISK 1,075 million in broadcasting license rights.
- Negative cash flow from financial activities in the first half of 2020 amounted to ISK 1,445 million compared to ISK 190 million in the same period in 2019 which is a change of ISK 1,255 million.
- The company’s equity ratio was 26.8% at the end of the first half of 2020.
- Management´s ongoing goal is to increase EBITDA margin and operating cash flow in 2020. The process is ongoing, however the negative impact of COVID-19 is not yet known. Capital investment in fixed and intangible assets (excluding broadcasting license rights) will be around ISK 1 bn.
Heiðar Guðjónsson, CEO:
„Business is improving in the first half. Cash flow from operations increases significantly and free cash flow increases even more. We would have shown a profit had it not been for the COVID-19 pandemic which hit advertising sales and roaming badly and lead to the postponement of our most valuable TV rights, the European Cup in football and Champions League finals.
We are continuously increasing efficiency and finding ways to improve return on investments. That has led us to develop further Sendafélagið, which is owned with Nova, and increase joint operations. Regulatory approval is already in place. This will lead to a more profitable mobile network. We are looking into selling parts of the mobile network which should give our shareholders access to a considerable amount of capital. Selling off telecom infrastructure is increasingly popular internationally and multiples in such deals are much higher than in the overall market.
We are still awaiting a response from the regulator in regard to the potential collaboration of all the three telecommunication companies in rolling out 5G. It seems clear to us that the interest of the public and national security is aligned in a joint rollout which would diversify the choice of vendors and improve our position to negotiate with producers. It would be nothing short of absurd to limit the rights of private companies to choose the best and cheapest network just to please the foreign policy of Donald Trump.
Shareholders are now being rewarded for their patience since we can now see a turnaround in the business. It is my goal to return capital to shareholders in the coming months. “
Further information:
- Further inquiries are received via the email address
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