Sýn hf.: Q1 2020 affected by the COVID-19 pandemic
Sýn hf.’s Condensed Consolidated Interim Financial Statements for Q1 2020 was approved by the board on May 13th, 2020.
Main results:
• Revenue for the first quarter (Q1) of 2020 amounted to ISK 4,995 million, on par with the same period in 2019. Endor ehf. revenue is now for the first time part of the Consolidated Interim Financial Statements, amounting to ISK 371 million.
• The quarter’s EBITDA amounted to ISK 1,355 million, compared to ISK 1,260 million in the first quarter of 2019. The EBITDA margin was 27.1% in the first quarter of 2020 compared to 25.3% in the same quarter last year.
• Loss in the first quarter of 2020 amounted to ISK 350 million, compared to profit of ISK 670 million in the same quarter last year. Sale of the Faroese subsidiary Hey amounting to ISK 817 million is included in the Q1 2019 profit.
• Cash flow from operations in the first quarter amounted to ISK 1,053 million compared to ISK 819 million in the same period in 2019, an increase of 29%.
• Total investments for the first three months of the year amounted to ISK 738 million, thereof ISK 263 million in property, plant and equipment and intangible assets (excluding broadcasting license rights) and ISK 475 million in broadcasting license rights.
• Negative cash flow from financial activities in the first quarter amounted to ISK 590 million compared to ISK 5 million in the same period in 2019 which is a change of ISK 585 million.
• Sýn hf.’s equity ratio was 26.8% at the end of the first quarter 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:
„Our forecast for the year was quite cautious but we did not even consider in our most bleak scenario a shutdown of the economy. We still managed to show an increase in EBITDA, as previously planned. The reason is mostly due to our efforts to improve flexibility by having a reduced workforce of over 100 since last year and increasing the efficiency of work overall. We had to shut down our stores, stop offsite visits and our advertising revenues fell sharply. Reykjavik DC is now operating but due to COVID-19 the transfer of data and equipment into the data center has been delayed but is happening now. We continue to try to maximize efficiency regarding the buildout of the 5G network and related infrastructure. We hope to introduce a plan in the next 3 months and are confident that the telco‘s and the public have their interest aligned. Free cash flow increases by over 500 million compared to last year. Our priority is to increase the cash flow from our business. “
Further information:
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