Sýn hf.’s Consolidated Interim Financial Statement for the Q1 2021 was approved by the board on May 12th, 2021.

Main results:

  • Revenue for the first quarter (Q1) of 2021 amounted to ISK 4,962 million, a decrease by ISK 33 million compared to the same period in 2020.
  • EBITDA for Q1 amounted to ISK 1,388 million, compared to ISK 1,355 million Q1 2020. The EBITDA margin was 28.0% in Q1 2021 compared to 27.1% in Q1 2020. Higher EBITDA can be traced to lower operating cost due to cost optimization procedures.
  • Loss in Q1 2021 amounted to ISK 231 million, compared to a loss of ISK 350 million in the same quarter last year. Of the 231 million in loss, 189 million relates to the sale of the Faroese associate sold in end of Q1 2021.
  • Cash flow from operations in Q1 2021 amounted to ISK 542 million compared to ISK 1,053 million in the same period in 2020, a decrease by 49%.
  • Total investments for the first quarter of 2021 amounted to ISK 807 million, thereof ISK 231 million in property, plant and equipment and intangible assets (excluding broadcasting license rights) and ISK 576 million in broadcasting license rights.
  • Negative cash flow from financial activities for the first quarter of 2021 amounted to ISK 320 million compared to ISK 590 million in 2020.
  • The Company’s equity ratio was 27.8% at the end of the first quarter of 2021.
  • On March 31st, the Group signed an agreement for the sale and leaseback of passive mobile infrastructure. The transaction will strengthen the Group's balance sheet and the expected sales gain exceeds ISK 6.5 billion. At the same time, a long-term lease agreement was made, which will ensure the Group's continued access to the passive mobile infrastructure. All active mobile equipment will remain owned by Sýn hf. In accordance with the requirement of IFRS, the transaction will be treated as the sale and leaseback of assets. For this reason, the sales profit that will result from the transaction will only be partly recognized through the P/L on the date of sale. The transaction is subject to the approval of the regulatory institution. 
  • On March 31st, an agreement was signed for the sale of a 49,9% share in the Faroese associated company P/F 20.11.19. The purchase price is 52.5 million DKK. A loss of 189 million was recognized in Q1 2021 in relation to the sale. The purchase price was paid in full on April 21st. A service agreement will continue to exist between the companies.
  • The transactions have no effect on EBITDA but strengthens the Company's balance sheet and liquidity position.

Heiðar Guðjónsson, CEO:

“The year 2020 was a turnaround year in our business. It is clear that the year 2021 will be transformational for the balance sheet of the Company. By selling passive infrastructure in the mobile business we are realizing a profit of around 6,5 billion without impacting our daily business going forward. In our negotiations we were able to raise the sales proceeds to 7,1 billion ISK. We also sold our stake in the Faroese telco Hey for over a billion ISK but our service agreements with Hey are intact. We are planning to sell more infrastructure this year but already it is clear that we can pay up the debt stemming from the purchase of assets from 365 as well as buying back shares. This is in line with our strategic plan for the Company of being customer centric and simplifying our business.

The first quarter results are in line with the seasonality in our business. Our new bundling offer „Fjölskyldupakkinn“ was launched at the end of the quarter and is selling better than forecasted which will show in the next quarter. The turnaround is therefore gaining strength. We realized a loss of around 200 million ISK by selling our assets in the Faroe Islands.“

Attachments

  • Syn hf. Interim Financial Statements Q1 2021 ENG
  • Sýn hf. 2021 1F - Fjárfestakynning_ENS
  • Sýn hf. 2021 1F - Fréttatilkynning_Ens

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