Sýn hf. : Merged company completes its first full year under challenging market conditions
February 27 2019 - 2:52PM
Sýn's 2018 annual financial statement was approved
by Sýn's CEO and board of directors at a board meeting 27th of
February 2019. The financial statement was audited and signed under
unqualified opinion by the firm's auditors. The financial statement
will be presented for confirmation at the firm's annual general
meeting on the 22nd of March 2019.
In December 2017 the company purchased certain
assets and operations of 365 Miðlar hf., and this influences the
comparison between periods.
Sýn and the Faroese company Tjaldur have agreed on
heads of terms in the merger of P/F Hey a subsidiary of Sýn and the
Faroese IT company Nema a subsidiary of Tjaldur. Sýn being the sole
shareholder of P/F Hey will hold 49,9% of the merged business with
Tjaldur owning 50,1%. P/F Hey's assets and liabilities have
been classified as held for sale in the balance sheet but the
company's operations in 2018 have not been presented as
discontinued in the income statement as it is considered
unsubstantial in the company's accounts.
·
Revenue in the fourth quarter of 2018 amounted to ISK 5,754
million, an increase of 34% from the previous year.
·
Total revenue for 2018 amounted to ISK 21,951 million, an increase
by 54% from the previous year.
·
The quarter's EBITDA amounted to ISK 780 million, a decrease by ISK
23 million from previous year. EBITDA adjusted for one off items
amounted to ISK 798 million, a 17% decrease from previous year.
·
EBITDA for the year amounted to ISK 3,248 million, a 4% increase
from previous year. EBITDA adjusted for one off items in relation
to the acquisition amounted to ISK 3,417 million, a 2% increase
from the previous year.
·
Profit in the period amounted to ISK 195 million, a decrease of 45%
from the previous year.
·
The year's profit amounted to ISK 473 million, a 56% decrease from
previous year. Profit adjusted for one off items in relation to the
acquisition amounted to ISK 608 million, a 52% decrease from the
previous year.
·
Profit per share was ISK 1.6 for the year.
· The years investment
activities amounted to ISK 2,407 million, an increase of 45% from
the previous year. Investment activities as a percentage of revenue
was 11.0%, but was 11.7% in 2017.
· The Board of Directors
proposes that no dividend will be paid for the operating year
2018.
· The EBITDA guidance has
been revised downwards by ISK 440 million. Furthermore, the sale of
the majority stake of P/F Hey, changes in accounting methods of
content rights and implementation of IFRS 16 leads to a revised
guidance of ISK 6.0 - 6.5 bn., see graph 5 in press
release.
· changed accounting
policies used in the handling of the exhibit and the implementation
of IFRS 16.
Stefán Sigurðsson, CEO:
"The fourth quarter results mark the first full
year of merged company. There are several reasons why the results
are lower than our earlier guidance. Firstly, challenging economic
conditions have affected sales in both advertising and
TV-subscriptions. Secondly, the cost level of the company has been
higher than anticipated along with cost increase due to the
weakening of the ISK in the fourth quarter. Thirdly, technical
difficulties of migrating customers between billing systems around
mid-year caused a lot of strain on the company's service at the
same time as the competition in the market increased. This
increased churn, sales cost and led to lower ARPU in the fourth
quarter. All mentioned challenges have been met with various
measures. The service level of the company is back to normal, sales
have increased although competition in the market is still fierce.
Focus has been put on cost cutting which will continue to have
positive effect on the company's results. At the same time measures
will be taken to simplify and improve the corporation's operations
in coming months.
Technical projects related to the merger have
mostly been completed and all operations are now situated at the
company HQ at Suðurlandsbraut 8-10. The sale of the majority of P/F
Hey in the Faroe Islands will simplify the operations. Other
projects include construction of Reykjavik first data center partly
owned by Sýn. The project has been met with much enthusiasm as the
data center will be the one of the most advanced in Iceland. After
the merger the company is financially stronger, with more diverse
income streams, and numerous future opportunities and therefore
well positioned to face challenges in the market and macro
environment" says Stefán Sigurðsson CEO, Sýn.
Press Release Q4
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Sýn hf. via Globenewswire
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