Sýn hf. : 69% increase in income but no synergies realized yet
May 16 2018 - 1:31PM
The interim financial report for
Sýn hf. for the first quarter of 2018, was approved by the
company's Board of Directors and CEO at a board meeting on 16. May
2018.
At the company's Annual General
Meeting in March, it was agreed to change the company's name from
Fjarskipti hf. to Sýn hf. In December 2017, the company
purchased certain assets and operations of 365 miðlar hf., and the
effect of this is can be seen in the comparison of amounts between
years. One-off items regarding the acquisition affected the
quarter's results and the adjusted results are shown below. The
one-off items consist of several different items connected with the
purchase.
·
Income in the first quarter of 2018 amounted to ISK 5,304 million,
an increase of 69% from the previous year.
·
The quarter's EBITDA amounted to ISK 718 million, the same as the
previous year. The adjusted EBITDA, in accordance with the above,
amounted to ISK 833 million, an 11% increase from the previous
year.
·
Profits in the period amounted to ISK 56 million, a decrease of 72%
from the previous year. The period's adjusted profits amounted to
ISK 150 million, a 33% increase when compared to the same period of
the previous year.
·
Profits per share were 0.20.
·
The adjusted EBITDA, in accordance with the above, amounted to ISK
522 million, a 61% increase from the previous year.
·
EBITDA outlook for 2018 is estimated at ISK 4,000-4,400 million
from regular operations. The estimated investment ratio is
unchanged at 8-10% of income.
Stefán Sigurðsson, CEO:
"It is pleasing to see the merged
company's first quarter show a revenue increase of 69%, which
exceeds expectations. The first step of the merger has been to
ensure the transfer of the company's customers and revenue, which
has been successful so far, despite the heavy workload associated
with integration. The quarter's costs are high, as no synergies are
realized yet. Merger costs were however considerable during the
quarter, as well as depreciation and financial expenses following
the increase in balance sheet. The plan for the year is to lower
the costs of the merged company, with synergies increasing steadily
throughout the year. The company still plans to achieve syngergies
amounting to ISK 1,000-1,100 within 18 months, i.e. approximately
60% of the total EBITDA increase plan for the purchase. The plans
that the merged company will have an EBITDA of over ISK 5 billion
in 2020 are unchanged.
The merged company, under the name
Sýn, is a telecommunications and media company offering broad
services. According to a new report by the PTA, the company had the
second largest market share in the mobile market (32.8%), broadband
(37.1%) and IPTV (47.4%) at year-end 2017.
The first months of the merger
have been postive, and the merger should be fruitful for all
stakeholders. In addition to the estimated EBITDA of over ISK 5
billion in 2020, the employees will be joined under one roof during
the year, in the company's new headquarters at Suðurlandsbraut
8-10. For consumers, the price of television subscription packages
decreased whilst other packages were expanded. These changes have
been part of the planning regarding the purchase from the beginning
and are therefore included in the prospects of the merged company.
By doing this, we aim to press forward and give more people the
chance to subscribe to high-quality Icelandic and international TV
programming and live sports," says Stefán Sigurðsson, CEO of
Sýn.
Investors Presentation
Press release Q1
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions 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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