Síminn hf. - Year of transformation – Solid operation

Financial highlights Q4 2021

In the Síminn Group's financial statements for the year 2021, Míla is treated as discontinued operations. The operations of the Síminn Group, including Míla, are discussed below.

  • Revenue in the forth quarter (Q4) of 2021 amounted to ISK 6,700 million compared to ISK 6,703 million in the same period 2020.
  • EBITDA amounted to ISK 2,532 million in Q4 2021, compared to ISK 2,713 million in the same period of 2020, down by ISK 181 million or 6.7%. The EBITDA ratio was 37.8% in Q4 2021, compared to 40.5% in the same period of 2020. Operating profit EBIT amounted to ISK 918 million in Q4 2021, compared to ISK 1,207 million in the same period of 2020. If the reduction of the administrative fine in Q4 2020 of ISK 300 million is taken into account, EBITDA for the period was ISK 2,413 million and EBIT ISK 907 million.
  • Net financial expenses amounted to ISK 279 million in Q4 2021, compared to ISK 144 million in the same period of 2020. Financial expenses amounted to ISK 360 million, financial income ISK 87 million, and foreign exchange loss ISK 6 million.
  • Profit in Q4 2021 amounted to ISK 654 million, compared to ISK 1,055 million in the same period of 2020. If the reduction of the administrative fine in Q4 2020 is taken into account, profit for the period was ISK 755 million.
  • Interest-bearing debt without Míla including lease liabilities amounted to ISK 8.3 billion at the end of 2021, compared to ISK 21.5 billion at the end of 2020. Net interest-bearing debt without Míla including lease liabilities amounted to 4.8 billion ISK at the end of 2021 compared to 20.8 at the end of 2020.
  • Síminn's equity ratio was 44.6% at the end of 2021 and equity was ISK 31.1 billion.

Orri Hauksson, CEO:

„The year 2021 was historic for Síminn. The agreement on the sale of Míla marks one of the biggest changes that have been made to the group in its century history. During the year, the sale of Síminn's second largest subsidiary, the information technology company Sensa, was also finalized.

At the same time as the group's reshuffle took place, the basic operations went smoothly, both at Síminn itself and at the group. The Group's profit increases between years and amounts to almost ISK 3 billion from the operations that were within the Group at the end of last year, including Míla but without Sensa. Considering the profit from the sale of Sensa, the profit was over ISK 5.2 billion. Part of Sensa's sale proceeds were shares in Crayon, all of which have now been sold. Due to a positive development in Crayon's share price, the final profit from the sale of Sensa turned out to be ISK 2,180 million, or about ISK 120 million higher than expected when the transaction was completed. The Group's EBITDA has never been higher, or ISK 10.6 billion. Revenues increase significantly in mobile phones but slightly in data transmission and television.

The improvement in operations last year is due to lower costs, which in turn is largely explained by streamlining measures taken in 2020. Those measures reduced wage costs but outsourcing of key aspects of Síminn's information technology was fully implemented in 2021. This measure shifted costs between operating items and reduced spending. The main purpose of this change is to deliver an increased response rate in the long run and improved service capacity to customers. The pandemic continued to have a clear effect on reducing both income and expenses during the year. Síminn did not accept any public subsidies such as media subsidies, share compensation or other public contributions established after the epidemic.

After some preparation, agreements were reached on the sale of Míla last October. The buyer is the infrastructure fund company Ardian. The company has applied to Icelandic pension funds to be a co-owner of Míla with a minority share. The total value of Míla in the transaction is ISK 78 billion and Síminn's estimated capital gain is ISK 46 billion, considering the cost of the transaction. Thus, the sale is particularly advantageous and maximizes the value of this asset for Síminn. A wholesale agreement was made between Síminn and Míla with a 20-year duration, which takes effect upon delivery of the company. Through the companies' long-term agreement, Síminn secures access to the infrastructure necessary to continue to provide quality services to its customers. The change in Míla's ownership has almost no effect on the transactions between the companies, they will remain on the same basis as since the establishment of Míla in 2007, based on arm's length considerations. Síminn's operations will therefore not be affected beyond what is traditional when subsidiaries are sold. It is also clear that lease obligations are not formed in Síminn's balance sheet following the transaction.

Míla's balance sheet is classified in the consolidated financial statements 2021 as discontinued operations and assets held for sale. The same applies to Míla's operations. In other respects, there is no effect in the account on the sale of the company and the capital gain on the transaction is not stated in the account. The transaction is being processed by the Competition Authority, and on 9 February the Authority announced that it had received a merger notification which it considered to be satisfactory. The deadline for the agency to review the transaction has therefore begun and a decision should be available by the middle of the year.

The group was refinanced few months before the sale of Míla and about ISK 8 billion was paid to shareholders through a reduction of share capital. The parent company is now very moderately indebted and in fact financed with share capital to a much greater extent than is normal in the long run. The aim is to move Síminn's capital structure to a more efficient position after the sale of Míla has been completed. Until then, investments in the company's internal systems and processes will be accelerated and the purchase of own shares will continue. At the same time, there is increasing weight in the 5G structure on behalf of both companies, Síminn in the core system and Míla in the RAN system. At the end of the year, the 5G system covered most of the capital area, and a 5-year agreement was made with the Swedish technology company Ericsson to accelerate the nationwide development of this secure future system of ours.

Last year, Síminn also became the largest reseller of fiber-optic local loops in Iceland and was for the first time able to use all networks available in the country to offer its services to customers. Míla has also increased its investments in the fiber-optic network, since the agreement on the sale of Míla was signed. The TV right for the English Premier League was renewed until the year 2025 and the collaboration with domestic and foreign content producers was extended. In this way, quality content in Síminn's television service has been ensured for the next few years.This year will mark the new beginning of Síminn as an independent service company with less than 300 employees. The company is now based on a light balance sheet and flexible operations, with excellent suppliers and an ambitious range of services in telecommunications, television and fintech. Further opportunities for revenue growth are also being considered. "

Investor meeting 16 February 2022

An investor presentation will be held on Wednesday 16 February 2022 at 8:30 am at Síminn‘s headquarters in Ármúli 25, Reykjavík. During the meeting, Orri Hauksson CEO and Óskar Hauksson CFO will present the financial results. The meeting will be held in Icelandic. Documents for the meeting are available in Nasdaq‘s Iceland company news and on the company’s investor relations website https://www.siminn.is/umsimann/uppgjor.

The meeting is webcasted on: https://www.siminn.is/fjarfestakynning.

The English version of the consolidated financial statements will be available at https://www.siminn.is/umsimann/quarterly-results later this week.

Further information

Orri Hauksson, CEO, tel. 354 550 6003 (orri@siminn.is)Óskar Hauksson, CFO, tel. 354 550 6003 (oskarh@siminn.is)


  • Síminn hf - Financial results Q4 2021
  • Síminn hf. - Investor Presentation Q4 2021
  • Síminn hf. - Ársreikningur samstæðu 2021
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