Síminn hf. - Revenue growth and improved results

Financial highlights Q1 2022

In the Interim Financial Statements of the Síminn Group for the first quarter of 2022, Míla is treated as a discontinued operation. The operations of the Síminn Group without Míla are discussed below.

  • Revenue in the first quarter (Q1) of 2022 amounted to ISK 6,093 million compared to ISK 6,018 million in the same period 2021.
  • EBITDA amounted to ISK 1,327 million in Q1 2022, compared to ISK 1,274 million in the same period of 2021, up by ISK 53 million or 4.2%. The EBITDA ratio was 21.8% in Q1 2022, compared to 21.2% in the same period of 2021. Operating profit EBIT amounted to ISK 574 million in Q1 2022, compared to ISK 504 million in the same period of 2021.
  • Net financial expenses were positive by ISK 92 million in Q1 2022, but were negative by ISK 31 million in the same period of 2021. Financial expenses amounted to ISK 113 million, financial income ISK 200 million, and foreign exchange gain ISK 5 million. A change in financial expenses is due to a change in financing at the end of Q1 2021 and a capital gain from the sale of Síminn's shares in Auðkenni in Q1 2022.
  • Profit in Q1 2022 amounted to ISK 553 million, compared to ISK 376 million in the same period of 2021. Profit for the period, together with discontinued operations, amounted to ISK 746 million.
  • Interest-bearing debt including lease liabilities amounted to ISK 8.2 billion at the end of Q1 2022, compared to ISK 8.3 billion at the end of 2021. Net interest-bearing debt including lease liabilities amounted to ISK 4.5 billion at the end of Q1 2022 compared to ISK 4.8 billion at the end of 2021.
  • Síminn's equity ratio was 43.9% at the end of Q1 2022 and equity was ISK 30.9 billion.

Orri Hauksson, CEO:

"The year is off to a good start and in line with our expectations. Altogether, modest growth in revenue, EBITDA and EBIT between years in the first quarter. We are proud of such a development in the transformation process that is currently taking place in the group and the tough competitive environment that prevails in the telecommunications and entertainment markets in Iceland.

Conclusion from the Competition Authority's regarding the acquisition of the French fund management company Ardian of our subsidiary Míla can be expected this summer. Various measures, such as the design of Síminn's future balance sheet, are waiting for the sale process to be completed, but we want to make good use of the time in the meantime. Thus, it is now a priority within Síminn to build up human resources, service capacity and the organization of the company. Investments in Síminn's service infrastructure will be temporarily increased during the year, in order to strengthen the company for the new times ahead.

We have now advertised two new positions as managing director at the company, Sales and Services and Sustainability and Culture. The division of Digitalization and Media and Marketing are also a novelty and will be managed by Erik Figueras and Magnús Ragnarsson, in addition to which Óskar Hauksson will continue to be the Managing Director of Finance, which will change little from the current structure. Changes in projects within the company will also affect middle managers and the number of general employees, but the simplification that we intend to achieve will go through the company and shorten communication channels within it.

The group's staff has decreased significantly in recent years with outsourcing, sale of subsidiaries and a change in working methods. Thus, the company's new organization needs to reflect this development of the company, increase diversity in decision-making and build on digital customer service in a systematic way. The future of ServCo’s such as Síminn is based on selecting excellent suppliers, working closely with them and managing the service to customers in a secure manner. We are therefore very pleased to rely on undisputed technology suppliers such as Ericsson from Sweden, Cisco from the United States and SAP from Germany. In addition, Míla and Sensa, which will soon be both former Síminn subsidiaries, will be part of the company's key suppliers.

We will also use the year to invest in transformations and the development of various systems and services. These include the 5G core system, enhanced TV services and digitalization. We have launched a new subscription, which includes internet via fiber optics and postpaid mobile service, which has been well received. Our product range for individuals, households and companies will change even further as the year goes on. Síminn is a mature company that operates various legacy systems and now can be an ideal time for shutting down many of them.

As mentioned earlier, Míla is still owned by Síminn, although in the financial statements it is classified as an asset held for sale. The company has increased investments in fiber-optic installation in homes, especially in rural areas and its 5G network is being built up rapidly now.

Various external factors are subject to uncertainty, as usual, but to an unusually large extent now. The war in Ukraine, rising prices, the development of the tourism industry in Iceland and changes in the exchange rate of the ISK are all factors that cannot be foreseen with certainty. So far, these factors together have had little effect on Síminn's operations from what could be expected, and in our opinion no major movements can be expected from such causes throughout the year. This assessment is partly because certain external factors interact and thus dampen the possible overall impact in either direction. On the other hand, the supply chain will continue to be slow due to the pandemic and now also due to the armed conflict. Both cause delays in the delivery of equipment. However, we can manage and maintain balance in most other aspects of our operations, so we are optimistic about the future after a good first quarter. "

Investor meeting 27 April 2022

An investor presentation will be held on Wednesday 27 April 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/quarterly-results.

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

Those who wish to ask questions can send them to fjarfestatengsl@siminn.is and they will be answered at the end of the meeting.

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 Q1 2022
  • Síminn hf. - Investor Presentation Q1 2022
  • Síminn hf. - Consolidated Interim Financial Statements Q1 2022
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