Q Results. Orri Hauksson og Óskar Hauksson 29 August 2018

Transcription

1 Q Results Orri Hauksson og Óskar Hauksson 29 August 2018

2 HIGHLIGHTS FINANCE Highlights in Q EBITDA m.kr. EBITDA ratio 31,0% Cash 183 m.kr. Net debt / EBITDA* 2,02 CAPEX m.kr. Equity ratio 60,8% *EBITDA trailing twelve months EBITDA amount and margin increases Margin from roaming services decreases due to effects of RLH Net profit increases between periods The co-operation with GR will reduce unit prices Dividend and share buyback amounted to ISK m.kr. in Q2 Share buyback completed

3 Q Results

4 Income statement Q Q Q Change Change in % Net sales ( 224) -3,1% Cost of sales ( 3.610) ( 3.687) 77-2,1% Gross profit ( 147) -4,3% Gross profit ratio 47,8% 48,4% Other operating income ,8% Operating expenses ( 2.280) ( 2.289) 9-0,4% Operating profit ( 15) -1,2% Operating profit/net sales 18,2% 17,9% Finance income ( 82) -61,2% Finance cost ( 240) ( 390) ,5% Net exchange rate differences ( 2) ( 2) 0 0,0% Net financial items ( 190) ( 258) 68-26,4% Income tax ( 220) ( 230) 10-4,3% Net profit ,0% Depreciation and amortisation ( 953) ( 913) ( 40) 4,4% EBITDA ,1% EBITDA ratio 31,0% 30,2% EBIT ( 15) -1,2% EBIT ratio 17,7% 17,6%

5 Revenue by segments Q Q Q Change Change % Mobile ( 125) -7,7% Fixed voice ( 51) -9,9% Internet & network ,9% TV ,1% IT services * ( 409) -31,7% Equipment sales ,1% Other revenue ( 7) -2,6% Total revenue ( 101) -1,4% Adjusted for disc. operations * ( 21) -0,3% *Sensa DK Aps was sold in end of 2017

6 Cash flow Q Cash flow from operating activities Operating profit... Operational items not affecting cash flow: Depreciation and amortisation... Other items not affecting cash flow... Q Q ( 98) Cash generated by operation Changes in current assets and liabilitites... 0 ( 217) Cash generated by operation Net interest expenses paid during the period... ( 193) ( 115) Payments of taxes during the period... ( 157) ( 7) Net cash from operating activities Investing activities Net investment in property, plant and equipments... ( 1.106) ( 1.417) Other investment... ( 26) 14 Investing activities ( 1.132) ( 1.403) Q Q Q Net cash from operating activities Financing activities Dividend paid... ( 311) ( 275) Buyback of ordinary shares... ( 1.242) ( 321) Payments of non-current liabilities... ( 288) ( 230) Bank loans, increase Financing activities ( 1.266) ( 826) Decrease in cash and cash equivalents... Translation effects on cash... Cash and cash equivalents at the beginning of the period... Cash and cash equivalents at the end of the period... ( 630) ( 365) 8 ( 4) Q Q Q2 2016

7 1H Results

8 Income statement 1H H H 2017 Change Change in % Net sales ( 70) -0,5% Cost of sales ( 6.912) ( 6.933) 21-0,3% Gross profit ( 49) -0,7% Gross profit ratio 49,5% 49,6% Other operating income ,2% Operating expenses ( 4.555) ( 4.579) 24-0,5% Operating profit ,9% Operating profit/net sales 18,7% 17,9% Finance income ( 165) -61,3% Finance cost ( 481) ( 742) ,2% Net exchange rate differences 5 8 ( 3) -37,5% Net financial items ( 372) ( 465) 93-20,0% Income tax ( 448) ( 436) ( 12) 2,8% Net profit ,3% Depreciation and amortisation ( 1.887) ( 1.825) ( 62) 3,4% EBITDA ,7% EBITDA ratio 31,7% 30,7% EBIT ,9% EBIT ratio 18,3% 17,6%

9 Revenue by segments 1H H H 2017 Change Change % Mobile ( 166) -5,2% Fixed voice ( 99) -9,3% Internet & network ,5% TV ,0% IT services * ( 607) -27,7% Equipment sales ,5% Other revenue ,1% Total revenue ,4% Adjusted for disc. operations * ,6% *Sensa DK Aps was sold in end of 2017

10 Balance sheet Assets Non-current assets Property, plant and equipment Goodwill Intangible assets Other non-current assets Non-current assets Current assets Inventories Accounts receivables Other current assets Cash and cash equivalents Current assets Equity and liabilities Equity Total equity... Total assets Non-current liabilities Borrowings Deferred tax liabilities Non-current liabilities Current liabilities Bank loans Accounts payables Current maturities of borrowings Other current liabilities Current liabilities Total equity and liabilities

11 Cash flow 1H 2018 Cash flow from operating activities Operating profit... Operational items not affecting cash flow: Depreciation and amortisation... Other items not affecting cash flow... 1H H ( 92) Cash generated by operation Changes in current assets and liabilitites Cash generated by operation Net interest expenses paid during the period... ( 384) ( 437) Payments of taxes during the period... ( 313) ( 16) Net cash from operating activities Investing activities Net investment in property, plant and equipments... ( 2.288) ( 2.464) Other investment Investing activities ( 2.286) ( 2.443) H H H 2016 Net cash from operating activities Financing activities Dividend paid... ( 311) ( 275) Buyback of ordinary shares... ( 1.242) ( 321) Payments of non-current liabilities... ( 575) ( 688) Bank loans, increase Financing activities ( 2.053) ( 1.284) (Decrease) increase in cash and cash equivalents... ( 528) 233 Translation effects on cash... ( 7) ( 4) Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period H H H 2016

12 CAPEX development 19,5% 13,7% 15,5% Q Q Q CAPEX CAPEX / Revenue

13 Operations in 1H 2018 Profit and EBITDA Increase Between Periods Revenue from sale of services were growing in the first half of year but equipment sales decline Sale of IT equipment was the reason for the decline whereas sale of telecom equipment grew Ongoing cost reduction results in lower cost YoY The effects of RLH had impact on performance in Q2 Revenue similar to Q but expenses were higher due to sharp increase in data usage Focus is on improving margins from the service with e.g. review of roaming contracts Wholesale revenue with a slight decrease since H The decline will increase in H2 Healthy increase in Data and TV services revenue The mobile product Þrenna is showing significant growth - Over subscribers Míla with a stronger EBITDA performance in H1 compared to last year Refinancing in 2017 results in lower interest expenses

14 Operations in 1H 2018 Highlights from H1 The fiber rollout project at Míla is progressing well The co-operation with GR will reduce unit prices Over 20% of Síminn s internet subscribers connect with fiber New businesses are progressing Heimilispakki (Home package) and 10x well received Síminn TV now available to everyone Síminn Pay New products will be launched during the fall Digitalization at Síminn Improving customer experience The results are showing with e.g. fewer calls to service centers The aim is significant cost reduction

15 Guidance for 2018 Unchanged guidance EBITDA 2018 EBITDA b.isk. CAPEX 2018 CAPEX b.isk.

16 Highlights

17 1.500 homes added to Míla s fiber network in Reykjanesbær and Selfoss

18 . Hybrid IT platform Outlook positive for H2

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20 Ordinary People

21 LOGI BERGMANN

22 Appendix

23 Business segments Mobile: Revenue from mobile services in Iceland and abroad, whether traditional GSM service, satellite service, wholesale mobile service or other mobile service. Fixed voice: Revenue from fixed voice service (fees and traffic) both retail and wholesale. Internet & network: Revenue from data service both wholesale and retail, incl. xdsl service, GPON, Internet, IP net, core network, local loop and access network. TV: Revenue from TV broadcast and distribution and Síminn TV (fees, traffic and advertisement). IT services: Revenue from hosting and operations, advisor fees and sold service and IT related hardware sales. Equipment sales: Revenue from sale of telco equipment. Other revenue: Revenue from i.e. sold telco service and hosting.

24 Disclaimer Information contained in this presentation is based on sources that Síminn hf. ( Síminn or the company ) considers reliable at each time. Its accuracy or completeness can however not be guaranteed. This report contains forward-looking statements that reflect the management s current views with respect to certain future events and potential financial performance. Although the management believe that the expectations reflected in such forwardlooking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. The forward looking information contained in this presentation applies only as at the date of this presentation. Síminn does not undertake any obligation to provide recipients of this presentation with any further information on the company or to make amendments or changes to this publication should inaccuracies or errors be discovered or opinions or information change. Other than as required by applicable laws and regulation. This presentation is solely for information purposes and is not intended to form part of or be the basis of any decision making by its recipients. Nothing in this presentation should be construed as a promise or recommendation. Statements contained in this presentation that refer to the company s estimated or anticipated future results or future activities are forward looking statements which reflect the company s current analysis of existing trends, information and plans. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially depending on factors such as the availability of resources, the timing and effect of regulatory actions and other factors. By the receipt of this presentation the recipient acknowledges and accepts the aforesaid disclaimer and restrictions.

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