Síminn hf. - TV services continue to grow

Financial highlights Q3 2019:Q3 2018 interim statement has been restated according to changes made to treatment of TV rights. Síminn's revenue amounted to ISK 7,098 million in the third quarter (Q3) of 2019, compared to ISK 6,969 million in the same period 2018. A increase by ISK 129 million or 1.9%.EBITDA amounted to ISK 2,817 million in Q3 2019, compared to ISK 2,607 million in the same period of 2018, up by ISK 210 million or 8.1%. The EBITDA ratio was 39.7% in Q3 2019, compared to 37...

Reykjavik, 29/10/2019 (informazione.it - comunicati stampa - telecomunicazioni)

Financial highlights Q3 2019:

Q3 2018 interim statement has been restated according to changes made to treatment of TV rights.

Orri Hauksson, CEO:

„We are satisfied with the performance in Q3 and EBITDA margin increased slightly between years. The operations of Síminn and Míla are according to plans in the latter half of this year and main changes in roaming and wholesale are now behind us. ARPU is rising in the residential market after years of sharp declines. However, there is still price pressure in the corporate market. Sales of cloud services are growing this year and Sensa is involved in a few sizable cloud projects. This trend affects margin of services which are moved to the cloud. Companies are to more extent using cloud services and the demand for services and solutions is growing. Sensa is taking steps to be a strong partner on that journey.

There is strong revenue growth in TV between years. The success of Síminn Sport has exceeded expectations since the product launched in Q3 and Síminn has successfully negotiated distribution over major distribution channels. Síminn Sport is available to all viewers and interest is growing for this outstanding and particularly affordable service provided by Síminn. We therefore have high hopes for the product in coming months.

Síminn has also tried to negotiate distribution for Síminn Premium TV, our main television product, on more TV networks without succeeded so far. The reason is resistance from Sýn to distribute this most widely used TV content service in the country. This means that Síminn misses out on revenue opportunities and customers of Sýn excluded from subscribing to Síminn Premium TV. This discrepancy will be hopefully corrected next year.

Cost control is and will remain at the forefront of Síminn's operations. Number of FTE's has decreased by 40 since last year, and a similar change can be expected until next fall. The Group's investments have been high this year, as has been presented. The fiber rollout at Míla plays a key role and these long-term investments significantly increase the value of the Group's infrastructure over the coming years and decades. Furthermore, accounting changes related to content have pushed up investments. Systematic investments are also being made in Síminn's technology operations, which will benefit the group going forward.

The Group's total investments will decline in the coming quarters from present levels. This is mainly due to the fast progress of the fiber rollout project. The total decrease in investment amounts to hundreds of millions next year. “

Investor meeting 30 October 2019

An investor presentation will be held on Wednesday 30 October 2019 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 and a recording of the meeting will be available after the meeting on the company's investor relations website:

https://www.siminn.is/umsimann/uppgjor  and in Nasdaq's Iceland company news.

The meeting will be webcasted on:  https://livestream.com/accounts/11153656/events/8858806/player

Further information

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

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

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