Sýn hf. : First quarter results in a profit of ISK 670 million
Sýn's Q1 2019 financial statement was approved by Sýn's CEO and Board of Directors at a board meeting 15th of May 2019.
The merger of P/F Hey, subsidiary of Sýn hf. in the Faroe Islands and Nema, a subsidiary of Tjaldur, was finalized in Q1 2019. After the merger, Sýn hf. owns 49.9% of the merged company and will be accounted for by an equity method. The profit of the sale amounted to ISK 817 million. Television content rights are now accounted for as part of intangible assets instead of inventiories. Comparative figures on Q1 2018 have been updated accordingly.
New accounting standard IFRS 16 was implemented on January 1, 2019, the standard is not retroactive and therefore comparative figures Q1 2018 are not updated.
· Revenue for the first quarter of 2019 amounted to ISK 4,975 million, a decrease of 1% from the previous year.
· The quarter's EBITDA amounted to ISK 1,260 million, an increase by 5% compared to Q1 2018, which amounted to ISK 1,201 million. EBITDA adjusted for IFRS 16 amounted to ISK 1,326 million.
· One-off items related to termination of several managers contracts on Q1 2019 amounts to ISK 137 million. The effect of one-off items on Q1 2018 amounted to ISK 115 million.
· Profit in the period amounted to ISK 670 million, an increase of ISK 619 million from the previous year.
· Profit pr. Share was 2,26 for Q1 2019. · The quarters investment activities amounted to ISK 1,034 million, thereof operational related investment amounted to ISK 616 million.
· Existing EBITDA outlook remains unchanged in the range of ISK 6.0-6.5 bn. and investments in the range of ISK 3.8-4.2 bn.
Heiðar Guðjónsson, CEO:
"The management of the company has changed significantly this year. The new management group has 4 new members out of a total of 5. The last 2 new managers will join before the end of this month and have previously worked as consultants for Sýn and are therefore very knowledgeable of the business. In my opinion, the management team is very strong and I look forward working with them in the future. Sýn has started reviewing its strategic plan and we will see the business becoming more focused as early as June. We aim to provide our customers with premium service and lead the market in innovation. The first quarter results are marked by the seasonality which is embedded in the business, which means the next quarters will show better results. We have now more clarity in the business and are reaffirming our outlook for the year. "says Heiðar Guðjónsson CEO, Sýn.