Siminn's performance in 2006
" Last-half profit ISK 2.8 billion
" The performance during the year was greatly determined by the exchange-rate trend of the krona, and there was an exchange-rate was of ISK 5,8 billion
" Performance for all of 2006 negative by ISK 3.6 billion
" Cash inflow from operating activities, exclusive of interest and taxes, was ISK 8.7 billion
Brynjólfur Bjarnason, President of Siminn
"2006 was by and large advantageous for Siminn. The company's operations went well, with contribution increasing by 17% and sales by 16%. EBITDA increased by 13%. Cash inflow from operating activities, exclusive of interest and taxes, was ISK 8,7 million, which shows the company's robust cash flow. On the other hand, the unfavourable exchange-rate trend of the krona had considerable impact on the bottom line, as at other domestic companies."
Operations
Siminn's sales in the last half of 2006 were ISK 13,276 million, increasing by 14.7% between the years. The sales for all of 2006 were ISK 25,030 million, compared with ISK 21,641 million the year before, which is an increase of 15.7%.
EBIT in the last half of the year was ISK 2639 million, increasing by 33.9% over the same period in 2005. EBIT for the entire year was ISK 4606 million, compared with ISK 3606 million in 2005, therefore increasing by ISK 1000 (27.7%).
The group's operating surplus before depreciation and amortisation (EBITDA) was ISK 8443 million in 2006, compared with ISK 7454 million the previous year. This is an increase of ISK 989 million (13.3%).
The company's depreciation and amortisation were ISK 3837 million during the Year, compared with ISK 3847 million in 2005.
The performance after taxes in the second half of 2006 was positive by ISK 2848 million, compared with krona short 1880 million for the same period in 2005. The performance after taxes in 2006 was negative by ISK 3560 million, which is especially explained by the exchange-rate trend. Part of Siminn's liabilities is in foreign currency, and the exchange-rate decrease of the krona caused an exchange-rate loss during the year of ISK 5772 million. The exchange rate index increased from close to 105 at the beginning of 2006 to well over 129 at year-end, which corresponds to an exchange-rate decrease of the krona of 23.1%. Today the exchange rate index is around 122.1.
Cash flow
Cash inflow from operating activities, exclusive of interest and taxes, was ISK 8654 million in 2006. This is an increase of 15.1% over 2005, when cash inflow from operating activities, exclusive of interest and taxes, was ISK 7519 million.
The group's investments in fixed tangible assets (CAPEX) were ISK 2117 million during the period versus ISK 4318 million in 2005.
Finances
The group's total assets on 31 December 2006 were ISK 88.9 billion, increasing by 6.8% during the year.
The company's total equity capital was ISK 29.4 billion at year-and, and the equity ratio was 33.1%.
Subsidiaries
The main subsidiaries included in Siminn's consolidated financial statement are: Anza hf., Upplýsingaveitur ehf., Skjárinn miðlar ehf., Tæknivörur ehf. and Sirius IT which is subsidiaries of Anza.
Main events in last half
Anza hf. purchased the part of the operations of the IT Company TietoEnator providing parties connected with the public sector in Denmark, Norway and Sweden with services in the field of information technology. In parallel with this, the company Sirius IT was founded; it is a new Nordic IT company that will take over these operations. The company commenced operations on 1 November 2006, and this share is included in the group's operations. The total purchase price was about DKK 220 billion (ISK 2640 million), and there are about 400 employees.
At a meeting of the Board of Directors on 19 December 2006, the board approved presentation at the company's annual general meeting of a proposal to divide Siminn up into Skipti hf., Fjarskiptanetið ehf., Fjárfestingarfélag ehf. and Síminn hf., where Skipti hf. will become the parent company of the other companies. It was also decided to make a proposal that the share capital of Skipti hf. would be ISK 7000 million, and that the share capital of Síminn hf. be decreased from ISK 30,930 million to ISK 7088 million.
Market position and prospects
Siminn's share of the telecommunications market is good, and the revenues from telecommunications activities are growing. Siminn increased the number of its revenue streams last year and, during the year, consolidated its place as a distribution company for television services. Siminn is also investigating further growth opportunities in other countries. Emphases in the near future will be characterised by increased integration of telecommunications and information technology.
31. January 2007 at Cisco Networkers, which is held in Cannes France each year, it was announced that Siminn had won The Cisco Networkers Innovation Awards for "Best Broadband IP Service". The awards recognise those businesses at the forefront of deploying and successfully implementing innovative technologies, rewarding companies leading the field in delivering real and tangible benefits as a result. The judging Panel were looking for advanced technology initiatives that could clearly demonstrate the benefits of well-managed deployment, that delivered significant improvements, and introduced innovative new services through the effective use of technology.
The judges' statements about Siminn were extremely positive. They declared that Siminn had been head-and-shoulders above competitors in this area. Now over 27,000 homes utilize Siminn's ADSL television, or 24% of households in Iceland and the VoD service has reached 20% market share which is the highest in Europe.
For further information, contact:
Brynjólfur Bjarnason, President of Siminn, Tel. 550 6003
Linda Waage, Siminn Corporate Communications, Tel. 892 6011.
