Icelandair Group results in the third quarter of 2009
• Icelandair Group‘s total turnover was ISK 53.6 billion, increasing by 29%
from the preceding year
• EBITDA was ISK 8.4 billion, as compared to ISK 6.2 billion in the
corresponding period of last year
• EBIT was ISK 6.9 billion, as compared to ISK 5.1 billion at the same time
last year. Depreciation amounted to ISK 1.6 billion, which represents an
increase of ISK 0.5 billion from the preceding year
• Net finance cost was ISK 2.1 billion, as compared to ISK 50 million in the
preceding year
• The Company's profit after taxes was ISK 4.0 billion, as compared to a profit
of ISK 4.4 billion at the same time last year
• The results of foreign subsidiaries before taxes fell ISK 1.3 billion short
of the results for the same period of last year
Icelandair Group results in the first nine months of 2009
• EBITDA was ISK 7.5 billion, as compared to ISK 7.2 billion in the
corresponding period of last year
• EBIT was ISK 3.3 billion, as compared to ISK 4.3 billion in the corresponding
period of last year. Depreciation amounted to ISK 4.1 billion, which
represents an increase of ISK 1.3 billion from the preceding year
• Net finance cost was ISK 4.2 billion, as compared to ISK 0.8 billion in the
preceding year
• The Company's loss after taxes was ISK 1.1 billion, as compared to a profit
of ISK 3.1 billion for the same time last year
• Cash at the end of the period amounted to ISK 6.1 billion, as compared to ISK
7.4 billion for the corresponding period of last year
• The equity ratio was 23.5 % at the end of September 2009, up from 20.3% at
the end of 2008
• Assets were ISK 105.6 billion at the end of September 2009, as compared to
ISK 98.8 billion at year-end 2008
Icelandair Group CEO Björgólfur Jóhannsson:
“Icelandair Group's core business in the third quarter was successful, and
improvements between years are evident in all the income statement ratios, with
the exception of depreciation and financial items. We are pleased with the
results of the quarter, and we are grateful to our staff for their excellent
contribution under these trying circumstances. This year is probably the
toughest our industry has experienced, and our foreign subsidiaries‘operations
show that clearly, where we see less demand and lower prices having negative
effect on the bottom line.
Our main focus all this year has been the restructuring of the Group's balance
sheet. It has been clear for a long time that
leverage needs to be decreased, liquidity improved and the equity ratio
strengthened. This process has taken more time than originally anticipated, but
now the first steps have been taken in the restructuring. The decision has
been made to simplify Icelandair Group's business model, emphasising the
opportunities inherent in Icelandair's route network, tourism in Iceland and
related operations, and our sights have been set on organic growth in these
fields. This change is a consequence of changed financial markets, which have
created the foundation for the business model we have been operating for quite
some time. In time, and given the proper market conditions, we will sell again
the strategic investments that the Company undertook in the years 2005-2007.
The first step in that direction was taken last week, when we sold a 20% share
in Travel Service and thereby ceased to be majority shareholders. Work on the
restructuring will continue in the coming weeks. Assets that the Company
intends to sell in the coming months will be re-assessed, and this could affect
equity.“
Our target for the year as a whole, ISK 6.5 billion in EBITDA, remains
unchanged. In our opinion, this would be a very acceptable operating result in
light of the operating environment. However, the Company's financial costs are
far to high, and great efforts are being focused on reducing them."
