CORR: The last bullet in 2Q: Losses after taxes came to ISK 161 million,
instead of ISK 161 billion as was miswritten in the previous press release.
+Improved results despite difficult external conditions
+Cash flow considerably stronger than last year
Performance in the first six months of 2010
+ Total turnover was ISK 38.2 billion, increasing by 14% between years.
+ EBITDA was ISK 2.3 billion (6.1%), as compared to ISK 1.5 billion (4.4%) in
the preceding year.
+ Depreciation was ISK 2.6 billion, up by ISK 220 million from last year.
+ The EBITDAR ratio was 17.4%, as compared to 17.2% at the same time last year.
+ Financial expenses amounted to ISK 1.8 billion, as compared to ISK 1.7
billion at the same time last year.
+ Net cash from operating activities amounted to 9.4 billion as compared to 5.0
billion at the same time last year.
+ Cash on 30 June amounted to ISK 7.5 billion, as compared to ISK 6.2 billion
for the corresponding period of last year.
+ Total assets amounted to ISK 97.8 billion at the end of the period and the
equity ratio was 13.4%, as compared to 17.8% at the same time last year
Second quarter performance, 2010
+ Total turnover was ISK 21.9 billion, up by 12.2% from the corresponding
quarter of last year
+ EBITDA was ISK 2.1 billion, as compared to ISK 1.4 billion in the
corresponding quarter of last year
+ The EBITDA ratio was 9.8%, as compared to 7.2% at the same time last year
+ Depreciation was ISK 1.3 billion
+ The EBITDAR ratio was 20.3%, as compared to 20.1% at the same time last year
+ Financial expenses amounted to ISK 1.1 billion, as compared to ISK 1.2
billion last year
+ Losses after taxes came to ISK 161 million, as compared to ISK 1.3 billion
over the corresponding period of last year
Björgólfur Jóhannsson, CEO:
“Despite difficult external conditions, the Company's total income increased
in the first half of the year in excess of added capacity. The improved
operation of the Company is reflected in increased EBITDA in the first half of
the year by ISK 862 million. The EBITDA ratio was 6.1%, as compared to 4.4% in
the first six months of last year.
The volcanic activity in Eyjafjallajökull had a severe impact on operations, as
the Company reported earlier. In our assessment, the negative impact of the
flight restrictions amounted to about ISK 1.5 billion. In our opinion the
Company's staff showed extraordinary flexibility and nerve, which is best
illustrated by the EBITDA from continuing operations in the first half of the
year, which exceeded the budget in spite of the impact of the volcanic
eruption. As a result, the decision has been made to increase the EBITDA
forecast for the year from ISK 7.6 billion to ISK 8.5 billion in 2010, which
corresponds to a 12% increase from the previously published forecast.
The Company's loss in the second quarter came to ISK 161 million, as compared
to a loss of ISK 1.3 billion in the corresponding quarter of last year. Losses
in the first six months of the year amounted to ISK 2 billion, as compared to
almost five billion over the same period last year. At the end of June the
Company's cash position was satisfactory, at ISK 7.5 billion.
The Company is optimistic for the success of the “Inspired by Iceland”
campaign launched by Icelandair and other travel service companies in
partnership with the Icelandic government early this summer. The campaign will
be a powerful tool in our endeavour to increase the flow of tourists to Iceland
in the spring and autumn months. On the whole, I am optimistic as regards the
Company's future prospects and for the Icelandic tourist industry as a whole.
The best months of the year in airline operations and tourist services lie
ahead, and the Company expects that this will be reflected in the report for
the third quarter.
Yesterday, Icelandair Group reached a milestone. Since October 2008 the
Company has worked on the restructuring of it‘s balance sheet. Now an
agreement has been reached with our main creditors and investors, which
connotes and the Company‘s debts and debt burden will decrease, In addition,
new equity will be recieved, both as cash and with the conversion of debt into
equity. For the first time in a long period of time the Company has a healthy
and strong Balance Sheet. I think the future prospects in the operations of
Icelandair Group are good.“
