Net loss after taxes ISK 3.4 billion compared with ISK 10.6 billion in 2011
Adjusted EBITDA, net of extraordinary items, was ISK 8.1 billion
All Skipti´s creditors have agreed to the proposal on financial restructuring
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Sales were ISK 28.9 billion, compared to ISK 27.9 billion in the preceding year.
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Earnings before depreciation and financial items (EBITDA) was ISK 7.4 billion, compared to ISK 6.0 billion in 2011. The increase in EBITDA is mainly a result of streamlining measures. EBITDA ratio was 25.5%, but was 21.5% in 2011.
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Adjusted EBITDA ratio, net of extraordinary items, was 28% but was 22.6% in 2011.
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Cash from operations was ISK 6.3 billion, compared to ISK 4.5 billion in 2011. After tax and interest, cash from operations was ISK 4.2 billion.
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Net financial expenses for the year were ISK 5.5 billion of which finance cost was ISK 5.6 billion, interest earnings were ISK 0.3 billion. Exchange rate earnings were ISK 0.2 billion.
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Interest-bearing debt was ISK 62.0 billion at the turn of the year, compared to ISK 60.8 billion in the preceding year.
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Skipti’s equity ratio is 10.2% and equity was ISK 7.9 billion at the end of 2012.
- In total Skipti paid ISK 4.4 billion in interest and amortization payments in 2012. Skipti has not defaulted on any loan commitments.
Steinn Logi Björnsson, CEO of Skipti hf.:
“The financial statement reflects the success that has been achieved in the operation of Skipti and its subsidiaries in recent years. The company has gone through a series of streamlining measures on the basis of a plan that was designed to maximise the profitability of the group‘s operating companies. As a result, Skipti has increased significantly in value, which greatly facilitates the financial reorganisation needed to lay the foundation for a new long-term financial structure for the company. As revealed in a notice to the Stock Exchange, all the company‘s creditors have agreed to accept Skipti‘s proposal on financial restructuring. This is a tremendously important milestone for the company and totally transforms its operating environment for the future.
In addition, Skipti entered into a settlement with the Competition Authority, bringing to a conclusion all issues under scrutiny by the Authority relating to Síminn. Work is currently in progress on implementing the settlement, which should be in effect throughout the company this fall.
Skipti and its subsidiaries have in recent months been taking advantage of the current economic conditions, including the slack in new housing construction, to invest in its Ljósnet fibre to the curb network. An announcement was issued this year that the project would be expanded with the addition of 53 locations in rural Iceland to the places in southwest Iceland already receiving the Ljósnet service. With the addition, over 100 thousand households will be receiving much faster Internet speeds, as well as a number of HD television channels. Iceland is already at the forefront in the world in high-speed internet connections for households and businesses and this expansion of the Ljósnet network will further entrench that status.”
Operating results for the year 2012
Accounting Polices
The Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards as adopted by the EU. The Consolidated Financial Statements of Skipti hf. for the year 2012 consist of the Consolidated Financial Statements of Skipti hf. and its subsidiaries. The Board of Directors and the CEO of Skipti hf. have confirmed the Consolidated Financial Statements for the year 2012.
Operations
Net sales in 2012 were ISK 28,889 million, compared to ISK 27,032 million in the preceding year or 3.4% increase.
EBITDA for the Group was ISK 7,380 million, compared to 6,006 million in 2011. The increase in EBITDA is largely due to streamlining measures in Skipti’s operations. Adjusted EBITDA, net of extraordinary items, was ISK 8,070 million as compared with 6,289 million in 2012.
EBITDA ratio was 25,5%, but 27,9% excluding one-off items. EBITDA ratio in 2011 was 21.5%.
Depreciation, amortization and impairment was ISK 5,432 million, compared to ISK 6,539 million in 2011. This is mainly due to less impairment of goodwill. Impairment of intangible assets was ISK 1,695 million in 2012.
Loss for the year was ISK 3,403 million, compared to a loss of ISK 10,573 million in 2011. The loss is mainly due to finance cost. Interest cost was ISK 5,536 million. Impairment of intangible assets was ISK 1,685 compared to ISK 2,710 million in 2011.
Cash Flow
Cash provided by operations was ISK 6,288 million for the year, compared to ISK 4,451 million in the preceding year.
Capital expenditures (CAPEX) was ISK 2,927 for the year, compared to ISK 2,779 million in 2011.
Balance sheet
Skipti’s total assets at 31 December 2012 were ISK 77,295 million, having decreased by ISK 2.1 billion from the beginning of the year. This is mainly due to impairment of intangible assets. Interest-bearing debt was ISK 62 billion at the turn of the year, compared to ISK 60.8 billion in 2011.
Equity was ISK 7,893 million at the end of 2012, and equity ratio was 10.2%.
Further information:
Steinn Logi Björnsson, CEO. Tel: 5506003
About Skipti hf.
Skipti owns and operates companies in the telecommunications industry and information technology. The Group comprises Síminn, Míla, Skjárinn, Sensa, On-Waves Talenta, and Radiomiðun. Overseas subsidiary is the telecommunications company Síminn DK and Sensa DK in Denmark.
