Tilkynning frá OMX | 16.5.

Sýn hf. : 69% increase in income but no synergies realized yet

The interim financial report for Sýn hf. for the first quarter of 2018, was
approved by the company's Board of Directors and CEO at a board meeting on 16.
May 2018.

At the company's Annual General Meeting in March, it was agreed to change the
company's name from Fjarskipti hf. to Sýn hf.  In December 2017, the company
purchased certain assets and operations of 365 miðlar hf., and the effect of
this is can be seen in the comparison of amounts between years. One-off items
regarding the acquisition affected the quarter's results and the adjusted
results are shown below. The one-off items consist of several different items
connected with the purchase.

    ·      Income in the first quarter of 2018 amounted to ISK 5,304 million, an
increase of 69% from the previous year.

    ·      The quarter's EBITDA amounted to ISK 718 million, the same as the
previous year. The adjusted EBITDA, in accordance with the above, amounted to
ISK 833 million, an 11% increase from the previous year.

    ·      Profits in the period amounted to ISK 56 million, a decrease of 72%
from the previous year. The period's adjusted profits amounted to ISK 150
million, a 33% increase when compared to the same period of the previous year.

    ·      Profits per share were 0.20.

    ·      The adjusted EBITDA, in accordance with the above, amounted to ISK
522 million, a 61% increase from the previous year.

    ·      EBITDA outlook for 2018 is estimated at ISK 4,000-4,400 million from
regular operations. The estimated investment ratio is unchanged at 8-10% of

 Stefán Sigurðsson, CEO:

"It is pleasing to see the merged company's first quarter show a revenue
increase of 69%, which exceeds expectations. The first step of the merger has
been to ensure the transfer of the company's customers and revenue, which has
been successful so far, despite the heavy workload associated with integration.
The quarter's costs are high, as no synergies are realized yet. Merger costs
were however considerable during the quarter, as well as depreciation and
financial expenses following the increase in balance sheet. The plan for the
year is to lower the costs of the merged company, with synergies increasing
steadily throughout the year. The company still plans to achieve syngergies
amounting to ISK 1,000-1,100 within 18 months, i.e. approximately 60% of the
total EBITDA increase plan for the purchase. The plans that the merged company
will have an EBITDA of over ISK 5 billion in 2020 are unchanged.

The merged company, under the name Sýn, is a telecommunications and media
company offering broad services. According to a new report by the PTA, the
company had the second largest market share in the mobile market (32.8%),
broadband (37.1%) and IPTV (47.4%) at year-end 2017.

The first months of the merger have been postive, and the merger should be
fruitful for all stakeholders. In addition to the estimated EBITDA of over ISK
5 billion in 2020, the employees will be joined under one roof during the year,
in the company's new headquarters at Suðurlandsbraut 8-10. For consumers, the
price of television subscription packages decreased whilst other packages were
expanded. These changes have been part of the planning regarding the purchase
from the beginning and are therefore included in the prospects of the merged
company. By doing this, we aim to press forward and give more people the chance
to subscribe to high-quality Icelandic and international TV programming and live
sports," says Stefán Sigurðsson, CEO of Sýn.

Investors Presentation: 

Press release Q1: 

This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Sýn hf. via GlobeNewswire