Fjarskipti hf.'s Annual Financial Statements for the operating year 2017 were approved by the company's Board of Directors and CEO at a Board meeting on 28 February 2018. The company's auditors have audited the financial statements and issued their unqualified opinion. The financial statements will be submitted for approval at the company's Annual General Meeting on 22 March 2018.
On 1 December 2017, Fjarskipti hf. finalised the acquisition of specified assets and operations of 365 miðlar hf. The Annual Financial Statements include one month of combined operations and financial position. In the below key figures, performance is adjusted with regards to the one-off costs of the acquisition. The one-off costs consist of fees for corporate, legal and financial advice and other contractual factors linked to the preparation of the transaction and finalization:
- Consolidated revenue in Q4 2017 amounted to ISK 4,304, which is a 25% increase from the previous year.
- Consolidated revenue for FY 2017 amounted to ISK 14,268 m, which is a 4% increase from the previous year.
- EBITDA in Q4 2017 amounted to ISK 803 m, a 16% increase between periods. Adjusted EBITDA, in accordance with the above, amounted to ISK 961 m, which is a 33% increase from the previous year.
- EBITDA for FY 2017 amounted to ISK 3,137 m, an increase of 3% from FY 2016. adjusted EBITDA amounted to ISK 3,338 m, which is a 9% increase from the previous year.
- The quarter's profits amounted to ISK 356 m, which is a 110% increase between periods. Profits adjusted for one-off costs amounted to ISK 482 m, which is a 150% increase from the previous year.
- The year's profits amounted to ISK 1,086 m, which is an 8% increase from the previous year. The year's adjusted profits amounted to ISK 1,247 m, which is a 21% increase from the previous year.
- Profits per share were 4.10. Profits per share, adjusted for one-off costs, were 4.70.
- The Group's operating investments amounted to ISK 1,664 m, which is an 8% increase from the previous year. The increase from the previous year was mainly due to the move to new headquarters.
- EBITDA for 2018 is estimated at ISK 4,000-4,400 m, with an investment ratio of 8-10%.
- The Board proposes that no dividends be paid for the operating year 2017.
Stefán Sigurðsson, CEO:
"It was very enjoyable to close 2017 by combining these two strong entities. Although there has been only one month of combined operations, the positive effects are already apparent and will become stronger in the coming quarters and years. Despite the heavy strain and workload within the company during the last few months, everything has gone according to the plans laid out for the purchase.
Another milestone during the year was the company's move to its new headquarters at Suðurlandsbraut 8. The project has gone very well and it is clear that the new setup will provide many opportunities for the new, combined company. All operations of the company are expected to move to our HQ in Suðurlandsbraut in 2018, including important media outlets such as Stöð 2, Bylgjan and Vísir, where the new headquarters will provide excellent working facilities for the employees. This is the beginning of a new company with a new way of working; I believe the future will provide numerous benefits for all stakeholders, customers, employees and owners.
In the market, the big news was the EU regulation to abolish roaming charges which put substantial pressure on mobile revenues, not least in the latter half of the year. Our approach to the change was to emphasize the high-quality service experience, which was well received by our clients. It was also positive to see a clear turnaround in operations in the Faroe Islands, as was expected, and increased operating profits are forecasted for 2018.
Recent news show that there are more opportunities to develop the company's operations, e.g. the plans recently announced by RB, Opin kerfi and Korputorg to build a data centre at Korputorg. We believe strongly in Iceland's opportunities to take part in this rapidly growing sector on a global basis, and wish to promote an environmentally friendly, secure and high-quality option for domestic and international parties. We believe that in this regard, we can provide our current corporate customers with increased services, as well as utilising our international network to find new customers overseas."
