• Sales increased by ISK 3.3 billion from the first half of 2007, or 21%. Sales amounted to ISK 18.8 billion as compared to ISK 15.5 billion in the preceding year.
• Earnings before depreciation and financial items (EBITDA) amounted to ISK 4.1 billion as compared to ISK 4.3 billion for the corresponding half of 2007. EBITDA margin was 21.3%.
• Cash from operations amounted to ISK 7.9 billion as compared to ISK 4.3 billion in the first half of 2007. After tax and interest, cash from operations came to ISK 7.1 billion.
• Loss over the period came to ISK 4.0 billion, mainly due to the devaluation of the Icelandic krona. Loss in the second quarter came to ISK 383 million.  
• Exhange loss came to ISK 3.9 billion of the total of ISK 7.0 billion finance cost for the period.
• 29% of Skipti’s sales derived from international operations.
• Skipti’s equity ratio is 39.5%.

Highlights of the second Quarter 2008

The development of Síminn’s 3G network is moving ahead at full pace. The 3G service area currently extends to 80% of the population, and according to the company’s plans the service should be accessible in 23 urban areas around the country this year. Síminn’s televisions service, Sjónvarp Símans, has been growing rapidly, and in June the company reached a milestone with 40 thousand customers now subscribing to its ADSL television services.  

Skipti´s foreign operations showed strong results in the period. The operation of the IT company Sirius IT showed great success in the first half of the year. The project backlog was good and gross profit almost doubled between years. The company reached an agreement with the Norwegian Labour and Welfare Organisation for the development and maintenance of a core system for the Organisation. The value of the agreement is estimated at more than NOK 200 million or approximately ISK 3 billion.

Skipti hf. has acquired Exista’s assets in the telecommunications industry and information technology, thus merging all telecom and IT companies owned by Exista. The assets that Skipti has now acquired are holdings in well-established telephone companies in the Czech Republic; that is, an 8.25% share in a holding company with a 39% stake in T- Mobile Czech Republic (TMCZ) and a 100% stake in Ceske Radiokommunikace (CRa). TMCZ, which is 61% owned by  T-Mobile (Deutsche Telecom), is a leading mobile phone service provider in the Czech Republic, with a market share of over 40%. CRa is a leader in broadcast and fixed-line services in the Czech Republic. Both companies’ operations have been successful and grown rapidly in the past years. These assets fit very well with Skipti’s core activities and investment strategy.  

On 19 March 2008, Exista announced a voluntary offer for all shares in Skipti hf. The offer amounted to ISK 6.64 per share, which was paid with new Exista shares. The offer was valid from 27 March through 26 May, by which time Exista had acquired 99.22% of Skipti shares. Following the offer and the delisting of the company, outstanding shares were called in. Skipti is now 100% owned by Exista.

Brynjólfur Bjarnason, CEO of Skipti hf.

“The results from the regular operations of Skipti during the period are quite good, and the companies are achieving good operational results under extremely challenging external circumstances. The price trend of the Icelandic krona was unfavourable during the period which explains the Company’s loss, notwithstanding hedging measures. It is a pleasure to see the continuing growth of Skipti, and the stakes in the two telecommunications companies in the Czech Republic fit well with the strategy and activities of Skipti.

Both companies’ operations have been successful and grown rapidly in the past years. This is in keeping with our established goals that the growth of Skipti should predominantly take place outside of Iceland. Skipti enjoys a strong financial position, and the operation of its subsidiaries is in good shape. The company is therefore in a favourable position to address the exciting challenges that lie ahead.“

See the press release (PDF, 272KB)