365 hf. Investors Presentation Second Quarter 2007.
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Transcript of 365 hf. Investors Presentation Second Quarter 2007.
365 hf.Investors Presentation
Second Quarter 2007
Media Entertainment
Sales during the period amounted to ISK 5,495 million and increased by 2.4% from the same period 2006
Pro forma sales increased by 9.1% from the previous year
Earning before interests, taxes, depreciation and amotization (EBITDA) amounted to ISK 413 million compared to ISK 119 million in the same period 2006
Net finance cost amounted to ISK 170 million, including a foreign exchange gain of ISK 268 million
Cash and cash equivalents and market securities amounted to ISK 733 million at the end of the period
Equity ratio was 35.3% and Current ratio was 1.08
Acquisition of operating assets amounted to ISK 151 million
Main results for the first six months of year 2007
Sales during the period amounted to ISK 2,814 million and increased by 1.6% from the same period in 2006
Pro forma sales increased by 8.6% from the previous year
EBITDA amounted to ISK 274 million compared to ISK 195 million in Q2 in year 2006
EBITDA ratio was 9.7% compared to 7.0% the previous year
Net financial expenses amounted to ISK 163 million including net foreign exchange gain of ISK 170 million
Interest expense increased by ISK 136 million, mainly due to higher inflation and refinancing costs
The company’s media section generated good results and was slightly above expectations. The entertainment section was below the management’s expectations because of Sagafilm’s results
Main results for Q2
Sales revenue increased by 2,4% compared to the same period 2006
Pro forma sales increased by 9,1%
Contribution margin ratio was 36% and increased by 7% compared to last year
The ratio between operating expenses and revenue was 33% compared to 32% in 2006
Net foreign excange gain amounted to ISK 268 million in 1H 2007
After the company paid up loans in early July it is estimated that interests payments will be lowered annually by ISK 220 million
Income statement
Consolidated Income Statement
In ISK million 1H 2007 1H 2006 Change
Sales 5.495 5.368 127Cost of services and goods sold (3.516) (3.809) 293Gross Profit 1.979 1.559 420
Operating expenses (1.804) (1.725) (79)Results from operating activities (EBIT) 175 (166) 341Net finance cost (170) (1.377) 1.207Share of loss of associates (net of incom e tax) (78) (118) 40
Profit / (loss) before income tax (73) (1.661) 1.588Incom e tax expense (7) 289 (296)Profit / (loss) from continuing operations (80) (1.372) 1.292
Discontinued operations 0 (150) 150Profit / (loss) for the year (80) (1.522) 1.442
The Company lowered its non current assets by selling its shares in Wyndeham Press Group and Hands Holding
The increase in Current assets is mainly due to account receivable generated from the selling of the Company’s part in Hands Holding
Current ratio was 1,08 and the Equity ratio was 35,3% at the end of June 2007
Early July the Company paid up an un-indexed bond group to the nominal value of ISK 2.000 million. In addition refinancing of bank loans were finalised. Interest bearing loans following there actions amount to approx. ISK 7.000 million
Balance sheet
Consolidated Balance Sheet
In ISK million 30.06. 2007 31.12. 2006 Change
AssetsNon current assets 12.894 14.964 (2.070)Current assets 5.264 3.805 1.459 Account receivables 1.701 1.955 (254) Cash and cash equivalents 733 944 (211)Total Assets 18.158 18.769 (611)
Equity and liabilities Equity 6.403 6.137 266Liabilities Long term debt 6.892 6.465 427 Short term debt 4.863 6.167 (1.304) Interest bearing debt 9.110 8.702 408Liabilities total 11.755 12.632 (877)Total Equity and Liabilities 18.158 18.769 (611)
Cash flow
Consolidated Cash Flow
In ISK million 1H 2007 1H 2006
Loss of the year (80) (1.522)Activities not influencing cash flow (170) 668Cash used in operations before interests and taxes (250) (854)
Interest expense paid 55 9 Financial cost paid (462) (678)Net cash used in operating activities (657) (1.523)
Investm ents activities 24 (1.559)Financing activities 422 2.159Net cash used in continuing operations (211) (923)
Cash and cash equivalents at 1st of January 944 662Effect of exchange rate fluctuations on cash held 0 20Discontinued operations 0 2.785Cash and cash equivalents at 31st of M arch 733 2.544
Negative Cash flow can be explained by the following:
Payment to creditors related to investment activities in 2006.
Program inventory increased by ISK 200 million due to upcoming winter TV program and finally additional interests payments were paid in connection with lowering outstanding debt.
Acquisition of operating assets amounted to ISK 151 million
365 hf. - Sales in ISK million
1.620 1.688 1.6682.057
2.5982.770
2.548
3.180
2.681 2.814
200
700
1.200
1.700
2.200
2.700
3.200
3.700
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
230 231 224 236
116
194
106
54
139
274
0
50
100
150
200
250
300
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
EBITDA development in ISK million
In 4Q 2006 adjustments have been made for sales profit of ISK 1.586 million and other costs of ISK 110 million
Revenue and EBITDA breakdown between sectors in 1H 2007
Revenue EBITDA
Sales in ISK million - Media
1.6201.688 1.668
2.0571.908
2.015
1.764
2.065
1.8642.005
1.000
1.200
1.400
1.600
1.800
2.000
2.200
2.400
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
EBITDA in ISK million - Media
230 231 224236
61
112
17
77
229
-25
-50
0
50
100
150
200
250
300
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
In 4Q 2006 adjustments have been made for sales profit ISK 1.586 million and other costs ISK 110 million
Sales in ISK million - Entertainment
709 758881
1.420
1.045980
200
400
600
800
1.000
1.200
1.400
1.600
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
EBITDA in ISK million – Entertainment
55
82
131
37
6556
0
20
40
60
80
100
120
140
160
1Q06 2Q06 3Q06 4Q06 1Q07 2Q07
Outlook 2007
The Company’s management estimates that the lower range of the published budget will be reached.
New emphasis placed in the operation in addition to restructuring arrangements which generated good results in Q2 will be a support for the company in the second half of 2007.
It is forecasted that Sýn2, a new television station that will be broadcasting the English Football Premium League, will generate considerable increase in subscription and advertising revenue for the Company.
Vetrardagskrá
• Erlendir þættir
• Einkasamningar Stöðvar 2 (lógó fyrirtækjanna):
– Warner– Fox– Sony– Fremantle – HBO
End of presentation