Skipti hf. - Financial Statement Release

Skipti hf. 9 month results

7. December,  2010

Skipti hf. results in first 9 months 2010
- Profit amounts to ISK 4.4 billion 

•Sales amounted to ISK 26.9 billion as compared to ISK 29.8 billion in the
same period in 2009. 

•Profit over the period came to ISK 4.4 billion, mainly due to profit from
sale of subsidiary and the strengthening of the Icelandic krona, as compared to
loss of ISK 1.6 billion for the corresponding period of 2009. 

•Earnings before depreciation and financial items (EBITDA) amounted to ISK 5.1
billion as compared to ISK 7.1 billion for the corresponding period of 2009.
EBITDA margin was 19%. 

•Cash from operations amounted to ISK 5.3 billion as compared to ISK 7.1
billion in the same period of 2009. After tax and interest, cash from
operations came to ISK 3.1 billion.
•Exchange gain came to ISK 1.3 billion of the total of ISK 2.4 billion in
positive financial items for the period.
•Net interest bearing debts (interest bearing debts, minus deposits) amounted
to ISK 43.5 billion at the end of the period, as compared to ISK 52.8 billion
for the corresponding period of 2009.
•Equity stood at ISK 29.2 billion at the end of 3Q 2010, and the equity ratio
was 26%.
•Skipti hf. has reached an agreement on all major terms with its creditors on
a payment of ISK 19 billion in total on the company's loans and documentation
is in its final stages. After that payment has been made, Skipti´s equity ratio
will be 31%. 

•Skipti hf. has signed an agreement to sell its subsidiary, Já ehf. The buying
price is confidential, but Skipti's profit from the transaction amounts to ISK
1.3 billion which will be entered into Skipti´s accounts in Q4, 2010. The share
was paid for in cash. When Skipti has paid the proceeds from the sale to loans,
Skipti´s equity ratio will be 33%. 


Operating results for the first 9 months 2010

Accounting Polices

This is an unaudited account. The accounting policies adopted are consistent
with those followed in the preparation of the Annual Financial Statements for
the year ended 31 December 2009. Sirius IT is included in the accounts until
July 22 2010 when the sale of the company was closed. Sirius IT was included in
Skipti´s accounts all year 2009. 


Operation

Sales in the first 9 M 2010 came to ISK 26,903 million, as compared to ISK
29,814 million in the same period of the preceding year, decreasing by 9.8%.
Sirius IT is included in the accounts until July 22 2010 when the sale of the
company was closed. Sirius IT was included in Skipti´s accounts all year 2009.
Aerofone in the UK is included in the accounts in 2009 but not in 2010. 

EBITDA for the Group came to ISK 5,113 million, as compared to 7,069 million in
the same period of 2009.  The EBITDA ratio is now 18.8%, against 23.3% a year
ago. 

EBIT, excluding impairment loss, amounted to ISK 2,092 million, as compared to
ISK 4,115 million in same period of 2009. 

Depreciation and amortisation amounted to ISK 3,022 million, as compared to ISK
3,668 million in the corresponding period of 2009. Thereof, impairment loss was
ISK 715 million in the period in 2009. 

Profit for the Group came to ISK 4,347 million, as compared to a loss of ISK
1,637 million over the same period of 2009.  The profit is mainly due to profit
from sale of a subsidiary and the strengthening of the Icelandic krona in the
period. 


Cash Flow

Cash provided by operations came to ISK 5,264 million for the period, as
compared to ISK 7,090 million in the same period of 2009. 

The Group's capital expenditures (CAPEX) amounted to ISK 2,158 million over the
period, as compared to ISK 2,228 million in the same period of 2009. 


Balance sheet

The group's total assets on 30.September 2010 came to ISK 112,672 million,
having decreased by ISK 8,025 million, or 7%, from the beginning of the year. 

Equity stood at ISK 29,200 million at the end of the period, and the equity
ratio was 25,9%. 


About Skipti hf.

Skipti owns and operates companies in the telecommunications industry and
information technology. The Group comprises Síminn, Míla, Já (sold in November
2010) , Skjárinn, Sensa, Tæknivörur, On-Waves and Radiomiðun. Overseas Skipti
owns the telecommunication company Síminn Danmark in Denmark.

Attachments:

skipti 30 9 2010.pdf

tafla - fréttat 30 09 10 v4.pdf

tafla - fréttat 30 09 10 v3.pdf