U.S. Markets open in 7 mins

Sýn hf.: Change in guidance

Guidance for the EBITDA in 2019 has been lowered by roughly 6% to 5,6 bn from a previous 6,0-6,5 bn ISK.

After changes in management, which occurred in the first half of the year, a new financial forecast has been implemented.  The forecasted EBITDA will be lowered since revenues in telecom and media are forecasted close to 400 million lower and cost of media content and distribution are estimated 160 million higher.  The previous forecast for free cash flow is unchanged but it is clear the result will be at the lower end of the 1,6-2,0 bn range.

Management has made changes to the financial reporting process of each division and strengthen its key control procedures, which will lead to better forecasting going forward.  Measures taken this summer, which will be realized at the end of the year, have lowered the cost basis of the company.

Sýn hf. will announce its first half earnings at the close of business on August 28th and the earnings presentation takes place at the headquarters at 8.30 p.m. on the 29th.  Management cannot comment on the change in guidance until after the earnings are out.