Highlights from Reykjavík Fibre Network’s Annual Financial Statements 2022
- Revenue in 2022 amounted to ISK 3,845 million compared to ISK 3,396 million in 2021.
- EBITDA was ISK 2,714 million in 2022 but ISK 2,386 million in 2021, a 13.7% increase year-on-year.
- EBIT amounted to ISK 1,300 million in 2022 compared to ISK 1,189 million in 2021.
- Net financial expenses were ISK 1,409 million in 2022 compared to 847 million in 2021, an increase by ISK 562 million.
- Losses for the year 2022 amounted to ISK 87 million compared to an ISK 273 million profit in 2021.
- Total assets at year-end 2022 were ISK 33,389 million and increased by ISK 3,868 million from the previous year.
- Interest bearing debt was ISK 16,641 million at year-end 2022 and increased by ISK 1,156 million.
- Equity ratio at year-end 2022 was 40,4% and total equity ISK 13,475 million
Reykjavík Fibre Network’s (RFN) Annual Financial Statements for the year 2022 that was approved by the board of directors today reflects on a year of important investments while a solid grip was held on operations. Total assets increased year-on-year by ISK 3.9 billion, equity ratio increased and stood at 40.4% at the end of year 2022.
EBITDA also increased and was, as has been the case in previous years, used for investments and the continued growth of RFN’s fibre optic network. Income increased by 13% year-on-year and labour costs decreased. However, the capital costs grew significantly due to inflation and interest rate increases and have a negative effect on the operating result for the year.
Erling Freyr Guðmundsson, CEO:
Reykjavík Fibre Network’s operations in 2022 were strong in revenue growth and EBIT exceeded forecasts. However, high inflation and increase in interest rates had a considerable impact on the company's financial performance and the result was an ISK 87 million loss for the year. The outlook for 2023 is good, but high capital costs will continue to have a considerable impact, given the necessity for further investments to meet challenges in the market and connecting new housing.
The Icelandic telecommunications market experienced considerable changes in 2022. The country's largest t-com infrastructure company came under foreign ownership while military conflicts in Europe focused attention on communications security. RFN took important steps in improving the country’s communications security by leasing a part of the NATO fibre-cable around the country and by entering new contracts with Farice and Nova. An agreement was also reached for the purchase of a national backhaul network from Sýn/Vodafone and a 12-year service contract was concluded with the company. Both contracts enhance the security of domestic telecommunications and ensure that RFN will stay competitive in the changing market, thus benefitting the general public. The agreements with Sýn are subject to confirmation by the Competition Authority. The purchase of the national backhaul has already been financed, but the capital structure of RFN is now being discussed by the owners of Reykjavík Energy, RFN’s parent company.
About Reykjavík Fibre Network
RFN (Ljósleiðarinn ehf.) is a telecommunications company in the wholesale market owned by Reykjavík Energy and founded in 2007. The role of company is to promote healthy competition in the telecommunications market by providing Icelandic households and businesses with access to high-quality services on an open access network.
Note: The attached document is in Icelandic.
Contact:
Erling Freyr Guðmundsson
CEO
erling.freyr.gudmundsson@ljosleidarinn.is
Attachment
