ELISA CORPORATION?S INTERIM REPORT FOR A
ELISA CORPORATION STOCK EXCHANGE RELEASE
5 AUGUST 2004 AT 8.00am
ELISA CORPORATIONS INTERIM REPORT FOR APRIL-JUNE 2004
·Profit before extraordinary items and taxes increased to
EUR 28 million (7). Revenue amounted to EUR 339 million (391).
·The number of subscriptions of Elisas own service operator
increased by approximately 14 000, and the churn rate decreased
substantially, from 47 per cent in the previous quarter to 29
per cent.
·The financial position was strengthened: equity ratio
increased to 46 per cent and net debt was reduced to
EUR 513 million.
·The cost savings programme is ahead of schedule and the set
objective for 2005 (EUR 80 million) will be clearly exceeded.
Elisas key figures for April-June were:
Income statement Q2/2004 Q2/2003 Pro forma
EUR million Q2/2003*
Revenue 339 391 351
EBITDA 95 97 96
EBIT 35 17 26
Profit before
extraordinary items and
taxes 28 7 17
Earnings per share, EUR 0.11 0.27** 0.04
Capex 33 47 43
*Exclusive of the Germany-based business and the related EUR
41 million deferred tax asset, and adjusted to correspond to
the change in the revenue booking procedure in mobile
communications, effective as of early 2004
** Includes deferred tax asset
Key figures describing the financial position and cash flow:
Financial position 30 Jun 2004 30 Jun 2003 31 Dec 2003
Net debt 513 742 654
Equity ratio, % 46.2 40.0 40.4
Cash flow statement H1/2004 H1/2003 2003
Cash flow after
investments 86 15 105
Market situation
Fierce competition continued in the market. Price erosion in the
mobile phone business continued and the usage by subscribers
increased. The brisk demand for broadband subscriptions in the
fixed network market prevailed and the number of traditional
subscriptions decreased.
Elisa invested heavily in marketing and sales, part of which was
targeted to launch the new Elisa brand. The number of mobile
phone subscriptions grew favourably. In traditional full-service
subscriptions Elisa strengthened its market position. Moreover,
the Kolumbus subscription, launched by Elisa, succeeded with a
soaring number of subscriptions. The robust growth of broadband
subscriptions in the fixed network market prevailed and the
number of traditional subscriptions decreased.
Elisa revamped its brand as part of its corporate strategy
process. Elisa became the principal umbrella brand of the whole
group. In addition, Elisa will use selected retail and product
brands.
Changes in corporate structure
Soon Net Ltd, which forms part of the Elisa group, and Eltel
Networks signed an agreement on transferring the installation
business. With this deal, 67 employees of Soon Net joined Eltel
Networks on 1 April 2004. This transfer of business applied to the
construction, maintenance and the repair of defects.
On 30 April 2004, the Trade Register recorded the merger of Elisa
Networks Ltd and Soon Net Ltd into Elisa Corporation.
On 14 May 2004, the German competition authority approved sales of
the share capital of Elisa's subsidiary Elisa Kommunikation GmbH
to a consortium led by Apax Partners. Due to the transaction,
which took place in the first quarter, the Germany-based business
has no longer been consolidated into the Elisa group for the year
2004.
On 27 May 2004, an extraordinary general meeting of Yomi Plc and
Elisa Corporations Board of Directors approved the merger plan
signed in March, in which Yomi Plc will merge into Elisa on or
about 31 December 2004.
Through a deal concluded by Elisa Corporation during the second
quarter, the Elisa group's holdings in its subsidiary Finnet
International Ltd, a provider of international telecommunication
services, increased to 100 per cent. The selling parties were
minority shareholders, which comprise local telcos. The purchase
price of the shares was EUR 7.7 million.
On 30 June 2004, Elisa Corporation and Fujitsu Services Oy signed
an agreement on outsourcing Elisa's desktop and data centre
services to Fujitsu. The agreement came into force on 1 July 2004.
At the same time, approximately 100 employees from Elisa joined
Fujitsu.
Revenue
EUR million Q2/2004 Q2/2003 Change
Mobile communications 175 188 -7%
Fixed network 166 177 -6%
Germany-based business - 35 -
Other business 28 28 0%
Sales between segments -30 -37 -19%
Total 339 391 -13%
Segment figures for the Q2/2004 and Q2/2003 are not comparable
with the previously reported figures for the business areas in
earlier years.
Elisa's revenue for April-June decreased by 13 per cent compared
to the corresponding period last year. The reduced revenue was
affected by the divested German operations, the volume
development of the traditional fixed network products, as well as
by the reduced interconnection fees in the mobile communications
business, the fall in prices, and the change in the revenue
booking procedure. The comparable revenue decreased by 3 per
cent.
Comparable revenue for the mobile phone business decreased by
2 per cent over the previous year. The fall in prices and
decreased number of subscriptions have almost entirely been
compensated by increased usage. Revenue was boosted by the
subsidiary operating in Estonia.
Revenue for the fixed network business decreased by 6 per cent
compared to the corresponding period last year. The change in
revenue was mainly due to the declining volume development in
traditional subscription products and equipment sales, and the
shifting of voice to mobile networks. Increased use of broadband
subscriptions improved the revenue.
Performance
EUR million Q2/2004 Q2/2003 Change
Mobile communications
EBITDA 44 46 -4%
EBITDA,% 25% 24%
EBIT 15 10 +50%
Fixed network
EBITDA 45 47 -4%
EBITDA,% 27% 27%
EBIT 19 18 +6%
Germany-based business
EBITDA - 1 -
EBIT - -9 -
Other business
EBITDA 5 3
EBIT 3 1
Corporate Staff
EBITDA 1 0
EBIT -2 -3
Total
EBITDA 95 97 -2%
EBITDA,% 28% 25%
EBIT 35 17 +106%
Segment figures for the Q2/2004 and Q2/2003 are not comparable
with the previously reported figures for the business areas in
earlier years.
The measures initiated to streamline the business had a boosting
impact on Elisa's profitability. Staff costs, in particular, have
clearly decreased compared to the previous quarter.
According to an estimate, the EUR 40 million annual cost savings
targeted for the year 2004 by the cost saving programme, disclosed
on 28 October 2003, will be achieved. The programme will continue
and the set objective, EUR 80 million at an annual level by the
end of 2005, will be clearly exceeded.
A substantial part of the weakened profitability compared to the
first quarter was generated by a EUR 10 million profit-improving
item booked in Q1 and by enhanced marketing and sales measures in
Q2.
The group's share of the associated companies' results was EUR
-0.7 million (0.2). The sum includes a EUR 0.6 million capital
loss by Sofia Digital Oy, which is not regarded as part of the
core business.
The group's other financing income and expenses totalled EUR
-7 million (-10). Reduced financing expenses were mainly due
to the decreased net debt and a low interest rate.
Income taxes in the income statement amounted to EUR -11 million
(+31, includes EUR 41 million tax asset booked from the Germany-
based business). The altering of the tax base from 29 per cent to
26 per cent at the beginning of 2005 has been taken into account
in the change of deferred tax asset/liability. The change will
have no substantial impact on the groups tax expenses.
The group's April-June result after taxes and minority interests
were EUR 15 million (37). The group's earnings per share (EPS)
amounted to EUR 0.11 (0.27). At the end of June, the group
shareholders' equity per share stood at EUR 5.36 (5.09 at the
end of 2003).
Mobile communications
Q2/2004 Q2/2003 2003
Number of subscriptions* 1 330 901 1 356 881 1 374 146
Revenue/subscription**(ARPU), 38.2 41.7 41.6
Churn**, % 29.4 13.4 18.6
Usage, million minutes* 612 575 2 310
Usage, min./subscription/mth** 157 146 146
SMS, million messages* 128 112 453
SMS, msg/subscription/mth** 34 29 29
Value-added services/revenue 13% 12% 12%
* Elisas network operator in Finland
** Elisas service operator
In the second quarter, the number of subscriptions of Elisas own
service operator increased by 14 000 over the previous quarter.
Compared to the corresponding period in the previous year, the
number of subscriptions decreased by around 18 000.
The usage by subscribers continued to grow in the second quarter.
The number of call minutes increased by approximately 6 per cent
and the number of SMS messages sent grew by approximately 14 per
cent over the comparison period in the previous year.
Revenue per subscription (ARPU) decreased by approximately 8 per
cent over the comparison period. This was mainly due to a change
in the revenue booking procedure. Comparable ARPU decreased by
approximately 3 per cent. The revenue booking procedure was
changed in early 2004 so that remunerations payable to the
providers of value-added services and interconnection costs to be
invoiced are directly booked as a deduction of revenue.
The revenue of Elisa's subsidiary operating in Estonia was EUR
18.8 million (14.9). EBITDA amounted to EUR 5.6 million (3.7) and
EBIT EUR 3.2 million (1.6). At the end of June, there were 200 270
(160 150) subscriptions.
On 15 April 2004, the Finnish Government amended the 3G mobile
communication licences. Therefore, the terms and conditions of
Radiolinja Origo Oy's 3G licence have also been amended. The
amended licenses allow partial joint constructing and use of the
networks.
Elisa introduced a fast and user-friendly solution for connecting
laptops to the Internet. The solution is based on the Vodafone
Mobile Connect Card terminal which is connected to the computers
PC bus (card slot) and on the Elisa Data Plus subscription, which
has no opening or monthly fee.
The dispatch system of Helsingin Ympäristön Taksikeskus, or Local
Taxi Centre, will be changed from the old area-restricted closed
network to Elisas public GPRS network. After adopting the new
system, all Local Taxis, about 1000 vehicles, can be dispatched in
the whole region of Finland if required.
Fixed network business
Number of subscriptions 30 Jun 2004 30 Jun 2003 31 Dec 2003
Broadband subscriptions 160 502 93 677 127 388
ISDN channels 180 618 222 153 200 455
Cable TV subscriptions 189 534 176 506 183 469
Analogue and other
subscriptions 659 447 688 672 675 272
Subscriptions, total 1 190 101 1 181 008 1 186 584
Brisk demand for broadband subscriptions continued. The number of
broadband subscriptions increased by 71 per cent over the previous
year. The number of traditional subscriptions continued to
decrease as voice is shifting to the mobile network and data to
broadband subscriptions.
Elisa has initiated measures to substantially expand the coverage
area of broadband during 2004. The objective is to offer the Elisa
Broadband to Internet users as a competitive alternative all
around Finland.
Elisa is the first commercial enterprise in Finland, which has
been registered as a CERT organisation (Computer Emergency
Response Team) with 24-hour CERT operations. A CERT team is a
group of experts specialised in information security emergencies
and situations requiring immediate action.
Elisa and MTV Oy signed a letter of intent, the aim of which is to
launch the MTV Broadband Subscription operating in Elisas cable
networks during the autumn 2004.
Elisa introduced an information security service targeted at small
enterprises. The service facilitates easy installation and
updating of firewall and anti-virus software.
Elisa and Macoline Oy have collaborated to implement a new
service. This service allows Elisa to offer broadband connections
to the Internet in sparsely populated areas.
Personnel
In April-June, the Elisa group employed an average of 5 613 people
(5 758 in January-June).
30 Jun 2004 30 Jun 2003 31 Dec 2003
Mobile communications 1 548 1 903 1 678
Fixed network 3 211 3 930 3 572
Germany-based business - 535 426
Other business 851 1 023 905
Corporate Staff 79 114 102
Total 5 689 7 505 6 683
On 22 April 2004, Elisa's employee groups established an employee
fund in Elisa Corporation. The fund will include approximately
4 500 members with membership based on employment. The
fund is owned by the personnel and it administers the funds paid
as rewards by the company and the proceeds received from the
invested capital.
Investments
EUR million Q2/2004 Q2/2003 Pro forma
Q2/2003*
Investments
- in fixed assets 33 47 43
- shares 8 2 2
Total 41 49 45
Aforementioned investments
include GSM leasing
liability buy-backs 1 8 8
*Exclusive of the Germany-based business
Capital expenditures in the mobile business were EUR 17 million
(23) and EUR 15 million (18) in the fixed network business. The
mobile business investments included GSM leasing liability buy-
backs from telcos for EUR 1 million (8).
Financial position
The group's financial position and liquidity strengthened and
remained stable. This was particularly affected by the divestment
of the Germany-based business and positive result development. In
accordance with the divestments terms of payment, EUR 30 million
of the selling price was received in June. The January-June cash
flow after investments amounted to EUR 86 million (15).
Due to the disposal of the Germany-based business, the group's
interest-bearing liabilities were reduced by EUR 65 million and
the leasing liabilities outside the balance sheet decreased by
EUR 133 million.
Financial key indicators
EUR million 30 Jun 2004 30 Jun 2003 31 Dec 2003
Net debt 513 742 654
Gearing, % 64.0 91.0 87.5
Equity ratio, % 46.2 40.0 40.4
H1/2004 H1/2003 2003
Cash flow after 86 15 105
investments
Ratings per long-term loans
Credit rating agency Rating Outlook
Moodys Investor Services Baa2 Stable
Standard & Poors BBB Stable
Share
At the end of June, the company's total number of shares was
138 011 757. The market capitalisation on 30 June 2004 stood at
EUR 1 510 million.
In April-June, a total of 30.2 million A shares of the company
were traded on the Helsinki Exchanges for an aggregate of EUR
351.5 million. The exchange was 22.0 per cent of the number of
shares in the market.
The number of Elisa Corporation's A warrants for the year 2000 was
3 600 000 and B warrants for the year 2000 was 3 600 000. At the
end of June, the market capitalisation of the warrants amounted to
EUR 0.6 million.
Treasury shares
The total number of Elisa Corporation's A Shares owned by the
subsidiaries was 766 870 (781 563 at the end of 2003). The nominal
value of the shares totalled EUR 383 435, and their proportion of
the share capital and voting rights was 0.56 per cent. Moreover,
the Elisa Group Pension Fund owned 263 563 A shares (722 363 at
the end of 2003).
Major legal issues
The following changes have taken place in the legal processes
after the publication of Elisa's annual report for 2003 and
interim report for January-March 2004:
In May, Elisa Matkapuhelinpalvelut Oy (previously known as Oy
Radiolinja Ab) received an action for annulment from a group of
shareholders. The action for annulment demands that the
resolution made in the shareholders meeting of Oy Radiolinja Ab
in December 2003 be cancelled. The aforementioned shareholders
have filed an objection by creditors to the merger of Oy
Radiolinja Ab in the Trade Register. Owing to the objection, the
merger of Elisa Matkapuhelinpalvelut Oy into Elisa Corporation
could not take place on the original scheduled date of 1 July
2004. The merger process will nonetheless continue.
In May, the Finnish Communications Regulatory Authority (Ficora)
gave Elisa rulings concerning the long delivery periods of certain
fixed network gross products. Elisa has filed a complaint against
the said rulings in the Supreme Administrative Court.
Events after the financial period
On 1 July 2004, the mergers upon which the assets and liabilities
of the following companies were transferred to Elisa Corporation
were recorded in the Trade Register: Soon Com Ltd, Oy Heltel Ab,
ElisaCom Ltd, RPOCom Oy and Riihimäen Puhelin Oy.
As reported in the interim report for January-March on 29 April
2004, the merger of Oy Radiolinja Ab into Elisa Corporation will
be delayed. However, the following companies have merged into
their parent company, Oy Radiolinja Ab: Radiolinja Aava Oy,
Radiolinja Suomi Oy, Radiolinja Origo Oy and Witem Oy.
Changing the name Oy Radiolinja Ab to Elisa Matkapuhelinpalvelut
Oy was entered in the Trade Register on 1 July 2004.
Elisa Matkapuhelinpalvelut Oy and Saunalahti Group Oyj have agreed
on initiating mobile network cooperation. According to the
agreement, Saunalahti will buy roaming services from Elisa for its
own subscriptions and purchase mobile network capacity within
Finland. Transmitting traffic to Elisas network pursuant to the
agreement will begin during this autumn.
Outlook
The telecommunications market in Finland is envisaged to continue
growing at a slow pace and the situation regarding competition to
remain challenging. No substantial changes in Elisa's market
position are expected.
Owing to both the revised billing of interconnection traffic and
falling prices, the comparable revenue for 2004 is estimated to
decrease slightly from the previous year's level.
The quarterly EBITDAs for the latter part of the year are still
estimated to remain at the same level as the second quarter,
because the effect of the cost savings programme will not reach
its full extent in 2004. The full-year operative EBIT and profit
before taxes are estimated to improve substantially.
Information in this interim report is not audited.
ELISA CORPORATION
BOARD OF DIRECTORS
Additional information:
Mr Veli-Matti Mattila, President and CEO, tel. +358 10 262 2635
Ms Tuija Soanjärvi, CFO, tel. +358 10 262 2606
Mr Vesa Sahivirta, Vice President, IR, tel. +358 10 262 3036
Distribution:
HEX
Major media
ELISA CORPORATION
INTERIM REPORT 1 JANUARY-30 JUNE 2004
(eur million)
(Figures in this interim report are not audited)
CONSOLIDATED INCOME STATEMENT
Apr- Apr- Jan- Jan- Jan-
Jun Jun Jun Jun Dec
2004 2003 2004 2003 2003
Revenue 339 391 672 762 1538
Other operating income 4 9 11 13 34
Operating expenses -248 -304 -469 -593 -1 187
Depreciation and
value adjustments:
On fixed assets -49 -66 -98 -131 -273
On Corporation's
goodwill -11 -14 -22 -28 -145
EBIT 35 17 94 23 -34
Financial income
and expenses:
Share of associated
companies' profit -1 0 -1 0 -0
Other financial income
and expenses -7 -10 -14 -20 -40
Profit before extraordinary
items 28 7 79 3 -74
Extraordinary items
Profit after extraordinary
items 28 7 79 3 -74
Income taxes -11 31 -29 27 60
Minority interest -2 -1 -4 -1 -3
Net profit 15 37 46 29 -17
CONSOLIDATED BALANCE SHEET 30 Jun 30 Jun 31 Dec
2004 2003 2003
Fixed assets
Intangible assets 58 73 64
Consolidated goodwill 439 553 460
Tangible assets 678 896 856
Share in associated companies 16 20 20
Other investments 11 12 12
1202 1554 1412
Current assets
Inventories 15 18 16
Deferred tax receivable 63 76 82
Receivables 312 338 353
Marketable securities 114 12 6
Cash in hand and in banks 39 62 61
543 506 518
Total assets 1 745 2 060 1 930
Shareholders' equity
Share capital 69 69 69
Share premium account 517 517 517
Contingency fund 3 3 3
Retained earnings 100 126 127
Net profit 46 29 -17
735 744 699
Minority interests 66 75 77
Provisions for liabilities and charges 24 52 52
Liabilities
Long-term creditors 561 716 617
Short-term creditors 359 473 485
920 1 189 1 102
Total shareholders' equity and
liabilities 1 745 2 060 1 930
Income taxes refer to taxes incurred
during the period.
Items presented in the tables for
each row have been rounded.
CONSOLIDATED CASH FLOW STATEMENT 1)
(eur million)
Jan- Jan- Jan-
Jun Jun Dec
2004 2003 2003
Cash inflow from operating activities
Profit before extraordinary items 79 3 -74
Adjustments:
Depreciation and value adjustments 120 159 418
Other financial income and expenses 15 21 40
Provisions for liabilities and charges -17 -13 -5
Sales profits from the disposal of
fixed assets -1 0 -3
Sales profits from business operations
ans shares -5 0 -1
Other adjustments 1 1 1
Cash inflow before working capital 192 170 376
Change in working capital 3 -20 -16
Cash inflow before taxes and
financials 195 150 360
Received dividends and interests
and interest paid -28 -33 -40
Taxes paid -11 -29 -15
Free funds from operations 156 89 305
Cash flow in investments
Investments in fixed assets -75 -86 -194
Disposal of fixed assets 1 1 5
Investments in shares and other investments -8 -3 -28
Disposal of shares and other investments 11 14 16
Disposal of business operations 1 0 1
Cash flow in investments -70 -74 -200
Cash flow after investments 86 15 105
Cash flow in financing
Change in interest-bearing receivables 25 8 -17
Change in long-term loans 0 2 -97
Change in short-term loans -16 -17 12
Dividends paid -9 0 -2
Cash flow in financing 0 -7 -104
Change in financial assets 86 8 1
Financial assets at the beginning of
the financial period 67 66 66
Financial assets at the end of
the financial period 153 74 67
1) Consolidated cash flow statement
has been regrouped from the
beginning of 2004. Financial
assets on period Jan-Jun 2003
have been adjusted to 2003 reporting
standard.
LIABILITIES 30 Jun 30 Jun 31 Dec
(eur million) 2004 2003 2003
Mortgages
For own and group companies 73 75 77
Pledges given
Pledges given as surety 1 9 24
Guarantees given
For others 11 11 11
Total liabilities 85 95 112
Derivative contracts
Forward contracts and swap agreements
Market value of underlying security 17 14 14
Market value 0 1 2
Leasing contracts and
other commitments
Leasing commitments 27 38 35
Repurchase commitments 2 3 3
Real estate leases 127 131 136
Lease liabilities total 156 172 174
Leasing commitments consists mainly from
leases of IT and office equipment and cars.
Real estate leases consists both office and
technical space. Leasing contracts and
other commitments contains real estate
leases as new information.
Leasing and rental agreements of
telecom networks
Fixed network 12 22 16
German business 132 133
Mobile network *) 37 69 56
Rental agreement liabilities, total 49 223 205
*) Added to this, a provision for
the future redemptions of GSM network
financial agreements 9 50 27
Lease-leaseback agreement commitment
(QTE facility) 167 178 161
Other commitments 5 32 6
KEY FIGURES
(eur million)
Apr- Apr- Jan- Jan- Jan-
Jun Jun Jun Jun Dec
2004 2003 2004 2003 2003
Earnings/share
(EPS), EUR 0,11 0,27 0,34 0,21 -0,12
Shareholders'
equity/share, EUR 5,36 5,42 5,09
Gross investments
in fixed assets 33 47 75 86 194
Gross investments
as % of revenue 9,7 12,0 11,2 11,3 12,6
Purchase of shares 8 2 8 3 28
Non-interest-
bearing debt 254 372 355
Average number
of personnel 5 758 7 319 7 172
ADJUSTED GROUP
KEY FIGURES
(exclusive of
non-recurring
items)
Apr- Apr- Jan- Jan- Jan-
Jun Jun Jun Jun Dec
2004 2003 2004 2003 2003
Revenue 339 391 672 762 1538
EBITDA 95 97 214 182 407
EBITDA, % 28,1 24,8 31,8 23,9 26,5
EBIT 35 17 94 23 83
EBIT, % 10,4 4,3 14,0 3,0 5,4
Profit before
extraordinary
items 28 7 79 3 43
Adjusted key
figures have been
calculated without
the following non-
recurring items:
Restructuring costs -22
Write-downs in Germany -94
Non-recurring items, total -116
Impact on EBITDA -22
Impact on EBIT -116
Impact on profit before extraordinary items -116
KEY FIGURES BY SEGMENTS
April-June/2004 1)
(eur million)
Revenue EBITDA EBIT
Apr-Jun Apr-Jun Apr-Jun
2004 2003 2004 2003 2004 2003
Mobile 175 188 44 46 25 20
Corporation
bookings -10 -10
Total 175 188 44 46 15 10
Fixed
Network 166 177 45 47 20 19
Corporation
bookings -1 -1
Total 166 177 45 47 19 18
Germany
Carrier-
business 35 1 -5
Corporation
bookings -4
Total 35 1 -9
Other
Companies
Comptel 16 17 5 3 5 2
Other
Companies 2) 12 11 0 0 -2 -1
Corporation
bookings
Total 28 28 5 3 3 1
Unallocated
expenses 3) 1 0 -2 -3
Intra-segment
sales
elimination -30 -37
Corporation
total 339 391 95 97 35 17
KEY FIGURES
BY SEGMENTS 4)
Segments Revenue EBITDA EBIT
Apr-Jun Apr-Jun Apr-Jun
2004 2003 2004 2003 2004 2003
Mobile 175 188 44 46 15 10
Fixed
Network 166 177 45 47 19 18
Germany 35 1 -9
Other
Companies 28 28 5 3 3 1
Unallocated
expenses 1 0 -2 -3
Intra-segment
sales -30 -37
Corporation
total 339 391 95 97 35 17
1) Business has been re-grouped to match new organisation.
2) Includes Yomi IT companies and the parent company of
Yomi Group.
3) Includes unallocated expenses of corporate headquarters
and administration.
4) Reporting period figures don't include any non-recurring
items.
KEY FIGURES BY SEGMENTS
January-June/2004 1)
(eur million)
Revenue EBITDA EBIT
Jan-Jun Jan-Jun Jan-Jun
2004 2003 2004 2003 2004 2003
Mobile 354 362 110 90 71 37
Corporation
bookings -19 -19
Total 354 362 110 90 52 18
Fixed
Network 331 349 97 93 45 37
Corporation
bookings -2 -2
Total 331 349 97 93 43 35
Germany
Carrier-
business 67 0 -14
Corporation
bookings -5
Total 67 0 -19
Other
Companies
Comptel 28 29 9 3 7 2
Other
Companies 2) 24 23 -1 -2 -3 -6
Corporation
bookings
Total 52 52 8 1 4 -4
Unallocated
expenses 3) -1 -2 -5 -7
Intra-segment
sales
elimination -65 -68
Corporation
total 672 762 214 182 94 23
KEY FIGURES
BY SEGMENTS 4)
Segments Revenue EBITDA EBIT
Jan-Jun Jan-Jun Jan-Jun
2004 2003 2004 2003 2004 2003
Mobile 354 362 110 90 52 18
Fixed
Network 331 349 97 93 43 35
Germany 67 0 -19
Other
Companies 52 52 8 1 4 -4
Unallocated
expenses -1 -2 -5 -7
Intra-segment
sales -65 -68
Corporation
total 672 762 214 182 94 23
1) Business has been re-grouped to match new organisation.
2) Includes Yomi IT companies and the parent company of
Yomi Group.
3) Includes unallocated expenses of corporate headquarters
and administration.
4) Reporting period figures don't include any non-recurring
items.
FINANCIAL SITUATION
(eur million)
30 Jun 31 Mar 31 Dec 30 Sep 30 Jun
2004 2004 2003 2003 2003
Long-term debt
Bonds and notes 472 472 472 572 572
Loans from the
Pension funds 80 80 80 80 80
Loans from financial
institutions 4 3 57 57 55
Total 555 554 609 709 707
Short-term debt
Bonds and notes 100 100 100
Loans from financial
institutions 1 2 13 7 2
Committed credit
line 1) 0 0 0 0 0
Commercial papers 2) 0 0 0 37 81
Others 10 3) 24 25 27 26
Total 111 126 138 71 109
Interest-bearing
debt, total 666 680 747 780 816
Security deposits 0 25 25 8 8
Securities 114 24 6 7 12
Cash and bank 39 44 61 42 54
Interest-bearing
receivables 153 93 92 57 74
Net debt 4) 513 587 654 723 742
1) The committed credit line is a joint EUR 170 million revolving
credit facility with eight banks, which Elisa Corporation may
flexibly use on agreed pricing. The loan arrangement is valid
until 16 June 2008.
2) Elisa Corporation has agreed on a joint programme with seven
banks on issuing commercial papers. The arrangement is not
committed. The maximum amount of the arrangement is
EUR 150 million.
3) Redemption liability for minority shareholders in Radiolinja
(EUR 3m) and deposits in the Financial Services Office
(EUR 7m)
4) Net debt is interest-bearing debt less cash and interest-
bearing receivables.
Key Financial
Indicators 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun
2004 2004 2003 2003 2003
Gearing 64 % 76 % 87 % 88 % 91 %
Equity ratio 46 % 44 % 40 % 40 % 40 %
Formulae for financial indicators
Interest-bearing debt - cash and bank - securities
Gearing % ---------------------------------------------x 100
Shareholders' equity + minority interests
Shareholders' equity + minority interests
Equity ratio % ----------------------------------- x 100
Balance sheet total - advances received
