Elisa’s Financial Statements 2011

ELISA STOCK EXCHANGE RELEASE 3 FEBRUARY 2012 AT 8:30am
 

Year 2011

• Revenue increased to EUR 1,530 million (1,463)
• EBITDA grew to EUR 506 million (485) and EBIT to EUR 295 million (268)
• Profit before tax amounted to EUR 265 million (197)
• Earnings per share was EUR 1.29 (0.96)
• Cash flow after investments was EUR 207 million (172)
• The number of  Elisa Viihde IPTV customers exceeded 100,000 during Q3
• The Board of Directors proposes a dividend of EUR 1.30 per share

Fourth quarter 2011

• Revenue increased to EUR 401 million (383)
• EBITDA grew to EUR 133 million (123) and EBIT to EUR 79 million (69)
• Cash flow after investments was EUR 65 million (28)
• Mobile ARPU was EUR 18.7 (19.0 in the third quarter)
• Churn was to 13.4 per cent  (12.7 in the third quarter)
• The number of Elisa’s mobile subscriptions increased by 64,000 during the quarter.
• The number of fixed broadband subscriptions increased by 4,000 on the previous quarter
• Net debt/EBITDA was 1.6 (1.6 end 2010) and gearing 94 per cent (93 end 2010)

Key indicators

¹⁾ Excluding non-recurring CDO guarantee settlement profit before tax 10-12/2010 EUR 61 mil and 1-12/2010

EUR 237 mil, and earnings per share 10-12/2010 EUR 0.31 and 1-12/2010 EUR 1.15.

Financial position and cash flow

¹⁾ (interest-bearing debt – financial assets) / (4 previous quarters’ EBITDA exclusive of non-recurring items)

²⁾ Excluding non-recurring CDO guarantee settlement 10-12/2010 EUR 68 mil and 1-12/2010 EUR 212 mil

The Board of Directors proposes to the Annual General Meeting a dividend of EUR 1.30 per share. The Board of Directors decided also to propose to the General Meeting an authorisation to acquire maximum 5 million treasury shares, which corresponds to 3 per cent of the totalshares.

Additional information regarding the Key Performance Indicators is available on www.elisa.com/investors Elisa Quarterly Data.xls.

CEO Veli-Matti Mattila:

“Solid growth in 2011

Elisa’s revenue developed well and earnings increased in 2011. Revenue from the mobile business and sales of terminal equipment and new services developed favorably. Earnings were strengthened by consistent productivity improvements in line with the strategy. The competitive situation continued to be challenging in 2011. Nevertheless, Elisa was able to strengthen both its market position and competitiveness.

The growth in mobile subscriptions continued and the number of subscriptions increased by more than 360,000 during the year, while fixed broadband grew by 19,000. During the last quarter of the year, mobile subscriptions grew by more than 64,000 and fixed broadband subscriptions by about 4,000.

The Consumer Customers business’ revenue developed well with the growth of mobile revenue and new services. The use of smart phones boosted mobile revenue growth. Elisa’s mobile connections also expanded to all PlayStation® Vita handheld consoles sold in Finland. The popular Elisa Viihde service passed an important milestone when the number of users exceeded 100,000 in the third quarter. Elisa was the first in Finland to combine a new era TV service with the possibility of watching recordings on a tablet. Elisa Viihde can now also be viewed through Android and iPad tablet applications.

The Corporate Customers business was strengthened with the growth of ICT services. We further reinforced the ICT service offering to improve companies’ profitability and flexibility by introducing several new services to the market. For example, by means of customer service implemented through a video connection, companies and public administration organizations can offer their customers personal service face-to-face over the network. Elisa obtained significant openings in the delivery of ICT solutions for public administration with, among other things, KL-Kuntahankinnat, which is responsible for the procurements of over 400 municipal organizations, and Kuntien Tiera, which offers municipalities’ information management services.

In 2011, we continued to strengthen the capacity and speed of our 3G network. An independent study proved once again that, compared to other Finnish operator networks, Elisa’s 3G network has the widest coverage. This time the study showed that Elisa’s 3G network is also the fastest. Elisa was the first Finnish operator to introduce test base stations based on LTE800 technology. Elisa introduced 4G speeds in its 3G network in over one hundred locations. The new speeds enable, for example, faster net surfing, games and video conferences over mobile broadband.

Our consistent improvement in customer satisfaction and productivity will continue. Elisa creates services that improve customers’ productivity and provide enhanced user experiences. Combined with our strong financial position, this creates a solid foundation for the future.”

Outlook for 2012

The budget deficits and solvency issues in several European countries have impacted the Finnish economy to some extent. The macro economic outlook for Finland has weakened from the previous year. The risk of an even less favourable general economic development creates uncertainty. Competition in the Finnish telecommunications market also remains challenging.

Full year revenue is estimated to be at the same level as in the previous year. The use of mobile communications, especially mobile broadband services and equipment sales, is continuing to rise. In addition, Elisa continues to invest in ICT and new online services, which are expected to boost revenue. Full year EBITDA, excluding non-recurring items, is anticipated to be at the same level, and EBIT is expected to improve on last year given the lower level of depreciation. Full-year capital expenditure is expected to be maximum 12 per cent of revenue.

In addition to its strong position as a network service provider, Elisa is transforming itself to be able to provide customers with exciting and relevant new services. Among the factors contributing to long-term growth and profitability improvement is mobile data market growth, as well as new online and ICT services. Elisa continues determinedly to employ its efficiency measures. Elisa’s financial position and liquidity are good.

Profit distribution

The Board of Directors proposes to the Annual General Meeting a dividend of EUR 1.30 per share. The payment corresponds to 101 per cent of the financial period’s net result.

Shareholders who are listed in the company’s register of shareholders maintained by Euroclear Finland Ltd on 11 April 2012 are entitled to funds distributed by the General Meeting. The Board of Directors proposes that the payment date be 18 April 2012. The profit for the period shall be added to retained earnings.

The Board of Directors decided also to propose to the General Meeting that the Board of Directors be authorised to acquire a maximum of 5 million treasury shares, which corresponds to 3 per cent of the total shares.

Disclosure procedure

Elisa is adopting the disclosure procedure enabled by the Standard 5.2b published by the Finnish Financial Supervision Authority. This is a summary of Elisa’s Financial Statements 2011 and the complete report is attached as a pdf-file to this release and is also available on our website at www.elisa.com/investors.

ELISA CORPORATION

Additional information:

Mr. Veli-Matti Mattila, CEO, tel. +358 10 262 2635

Mr. Jari Kinnunen, CFO, tel. +358 10 262 9510

Mr. Vesa Sahivirta, Director, IR and Financial Communications, tel. +358 10 262 3036

Distribution:
NASDAQ OMX Helsinki

Principal media

www.elisa.com