Elisa’s Interim Report January - September 2012

ELISA INTERIM REPORT RELEASE 19 0CTOBER 2012 AT 8:30am

Third quarter 2012
- Revenue amounted to EUR 387 million (378)
- EBITDA was EUR 134 million (135) and EBIT was EUR 85 million (82)
- Profit before taxes amounted to EUR 78 million (74)
- Earnings per share increased to EUR 0.38 (0.36)
- Cash flow after investments was EUR 37 million (56)

- Mobile ARPU was EUR 17.3 (18.0 in previous quarter)
- Mobile churn was 17.2 per cent (14.1 in previous quarter)
- The number of Elisa’s mobile subscriptions increased by 89,300 during the quarter
- The number of fixed broadband subscriptions increased by 6,600 on the previous quarter
- Net debt / EBITDA was 1.7 (1.6 end 2011) and gearing 110 per cent (94 end 2011)

January – September 2012
-
Revenue was EUR 1,158 million (1,129)
- EBITDA was EUR 377 million (374), EBIT EUR 225 million (216)
- Cash flow after investments was EUR 121 million (142)

 Key indicators

 

  3rd Quarter Year-to-date
EUR million 2012 2011 2012 2011
Revenue 387 378 1,158 1,129
EBITDA 134 135 377 374
EBIT 85 82 225 216
Profit before tax 78 74 205 193
Earnings per share, EUR 0.38 0.36 1.02 0.93
Capital expenditures 51 45 143 140

 Financial position and cash flow

 

EUR million 30.9.2012 30.9.2011 End 2011
Net debt 874 793 788
Net debt / EBITDA1) 1.7 1.6 1.6
Gearing ratio, % 109.5 94.3 93.8
Equity ratio, % 40.7 43.4 42.3

 

 

  3rd Quarter Year-to-date
EUR million 2012 2011 2012 2011
Cash flow after
investments
 
37
 
56
 
121
 
142

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

 

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

CEO Veli-Matti Mattila:

Elisa’s earnings and revenue continued to grow at a good rate

Despite challenging competition, Elisa’s competitiveness continued to strengthen during the third quarter of 2012. The demand for our services continued to be high, and our earnings and revenue grew in accordance with expectations. The increase in revenue continued to be driven by terminal sales, mobile voice and data services as well as new services.

The total number of mobile subscriptions grew by more than 89,000 during the third quarter. Fixed broadband subscriptions increased by 6,600, boosted by new services and service bundles. The use of smartphones and dongles continued to increase among consumers and corporate customers, contributing to the strong growth in mobile data services.

Elisa introduced two new services for consumers during the third quarter. Elisa Vahti Live is further developed video service that enables users to stream high-quality live video from home on their mobile phone or tablet. The Elisa Lompakko (Elisa Wallet) service includes contactless payments, separate online payment cards, online and mobile application as well as money transfers between users. Elisa and the student-owned company Lyyra will make the service available to more than 100,000 students at the end of 2012.

 Elisa continued to develop its customer service and made many improvements for the benefit of consumers. These proved to be successful, as our consumer customer service won the large organisation category in the Best of the Year 2012 customer service competition.

The demand for ICT services continued to strengthen among corporate customers. During the third quarter, our IT business continued its growth with agreements with several customers, for example the parliament of Finland. Also, we are providing next generation cloud services to more than 250 municipalities through the Kuntien Tiera ICT service centre. Additionally, we strongly increased deliveries in our visual communications business. We provided enhanced video services to the City of Gothenburg and OP-Pohjola Group, among other clients.

Elisa continued to make significant investments in networks. During the third quarter, 4G speeds were available in nearly 200 locations. Our mobile subscriptions now work in 200 countries, which make Elisa the Finnish operator with the most comprehensive international network.

We will continue our determined work to improve customer satisfaction and the productivity of our operations. Elisa creates services that provide enhanced user experiences and improve productivity. Combined with our strong investment ability, this creates a solid foundation for competitive operations in the future."

 Outlook for 2012

The budget deficits and solvency issues in several European countries and banks as well as increasing uncertainties of global economy have impacted Finland. The macroeconomic environment in Finland is weaker than in 2011, and for example several companies have announced employee reductions. 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.

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 Interim Report for January-September 2012 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, IR Director, tel. +358 10 262 3036

Distribution:
NASDAQ OMX Helsinki
Principal media

www.elisa.com

                                                         

 

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