Elisa’s Interim Report January-June 2012

ELISA INTERIM REPORT 13 JULY 2012 AT 8:30am

Second quarter 2012

• Revenue amounted to EUR 389 million (378)
• EBITDA was EUR 122 million (121) and EBIT was EUR 72 million (69)
• Profit before tax increased to EUR 66 million (61)
• Earnings per share increased to EUR 0.32 (0.29)
• Cash flow after investments was EUR 47 million (59)
• The full year’s outlook is reiterated



• Mobile ARPU was EUR 18.0 (18.1 in previous quarter)
• Mobile churn was 14.1 per cent (15.3 in previous quarter)
• The number of Elisa’s mobile subscriptions increased by 93,000 during the quarter
• The number of fixed broadband subscriptions increased by 3,000 on the previous quarter
• Net debt / EBITDA was 1.8 (1.6 end 2011) and gearing 123 per cent (94 end 2011)

January – June 2012

• Revenue was EUR 771 million (752)
• EBITDA was EUR 243 million (239), EBIT EUR 140 million (134)
• Cash flow after investments was EUR 85 million (86)

Key indicators:

 Financial position and cash flow:

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 have continued to develop favourably

Despite keen competition, Elisa’s competitiveness and the demand for our services strengthened during the second quarter of 2012. Elisa’s earnings and revenue grew in accordance with expectations. The increase in revenue was boosted by sales of terminals, mobile voice and data services as well as new services.

The total number of mobile subscriptions grew by 93,000 during the second quarter. Fixed broadband subscriptions increased by 3,000 supported by new services and service bundles. Moreover, the demand for mobile data services continued to grow strongly, with dongles and smartphones having established their popularity among consumers and business users.

Elisa’s consumer services developed favourably during the period. The Elisa Viihde entertainment service continued to grow in popularity. For example, Elisa Viihde tablet and smartphone applications have been downloaded more than 120,000 times. Applications can be used for purposes such as recording favourite programs. The Elisa Kirja e-book service, a forerunner for new reading services, was included in city library selections. The libraries of Helsinki and Oulu lend out the service on tablets for reading new Finnish detective novels. The service was also expanded to cover more than 100 out-of-print detective novels.

Elisa introduced several new services for corporate customers during the second quarter. Secure identification enables health center clients to use online services. For example, they can send nurses questions that will be recorded in an electronic health record system. Identification is easy by means of mobile certificates. To support corporate IT solutions, Elisa introduced the Elisa eSali cloud service, which enables companies to acquire additional server capacity based on their specific needs. A new technology developed by Elisa makes it possible for companies to combine their own data centers with virtual ones.

Elisa continued to invest in networks, and 4G speeds were expanded to cover 160 locations during the second quarter. 4G services have been well received by customers. Elisa constantly invests in deepening its customer understanding and customer service. Elisa expanded its consumer customer service by enhancing the use of social media channels. For corporate customers Elisa introduced a new type of online IT support service provided via videoconferencing and chat.

We will continue our determined work to develop the productivity of our operations and customer satisfaction. Elisa creates services that improve productivity and user experiences. 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 have impacted the Finnish economy to some extent. The macroeconomic outlook for Finland is weaker than the outcome in 2011. 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-June 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