Elisa’s Interim Report January-March 2012

ELISA STOCK EXCHANGE RELEASE 27 APRIL 2012 AT 8:30am

First quarter 2012

• Revenue was EUR 382 million (374)
• EBITDA grew to EUR 121 million (118) and EBIT to EUR 68 million (65)
• Profit before tax amounted to EUR 61 million (58)
• Earnings per share increased to EUR 0.31 (0.27)
• Cash flow after investments was EUR 37 million (27)

• Mobile ARPU was EUR 18.1 (18.7 in previous quarter)
• Mobile churn was 15.3 per cent (13.4 in previous quarter)
• The number of Elisa’s mobile subscriptions increased by 86,600 during the quarter
• The number of fixed broadband subscriptions increased by 2,100 on the previous quarter
• Net debt / EBITDA was 1.5 (1.6 end 2011) and gearing 85 per cent (94 end 2011)

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 on www.elisa.com/investors Elisa Operational Data.xls.
 

CEO Veli-Matti Mattila:

“A solid quarter according to our expectations

Elisa’s earnings and revenue grew according to expectations during the first quarter of the year. Despite challenging competition, the demand for Elisa’s services remained high and competitiveness was strengthened.

The first quarter increase in the mobile subscription base was more than 86,000 subscriptions. The number of fixed network broadband subscriptions continued to increase by more than 2,000 during the first quarter. Growth was boosted by new services and service bundles. The demand for mobile data services continued its strong growth as dongles and smart phones are becoming more common among consumers and corporate users.

The demand for Elisa’s video services has continued to rise. Elisa’s video solutions have already been delivered to more than 10,000 sites in 80 countries. In addition, during the quarter, Elisa introduced a solution through which companies can offer their customers a possibility to make small-scale web purchases through a mobile phone. Mobile certificates were also deployed by a number of companies during the quarter. In the future, Nordic customers will also be able to use mobile certificates.

Elisa again introduced new, interesting content for consumer services. Elisa Kirja, Finland’s largest e-book service for Finnish literature, further expanded its offering to include radio plays by YLE, the Finnish national public service broadcasting company. The Elisa Viihde IPTV service gives customers an opportunity to experience the excitement of Formula 1 races and to follow the upcoming Ice Hockey World Championship in Finland with exceptional new features and user friendly appeal.

An independent study conducted during the quarter confirmed that Elisa’s 3G network has the widest coverage. In addition, 4G speeds are already available in Elisa’s network in 150 localities. Better connection speeds increase user experience and enable use of entirely new services, for example, for sharing and watching videos and for teleworking. Customers have experienced the 4G services positively, and demand for them has been active.

Elisa is the first telecommunication and ICT service company to start reporting on the emissions savings of the services it offers. According to the report published during the quarter, Elisa’s services allowed emissions savings of more than 15,000 carbon dioxide tonnes in 2011. The most significant factors reducing emissions were the increasing popularity of mobile work solutions and the strong growth in demand for video conferencing solutions.

We will continue our determined work to enhance the productivity of our operations and customer satisfaction. Elisa creates services that improve productivity and provide enhanced 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 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-March 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