Elisa’s Interim Report Q1 2022

ELISA CORPORATION INTERIM REPORT RELEASE 22 APRIL 2022 AT 8:30 AM

First quarter 2022 financial highlights

• Revenue increased by EUR 30m to EUR 511m, mainly due to growth in mobile and digital services as well as equipment sales.
• Mobile service revenue increased by 6.8 per cent to EUR 224m.
• EBITDA grew by EUR 7m to EUR 177m.
• EBIT increased by EUR 9m to EUR 111m.
• Comparable cash flow increased by EUR 6m to EUR 66m, mainly due to higher EBITDA and lower financial expenses.
• In Finland, mobile post-paid ARPU increased to EUR 20.8 (20.7 in the previous quarter), and mobile post-paid churn decreased to 17.2 per cent (20.5).
• During the quarter, post-paid mobile subscriptions increased by 30,300, of which growth in M2M and IoT subscriptions was 30,000.
• Prepaid subscriptions decreased by 6,200 during the quarter.
• The number of fixed broadband subscriptions decreased by 6,800 during the quarter.

Key indicators

¹⁾ (Interest-bearing debt – financial assets) / (four previous quarters’ comparable EBITDA). ²⁾ Cash flow before financing activities. ³⁾ 1Q22 excluding EUR 13m share investments and 1Q21 excluding EUR 10m share investments.

Additional key performance indicators are available at elisa.com/investors (Elisa Operational Data.xlsx).

CEO Veli-Matti Mattila: A good quarter in a challenging environment

Elisa continued its solid development. Revenue increased by 6 per cent from the previous year to EUR 511 million. EBITDA improved by 4 per cent, to EUR 177 million, and earnings per share by 8 per cent, to EUR 0.55. Despite increased geopolitical challenges and ongoing restrictions due to COVID-19, we achieved a strong result in the first quarter.

Russia's war in Ukraine has had no major direct impacts on Elisa; however, the crisis is expected to affect the general economic environment as a result of higher energy prices, challenges in supply chains, etc. These uncertainties may impact Elisa’s business.

We continued our strong leadership in 5G: Elisa's coverage extends to 77 per cent of the Finnish population in over 160 municipalities. In February–March, an independent benchmarking study¹⁾ compared differences in 5G network coverage between operators. The results show that Elisa's 5G network clearly has better coverage than Telenor/DNA's and Telia's.

The international digital services business progressed well during the quarter. Elisa Polystar acquired FRINX s.r.o, a Slovak telecom network automation software supplier, and their combined offering helps communications service providers comprehensively automate their network management processes in a multivendor telecom network environment.

Sustainability has been part of Elisa’s strategy for over ten years, and our updated sustainability goals emphasise the importance of our handprint. Additionally, we focus on transparency and consistency in reporting. Starting from this quarter, we will also be reporting the results of our key sustainability indicators in our Interim Reports. We published our annual assured Sustainability Report, including information in accordance with the EU Taxonomy Regulation. We also published climate-related financial information in accordance with the recommendations of the Task Force on Climate-Related Financial Disclosures in a separate report.

Our mission is a sustainable future through digitalisation. In the first quarter, we announced a ten-year wind power agreement, established our Sustainability Finance Framework, and joined Women4Cyber Finland to increase the employment of women in the Finnish cybersecurity industry.

We will continue to focus strongly on continuous improvement of the customer experience and quality. Increasing productivity, innovating and expanding our digital services internationally and creating value with data, as well as our strong investment capability, continue to lay a solid foundation for competitively creating value in the future.

¹⁾ Boftel: Operator comparison 15 February – 11 March 2022

Outlook and guidance for 2022

Growth in the Finnish economy is expected to continue; however, the outlook for GDP growth has deteriorated from the beginning of the year. There are increasing levels of uncertainty relating to Russia's war in Ukraine, such as inflation and energy prices. Challenges in global supply chains may also result in uncertainties in volumes and prices. Competition in the Finnish telecommunications market remains keen.

Full-year revenue is estimated to be at the same level as or slightly higher than in 2021. Mobile data and digital services are expected to increase revenue. Full-year comparable EBITDA is anticipated to be at the same level or slightly higher than in 2021. Capital expenditure is expected to be a maximum of 12 per cent of revenue.

Elisa is continuing its productivity improvement development, for example by increasing automation and data analytics in different processes, such as customer interactions, network operations and delivery. Additionally, Elisa’s continuous quality improvement measures will increase customer satisfaction and efficiency and reduce costs.

Elisa's transformation into a provider of exciting, new and relevant services for its customers is continuing. Long-term revenue growth and profitability improvement will derive from growth in the mobile data market, as well as domestic and international digital services.

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 Q1 2022 and the complete report is attached as a pdf-file to this release and is also available on our website at 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 50 520 5555

Distribution:

Nasdaq Helsinki
Principal media
elisa.com