Elisa’s Interim Report Q3 2022

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Third quarter 2022 financial highlights

  • Revenue increased by EUR 38m to EUR 534m, mainly due to growth in mobile and digital services as well as in equipment sales.
  • Mobile service revenue increased by 6.9 per cent to EUR 233m.
  • EBITDA grew by EUR 8m to EUR 194m.
  • EBIT increased by EUR 7m to EUR 128m.
  • Comparable cash flow decreased by EUR 2m to EUR 87m.
  • In Finland, mobile post-paid ARPU increased to EUR 21.1 (21.0 in the previous quarter), and mobile post-paid churn increased to 18.6 per cent (15.3).
  • During the quarter, the number of post-paid mobile subscriptions increased by 35,400. The M2M and IoT subscription base grew by 37,200.
  • Prepaid subscriptions increased by 29,500 during the quarter.
  • The number of fixed broadband subscriptions decreased by 1,700 during the quarter.
  • Revenue and EBITDA guidance for 2022 is upgraded to “slightly higher” (previously “same level or slightly higher”).

Key indicators

EUR million 3Q22 3Q21 Δ % 1Q-3Q22 1Q-3Q21 Δ %
Revenue 534 496 7,6 % 1 567 1 462 7,1 %
EBITDA 194 186 4,2 % 548 522 5,1 %
Comparable EBITDA (1 194 186 4,2 % 550 528 4,3 %
EBIT 128 121 6,1 % 351 322 8,9 %
Comparable EBIT (1 128 121 6,1 % 353 328 7,6 %
Profit before tax 124 118 5,3 % 341 313 8,7 %
Comparable PBT (1 124 118 5,3 % 343 319 7,4 %
EPS, EUR 0,63 0,60 4,4 % 1,74 1,61 7,9 %
Comparable EPS, EUR 0,63 0,60 4,4 % 1,75 1,64 6,6 %
Capital expenditure 67 64 5,2 % 192 184 4,8 %
Net debt 1 358 1 298 4,6 % 1 358 1 298 4,6 %
Net debt / EBITDA (2 1,9 1,9 1,9 1,9
Gearing ratio, % 116,9 % 116,1 % 116,9 % 116,1 %
Equity ratio, % 38,6 % 38,5 % 38,6 % 38,5 %
Cash flow (3 79 86 -7,9 % 214 237 -9,6 %
Comparable Cash flow (4 87 89 -2,1 % 235 250 -6,2 %

1) 1Q–3Q2022 excluding EUR 2m and 1Q–3Q2021 excluding EUR 6m in restructuring costs. 2) (Interest-bearing debt – financial assets) / (four previous quarters’ comparable EBITDA). 3) Cash flow before financing activities. 4) 3Q22 excluding EUR 8m and 1Q–3Q22 excluding EUR 21m in share investments; 3Q21 excluding EUR 4m and 1Q–3Q21 excluding EUR 14m in share investments.

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

CEO Veli-Matti Mattila: Solid performance continuing

Elisa continued its solid development. Revenue increased by 8 per cent from the previous year to EUR 534 million. EBITDA improved by 4 per cent to EUR 194 million and earnings per share by 4 per cent to EUR 0.63. Despite geopolitical challenges and increasing uncertainties, all of our businesses have had solid performance.

Our 5G expansion has proceeded according to plan. Finland's most comprehensive 5G network now reaches more than 200 locations and covers over 83 per cent of Finns. We are happy with how quickly customers have adopted 5G – the new-generation mobile network has met the increasing needs of our customers very well.

Our digital services businesses continued to grow during the quarter. Demand for cyber services increased among corporate customers. Internationally, Elisa IndustrIQ businesses continued their positive development, for example by winning new customers.

The effect of inflation on Elisa, particularly increases in energy prices and salaries, has been moderate. Improving energy efficiency has been part of Elisa's strategy since 2009. We are also committed to improving the environmental impact of our business and promoting more environmentally friendly operations. In second quarter 2023, Elisa's wind power contract will cover half of the electricity needed for Elisa´s entire mobile network in Finland. In Finland and Estonia, we have increased energy-saving measures in our network as well as in stores and offices during the autumn.

We announced an agreement to transfer waste heat from Elisa's Pasila data centre to heat homes and business premises in the Helsinki area. Waste heat from Elisa’s large data centres in Espoo has been redirected for heating for years already, and 100 per cent of the district cooling used in all our data centres is renewable.

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

Outlook and guidance for 2022

Growth in the Finnish economy is expected to slow down to some extent. Increasing levels of uncertainty relating to Russia's war in Ukraine, such as inflation and energy prices, are continuing. 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 slightly higher than in 2021. Mobile data and digital services are expected to increase revenue. Full-year comparable EBITDA is anticipated to be 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 interaction, 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 Q3 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


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


Nasdaq Helsinki
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