ELISA?S Q2 PRE-TAX PROFIT AMOUNTED TO EU
ELISA CORPORATION STOCK EXCHANGE RELEASE
5 AUGUST 2003 AT 8:00 a.m.
ELISAS Q2 PRE-TAX PROFIT AMOUNTED TO EUR 7 MILLION
The Groups April-June revenue amounted to EUR 391 million (406).
The key figures were as follows*):
· EBITDA EUR 97 million (86)
· EBIT EUR 17 million (-32), exclusive of amortisation on Group
goodwill EUR 30 million (-12)
· result before extraordinary items and taxes EUR 7 million
(-48), exclusive of amortisation on Group goodwill EUR 20
million (-28).
Operative investments in fixed assets were EUR 39 million (49),
investments in shares amounted to EUR 2 million (2) and GSM
leasing liability buy-backs to EUR 8 million (21).
During the second quarter operative cash flow**) was EUR +48
million. Stable performance development and a moderate investment
level had a positive impact on the operative cash flow. The
financial position remained stable.
At the end of the review period:
· net debt amounted to EUR 742 million (757 at the end of
2002),
· the Groups equity ratio stood at 40 per cent (38.3 at the
end of 2002).
CEO Veli-Matti Mattila, who assumed his duties on 1 July 2003,
expects the 2003 revenue to remain slightly less than in 2002, but
the result to grow at a steady pace compared with the previous
year.
"We will focus on improving our profitability and competitiveness
by enhancing cost efficiency. This will be achieved, for example,
by relocating the corporate headquarters, combining the sales
operations of Major Accounts and by reorganizing corporate staff
functions. In addition, a strategy review process has been
initiated. Our financial position will remain stable."
Information in this interim report is not audited.
*) Comparison figures from the year 2002 exclusive of non-
recurring items: EBITDA EUR 86 million, EBIT EUR 6 million, and
result before extraordinary items and taxes EUR -10 million. The
Q2 result does not include any substantial non-recurring items.
**) Operative cash flow = clean EBITDA - operative CAPEX - net
financial items; operative CAPEX = CAPEX excluding GSM network
buy-backs.
ELISA CORPORATION
Jyrki Antikainen, Vice President, Communications
Additional information:
Mr Veli-Matti Mattila, President and CEO, tel. +358 10 262 2635
Mr Vesa-Pekka Silaskivi, CFO, tel. +358 10 262 2606
Mr Vesa Sahivirta, Vice President, IR, tel. +358 10 262 3036
Appendix:
Elisa Corporations Interim Report, April-June 2003
Distribution:
Helsinki Exchanges
Major media
ELISA CORPORATIONS INTERIM REPORT FOR APRIL-JUNE 2003
Revenue
The Groups April-June revenue amounted to EUR 391 million (406).
Revenue decreased by 3.7 per cent compared with the corresponding
period last year. This was due to the disposals of non-core
businesses and changes in accounting practices, as well as volume
and price development.
Performance
The Groups April-June EBIT was EUR 17 million (-32, exclusive of
non-recurring items the figure is 6). Without amortisation on
consolidated goodwill the April-June EBIT was EUR 30 million
(-12). The Q2 result does not include any substantial non-
recurring items.
Planned depreciation and value adjustments on fixed assets
totalled EUR 66 million (99, exclusive of non-recurring items the
figure is 63). The shortening of write-off periods for mobile
networks in early 2003 and buy-backs of mobile networks that
Radiolinja previously leased were reflected in increased
depreciation.
EUR 14 million (20, exclusive of non-recurring items the figure
is 14) amortisation was booked on consolidated goodwill. The
Group´s goodwill resulting from the acquisition of subsidiaries
amounted to EUR 553 million (583 at the end of 2002) at the end
of the period under review.
The Group's financial income and expenses for April-June totalled
EUR -10 million (-13).
The Group's share of associated companies' results amounted to
EUR 0.2 million (-3).
The April-June taxes were positive by EUR +31 million (+6). On
the basis of an advance ruling issued by the Tax Office for Major
Corporations, the Group's parent company, Elisa Corporation,
booked a EUR 142 million one-time write-off, conforming to
business tax legislation (Business Tax Act §42), on the value of
FMS Dravit Asset Management GmbH shares, the holding company of
the Germany-based business. Of this sum, approximately a EUR 41
million deferred tax asset was booked in the consolidated
financial statements. This had a positive effect on the Group's
performance and equity ratio in the second quarter of 2003.
This tax asset can be set against taxes levied in Finland over the
2003-2005 tax periods. As the write-off is an item to be
eliminated in the consolidated financial statements, it has no
impact on the Group's EBIT.
April-June performance:
· result before extraordinary items and taxes amounted to EUR 7
million (-48, exclusive of non-recurring items the figure is
-10)
and exclusive of amortisation on Group goodwill EUR 20
million (-28)
· earnings after taxes and minority interests were EUR 37
million (-35)
The Group's April-June earnings per share stood at EUR 0.21
(-0.26).
Elisa Mobile business area
The Elisa Mobile business area's April-June results were:
· revenue EUR 190 million (192)
· EBITDA EUR 49 million (56)
· EBIT EUR 12 million (-5) and exclusive of amortisation on
Group goodwill EUR 22 million (5).
Compared to the previous years Q2, the revenue was largely
affected by the disconnection of Telia Mobile Finland post-paid
subscriptions from Radiolinja Origo's network in the summer of
2002. Furthermore, the continued fierce competition in the
Finnish mobile communications market was reflected in the
revenue development.
In addition to the disconnection of Telia Mobile Finlands
subscriptions, the weakened EBITDA was also due to increased
interconnection traffic expenses. Due to the final write-off of
city networks and answering services, approximately EUR 4 million
in value adjustments were targeted in the second quarter. On the
other hand, profitability was improved by a larger number of
service operator subscriptions compared to the previous year.
The EBIT, EUR 12 million (-5), was higher compared to the
corresponding period in 2002. This was due to non-recurring value
adjustments (EUR 26 million), which had an impact on the 2002
EBIT.
At the end of June 2003, Radiolinja's network in Finland had
1 356 881 subscriptions (1 289 016). This number includes
Radiolinja's own subscriptions as well service operators
subscriptions roaming on Radiolinja Origo's network.
Subscriptions of Radiolinja's service operator in Finland:
· annualised churn for the review period was 13.4 per cent
(12.7)
· average monthly use per customer totalled 146 minutes (141),
and customers sent 29 (27) SMS messages per month
· average revenue per subscription (ARPU) amounted to EUR 41.7
a month (43.5).
Radiolinja customers increased their use of mobile phones during
the second quarter. However, owing to lower customer tariffs in
the Finnish mobile market, revenue per subscription (ARPU) was at
a more modest level compared to the corresponding period of the
previous year.
As of 1 May 2003, Radiolinjas service operator was incorporated
to form Radiolinja Suomi Oy. Mäkitorppa, Radiolinja Solutions as
well as Radiolinja Piste and Kamastore retail chains were also
integrated into this new company.
Radiolinja Origo Oy and the Swedish telecom operator Tele2 AB
signed a service operator agreement in June. Along with the
agreement, Tele2 customers will have access to Radiolinja Origos
Finland-wide mobile network services.
At the end of June, Radiolinja Eesti, Radiolinja's Estonian
subsidiary had 160 150 subscriptions (148 500).
Radiolinja Eesti reported the following figures for April-June:
· revenue of EUR 15 million (15)
· EBITDA EUR 4 million (4) and
· EBIT EUR 2 million (2).
The April-June investments of the Elisa Mobile business area
amounted to EUR 29 million (43). The investments include GSM
leasing liability buy-backs from telcos of EUR 8 million (21).
On the basis of financial and production grounds plus business
restructuring in the Elisa Mobile business area, employee
negotiations were initiated in April. As a result of these
negotiations the number of personnel will decrease by about 290
through notices and other arrangements, such as resignations and
termination of fixed-term employment contracts. The employee
negotiations concern the entire business area and all personnel
groups. The measures are estimated to achieve approximately EUR 12
million in annual cost savings.
Fixed Network Business (ElisaCom and Elisa Networks business
areas)
Fixed network business' results for April-June were:
· revenue was EUR 175 million (198)
· EBITDA amounted to EUR 50 million (50)
· EBIT totalled EUR 22 million (13).
The Q2 EBIT of the corresponding year 2002 includes network
writedowns of EUR 6 million. Comparison figures of the previous
year have been converted to correspond to the changes in group
structure.
At the end of June, the Group with its associated companies had
1.18 million fixed subscriptions (1.20) in total.
The number of broadband subscriptions was approximately 93 500
(45 000). There were 176 500 TV cable subscriptions (161 500) at
the end of June.
The new broadband price list of Elisa Networks was adopted on 1
April 2003. As a result of Elisas requests for measures submitted
to the Finnish Competition Authority, the gross prices of
competitors broadband products decreased during April-June. This
enhances the Groups competitive edge in expanding the
geographical availability of broadband services.
ElisaCom signed several major extension agreements with its Major
Account customers. Elisa and Finnair, for example, agreed on
expanding their cooperation by signing an agreement on the
provision of telephony and data communication services in June.
The agreement is valid until the end of 2008.
Elisa Networks and Sonera Carrier Networks signed a reciprocal
blanket agreement on providing operator products and services.
The aim of the agreement is to develop and harmonise the trade of
operator products between the companies.
Elisa Networks and Suomen 2G Oy have extended their agreement on
the provision of IN services in the fixed telephone network.
Germany-based Business (Elisa Kommunikation business area)
Operations in Germany reported for April-June:
· revenue of EUR 35 million (28)
· EBITDA was EUR 1 million (-4)
· EBIT of EUR -9 million (-20, exclusive of non-recurring items
the figure is -16) and exclusive of amortisation on Group
goodwill EUR -7 million (-12).
During the first half of the year revenue increased by
approximately 20 per cent despite the economic slump in Germany
and the weak market outlook. Improvement of EBITDA and reduction
of losses were due to increased revenue, streamlining operations
and labour cost saving measures.
Compared with the Q2 2002, the number of business customers grew
by approximately 40 per cent, amounting to 18 400 (13 200).
Other companies
Comptel Corporation disclosed its April-June interim report on 23
July 2003 and Yomi Plc on 31 July 2003. The key figures of these
listed companies in the April-June reports were:
Comptel Corporation
· revenue EUR 16.7 million (13.3)
· EBITDA EUR 2.7 million (0.5)
· EBIT EUR 2.0 million (-0.4)
Yomi Group
· revenue EUR 13.4 million (14.4)
· EBITDA EUR 2.1 million (1.2)
· EBIT EUR -0.7 million (-1.6)
Yomi´s subsidiaries Kestel Oy and Kesnet Oy operations are
associated with the fixed line business.
In addition, Estera Oy, also listed under Other companies
reported:
· revenue EUR 4.8 million
· EBITDA EUR 0.5 million
· EBIT EUR 0.3 million.
Investments
The Group's gross investments in fixed assets in April-June
amounted to EUR 47 million (70), of which operative investments
accounted for EUR 39 million (49) and acquisition of shares 2
million (2).
Investments in fixed assets amounted to:
· EUR 29 million in Radiolinja (purchases of EUR 6 million from
other group companies)
· EUR 18 million in the fixed network business, and
· EUR 4 million in Germany-based business.
Radiolinja's investments include GSM leasing liability buy-backs
from telcos for the amount of EUR 8 million (21).
Financial position
The Group's financial position and liquidity remained stable. Net
debt amounted to EUR 742 million at the end of review period. The
Group's equity ratio stood at 40.0 per cent (38.3 per cent at the
end of 2002). Consolidated cash flow after investments was EUR 15
million. More detailed information on the financial position is
available on the attached table.
On 17 April 2003, the credit rating agency Standard & Poors
lowered its long-term credit rating of Elisa Corporation to
'BBB+' from 'A-'. The outlook of the credit rating is negative.
Standard & Poors affirmed its 'A-2' short-term corporate credit
rating on the company.
On 16 June, the Group arranged a five-year EUR 170 million
revolving credit facility. The loan arrangement is a committed
credit line and is for general corporate purposes. It replaces a
corresponding arrangement signed in November 1998. The Mandated
Lead Arrangers were Nordea Bank Finland Plc and Sampo Bank plc.
Shares
Elisa Corporations A share closed at EUR 7.48 on 30 June 2003.
The highest quotation in April-June was EUR 7.70 and the lowest
EUR 5.51. The average rate was EUR 6.71.
The company's number of shares was 138 011 757, all of which were
A Shares. On 30 June 2003, their market capitalisation stood at
EUR 1 026 million.
During the period from 1 April 2003 to 30 June 2003, a total of
18.7 million A Shares of the company were traded on the Helsinki
Exchanges for an aggregate value of EUR 125.7 million. The
exchange was 13.6 per cent of the number of A Shares on the
market.
The number of Elisa Corporation's A options for the year 2000 is
3 600 000. Between 1 April 2003 30 June 2003, the total number
of A options traded on the Helsinki Exchanges was 68 700 at a
total price of EUR 4 978 and their average rate was EUR 0.07. The
highest quotation of the A options in the April-June period was
EUR 0.12, and the lowest EUR 0.02. The closing rate of the A
option was EUR 0.02
Quotations of Elisa Corporations B options for the year 2000
started on the Helsinki Exchanges on 2 May 2003. The amount of B
options is 3 600 000. Between 2 May 2003 30 June 2003, the
total number of B options traded on the Helsinki Exchanges was
33 100 at a total price of EUR 7 235 and their average rate was
EUR 0.22. The highest quotation of the B options was EUR 0.26,
and the lowest EUR 0.19. The closing rate of the B option was EUR
0.21.
The total number of Elisa Corporation's A Shares owned by the
subsidiaries was 781 563 (781 563 at the end of 2002). The par
value of the shares totalled EUR 390 781.50, and their proportion
of the share capital and voting rights was 0.57 per cent. The
book value of these company shares has been deducted from the
distributable assets of the Group.
Moreover, the Groups pension funds own 1 547 763 A shares.
Legal issues
The following changes have taken place in the legal processes
referred to in the company's annual report of 2002 and the interim
reports published thereafter:
With reference to the action for annulment against the decision
made at the Annual General Meeting of Oy Radiolinja Ab on 3 April
2000, and the ruling of 11 February 2003 by the Court of Appeal to
reject the action for annulment, the plaintiffs have submitted a
leave to appeal in the Supreme Court, which was in favour of the
plaintiffs.
Elisa Corporation has proposed a redemption claim in accordance
with Section 14 Paragraph 19 of the Companies Act to redeem the
minority shareholders of Riihimäen Puhelin Oy at the price of EUR
1 525 per share. With regard to this, the Redemption Board of the
Central Chamber of Commerce appointed Juha Kurkinen, Ph.D., M.Sc.
(Econ.) arbitrator at its meeting on 20 May 2003. Elisa submitted
on 10 June 2003 a statement of claim to the Court of Arbitration.
There are approximately 900 shares to be redeemed.
Annual General Meeting
The Annual General Meeting was held at Helsinki Fair Centre on 4
April 2003. In accordance with the proposal of the Board of
Directors, the Annual General Meeting decided that no dividend be
paid for 2002. The AGM confirmed the parent company's income
statement and balance sheet, and the consolidated income statement
and balance sheet. The members of the Board and the CEO were
discharged from liability for 2002, and the proposal of the Board
of Directors to amend Articles 1,3,4,7,11 and 13 of the Articles
of Association was approved. The amended Articles of Association
as a whole were published as an addendum to the AGM stock exchange
release given on 4 April 2003.
The number of the members of the Board of Directors was confirmed
at six (6), and the following members were elected for the
subsequent one-year term: Keijo Suila, Ossi Virolainen, Matti
Aura, Pekka Ketonen and Jere Lahti, plus a new member, Mika
Ihamuotila, Executive Vice President at Sampo Plc. In compliance
with the established practice, the monthly compensation of the
Board members is used for purchases of Elisa shares.
PricewaterhouseCoopers Oy (authorized public accountants, with APA
Henrik Sormunen as the responsible auditor) was appointed as the
company's auditor.
The Annual General Meeting approved the proposal of the Board of
Directors to authorize the Board of Directors within one year from
the Annual General Meeting to decide on increasing the company's
share capital. The Board was to achieve this through one or more
new issues, one or more convertible bonds and/or warrants so that
in a new issue or when issuing convertible bonds or warrants, a
maximum aggregate of 27.6 million of the company's A Shares can be
issued for subscription, and the company's share capital can be
increased by a maximum of EUR 13.8 million in total.
The Board of Directors, elected by the AGM of Elisa Corporation,
held its organisational meeting on 4 April 2003 and appointed CEO
Keijo Suila Chairman of the Board and Managing Director Ossi
Virolainen Deputy Chairman.
The amendments decided at the AGM, including changing the name to
Elisa Corporation, were entered in the Trade Register on 11 April
2003.
Changes in corporate management
On the proposal of CEO Veli-Matti Mattila, Elisa Corporations
Board of Directors appointed a new Executive Board on 16 June,
which comprises as follows:
· Mr Veli-Matti Mattila, President and CEO
· Mr Vesa-Pekka Silaskivi, CFO
· Mr Pasi Lehmus, Executive Vice President, ElisaCom business
area
· Mr Tapio Karjalainen, Executive Vice President, Elisa Mobile
business area
· Mr Jukka Veteläsuo, Executive Vice President, Elisa Networks
business area
· Mr Hannu Turunen, Executive Vice President, Elisa
Kommunikation business area
· Mr Asko Känsälä, Executive Vice President, Business
Development, R&D, IT and Communications (as of 16 August)
· Mr Sami Ylikortes, Executive Vice President, Administration
and HR.
All members of the Executive Board report to CEO Mattila.
Matti Mattheiszen (60), who stepped down as Elisa Corporations
CEO on 30 June, will continue working on special assignments for
the Board until his retirement on 1 September 2003. Jarmo Kalm,
Senior Executive Vice President and COO, will retire on 1 January
2004 as per his contract. Prior to his retirement, he will work on
special assignments for the CEO.
Ms Satu Eskelinen, M.Sc. (Eng.), was appointed Soon Com Ltds
Managing Director to succeed Pasi Lehmus.
Events after the review period
The Ministry of Justice and ElisaCom agreed on the provision of
voice and mobile solutions for the Ministry and its
administration. The agreement expands the long-term cooperation
between the Ministry of Justice and Elisa. During the agreement
period Elisa will gradually implement voice services for the 9 500
employees and over 350 offices of the Ministry of Justice by
deploying new VoIP technology.
Radiolinja Eesti acquired a 3G licence in the Estonian market for
EUR 4.5 million.
On 25 July, Münster's electricity utility used its right to sell
its 4.95 per cent stake in Tropolys GmbH to Elisa Corporation's
German subsidiary Elisa Kommunikation GmbH. Through the
transaction Elisa Kommunikation's holding in Tropolys rose to
70.85 per cent. Münster electricity utility's entitlement to sell
its stake is based on the agreement signed during the founding
stage of Tropolys GmbH in 2000.
Future outlook
The Groups revenue for 2003 is estimated to remain slightly less
than in 2002. EBITDA and EBIT will grow moderately compared with
the previous year.
Owing to improved profitability and the moderate investment level
the Group's cash flow will remain positive and net debt will be
reduced. Operative investments are restricted to 15 per cent of
the revenue at the maximum. Restructuring of non-core businesses
will continue.
EBITDA of the Group's Germany-based business area is estimated to
be positive in 2003.
APPENDIX
ELISA CORPORATION
INTERIM REPORT 1 APRIL - 30 JUNE 2003
(Figures in this interim report are not audited)
Jan-
CONSOLIDATED INCOME STATEMENT April-June January-June Dec
2003 2002 2003 2002 2002
EUR million
Revenue 391 406 762 790 1 563
Other operating income 9 1 13 8 92
Operating expenses -304 -321 -593 -634 -1 322
Depreciation and value
adjustments:
On fixed assets -66 -99 -131 -175 -322
On Corporation's goodwill -14 -20 -28 -34 -59
EBIT 17 -32 23 -45 -48
Financial income and expenses:
Share of associated companies'
profits 0 -3 0 -4 -5
Other financial income and
expenses -10 -13 -20 -24 -50
Profit before extraordinary
items 7 -48 3 -73 -103
Extraordinary items 3 3
Profit after extraordinary items 7 -48 3 -70 -100
Income taxes 31 6 27 0 3
Minority interest -1 7 -1 13 26
Net profit 37 -35 29 -57 -71
CONSOLIDATED BALANCE SHEET 30.6. 30.6. 31.12.
2003 2002 2002
EUR million
Fixed assets
Intangible assets 73 83 77
Consolidated goodwill 553 634 583
Tangible assets 896 965 962
Share in associated companies 20 20 21
Other investments 12 17 13
1 554 1 719 1 656
Current assets
Inventories 18 24 21
Deferred tax receivable 76 7 14
Receivables 338 355 334
Marketable securities 12 3 2
Cash in hand and in banks 62 95 71
506 484 442
Total assets 2 060 2 203 2 098
Shareholders' equity
Share capital 69 69 69
Share premium account 517 517 517
Contingency fund 3 3 3
Retained earnings 126 181 198
Net profit 29 -57 -71
744 713 716
Minority interests 75 118 83
Provisions for liabilities and charges 52 1 71
Liabilities
Long-term creditors 716 628 715
Short-term creditors 473 743 513
1 189 1 371 1 228
Total shareholders' equity and liabilities 2 060 2 203 2 098
Deviating from the year 2002 interim reports,
the Tropolys subgroup has applied an IAS-
compliant procedure for the acquisition of
subsidiaries, which has affected
the Corporation's goodwill and minority
interest,
since the financial statements of 31
December 2002.
Jan-
CONSOLIDATED CASH FLOW STATEMENT January-June Dec
2003 2002 2002
EUR million
Cash inflow from operating activities
Net profit for the financial period 29 -57 -71
Adjustments:
Depreciation and value adjustments 159 209 381
Reduction in value of investments 1
Sales profits from business operations 0 0 -48
Sales profits from the disposal of fixed
assets and shares 0 0 -5
Expense booking for GSM leasing liability 70
Other adjustments 1 -9 -21
Change in deferred tax liability/receivable -62 -26 -34
Change in working capital and other items -38 37 32
60 117 376
Cash inflow from operating activities 89 154 305
Cash flow in investments
Investments in fixed assets -86 -138 -268
Disposal of fixed assets 1 0 6
Investments in shares -3 -5 -7
Disposal of shares and business operations 14 5 53
Other investments
Cash flow in investments -74 -138 -216
Cash flow after investments 15 16 89
Cash flow in financing
Change in long-term loans 2 -9 75
Change in short-term loans -17 -12 -209
Dividends paid 0 -4 -4
Sale of own shares 18
Cash flow in financing -15 -25 -120
Change in financial assets 0 -9 -31
Financial assets at the end of the
financial period 74 95 74
Jan-
April-June January-June Dec
2003 2002 2003 2002 2002
KEY FIGURES
Earnings/share (EPS), EUR 0,27 -0,26 0,21 -0,44 -0,54
Shareholders' equity/share,
EUR 5,42 5,25 5,21
Gross investments in fixed
assets 47 70 86 138 269
Gross investments as % of
revenue 12,0 17,2 11,3 17,5 17,2
Purchase of shares 2 2 3 6 16
Non-interest-bearing debt 372 426 396
Average number of personnel 7 319 8 612 8 115
LIABILITIES
Mortgages
For own 75 70 67
Pledges given
Deposits given as surety 9 28 10
Guarantees given
For others 11 11 11
Leasing commitments 80 73 72
Repurchase commitments 3 5 3
Lease-leaseback agreement commitment
(QTE facility) 178 203 194
Other commitments 47 58 52
Total liabilities 403 448 409
GSM and data network lease agreement liabilities outside
the Corporation on 30 June 2003 amounted to approximately
EUR 232 million (EUR 216 million at the end
of 2002). For the future redemption of the
relevant GSM network financial agreements,
an obligatory reserve has been entered in the
balance sheet, which covers around
EUR 50 million of the remaining
lease agreement liability.
Derivative contracts
Forward contracts
Market value of underlying security 14 4 13
Market value 1 0 1
Interest and currency swaps
Market value of underlying security 8 0
Market value 0 0
ADJUSTED GROUP KEY FIGURES
(exclusive of non-recurring items)
Jan-
April-June January-June Dec
2003 2002 2003 2002 2002
Revenue 391 406 762 790 1 563
EBITDA 97 86 182 171 342
EBITDA, % 24,8 21,2 23,9 21,6 21,9
EBIT 17 6 23 17 32
EBIT, % 4,3 1,5 3,0 2,2 2,0
Profit before extraordinary items 7 -10 3 -11 -23
Adjusted key figures have been
calculated
without the following non-
recurring items:
Sales profits 73
Expense booking for GSM network leasing liability -77
Writedowns of the GSM network -26 -40 -51
Writedowns of Cityphone and
submarine cable networks -6 -6 -8
Other writedowns in Finland -4
Rundown costs of Mäkitorppa GmbH -10 -8
Other writedowns in Germany -6 -6 -5
Non-recurring items, total -38 -62 -80
Impact on EBITDA -7 -9
Impact on EBIT -38 -62 -80
Impact on profit before extraordinary items -38 -62 -80
Items presented in the interim report tables have been rounded up.
---------------------------------------
The corporation's revenue, EBITDA and EBIT by Business Area (BA),
1 Jan - 30 June 2003*)
EUR million
Fixed network Revenue EBITDA EBIT
1-6/03 1-6/02 1-6/03 1-6/02 1-6/03 1-6/02
Services 319 348 15 17 -4 -5
Network 148 160 87 84 52 43
Intra-BA sales -122 -124
Corporation
bookings -2 -2
Total 345 384 102 101 46 36
Elisa Mobile Revenue EBITDA EBIT
1-6/03 1-6/02 1-6/03 1-6/02 1-6/03 1-6/02
Radiolinja 365 366 91 107 37 21
Corporation
bookings -19 -19
Total 365 366 91 107 18 2
Germany Revenue EBITDA EBIT
1-6/03 1-6/02 1-6/03 1-6/02 1-6/03 1-6/02
Carrier business 67 54 0 -12 -14 -26
Mäkitorppa GmbH 1 -7 -10
Corporation
bookings -5 -10
Total 67 55 0 -19 -19 -46
Other companies Revenue EBITDA EBIT
1-6/03 1-6/02 1-6/03 1-6/02 1-6/03 1-6/02
Comptel 29 25 3 -1 2 -3
Other companies** 24 17 -2 -7 -5 -10
Intra-BA sales -1
Corporation
bookings -1 -1
Total 52 42 1 -8 -4 -14
**Includes Yomi IT companies and the parent company of
Yomi Group
Corporation
functions 19 18 -12 -17 -18 -23
Corporation,
total 762 790 182 164 23 -45
Revenue, EBITDA and EBIT by Business Area
(exclusive of non-recurring items)
Business Area (BA) Revenue EBITDA EBIT
(adjusted) (adjusted) (adjusted)
1-6/03 1-6/02 1-6/03 1-6/02 1-6/03 1-6/02
Fixed network 345 384 102 101 46 42
Elisa Mobile 365 366 91 107 18 42
Germany 67 55 0 -12 -19 -30
Other functions 71 60 -11 -25 -22 -37
Sales between BAs -86 -75
Corporation,
total (adjusted) 762 790 182 171 23 17
*)Owing to structural changes in the fixed networks, the figures
are not fully comparable with the previous year.
-----------------------------------------
FINANCIAL SITUATION AS AT 30 JUNE 2003
EUR million 30.6.03 31.3.03 31.12.02 30.9.02 30.6.02
Long-term loans
Bonds and notes 572 572 572 472 472
Loans from
the Pension Funds 80 80 80 83 83
Loans from
financial
institutions 55 48 54 38 38
Total 707 700 705 593 593
Short-term loans
Bonds and notes 52 52 152
Loans from
financial
institutions 2 2 2 34 34
Committed credit
line 1) 40
Commercial
papers 2) 81 124 44 128 106
Others 3) 26 27 28 50 59
Total 109 153 126 304 351
Interest-bearing
debt, total 816 853 831 897 944
Securities 12 1 3 3 3
Cash and bank 62 85 71 77 92
Interest-bearing
receivables 74 86 74 80 95
Net debt 4) 742 767 757 817 849
1) The committed credit line is a joint EUR 170 million revolving
credit facility with eight banks,which Elisa Corporation may
flexibly use on agreed pricing. The loan arrangement is valid
until 16 June 2008.
2) Elisa Corporation has agreed on a joint programme with six banks
on issuing commercial papers. The arrangement is not committed.
The maximum amount of the arrangement is EUR 150 million.
3) Radiolinja's redemption liability for minority shareholders
(EUR 16m) and deposits in the Financial Services Office
(EUR 10m).
4) Net debt is interest-bearing debt less interest-bearing
receivables.
Key financial
indicators 30.6.03 31.3.03 31.12.02 30.9.02 30.6.02
Gearing 91 % 97 % 95 % 105 % 102 %
Equity ratio 40 % 38 % 38 % 35 % 38 %
