Published: 2004-10-28 06:07:54 CEST
Elisa Oyj - Quarterly report
ELISA?S PROFIT BEFORE EXTRAORDINARY ITEMS AND TAXES IMPROVED TO EUR 36 MILLION
ELISA CORPORATION STOCK EXCHANGE RELEASE 28 OCTOBER 2004 AT 8.00am

ELISA’S PROFIT BEFORE EXTRAORDINARY ITEMS AND TAXES IMPROVED TO
EUR 36 MILLION

·        Profit before extraordinary items and taxes increased to
EUR 36 million (17). Revenue amounted to EUR 333 million (385).
·        The number of Elisa’s subscriptions in mobile
communications increased by 37 600 and the churn rate decreased
from 29.4 per cent in the previous quarter to 21.6 per cent.
·        The financial position was strengthened: equity ratio
increased to 45 per cent (40) and net debt was reduced to 
EUR 461 million (722)

Elisa’s key figures for July-September were:

Income statement               Q3/2004    Q3/2003    Pro forma
EUR million                                           Q3/2003*
Revenue                            333        385          347
EBITDA                             105        107          106
EBIT                                45         26           38
Profit before                                                 
extraordinary items and                                       
taxes                               36         17           30
Earnings per share, EUR           0.18       0.01         0.10
Capex                               41         45           38

* Exclusive of the Germany-based business, and adjusted to
correspond to the change in the revenue booking procedure in
mobile communications, effective as of early 2004

Key figures describing the financial position and cash flow:

Financial position           30.9.2004  30.9.2003   31.12.2003
Net debt                           461        722          654
Equity ratio, %                   45.5       40.4         40.4
                                                              
Cash flow statement           1-9/2004   1-9/2003    1-12/2003
Cash flow after                                               
investments                        151         36          105

President and CEO Veli-Matti Mattila:

”Elisa successful in the face of fierce market competition.

The market situation particularly for mobile communications
remained tight. However, Elisa was able to increase the number of
its subscriptions substantially and the churn rate decreased. We
were also successful in the soaring broadband market. The
availability of Elisa’s broadband will expand to the whole of
Finland by the end of this year. Currently, our sales include over
300 municipalities and our aim is to have Elisa Broadband in every
municipality in Finland by the end of the year.

Profitability improved from the previous year. Compared to the
previous quarter profitability was slightly better than
anticipated. This was mainly due to lower market activities.

Elisa will initiate 3G mobile communication services in November.
We believe that in the first phase 3G services will be of
particular interest to corporate customers.

We estimate the market situation to remain challenging. We will
continue to strengthen our market position in both the mobile and
broadband markets. We will also determinedly continue to enhance
our operational efficiency to improve profitability.

Additional information:

Mr Veli-Matti Mattila, President and CEO, tel. +358 10 262 2635
Ms Tuija Soanjärvi, CFO, tel. +358 10 262 2606
Mr Vesa Sahivirta, Vice President, IR, tel. +358 10 262 3036

Distribution:

Helsinki Stock Exchange
Major media


Interim Report for July-September 2004

Market situation

Fierce competition continued in the market. Prices to fall for the
average call minutes rate of the mobile phone business continued
and the usage of subscriptions increased. The robust demand for
broadband subscriptions in the fixed network market prevailed
whereas the number of traditional subscriptions decreased.

Elisa invested heavily in sales and continued extensive marketing.
The consumer awareness of Elisa’s umbrella brand has increased
substantially. The number of both Elisa’s own and other service
operators in Elisa’s network continued to develop favourably.
Robust growth of broadband subscriptions in the fixed network
market continued and the number of traditional subscriptions
decreased.

Revenue

EUR million                    Q3/2004     Q3/2003    Change %
Mobile communications              179         194         -8%
Fixed network                      161         166         -3%
Germany-based business               -          34           -
Other business                      24          20        +20%
Sales between segments             -31         -29         +7%
Total                              333         385        -13%

Elisa's revenue for July-September decreased by 13 per cent
compared to the corresponding period last year. The reduced
revenue was affected by: divesting the German operations, the
volume reduction of the traditional fixed network products,
reduced interconnection fees in the mobile communications
business, the fall in prices, and the change in the revenue
booking procedure. The comparable revenue decreased by 4 per cent.

Comparable revenue for the mobile communication business decreased
by 4 per cent over the previous year. The fall in prices slightly
exceeded the increased usage. Revenue was boosted by the expanded
operations of Elisa’s Estonian subsidiary.

Revenue for the fixed network business decreased by 3 per cent
compared to the corresponding period last year. The change in
revenue was mainly due to the declining volume change in
traditional subscription products and equipment sales. The
increased number of broadband subscriptions improved the revenue.

Performance

EUR million                    Q3/2004     Q3/2003    Change %
Mobile communications                                         
 EBITDA                             57          58         -2%
 EBITDA,%                          32%         30%            
 EBIT                               25          25          0%
Fixed network                                                 
 EBITDA                             47          45         +4%
 EBITDA,%                          29%         27%            
 EBIT                               21          14        +50%
Germany-based business                                        
 EBITDA                              -           1           -
 EBIT                                -         -12           -
Other business and                                            
corporate functions                                           
 EBITDA                              1           4            
 EBIT                               -2          -1
Total                                                         
 EBITDA                            105         107         -2%
 EBITDA,%                          32%         28%            
 EBIT                               45          26        +73%

Elisa’s EBITDA remained at the same level as with the corresponding
period last year and the profitability improved. Profitability was
positively affected by the measures to streamline the business and
the divestment of the Germany-based business. In comparison with the
second quarter, improvement in EBITDA was due to lower marketing
expenses and seasonal fluctuations.

The group's other financing income and expenses totalled EUR -8
million (-10). Reduced financing expenses were mainly due to the
decreased net debt.

Revenue taxes in the income statement amounted to EUR -11 million
(-14). The reduction of the tax rate from 29 per cent to 26 per
cent at the beginning of 2005 has been taken into account in the
change of deferred tax asset/liability. Owing to the change, EUR 2
million have been booked as tax expense deductions.

The group's July-September result after taxes and minority
interests were EUR 25 million (2). The group's earnings per share
(EPS) amounted to EUR 0.18 (0.01). At the end of September, the
group shareholders' equity per share stood at EUR 5.54 (5.09 at
the end of 2003).

Mobile communications

                                  Q3/2004   Q3/2003       2003
Number of subscriptions*        1 368 515 1 374 847  1 374 146
Revenue/subscription**(ARPU),€       37.5      42.5       41.6
Churn**, %                           21.6      24.2       18.6
Usage, million minutes*               631       598      2 310
Usage, min./subscription/mth**        159       151        146
SMS, million messages*                135       111        453
SMS, msg/subscription/mth**            34        28         29
Value-added services/revenue          14%       12%        12%
* Elisa’s network operator in Finland
** Elisa’s service operator

The number of subscriptions of Elisa’s network operator in Finland
increased by approximately 37 600 over the previous quarter, of
which the share of Elisa’s own service operator amounted to
approximately 34 000 subscriptions.

The usage by subscribers continued to grow in the third quarter.
The number of call minutes increased by approximately 6 per cent
and the number of SMS messages sent grew by approximately 22 per
cent over the comparable period in the previous year.

Revenue per subscription (ARPU) decreased by approximately 12 per
cent over the comparable period. This was partly due to a change
in the revenue booking procedure. Owing to the decrease in
interconnection fees and consumer prices, the comparable ARPU sank
by approximately 7 per cent. The revenue booking procedure was
changed in early 2004, so that remunerations payable to the
providers of value-added services and interconnection costs to be
invoiced are directly booked as a deduction of revenue.

The revenue of Elisa's subsidiary operating in Estonia was EUR
20.7 million (16.3), EBITDA EUR 6.6 million (5.0) and EBIT EUR 4.3
million (2.5). At the end of September, there were 215 300 (163
160) subscriptions.

Elisa and Saunalahti agreed on initiating mobile network
cooperation. The Saunalahti Prepaid subscription, launched at the
beginning of the fourth quarter this year, operates in Elisa’s
network.

Elisa and Bookit Ltd implemented a handy mobile phone-enabled
check-in service for Finnair. The service enables passengers to
check-in in advance with an SMS message.

Kolumbus introduced flat rate subscriptions, which allow the
customers to choose the amount of call minutes and SMS messages
according to their usage.

Fixed network business

Number of subscriptions        30.9.2004 30.9.2003  31.12.2003
Broadband subscriptions          185 136   107 875     127 388
ISDN channels                    170 529   211 510     200 455
Cable TV subscriptions           193 750   179 858     183 469
Analogue and other                                            
subscriptions                    650 079   683 159     675 272
Subscriptions, total           1 199 494 1 182 402   1 186 584

Brisk demand for broadband subscriptions continued. During the
autumn, the speeds of the slower connection categories were
doubled and the prices of the more high-speed connection
categories were lowered. The number of subscriptions increased by
72 per cent over the previous year. The number of traditional
subscriptions continued steadily decreasing as voice shifted to
the mobile network and data to broadband subscriptions.

Elisa continued the measures to expand the geographical
availability of broadband in Finland during 2004. The objective is
to offer the Elisa Broadband to Internet users as a competitive
alternative around the whole of Finland. The sales had a very
positive start.

Elisa expanded its contact centre services by opening a new call
centre in Kemijärvi. In the preliminary phase, all calls to the
switchboards of the employment offices in Finland will be directed
to the Kemijärvi call centre.

Elisa Certificate Service was awarded with an information security
certificate. The certified information security management system
of Elisa Certification Service entails the respective service's
development, production and customer service.

Personnel

In July-September, the Elisa group employed an average of
5 500 people (5 674 in January-September).

                           30.9.2004    30.9.2003   31.12.2003
Mobile communications          1 485        1 729        1 678
Fixed network                  3 005        3 765        3 572
Germany-based business             -          472          426
Other business                   865          952          905
Corporate functions               78          114          102
Total                          5 433        7 032        6 683

Investments

EUR million                    Q3/2004    Q3/2003    Pro forma
                                                      Q3/2003*
Investments                                                   
- in fixed assets                   41         45           38
- shares                             0         22            3
Total                               41         67           41
Aforementioned investments                                    
include GSM leasing                                           
liability buy-backs                  0          3            3

*Exclusive of the Germany-based business

Capital expenditures in the mobile business were EUR 18 million
(22) and EUR 22 million (12) in the fixed network business.

Financial position

The group's financial position and liquidity strengthened and
remained stable. This was mainly affected by the development of a
positive result and the divestment of the parent company’s former
main office. The group’s January-September cash flow after
investments amounted to EUR 151 million (36).

On 30 September 2004, Elisa and Sponda Plc signed an agreement
whereby Elisa sold the real estate, which had hosted the former
main office to Sponda. The selling price, a total of EUR 25.5
million, was paid on 30 September 2004. Approximately EUR 13
million of the transaction is booked as capital gain, which will
be realised during the last quarter of 2004.

On 20 September 2004, Elisa completed a note exchange offer. As a
consequence of this, the average maturity of loans was extended
from 3 years to 5.5 years. A new long-dated benchmark bond was
also issued. On aggregate, 66.4 per cent of the old notes were
exchanged for notes maturing on 22 September 2011 for 
EUR 260 010 000.

Financial key indicators

EUR million                   30.9.2004  30.9.2003  31.12.2003
Net debt                            461        722         654
Gearing, %                         56.0       87.9        87.5
Equity ratio, %                    45.5       40.4        40.4
                                                              
                               1-9/2004   1-9/2003        2003
Cash flow after investments         151         36         105

Ratings per long-term loans
Credit rating agency                Rating             Outlook
Moody’s Investor Services             Baa2              Stable
Standard & Poor’s                      BBB              Stable

Share

At the end of September, the company's total number of shares was
138 011 757. The market capitalisation on 30 September 2004 stood
at EUR 1 462 million.

In July-September, a total of 32.6 million A shares of the company
were traded on the Helsinki Stock Exchange for an aggregate of EUR
319.8 million. The exchange was 23.7 per cent of the number of
shares in the market.

The number of Elisa Corporation's A warrants for the year 2000 was
3 600 000 and B warrants for the year 2000 was 3 600 000. At the
end of September, the market capitalisation of the warrants
amounted to EUR 0.2 million.

Treasury shares

The total number of Elisa Corporation's A Shares owned by the
subsidiaries was 766 870 (781 563 at the end of 2003). The nominal
value of the shares totalled EUR 383 435, and their proportion of
the share capital and voting rights was 0.56 per cent. Moreover,
the Elisa Group Pension Fund owned 263 563 A shares (722 363 at
the end of 2003).

Major legal issues

The following changes have taken place in the legal processes
after the publication of Elisa's annual report for 2003 and
interim report for April-June 2004:

On 23 August 2004, the Helsinki District Court gave a ruling on
the redemption of Elisa Matkapuhelinpalvelut Oy's (formerly known
as Oy Radiolinja Ab) shares. The Helsinki District Court decided
to dismiss the action by Multiclearing, which demanded the
redemption price of 255 shares to be raised. An appeal on the
decision has been filed to the court of appeal, so the ruling is
not yet legally valid. Moreover, actions regarding the redemption
price of 70 shares of Radiolinja are still pending in the Helsinki
District Court.

With regard to the merger of Yomi Plc and Elisa Corporation,
shareholders who objected the merger decision are entitled to
demand the redemption of their shares. Fifteen shareholders, who
at the record date of the shareholders’ meeting owned 565 814
shares, have submitted the redemption issue to an arbitration
panel. However, demands for redemption have been made for
approximately 650 000 shares. Yomi Plc has offered a redemption
price EUR 5.90 per share.

The Finnish Communications Regulatory Authority has issued several
rulings on significant market power regarding fixed network
business. The rulings concern the transit market, broadband gross
market and marketing of local fixed connections. The
aforementioned rulings include the responsibility for non-
discriminatory terms and prices.

Events after the financial period

On 12 October 2004, the Finnish Trade Register issued an approval
for Yomi Plc to merge into Elisa Corporation. The merger will take
place on or about 31 December 2004.

Elisa Corporation and Suomen Asumisoikeus Oy have signed a long-
term agreement to supply Elisa Kotiportti and Elisa Kotiportti
Premium broadband services for dwellings of Suomen Asumisoikeus Oy
in 34 localities. The agreement applies to over 13 500 apartments.

Elisa repaid a EUR 100 million note which matured on 7 October
2004 from its cash funds.

Elisa is the first mobile operator in the world to start offering
wireless antivirus services to its smartphone customers. The
service is based on the F-Secure Mobile Anti-Virus(TM) service
solution. It provides real-time, on-device protection and
automatic over-the-air antivirus updates through a patented SMS
update mechanism and HTTPS connections.

Outlook

The telecommunications market in Finland is envisaged to continue
growing at a slow pace and the situation regarding competition to
remain challenging. No substantial changes in Elisa's market
position are expected.

Owing to both the revised billing of interconnection traffic and
falling prices, the comparable revenue for 2004 is estimated to
decrease slightly from the previous year's level.

EBITDA for the last quarter of the year, exclusive of the capital
gain on the former main office building, is estimated to remain at
the same level as the second quarter. The periodical expenses for
the latter part of the year will have an impact on the EBITDA
estimate. The full-year operative EBIT and profit before taxes are
estimated to improve substantially from the previous year.

Information in this interim report is not audited.

ELISA CORPORATION

BOARD OF DIRECTORS


ELISA CORPORATION

INTERIM REPORT 1 JANUARY-30 SEPTEMBER 2004
(eur million)
(Figures in this interim report are not audited)

CONSOLIDATED INCOME STATEMENT                        

                         Jul-     Jul-     Jan-     Jan-     Jan-
                          Sep      Sep      Sep      Sep      Dec
                         2004     2003     2004     2003     2003

Revenue                   333      385    1 005    1 147     1538
Other operating income      1        8       11       21       34
Operating expenses       -229     -286     -698     -879   -1 187
Depreciation and value 
adjustments:
  On fixed assets         -49      -67     -147     -198     -273
  On Corporation's 
  goodwill                -11      -14      -32      -42     -145
EBIT                       45       26      139       49      -34
Financial income and 
expenses:
  Share of associated 
  companies' profit         0        1       -1        0       -0
  Other financial income 
  and expenses             -8      -10      -23      -29      -40
Profit before extraordinary 
items                      36       17      115       20      -74
Extraordinary items
Profit after extraordinary 
items                      36       17      115       20      -74
Income taxes              -11      -14      -39       13       60
Minority interest          -1       -2       -5       -2       -3
Net profit                 25        2       71       30      -17

CONSOLIDATED BALANCE SHEET               30 Sep   30 Sep   31 Dec
                                           2004     2003     2003
Fixed assets
Intangible assets                            55       70       64
Consolidated goodwill                       428      560      460
Tangible assets                             665      870      856
Share in associated companies                16       21       20
Other investments                            11       12       12
                                          1 175    1 533    1 412
Current assets
Inventories                                  15       17       16
Deferred tax receivable                      48       54       82
Receivables                                 365      385      353
Marketable securities                       129        7        6
Cash in hand and in banks                    89       50       61
                                            646      513      518
Total assets                              1 821    2 046    1 930

Shareholders' equity
Share capital                                69       69       69
Share premium account                       517      517      517
Contingency fund                              3        3        3
Retained earnings                           100      127      127
Net profit                                   71       30      -17
                                            760      746      699
Minority interests                           64       76       77
Provisions for liabilities and charges       21       44       52
Liabilities
Long-term creditors                         574      710      617
Short-term creditors                        402      470      485
                                            976    1 180    1 102
Total shareholders' equity and 
liabilities                               1 821    2 046    1 930

Income taxes refer to taxes incurred during the period.
Items presented in the tables for each row have been rounded.


CONSOLIDATED CASH FLOW STATEMENT 1)
(eur million
                                       Jan-       Jan-       Jan-
                                        Sep        Sep        Dec
                                       2004       2003       2003
Cash flow from operating activities
Profit before extraordinary items       115         20        -74

Adjustments:
    Depreciation and value adjustments  180        239        418
    Other financial income and expenses  23         30         40
    Provisions for liabilities and 
    charges                             -19        -18         -5
    Sales profits from the disposal of 
    fixed assets                         -1         -1         -3
    Sales profits from business 
    operations and shares                -5          0         -1
    Other adjustments                     1         -1          1
Cash inflow before working capital      294        269        376

Change in working capital               -13        -23        -16
Cash inflow before taxes and 
financials                              281        246        360

Received dividends and interests and 
interest paid                           -39        -36        -40
Taxes paid                              -11        -36        -15
Free funds from operations              231        174        305

Cash flow in investments
Investments in fixed assets            -116       -131       -194
Disposal of fixed assets	         32          1          5
Investments in shares and           
other investments	                 -8        -24        -28
Disposal of shares and other investments 11         16         16	
Disposal of business operations	          1          0          1
Cash flow in investments	        -80       -138       -200
	
Cash flow after investments	        151         36        105
	
Cash flow in financing	                  

Change in interest-bearing receivables   25          8        -17	
Change in long-term loans	          0          3        -97
Change in short-term loans	        -16        -55         12
Dividends paid	                        -10         -1         -2
Cash flow in financing	                 -1        -45       -104
	                 
Change in financial assets              150         -9          1	
Financial assets at the beginning of     67         66         66
the financial period 	
Financial assets at the end of the 
financial period 	                217         57         67

1) Consolidated cash flow statement 
has been regrouped from the beginning 
of 2004. Financial assets on period 
Jan-Sep 2003 have been adjusted to 
2003 reporting standard. 


LIABILITIES                          30 Sep     30 Sep     31 Dec
(eur million)                          2004       2003       2003

Mortages, pledges and guarantees
Mortgages
    For own and group companies          39         75         77
Pledges given
    Pledges given as surety               1          9         24
Guarantees given
    For others                            1         11         11
Mortages, pledges and guarantees total   41         95        112

Derivative contracts
Forward contracts and swap agreements
    Market value of underlying security  17         15         14
    Market value                          0          1          2

Leasing contracts and
other commitments

Leasing commitments                      27         37         35
Repurchase commitments                    2          4          3
Real estate leases                      123        126        136
Lease liabilities total                 152        167        174

Leasing commitments consists mainly 
from leases of IT and office equipment 
and cars.Real estate leases consists 
both office and technical space. Leasing 
contracts and other commitments contains 
real estate leases as new information.

Leasing and rental agreements of 
telecom networks
    Fixed network                        10         21         16
    German business                                138        133
    Mobile network *)                    31         63         56
Rental agreement liabilities, total      41        222        205

*) Added to this, a provision for the 
future redemptions of GSM network 
financial agreements                      9         43         27

Lease-leaseback agreement commitment
(QTE facility)                          164        174        161
Other commitments                         5         10          6


KEY FIGURES       
(eur million)         

                 Jul-       Jul-       Jan-       Jan-       Jan-
                  Sep        Sep        Sep        Sep        Dec
                 2004       2003       2004       2003       2003

Earnings/
share (EPS), EUR 0,18       0,01       0,52       0,22      -0,12
Shareholders' 
equity/share,
EUR                                    5,54       5,44       5,09
Gross 
investments 
in fixed assets    41         45        116        131        194
Gross investments 
as % of revenue  12,3       11,7       11,5       11,4       12,6
Purchase of 
shares              0         22          8         24         28
Non-interest-
bearing debt                            298        401        355
Average number 
of personnel                          5 674      7 285      7 172

ADJUSTED GROUP KEY FIGURES                      
(exclusive of non-recurring 
items)
                 Jul-       Jul-       Jan-       Jan-       Jan-
                  Sep        Sep        Sep        Sep        Dec 
                 2004       2003       2004       2003       2003

Revenue           333        385       1005       1147       1538
EBITDA            105        107        319        289        407
EBITDA, %        31,5       27,8       31,8       25,2       26,5
EBIT               45         26        139         49         83
EBIT, %          13,4        6,8       13,8        4,3        5,4
Profit before 
extraordinary 
items              36         17        115         20         43

Adjusted key 
figures have been 
calculated without 
the following non-
recurring items:

Restructuring costs                                           -22
Write-downs in Germany                                        -94

Non-recurring items, total                                   -116
Impact on EBITDA                                              -22
Impact on EBIT                                               -116
Impact on profit before extraordinary items                  -116


KEY FIGURES BY SEGMENTS JULY-SEPTEMBER/2004 1)
(eur million)
                 Revenue             EBITDA               EBIT
                Jul-Sep             Jul-Sep             Jul-Sep
             2004     2003       2004     2003       2004     2003

Mobile        179      194         57       58         35       35
Amortisation 
on goodwill                                           -10      -10
Total         179      194         57       58         25       25

Fixed Network 161      166         47       45         21       15
Amortisation 
on goodwill                                             0       -1
Total         161      166         47       45         21       14

Germany
Carrier-
business                34                   1                  -9
Amortisation 
on goodwill                                                     -3
Total                   34                   1                 -12

Other Companies
Comptel        13       12          3        4          3        3
Other Companies
2)             11        8          0       -1         -2       -3
Amortisation 
on goodwill 
Total          24       20          3        3          1        0

Unallocated 
expenses 3)                        -2        1         -3       -1

Intra-segment 
sales 
elimination   -31      -29

Corporation 
total         333      385        105      107         45       26



KEY FIGURES BY SEGMENTS 4)

Segments         Revenue             EBITDA               EBIT
                Jul-Sep             Jul-Sep             Jul-Sep
             2004     2003       2004     2003       2004     2003

Mobile        179      194         57       58         25       25
Fixed Network 161      166         47       45         21       14
Germany                 34                   1                 -12
Other 
Companies      24       20          3        3          1        0
Unallocated 
expenses                           -2        1         -3       -1
Intra-segment 
sales         -31      -29
Corporation 
total         333      385        105      108         45       26


1) Business has been re-grouped to match new organisation.Segment 
   figures are not comparable with the previously reported 
   figures for the business areas in earlier years.
2) Includes Yomi IT companies and the parent company of Yomi 
   Group.
3) Includes unallocated expenses of corporate headquarters and 
   administration.
4) Reporting period figures don't include any non-recurring items.


KEY FIGURES BY SEGMENTS JANUARY-SEPTEMBER/2004 1)
(eur million)

                Revenue              EBITDA                EBIT
                Jan-Sep             Jan-Sep             Jan-Sep
             2004     2003       2004     2003       2004     2003

Mobile        533      556        167      147        106       73
Amortisation 
on goodwill                                           -29      -29
Total         533      556        167      147         77       44

Fixed Network 491      515        144      137         66       52
Amortisation 
on goodwill                                            -2       -3
Total         491      515        144      137         64       49

Germany
Carrier-
business               101                   2                 -23
Amortisation 
on goodwill                                                     -8
Total                  101                   2                 -31

Other Companies
Comptel        42       41         12        7         10        5
Other 
Companies 2)   34       31         -1       -3         -5       -9
Amortisation 
on goodwill  
Total          76       72         11        4          5       -4

Unallocated 
expenses 3)              1         -3       -1         -8       -8

Intra-segment 
sales 
elimination   -95      -98

Corporation 
total       1 005    1 147        319      289        139       49



KEY FIGURES BY SEGMENTS 4)
 
Segments        Revenue              EBITDA                EBIT
                Jan-Sep             Jan-Sep             Jan-Sep
             2004     2003       2004     2003       2004     2003

Mobile        533      556        167      147         77       44
Fixed Network 491      515        144      137         64       49
Germany                101                   2                 -31
Other 
Companies      76       72         11        4          5       -4
Unallocated 
expenses                 1         -3       -1         -8       -8
Intra-segment 
sales         -95      -98
Corporation 
total       1 005     1 147        319      289        139       49


1) Business has been re-grouped to match new organisation.Segment 
   figures are not comparable with the previously reported 
   figures for the business areas in earlier years.
2) Includes Yomi IT companies and the parent company of Yomi 
   Group.
3) Includes unallocated expenses of corporate headquarters and 
   administration.
4) Reporting period figures don't include any non-recurring items.


FINANCIAL SITUATION
(eur million)

          30 Sep        30 Jun      31 Mar      31 Dec      30 Sep
            2004          2004        2004        2003        2003
Long-term 
debt
  Bonds and 
  notes      485 1)        472         472         472         572
  Loans from 
  the Pension 
  funds       80            80          80          80          80
  Loans from 
  financial 
  institutions 3             4           3          57          57
Total        568           555         554         609         709

Short-term 
debt
  Bonds and 
  notes      100           100         100         100
  Loans from 
  financial 
  institutions 1             1           2          13           7
  Committed 
  credit line 
  2)           0             0           0           0           0
  Commercial 
  papers 3)    0             0           0           0          37
  Others      10 4)         10          24          25          27
Total        111           111         126         138          71
Interest-
bearing debt, 
total        679           666         680         747         780

  Security 
  deposits     0             0          25          25           8
  Securities 129           114          24           6           7
  Cash and
  bank        89            39          44          61          42
Interest-
bearing 
receivables  218           153          93          92          57

Net debt 5)  461           513         587         654         723

1) The Nominal Value of the Notes issued with The Exchange Offer 
   in September 2004 is EUR 13 million higher than the value of 
   the Notes that were exchanged.
2) 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.
3) Elisa Corporation has agreed on a joint programme with seven 
   banks on issuing commercial papers. The arrangement is not 
   committed. The maximum amount of the arrangement is EUR 
   150 million.
4) Redemption liability for minority shareholders in Elisa 
   Matkapuhelinpalvelut (EUR 3m) and deposits in the Financial 
   Services Office (EUR 7m).
5) Net debt is interest-bearing debt less cash and interest-
   bearing receivables.

Key Financial Indicators  
         30 Sep        30 Jun      31 Mar      31 Dec      30 Sep
           2004          2004        2004        2003        2003

Gearing    56 %          64 %        76 %        87 %        88 %
Equity 
ratio      45 %          46 %        44 %        40 %        40 %


Formulae for financial indicators


Gearing  %

               Interest-bearing debt - cash and bank - securities
               ---------------------------------------------x 100
                        Shareholders' equity + minority interests

Equity ratio % 

                          Shareholders' equity + minority interes
                          --------------------------------- x 100
                          Balance sheet total - advances received