Published: 2013-04-19 07:30:01 CEST
Elisa
Interim report (Q1 and Q3)

Elisa’s Interim Report January-March 2013

ELISA INTERIM REPORT RELEASE 19 APRIL 2013 AT 8:30am

First quarter 2013
- Revenue was EUR 361 million (382)
- EBITDA was EUR 109 million (121) and excluding non-recurring items EUR 111 million
- EBIT was EUR 59 million (68) and  excluding non-recurring items EUR 61 million
- Profit before tax amounted to EUR 53 million (61)
- Earnings per share was EUR 0.26 (0.31)
- Cash flow after investments was EUR 37 million (37)


- Mobile ARPU was EUR 15.4 (16.7 in previous quarter)
- Mobile churn was 20.0 per cent (19.3 in previous quarter)
- The number of Elisa’s mobile subscriptions increased by 23,900 during the quarter
- The number of fixed broadband subscriptions increased by 3,600 on the previous quarter
- Net debt / EBITDA was 1.7 (1.7 end 2012) and gearing 119 per cent (98 end 2012)

- Full year EBITDA, excluding non-recurring items and the pending PPO acquisition, is anticipated to be at the same level or slightly below 2012 (previously: same level).

Key indicators

  1st Quarter Full year
EUR million 2013 2012 2012
Revenue 361 382 1,553
EBITDA1) 109 121 501
EBIT 59 68 299
Profit before tax 53 61 269
Earnings per share, EUR 0.26 0.31 1.33
Capital expenditure 47 42 193

1) Excluding non-recurring items: EBITDA EUR 111m, EBIT EUR 61m, profit before tax EUR 55m and EPS EUR 0.26

 

Financial position and cash flow

EUR million 31.3.2013 31.3.2012 31.12.2012
Net debt 807 754 839
Net debt / EBITDA 1) 1.7 1.5 1.7
Gearing ratio, % 118.4 84.8 99.3
Equity ratio, % 33.3 44.8 42.3

 

  1st Quarter Full year
EUR million 2013 2012 2012
Cash flow
after investments
 
37
 
37
 
155

1) (interest-bearing debt – financial assets) / (four previous quarters’ EBITDA excluding non-recurring items)

 

Additional information regarding the Key Performance Indicators is available at www.elisa.com/investors  Elisa Operational Data.xls.

CEO Veli-Matti Mattila:

 “Execution of the strategy continued despite tough competition

Competition remained tough during the first quarter of the year. The uncertainty in the general economic situation was reflected in the cautiousness of enterprises, and to some extent of consumers as well. Despite this, demand for new services continued to be strong. Elisa’s earnings and revenue decreased during the quarter. Lower interconnection prices both in Finland and Estonia as well as active price campaigns for mobile subscriptions contributed to the decrease in revenue.

Our mobile subscription base grew by 24,000 during the first quarter of the year. The number of fixed-network broadband subscriptions also continued to grow, with more than 3,000 new subscriptions. The strong growth in mobile data services continued, supported by the use of smartphones and USB modems among consumers and corporate customers.

Elisa was the first company in the Nordic countries to open a mobile payment service. The Elisa Lompakko service enables contactless payments, and the Elisa Nettimaksukortti online payment service offers a safe method of payment for online stores. The Elisa Rahaviesti money transfer service can be used to transfer small amounts of money to another user of the service. Online video rental through the Elisa Viihde service has increased significantly. Nearly 60 per cent of customers have already used the video rental service, and more than a quarter use it every week.

Demand for ICT services continued to strengthen among corporate customers. Elisa became the first operator in Finland to sell Office 365 cloud services with the Elisa Toimisto 365 service, and is currently one of the leading Office 365 solution providers in Europe. The number of customers is growing by more than 10 per cent each month. The popularity of online conferencing and new applications are also increasing rapidly, for example banks using them to negotiate loans online.

We invest in corporate responsibility at Elisa. We are participating in national action supporting young people's lives in concrete and positive ways. Elisa began cooperation with Centria University of Applied Sciences in Central Ostrobothnia to support the studies and employment of young people. The objective of the cooperation is to train new professionals in customer service.

In this more challenging market environment we have started new cost efficiency measures to improve our profitability. These measures are for example in the areas of streamlining product portfolio and IT systems, increasing efficiency in customer service and sales, as well as decreasing costs in general administration.

We continue determined implementation of actions improving customer satisfaction and the productivity of our operations. Improving our productivity, developing new services for our customers and maintaining our strong investment ability create a solid foundation for competitive operations in the future."

Outlook for 2013

The macroeconomic environment in Finland is still expected to be weak in 2013. Competition in the Finnish telecommunications market also remains challenging.

Full year revenue, excluding the pending PPO acquisition, is estimated to be at the same level as in the previous year. Mobile data, ICT and new online services are expected to increase revenue. Full year EBITDA, excluding non-recurring items and the pending PPO acquisition, is anticipated to be at the same level as or slightly below 2012. Full–year capital expenditure is expected to be a maximum of 12 per cent of revenue. Elisa’s financial position and liquidity are good.

In order to secure a good result in a more challenging environment, Elisa has accelerated cost efficiency measures, for example in the areas of streamlining product portfolio and IT systems, increasing efficiency in customer service and sales, as well as decreasing costs in general administration.

Elisa's transformation into a provider of new, exciting and relevant services to its customers continues. Long-term growth and profitability improvement will derive from mobile data market growth, as well as new online and ICT services. In addition, Elisa will continue determinedly to employ its efficiency measures.

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 Q1 2013 interim report 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

 


130419INTERIM REPORT Q1 2013.pdf