Published: 2015-10-16 07:30:01 CEST
Elisa
Interim report (Q1 and Q3)

Elisa's Interim Report January–September 2015

ELISA INTERIM REPORT RELEASE 16 OCTOBER 2015 AT 8:30 AM       

Third quarter 2015

  • Revenue amounted to EUR 394 million (384)
  • EBITDA was EUR 145 million (142) and EBIT was EUR 90 million (89)
  • Profit before taxes amounted to EUR 83 million (83)
  • Earnings per share were EUR 0.43 (0.43)
  • Cash flow after investments was EUR 85 million (39)
  • Mobile ARPU was EUR 15.9 (15.7 in previous quarter)
  • Mobile churn was 16.1 per cent (14.4 in previous quarter)
  • The number of Elisa’s mobile subscriptions increased by 46,900 during the quarter
  • The number of fixed broadband subscriptions decreased by 8,900 on the previous quarter, of which approximately 3,000 were related to divestments as fulfilment of Anvia transaction remedies
  • Net debt / EBITDA was 1.9 (1.9 end 2014) and gearing 115 per cent (114 end 2014)
  • Full year revenue and EBITDA outlook has been upgraded. Both revenue and EBITDA are estimated to at the same level or slightly higher than in 2014 (previously at the same level).

January–September 2015

  • Revenue was EUR 1,165 million (1,150)
  • EBITDA was EUR 405 million (395) and EBIT was EUR 244 million (234)
  • Earnings per share grew to 1.17 (1.10)
  • Cash flow after investments was EUR 223 million (143)

Key indicators

  3rd Quarter Year-to-date
EUR million 2015 2014 2015 2014
Revenue 394 384 1165 1,150
EBITDA 145 142 405 395
EBIT 90 89 244 234
Profit before tax 83 83 229 214
Earnings per share, EUR 0.43 0.43 1.17 1.10
Capital expenditure 46 43 146 144

Financial position and cash flow

EUR million 30.9.2015 30.9.2014 End 2014
Net debt 991 1,043 1,001
Net debt / EBITDA 1) 1.9 2.0 1.9
Gearing ratio, % 115.5 126.1 114.0
Equity ratio, % 38.0 37.2 39.4

 

  3rd Quarter Year-to-date
EUR million 2015 2014 2015 2014
Cash flow after investments 2) 85 39 223 143

1) (interest-bearing debt – financial assets) / (four previous quarters’ EBITDA exclusive of non-recurring items)
2) Excluding investments in shares and business combinations Q3/2015 EUR 88m, 1-9/2015 EUR 236m, Q3/14 EUR 61m and 1-9/2014 EUR 166m

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

CEO Veli-Matti Mattila:
Investments in network and service development producing results

The general economic situation has remained challenging, but Elisa's competitiveness has developed well. In the third quarter of the year, our revenue and EBITDA grew year-on-year. The growth in earnings was boosted by the increasing demand for mobile data and the improvement in the profitability of operational activities.

During the quarter, the number of mobile subscriptions increased by more than 46,000, while the number of fixed network broadband subscriptions fell by 8,900. The demand for 4G subscriptions grew strongly, and customers are ready to pay more to use faster data speeds. Customers who have adopted faster data speeds are also clearly more satisfied than customers using slower connections. Corporate customers have also started to see the value of faster mobile data connections.

We have expanded the range of content available on Elisa Viihde. Our investments are mainly directed at domestic films and TV series. Close to one million Finns currently view programmes on mobile devices every week. Among people aged 50–65, mobile viewing has increased by approximately 150 per cent.

The number of registered users of the Elisa Lompakko wallet service has exceeded the level of 100,000. Elisa Lompakko is particularly popular among Internet shoppers and students. Families with children have also increasingly started to use the service. For families with children, contactless payment means an easier and safer daily life, because it is not necessary to use cash.

Elisa has further developed its long-term start-up cooperation. For example, cooperation with RePack has strengthened Elisa's ability to adopt environmentally friendly solutions by recycling service packaging.

We will continue our determined work to improve both customer satisfaction and our operational excellence. 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 and guidance for 2015

The macroeconomic environment in Finland is still expected to be weak in 2015. Competition in the Finnish telecommunications market also remains challenging.

Full-year revenue is estimated to be at the same level or slightly higher than in 2014. Mobile data, ICT and new online services are expected to increase revenue. Full-year EBITDA, excluding non-recurring items, is anticipated to be at the same level or slightly higher than in 2014. Full-year capital expenditure is expected to be a maximum of 12 per cent of revenue. Elisa’s financial position and liquidity are good.

Elisa is continuing its productivity improvement measures, for example by streamlining the product portfolio and IT systems and operations. Additionally, Elisa is continuing to increase customer service and sales efficiency, as well as to reduce general administrative costs.

Elisa's transformation into a provider of exciting, new and relevant services for its customers is continuing. Long-term growth and profitability improvement will derive from mobile data market growth, as well as new online and ICT 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 Q2 2015 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 Helsinki
Principal media
www.elisa.com


INTERIM REPORT Q3 2015.pdf