Elisa

Third quarter 2008

Revenue was EUR 374 million (394)

EBITDA  was EUR 129 million (132), EBIT EUR 77 million (82), EBITDA margin increased to 35 per cent (33)

Profit before tax amounted to EUR 67 million (89)

Earnings per share was EUR 0.33 (0.45)

Cash flow after investments was EUR 51 million (6)

Financial position and liquidity are good. Cash and undrawn credit lines totalled EUR 201 million and there are no refinancing needs expected on a three-year time scale.

EBITDA for the last quarter of the year is expected to improve on the previous quarter

ARPU in the mobile business was at the previous quarter’s level EUR 26.4 (26.8).

Churn increased to 14.1 per cent from the previous quarter (13.3)

The number of Elisa’s mobile subscriptions increased by 57,400 during the quarter, due in particular to the new 3G customers, mobile broadband and prepaid subscriptions

The number of fixed broadband subscriptions decreased by 3,200 on the previous quarter

Net debt / EBITDA was 1.7x (1.5x at the end of 2007) and gearing 107 per cent (71 at the end of 2007)

January-September 2008

Revenue was EUR 1,113 million (1,166)

EBITDA was EUR 342 million (373), EBIT EUR 187 million (228)

EBITDA excluding non-recurring items was EUR 349 million (363), EBIT EUR 194 million (217)

Cash flow after investments was strong, EUR 176 million (61)

Extra implementation costs of the new billing and CRM system and revenue adjusting items affected EBITDA negatively by EUR 22 million

Key indicators:

Financial position and cash flow:

¹⁾ (interest-bearing debt – financial assets) / (EBITDA exclusive of non-recurring items x 4)

CEO Veli-Matti Mattila: Elisa’s profitability has improved, driven by strengthened competitiveness and more efficient operations

"Elisa achieved strong profitability and cash flow in the third quarter of 2008. This is due to strengthened competitiveness and determined actions to improve the efficiency of the operations. Revenue met expectations, although sales of equipment were at a lower level than expected. Elisa’s financial position and liquidity are strong.

Elisa succeeded well given the fierce competition in mobile communication. Our mobile subscription base increased by nearly 60,000 new subscriptions. There was growth especially in 3G services and mobile broadband and we continue to be the 3G market leader. Customers have appreciated the 3G network with the best coverage in Finland, reaching over 270 locations by the end of the year.

Finns have quickly adopted the use of mobile broadband; also when measured at the international level. The growth has been excellent and thus we upgrade our estimate that there will be up to 1.7 million people using 3G services in Finland by the end of the year.

The new billing and CRM system is now in full use and operating smoothly. The measures to improve our customer service have succeeded well and as a result of that the queuing times to our call centres have further decreased and customer satisfaction is at the good level. We will continue consistently to further develop the quality of our services.

We will continue to follow our strategy and develop One Elisa, improve our profitability and provide new services. A strong market position, improved competitiveness and good financial position provide Elisa with an excellent basis for the rest of the year. Despite the generally insecure economic environment, we maintain a positive attitude towards continued success."

ELISA

Vesa Sahivirta
Director, IR and Financial Communications
tel. +358 50 520 5555

Additional information:

Mr Veli-Matti Mattila, CEO, tel. +358 10 262 2635
Mr Jari Kinnunen, CFO, tel. +358 10 262 9510
Mr Vesa Sahivirta, Director, IR and Financial Communications, tel. +358 50 520 5555

Distribution:

Helsinki Stock Exchange
Principal media
www.elisa.com

Elisa's Interim Report January-September 2008, pdf