Elisa

Year 2008

Revenue was EUR 1,485 million (1,568)

EBITDA  exclusive of non-recurring items was EUR 478 million (491) and EBIT EUR 271 million (294). EBITDA margin increased to 32 per cent (31)

Profit before tax amounted to EUR 228 million (285)

Earnings per share was EUR 1.12 (1.38)

Cash flow after investments increased to EUR 260 million (114)

Financial position and liquidity are good. Cash and undrawn committed credit lines totalled EUR 258 million and there are no major refinancing needs expected before the year 2011.

Net debt / EBITDA was 1.7 (1.5) and gearing 93 per cent (71)

The Board of Directors proposes a dividend of EUR 0.60 per share

Fourth quarter 2008

Revenue was EUR 372 million (402)

EBITDA exclusive of non-recurring items was EUR 129 million (128) and EBIT EUR 77 million (76). EBITDA margin improved to 35 per cent (31)

 Profit before tax amounted to EUR 70 million (65)

Earnings per share were EUR 0.34 (0.32)

Cash flow after investments increased to EUR 84 million (53)

 ARPU in the mobile business was at the previous quarter’s level EUR 26.3 (Q3: 26.4)

Churn decreased to 12.0 per cent from the previous quarter (Q3: 14.1)

The number of Elisa’s mobile subscriptions increased by 49,600 during the quarter, due in particular to the new 3G customers and mobile broadband subscriptions

The number of fixed broadband subscriptions decreased by 18,300 on the previous quarter partly due to divestment of subscriptions

Key indicators:

Financial position and cash flow:

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

The Board of Directors proposes to the General Meeting an ordinary dividend of EUR 0.60 per share. The Board of Directors proposes also that the Board of Directors be authorised to acquire 15 million treasury shares, which corresponds to 9 per cent of the entire share capital. Furthermore, The Board of Directors also decided to propose to the General Meeting that the Board of Directors be authorised to distribute funds out of the retained earnings account or the reserve for invested non-restricted equity to a maximum of EUR 150 million.

CEO Veli-Matti Mattila:

"Improved profitability in latter half of year, over 220,000 new mobile customers in 2008

Strengthened competitiveness in the latter half of the year translated into good financial performance at Elisa in 2008. Cash flow was strong although revenue decreased slightly from the previous year, mainly as a result of lower interconnection and roaming fees, as well as terminal sales. Elisa’s financial position and liquidity remain good.

Elisa continues to enjoy excellent success in the highly competitive mobile communication market. Our mobile subscription base increased by nearly 8 per cent or by over 220,000 new subscriptions, thus further solidifying our position as the 3G market leader. Our popularity was further boosted by the market launch of new services such as the mini laptop. A focus on the profitability of the broadband business contributed to the decline in the number of fixed broadband subscriptions.

Our market position in the Corporate Customer sector also grew stronger. Collaboration solutions are enhancing the productivity and flexibility of operations for an increasing number of our customers. Elisa completed several acquisitions to bolster the implementation of the strategy in the Corporate Customer sector.

In 2008, substantial investment was made in building the 3G network which enables mobile broadband. At the end of the year, Elisa’s 3G network extended to more than 250 locations and covered over 80 per cent of Finland’s population. An independent survey rated Elisa’s 3G network as having the best coverage in Finland.

Other factors contributing to the material improvement in competitiveness have been the development of an attractive product selection and determined measures to streamline operations. The new customer care and billing system gave rise to additional expenditure in the first half of the year but functioned well in the latter half.

Our strategy to develop One Elisa, improve our profitability and provide new services has proven successful. Our strong financial position and cash flow provide an excellent framework for further determined implementation of our chosen strategy. The prevailing general economic uncertainty decreases the predictability of the business environment, and our industry is not immune to the negative development of the economy. Nonetheless, we have every confidence that our business will continue to develop favourably over the next few years."

ELISA

Vesa Sahivirta
Director, IR and Financial Communications
tel. +35850 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 10 262 3036

Distribution:

Helsinki Stock Exchange
Principal media
www.elisa.com

Elisa's Financial Statement 2008, pdf