Elisa

·           Revenue was EUR 353 million (351)

·           EBITDA was EUR 116 million (115), EBIT EUR 61 million (62)

·           EBITDA margin was 33 per cent (33)

·           Profit before tax amounted to EUR 10 million (53) and excluding one-off items EUR 54 million

·           Earnings per share was EUR 0.05 (0.26) and excluding one-off items EUR 0.26

·           Cash flow after investments was EUR 45 million (46)

·           Elisa made a one-off maximum liability provision of EUR 45 million, affecting the after-tax 2010 net result by EUR 33 million. This relates to a possible CDO guarantee expense. Final expense may be significantly smaller.

·           The number of Elisa’s mobile subscriptions increased by 103,000 during the quarter, attributable in particular to the new 3G and 2G customers, mobile broadband and prepaid subscriptions

·           As a result of strong subscription growth, ARPU in the mobile business decreased from the previous quarter to EUR 22.0 (22.9)

·           Mobile churn was 15.4 per cent (14.7)

·           The number of fixed broadband subscriptions decreased by 5,200 on the previous quarter

·           Net debt / EBITDA was 1.7 (1.5 at the end of 2009) and gearing 107 per cent (80 at the end of 2009)

Key indicators:

 Financial position and cash flow:

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

Additional information regarding the Key Performance Indicators is available on www.elisa.com/investors , in the section: Financial info, Financial Statements & Interim Reports: Elisa Operational Data.

CEO Veli-Matti Mattila:

"Customers have responded well to our new services

Elisa’s revenue developed well in the first quarter of the year despite the general economic uncertainty. The growth of the mobile business and the demand for our new services boosted the consumer customer business. The impact of the general economic situation was seen mostly in the corporate customers business and in Estonia. Profitability and competitiveness continued on a good level. Cash flow was strong.

The competitive situation continued to be challenging but remained stable. We increased our mobile subscription base by more than 100,000 during the first quarter of the year. The number of fixed network broadband subscriptions decreased less than in the previous quarters despite the maturing of the market.

The consumer customer business grew by 6% compared with the previous year. For example our Elisa Viihde IPTV service customers have valued the versatile nature of the service, the number of features and the meaningful content offered. Awareness of our Elisa Vahti security service was increased during the first quarter of the year and was received well among customers.

Finding ways to improve profitability during the challenging economic environment has become increasingly important to corporate customers. The demand for our ICT service offering has thus grown, which has balanced the decrease in demand in traditional telecommunications services. We launched an advanced virtual service concept to facilitate improved interaction with small and medium size (SME) business customers. Personnel familiar with SME customers needs can now serve customers face to face through a video connection across different parts of Finland.

Elisa was the first in Finland to launch a real-time service map on its website to help both Elisa and Saunalahti customers monitor the availability and functioning of their mobile network. Elisa's target is also to develop its operations in terms of environmental friendliness and energy efficiency. One significant project is an internationally unique, environmentally friendly comprehensive energy solution to be implemented for a new server centre located in Espoo. The heat generated from the servers will be utilized entirely for district heating in Espoo.

The general economic situation is still characterized by uncertainty despite signs of recovery. Competition in the Finnish telecommunications market also remains challenging. We will determinedly continue to develop our operations to improve customer satisfaction and productivity. In addition to operational improvement, expanding our service offering and investment capability provide us with a good basis for the future."

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:

NASDAQ OMX Helsinki
Principal media
www.elisa.com

Elisa Q1