Stock Exchange Bulletins
BackElisa,s Interim Report January - June 2010
STOCK EXCHANGE RELEASE 16 JULY 2010 AT 8:30 am
Second quarter 2010
· Revenue was EUR 364 million (355)
· EBITDA was EUR 119 million (116), EBIT EUR 65 million (64)
· Profit before tax amounted to EUR 53 million (56)
· Earnings per share was EUR 0.26 (0.27)
· Cash flow after investments was EUR 70 million (89)
· The full year outlook is reiterated
· Revenue per subscription (ARPU) in the mobile business increased slightly to EUR 22.4 (22.0 in the first quarter)
· Churn was 15.9 per cent (15.4 in the first quarter)
· The number of Elisa’s mobile subscriptions increased by 118,000 during the quarter, due, in particular, to the new 3G and 2G customers, as well as mobile broadband
· The number of fixed broadband subscriptions decreased by 200 during the previous quarter
· Net debt / EBITDA was 1.5 (1.5 at the end of 2009) and gearing 93 per cent (80 at the end of 2009)
January - June 2010
· Revenue was EUR 717 million (706)
· EBITDA was EUR 234 million (231), EBIT EUR 126 million (126)
· Cash flow after investments was EUR 115 million (135)
Key indicators:
|
EUR million |
4-6/2010 |
4-6/2009 |
1-6/2010 |
1-6/2009 |
|
Revenue |
364 |
355 |
717 |
706 |
|
EBITDA |
119 |
116 |
234 |
231 |
|
EBIT |
65 |
64 |
126 |
126 |
|
Profit before tax |
53 |
56 |
63 |
109 |
|
Profit before tax excl. non-recurring items* |
107 |
|||
|
Earnings per share, EUR |
0.26 |
0.27 |
0.31 |
0.53 |
|
EPS excl. non-recurring items, EUR* |
0.52 |
|||
|
Capital expenditures |
47 |
36 |
86 |
70 |
* Provision for possible guarantee expense
Financial position and cash flow:
|
EUR million |
30.6.2010 |
30.6.2009 |
31.12.2009 |
|
Net debt |
752 |
773 |
719 |
|
Net debt / EBITDA1) |
1.5 |
1.6 |
1.5 |
|
Gearing ratio, % |
93.2 |
89.2 |
79.8 |
|
Equity ratio, % |
42.0 |
44.6 |
46.1 |
|
EUR million |
4-6/2010 |
4-6/2009 |
1-6/2010 |
1-6/2009 |
|
Cash flow after investments |
70 |
89 |
115 |
135 |
1) (interest-bearing debt – financial assets) /
(four previous quarters’ EBITDA exclusive of non-recurring items)
Additional information regarding the Key Performance Indicators is available at www.elisa.com/investors, in the section: Financial info, Financial Statements & Interim Reports: Elisa Quarterly Data.
CEO Veli-Matti Mattila:
"New services continued to enjoy solid success, corporate customer business improved
Elisa's revenue developed favourably during the second quarter. In the Consumer Customer business, growth was mainly due to demand for new services and increased mobile business. Decline in Corporate Customer business revenue ended, which is a clear change compared to the previous quarters. EBITDA and cash flow were strong.
The competitive situation continued to be challenging but remained stable. We increased our total number of mobile subscriptions by 118,000 during the second quarter. The mobile broadband market continued to show strong growth, while the decrease in the number of fixed network broadband subscriptions remained steady.
The Consumer Customer business continued to grow with new services. Elisa Viihde was expanded to 12 new locations. Its popularity was boosted by high-definition TV broadcasts of the FIFA World Cup. We also rolled out the Elisa Kirja service, which allows users to easily download audio books to a computer or phone, for example.
Elisa continued implementing its strategy and purchased a majority stake in Videra Oy, a leading video conferencing company in the Nordic countries. As a result of the transaction, the market position of the Corporate Customer business unit was strengthened as a supplier of ICT services. Collaboration solutions provided by Elisa have proven to be successful in situations where customers are searching for alternatives to improve productivity of operations and flexibility at work.
During the second quarter, we continued to invest in the construction of the 3G network, which enables mobile broadband, in nearly 100 new areas. We also invested in user experience, and according to the most recent measurements, Elisa's 3G network has the best field strengths, highest data speeds and least disturbances. We were also the first to adopt new technology, the 4G network, for pre-commercial use in Helsinki.
We continued serving our customers through predictive communications about the functioning of the mobile phone network. In addition to the first real-time service map in Finland, our customers can now choose to be notified by SMS of the status of the network in their area.
Competition in the Finnish telecommunications market remains challenging. We are determined to continue developing our operations to improve customer satisfaction and productivity. In addition to operational improvement, a broadening service offering and the capability to invest provide a good basis for the future."
CEO Veli-Matti Mattila
ELISA
Vesa Sahivirta
Director, IR and Financial Communications
tel. +358 10 262 3035
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