ELISA INTERIM REPORT RELEASE 15 APRIL 2016 AT 8:30 AM
First quarter 2016
- Revenue amounted to EUR 390 million (381)
- EBITDA was EUR 137 million (129), and EBIT was EUR 84 million (76)
- Profit before taxes amounted to EUR 77 million (71)
- Earnings per share were EUR 0.39 (0.37)
- Cash flow after investments was EUR 64 million (68)
- Mobile ARPU was EUR 16.3 (16.5 in previous quarter)
- Mobile churn was 16.1 per cent (16.2 in previous quarter)
- Mobile service revenue increased by 9 per cent to EUR 186 million (171)
- The number of Elisa’s mobile subscriptions decreased by 16,000 during the quarter
- The number of fixed broadband subscriptions decreased by 5,300 on the previous quarter
- Net debt / EBITDA was 1.7 (1.8 end 2015) and gearing 118 per cent (104 end 2015)
Key indicators
| 1st Quarter | Full year | ||
| EUR million | 2016 | 2015 | 2015 |
| Revenue | 390 | 381 | 1,569 |
| EBITDA | 137 | 129 | 532 |
| EBIT | 84 | 76 | 312 |
| Profit before tax | 77 | 71 | 291 |
| Earnings per share, EUR | 0.39 | 0.37 | 1.52 |
| Capital expenditure | 44 | 52 | 196 |
Financial position and cash flow
| EUR million | 31 Mar 2016 | 31 Mar 2015 | End 2015 |
| Net debt | 899 | 934 | 962 |
| Net debt / EBITDA 1) | 1.7 | 1.8 | 1.8 |
| Gearing ratio, % | 118.1 | 128.5 | 103.9 |
| Equity ratio, % | 33.8 | 32.2 | 41.4 |
| 1st Quarter | Full year | ||
| EUR million | 2016 | 2015 | 2015 |
| Cash flow after investments | 64 | 68 | 253 |
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 (Elisa Operational Data.xls)
CEO Veli-Matti Mattila: Users of fast 4G mobile data connections are the most satisfied
Elisa's revenue and earnings grew again with strengthening of its competitiveness, even though the general economic situation continued to be challenging. Earnings improved, in particular, as a result of the growth of mobile service revenue compared with last year and the improved profitability of Elisa's operational activities.
The active use of smartphones and apps has inspired a shift among both consumers and corporate customers and organisations towards becoming users of fast mobile broadband subscriptions. The number of mobile subscriptions decreased by 16,000 during the quarter and fixed-network subscriptions by 5,300.
The unlimited data pricing model, popular video services, and investments in the expansion of the 4G network have taken Finland to the top of the world in the use of mobile data. Elisa’s mobile network sees the largest amounts of data being transferred in Finland; smartphone users get through on average of seven gigabytes a month. We are investing in better user experience for our customers, and we are the first in Finland to pilot maximum speeds of 450 Mbit/s in our commercial network.
In addition to mobile and fixed communication services, we have invested in services that bring added value to our consumer customers. Fanseat has become a popular sports entertainment service that brings important sports series and events for viewing to our customers both in Finland and abroad. Fanseat can be viewed in Finland as part of Elisa Viihde, and through other operator networks and mobile apps in Finland and abroad.
We are strongly contributing to the digitalisation of Finnish society and Finnish services. We implemented an indoor positioning system for the Hospital District of Helsinki and Uusimaa to permit real-time monitoring of the location of its medical devices. The system makes it possible to both improve the safety of patients and make the work of the health care staff more efficient. Elisa received valued recognition. For the Finnish public broadcasting company Yle’s service production, we received an ISO/IEC 20000-1 certificate for the management of IT services and the quality of the management.
Elisa acts in a socially responsible way. We strongly assist our customers in digitalisation, and we produce content that makes our customers’ lives easier in the network in terms of data security and apps that help with everyday life. We offer young people an opportunity to get familiar with working life, and we also provide summer jobs for 200 young people together with our subsidiaries and temporary agency employees.
We will continue our determined work to improve the customer experience and our operations. Improving our productivity, developing digital services for our customers and maintaining our strong investment capability create a solid foundation for competitive operations in the future.
Outlook and guidance for 2016
The macroeconomic environment in Finland is still expected to be weak in 2016. Competition in the Finnish telecommunications market also remains challenging.
Full-year revenue is estimated to be at the same level as in 2015. 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 in 2015. 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 Q1 2016 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
