{"segments": [{"speakerId": "spk1", "sentences": [{"start": 1, "end": 10, "text": "Good morning, everyone, and welcome to Elisa's second quarter 2024 Interim Report Analyst meeting and conference call."}, {"start": 10, "end": 27, "text": "I'm the head of investor relations, and now we have a quite familiar team: CEO Toby Muller for the second time and CFO Jared Noonan, who has been here many times."}, {"start": 28, "end": 40, "text": "And regarding one milestone, I just want to say that this is the 100th interim report at Elisa for me."}, {"start": 40, "end": 49, "text": "And the last 41 of those have actually been the best ever in the company's history in a year-over-year comparison."}, {"start": 49, "end": 54, "text": "So, quite a great, continuous improvement indeed.
"}, {"start": 54, "end": 57, "text": "But now to the agenda of the day."}, {"start": 58, "end": 66, "text": "We start the presentation, followed by Q&A, and Toby, start the presentation."}, {"start": 66, "end": 68, "text": "So I give the word to Toby, please go ahead."}]}, {"speakerId": "spk2", "sentences": [{"start": 69, "end": 72, "text": "Thanking you, sir. And good day, everybody."}, {"start": 72, "end": 77, "text": "And by the way, congratulations on the 100th quarterly report."}, {"start": 77, "end": 79, "text": "That's quite amazing."}, {"start": 79, "end": 89, "text": "I must say, and also the 41 quarters of improving results for Elisa is certainly noteworthy as well."}, {"start": 89, "end": 95, "text": "Thank you, everybody, for joining this Q2 call of Elisa.
"}, {"start": 95, "end": 106, "text": "The main headline for our second quarter this time is that our earnings continued to develop."}, {"start": 106, "end": 142, "text": "And we also started to see improving performance on the B2B side of the business, which includes our home market corporate business, both in Finland and in Estonia, and the international digital services part of the organization which separately enjoyed a revenue growth of 21% on a year-on-year basis during the quarter."}, {"start": 143, "end": 154, "text": "Looking at the Q2 highlights, our revenue increased by 2% and EBITDA was up by 4%."}, {"start": 154, "end": 172, "text": "If you were looking at the decimal pages, then the EBITDA improved by a couple of decimals in comparison to Q1, and mobile service revenue increased by 4.7%."}, {"start": 172, "end": 188, "text": "In line with our mid-single digit growth expectation for mobile service revenue, we saw improving signals and performance in the business-to-business side of the business."}, {"start": 188, "end": 199, "text": "And also the B2C segment continued to develop strongly in international digital img services.
"}, {"start": 199, "end": 202, "text": "The revenue increased by 21%."}, {"start": 202, "end": 210, "text": "As mentioned, that was boosted by the small bolt-on M&A that we have been doing during the first part of the year."}, {"start": 210, "end": 231, "text": "If we look at organic growth year-on-year, that improved to 7% and we reiterate our target of double-digit organic growth for the ideas during the full year of 2024."}, {"start": 233, "end": 247, "text": "In Finland, the postpaid churn remained at the same level at 15% in comparison to the previous quarter, and the postpaid subscriptions grew by approximately 42,000."}, {"start": 248, "end": 260, "text": "Of that, M2M and IoT subscriptions constituted 47,000 subscriptions."}, {"start": 262, "end": 269, "text": "In terms of the fixed broadband, the subscription base increased by 600."}, {"start": 269, "end": 284, "text": "And just recently, we also made two small acquisitions of fibre networks in northeastern and eastern parts of Finland from Kaisanet."}, {"start": 287, "end": 290, "text": "And we continue to enjoy good 5G momentum."}, {"start": 290, "end": 302, "text": "At this point in time, the network covers more than 64% of the Finnish population."}, {"start": 302, "end": 322, "text": "We are also differentiating our subscription offering positively from the competition, as we included the Standalone 5G functionality for all of our new subscriptions, for both consumers and corporates, during the quarter.
"}, {"start": 322, "end": 334, "text": "Actually, as the first operator in Europe, and with respect to guidance, we are reiterating our full year outlook as part of this report."}, {"start": 335, "end": 343, "text": "So, with respect to EBITDA, the growth was driven by the mobile service revenue as well as efficiency improvements."}, {"start": 343, "end": 349, "text": "There were actually several components impacting the revenue growth."}, {"start": 349, "end": 355, "text": "The main growth drivers were related to mobile and fixed service revenue."}, {"start": 355, "end": 381, "text": "As mentioned earlier, in terms of the decreases due to the business disposals of Elisa Videra, which we sold at the end of last year, and the discontinuation of Viaplay cooperation, both impacted revenue negatively. However, both actions actually improved profitability."}, {"start": 382, "end": 387, "text": "Additionally, the service number regulation change impacted revenue negatively."}, {"start": 387, "end": 390, "text": "And the same goes for equipment sales."}, {"start": 390, "end": 401, "text": "In this economic environment, with the sluggish sentiment among consumers and corporates alike."}, {"start": 401, "end": 409, "text": "Consumers and corporations are prolonging the interval between changing their phones."}, {"start": 409, "end": 417, "text": "Additionally, the average price of phones is decreasing, thus negatively impacting equipment sales."}, {"start": 418, "end": 423, "text": "Interconnection was also changed, driven by regulation."}, {"start": 423, "end": 442, "text": "However, it is important to remember that this change is EBIT-DA neutral, as asymmetric reductions are made on the cost side, which impacts revenue similarly."}, {"start": 443, "end": 464, "text": "When we look at the EBITDA, that was driven by mobile services, the mentioned business disposals of Viaplay, and also the efficiency improvements that we made earlier during the year that now start to bear some fruit during Q2 and then to a full extent in the coming quarters."}, {"start": 464, "end": 475, "text": "Our EBITDA landed at €190 million, and the EBITDA percentage on a year-on-year basis increased to 35.0."}, {"start": 475, "end": 494, "text": "Mobile service revenue, as mentioned, was up 4.7%, and during the previous quarter we still had, you know, a residual impact of earlier made price increases impacting the MSR growth."}, {"start": 494, "end": 497, "text": "That was not the case during Q2."}, {"start": 497, "end": 509, "text": "So the number of 4.7% is, to a large extent, driven by 5G upselling."}, {"start": 509, "end": 516, "text": "Upselling. RPU growth was 5.5% during the quarter."}, {"start": 516, "end": 526, "text": "Similar growth was observed both on the consumer and corporate sides of the business, again driven by 5G upselling."}, {"start": 526, "end": 537, "text": "When we look at the competitive landscape at this point in time, it is largely the same as it was during the first part of the year."}, {"start": 537, "end": 541, "text": "But we do see some campaigning in 4G."}, {"start": 542, "end": 545, "text": "At this point in time."}, {"start": 545, "end": 550, "text": "Competition remains normal."}, {"start": 551, "end": 555, "text": "You know, keeping tight as usual."}, {"start": 556, "end": 561, "text": "Um, the revenue was basically stable at 15%."}, {"start": 563, "end": 571, "text": "When we look at the segments, the consumer segment, as stated, continues to perform strongly with EBITDA growth of 5%."}, {"start": 572, "end": 587, "text": "When decomposing the revenue development, we need to take into consideration the Viaplay discontinuation, as well as the impact on equipment sales and interconnection."}, {"start": 588, "end": 593, "text": "When we look at the EBITDA percentage, it stands at 4.041%."}, {"start": 593, "end": 607, "text": "Uh, and if we look at that on a decimal basis, that is one of the best, if not the best EBITDA percentage that we have had over the years in the consumer segment."}, {"start": 607, "end": 617, "text": "Profitability-wise, delivering strongly in terms of corporate customers, as stated, we started to see a pickup during the quarter."}, {"start": 619, "end": 634, "text": "Companies, especially the larger ones, start gradually to invest in connectivity, software, and IT services."}, {"start": 634, "end": 641, "text": "Um, and we start to see the first signals of that improving outlook."}, {"start": 641, "end": 653, "text": "Revenue increased by 6% and EBITDA improved by 2% after a couple of challenging quarters during the past 12 months."}, {"start": 655, "end": 660, "text": "The revenue growth was driven, especially by fixed services and mobile services."}, {"start": 661, "end": 675, "text": "Um, and also the IT side of the business, the business disposals and the regulatory changes, as well as the equipment sales will need to be taken into consideration."}, {"start": 675, "end": 693, "text": "Also, when analyzing the revenue growth in the B2B segment, the EBITDA percentage decreased to 26%, driven by some larger but lower margin deals."}, {"start": 693, "end": 703, "text": "Looking forward, we see a stable outlook for the EBITDA margin in the B2B segment."}, {"start": 703, "end": 710, "text": "So basically, no change there outside of some quarterly fluctuation.
"}, {"start": 713, "end": 727, "text": "Looking at our strategy, um, we are all about building a sustainable future through digitalization, and our key strategic focus areas remain the same."}, {"start": 727, "end": 730, "text": "We aim to increase mobile and fixed service revenues."}, {"start": 730, "end": 740, "text": "Uh, and here especially, the 5G sales and continued investments in fiber play a big role."}, {"start": 741, "end": 751, "text": "Um, in terms of growing digital service businesses, identifying growth and improvement is definitely important."}, {"start": 751, "end": 754, "text": "And then taking a bit longer perspective."}, {"start": 754, "end": 763, "text": "We see opportunities for growth in digital services revolving around the needs that our customers have in their homes."}, {"start": 764, "end": 771, "text": "Um, and secondly, also in corporate IT services."}, {"start": 773, "end": 776, "text": "In terms of improving efficiency and quality.
"}, {"start": 776, "end": 785, "text": "We continue to leverage the strengths that we have in continuous improvement in a culture of excellence."}, {"start": 785, "end": 799, "text": "And, uh, and we will suddenly be focusing on the efficiency and productivity of the business also by means of utilizing AI and optimization moving forward."}, {"start": 803, "end": 806, "text": "The migration to higher speeds continues."}, {"start": 806, "end": 811, "text": "This is a source of sustainable growth for Elisa."}, {"start": 812, "end": 824, "text": "And when we look at the penetration of higher speeds, which we define as speeds higher than 200 megabits, the penetration is 55%."}, {"start": 825, "end": 830, "text": "Customers value speed and they are willing to pay for it."}, {"start": 830, "end": 833, "text": "And they are happy when they get it."}, {"start": 833, "end": 851, "text": "This is clearly witnessed by our customer satisfaction surveys and Net Promoter Score, where there's a marked difference between 4G and 5G customers in favor of the 5G customers.
"}, {"start": 852, "end": 858, "text": "Currently, 59% of smartphones are 5G devices."}, {"start": 858, "end": 868, "text": "Meaning that there's potential for us to grow in our penetration."}, {"start": 868, "end": 872, "text": "Also, in terms of the device landscape."}, {"start": 872, "end": 882, "text": "If you closely look at the trend line of the penetration, you would see a slight uptick during the past quarter."}, {"start": 883, "end": 893, "text": "And that uptick is basically accountable for the corporate 5G sales gaining momentum."}, {"start": 893, "end": 908, "text": "So far, especially large companies have been somewhat conservative in terms of taking 5G into use due to the overall macroeconomic environment."}, {"start": 908, "end": 914, "text": "And they have been trailing behind consumers and SMEs."}, {"start": 914, "end": 933, "text": "But now we see that bigger companies are starting to convert their subscriptions to 5G and stated that this is the source of the uptick and an encouraging signal for sales going forward."}, {"start": 933, "end": 943, "text": "Going forward, we have a leading position in 5G in our home market."}, {"start": 944, "end": 952, "text": "We are increasing our investments and meeting the customer demand in terms of fiber network."}, {"start": 952, "end": 964, "text": "As stated, our current 5G population coverage is already over 94% in Finland and over 76% in Estonia."}, {"start": 964, "end": 973, "text": "And when we look at the average billing increase when customers transfer from 4G to 5G, that remains intact."}, {"start": 973, "end": 984, "text": "Namely, being €3 per month increase when customers take the 5G subscriptions into use."}, {"start": 985, "end": 1001, "text": "As stated earlier, as the first telco in Europe, we have now included the 5G standalone functionality in our new subscriptions for both consumers and corporates."}, {"start": 1001, "end": 1017, "text": "In this case, we are clearly a frontrunner in the global telecom space with the standalone 5G, which we call 5G Plus. Customers are getting a better quality network."}, {"start": 1017, "end": 1019, "text": "More resilient network."}, {"start": 1019, "end": 1021, "text": "They are achieving higher speeds."}, {"start": 1021, "end": 1024, "text": "They are achieving better energy efficiency."}, {"start": 1024, "end": 1029, "text": "That translates into better battery life in the phone."}, {"start": 1029, "end": 1045, "text": "Additionally, the 5G network enables new functionalities such as slicing, which we are utilizing, for example, in our fixed wireless access offering."}, {"start": 1045, "end": 1055, "text": "So here we are, clearly differentiating from our competition and from the global telco space as a technology frontrunner."}, {"start": 1057, "end": 1070, "text": "As mentioned in the financial report, we made two small acquisitions by buying two fiber networks in the eastern and northeastern parts of Finland from Kaisanet."}, {"start": 1070, "end": 1082, "text": "With that, we added some 14,000 homes passed and some 6,000 homes connected."}, {"start": 1082, "end": 1094, "text": "This is an example of additional measures, in addition to organic growth, that we are undertaking in our fiber business."}, {"start": 1097, "end": 1099, "text": "In our idea as part of the business."}, {"start": 1100, "end": 1113, "text": "Due to the sluggish macro environment over the past 12 months, companies have been prolonging their projects."}, {"start": 1114, "end": 1122, "text": "Um, we have been experiencing a strong order backlog that has impacted our revenue development."}, {"start": 1122, "end": 1128, "text": "But now during the quarter, we started to see these project implementations picking up speed."}, {"start": 1128, "end": 1132, "text": "And that is visible in our revenue."}, {"start": 1132, "end": 1136, "text": "So, Elisa's revenue increased by 21%."}, {"start": 1136, "end": 1144, "text": "The growth was boosted by the small acquisitions that we made during the early part of the year."}, {"start": 1144, "end": 1152, "text": "We have a good order backlog and also a good order intake."}, {"start": 1152, "end": 1164, "text": "And with that stated, we are reiterating our target to achieve double-digit organic growth during the full year of 2024."}, {"start": 1164, "end": 1171, "text": "We have always expected that growth to be somewhat backloaded during the year."}, {"start": 1173, "end": 1176, "text": "When we look at Elisa's performance separately."}, {"start": 1177, "end": 1184, "text": "It's worthwhile to note that during the quarter, we successfully renewed the quality and data security certificates in that part of the business."}, {"start": 1185, "end": 1195, "text": "We do have a good degree of order backlog as well as order intake in the industrial side of the business."}, {"start": 1195, "end": 1198, "text": "We successfully completed the Leanware Oy acquisition."}, {"start": 1199, "end": 1210, "text": "At present time, we have a strong order intake in that part of the business in distributed energy storage."}, {"start": 1210, "end": 1223, "text": "The startup that we have within the company around energy solutions has actually included solar energy utilization in that test solution."}, {"start": 1224, "end": 1238, "text": "And we also secured the first customer to utilize it, namely \\\\.com, which is the local telecom of the \\land Islands in Finland."}, {"start": 1243, "end": 1245, "text": "In terms of domestic digital services,
"}, {"start": 1245, "end": 1257, "text": "when discussing entertainment services on the consumer side, it's worth noting that this year marks the 10th anniversary of Elisa's"}, {"start": 1257, "end": 1269, "text": "original series, and also our MonaShot series, which is actually the 40th original series."}, {"start": 1269, "end": 1276, "text": "This series won an award at the Cannes Festival earlier in June."}, {"start": 1277, "end": 1289, "text": "We added Max and Viaplay, which received some applause, to our streaming service portfolio, improving our offering to all of our customers."}, {"start": 1289, "end": 1295, "text": "We also conducted a small cleanup of our business portfolio by selling Ali-Zacharia"}, {"start": 1296, "end": 1300, "text": "which is a book by BookBeat."}, {"start": 1302, "end": 1307, "text": "Looking at corporate digital services, namely IoT services,
"}, {"start": 1307, "end": 1312, "text": "we have clearly strengthened our competitiveness."}, {"start": 1312, "end": 1327, "text": "AI and optimization are increasingly incorporated into our IT services, for both our customers and our own service production."}, {"start": 1327, "end": 1329, "text": "We have strong customer interest"}, {"start": 1329, "end": 1344, "text": "in our generational use cases, and we have a solid track record of delivering tangible benefits to our customers, which also enables scalability in their businesses."}, {"start": 1345, "end": 1349, "text": "Our use case funnel for AI is expanding rapidly."}, {"start": 1349, "end": 1352, "text": "This is a very encouraging sign."}, {"start": 1352, "end": 1368, "text": "We also have the first AI solutions deployed in our IT, enhancing end-to-end user service production and improving scalability and productivity in our business.
"}, {"start": 1369, "end": 1376, "text": "Geopolitical uncertainties are escalating at this point in time."}, {"start": 1376, "end": 1379, "text": "The demand for cybersecurity services is increasing,"}, {"start": 1379, "end": 1386, "text": "and we are well positioned in the market with differentiating products and services."}, {"start": 1386, "end": 1394, "text": "This is evident in the intake of new customers in this part of the business."}, {"start": 1398, "end": 1409, "text": "One of the highlights for the quarter was that Time Magazine, in partnership with Statista, listed the world's most sustainable companies,"}, {"start": 1410, "end": 1419, "text": "and in that ranking, we were placed at number 66."}, {"start": 1420, "end": 1426, "text": "Schneider Electric was ranked number one.
"}, {"start": 1426, "end": 1432, "text": "In our close vicinity, we were among very well-known international brands."}, {"start": 1432, "end": 1441, "text": "For example, Microsoft was ranked number 64 and Puma was ranked number 67."}, {"start": 1441, "end": 1453, "text": "We were also ranked as the best Finnish company in terms of sustainability, according to Time Magazine and Statista."}, {"start": 1453, "end": 1469, "text": "This is a testament to the consistent, systematic work done around sustainability at Elisa over the years and something to be proud of."}, {"start": 1471, "end": 1480, "text": "And then, to wind up with our outlook and guidance as stated, we are reiterating our guidance."}, {"start": 1480, "end": 1487, "text": "So we expect the revenue to be at the same level or slightly higher than in 2023."}, {"start": 1488, "end": 1489, "text": "And the same goes for EBITDA."}, {"start": 1489, "end": 1494, "text": "We expect that to be at the same level or slightly higher than in 2023."}, {"start": 1494, "end": 1508, "text": "As for CAPEX, we have some quarterly fluctuation, but for the full year, we expect to stay within the bracket of 12 to 13% of revenue."}, {"start": 1510, "end": 1518, "text": "So with that, I will hand over to Yari, who will go through his slides before we take the Q&A."}, {"start": 1518, "end": 1519, "text": "So, thank you very much."}]}, {"speakerId": "spk3", "sentences": [{"start": 1521, "end": 1522, "text": "Yeah."}]}, {"speakerId": "spk4", "sentences": [{"start": 1528, "end": 1534, "text": "Thank you. Let's start with, um, profit and loss."}, {"start": 1535, "end": 1537, "text": "Q2 continued as planned."}, {"start": 1538, "end": 1550, "text": "The trend with earnings growth and EBITDA growth has now accelerated."}, {"start": 1550, "end": 1556, "text": "Um, fourth consecutive quarter in a row."}, {"start": 1556, "end": 1561, "text": "Solid performance continuing."}, {"start": 1561, "end": 1569, "text": "Revenue saw a 1.6% growth, which also improved from the prior period."}, {"start": 1570, "end": 1579, "text": "Still negatively impacted by divestments."}, {"start": 1579, "end": 1590, "text": "And the net impact from divestments and acquisitions is approximately 1%."}, {"start": 1590, "end": 1597, "text": "So, organic growth is about 2.5%."}, {"start": 1599, "end": 1611, "text": "Also, in the reported growth, we see an impact from the interconnection price change that began at the beginning of the year, amounting to 3 million."}, {"start": 1611, "end": 1617, "text": "Uh, negative change, um, and, uh, equipment sales."}, {"start": 1617, "end": 1623, "text": "Uh, are also impacting both segments."}, {"start": 1623, "end": 1628, "text": "As is the case with interconnection, impacts can be negative."}, {"start": 1628, "end": 1657, "text": "Service revenue growth was strong in the corporate segment at 14 million, with half of that coming from one significant corporate deal in Estonia relating to software licenses and equipment."}, {"start": 1659, "end": 1674, "text": "Services in ideas or organic growth in ideas contributing to corporate segment change."}, {"start": 1674, "end": 1693, "text": "Like is the case with domestic mobile and fixed services, digital services as well, the consumer segment reached 3 million."}, {"start": 1693, "end": 1695, "text": "Increase in service revenues."}, {"start": 1695, "end": 1713, "text": "Mobile service is growing, negative impact from a fixed voice, and the ending of a streaming cooperation agreement last year."}, {"start": 1716, "end": 1724, "text": "EBITDA growth was 4% to 190 million."}, {"start": 1724, "end": 1736, "text": "EBITDA margin improved from 34.3% to 35.1% in mobile service revenue."}, {"start": 1737, "end": 1750, "text": "Efficiency measures, as well as divestments from last year, have positively impacted the EBIT margin."}, {"start": 1750, "end": 1755, "text": "Growth was 4.8%."}, {"start": 1755, "end": 1770, "text": "EBIT margin improved to 22.4%, and EBS growth reached 0.4%, amounting to €0.50."}, {"start": 1775, "end": 1796, "text": "In Estonia, strong revenue growth, 9% or 5 million, as mentioned, was impacted by the approximately 7 million deal relating to licenses and equipment."}, {"start": 1796, "end": 1801, "text": "The negative revenue impact comes from interconnection."}, {"start": 1801, "end": 1817, "text": "Also in Estonia, there was an interconnection price change at the beginning of the year, and mobile equipment sales were also lower than the year before."}, {"start": 1818, "end": 1827, "text": "Overall, the general economic situation in Estonia is still somewhat challenging."}, {"start": 1827, "end": 1845, "text": "For example, the inflation rate, although decreasing, is still higher than in Finland or other European countries; nevertheless, it continues to develop positively."}, {"start": 1845, "end": 1853, "text": "1% growth in mobile subscriptions."}, {"start": 1853, "end": 1861, "text": "Postpaid was slightly decreasing, while prepaid saw a gain of 2100."}, {"start": 1861, "end": 1869, "text": "Churn increased, and was somewhat higher."}, {"start": 1869, "end": 1874, "text": "Uh, 11.9% growth from Q1."}, {"start": 1878, "end": 1887, "text": "Then, moving to CAPEX, reported CAPEX in Q2 was 84 million."}, {"start": 1887, "end": 1897, "text": "Excluding licenses, lease agreements, and acquisitions, the guided CAPEX is 8181 million."}, {"start": 1897, "end": 1905, "text": "And it is higher, at 15% from the revenues."}, {"start": 1906, "end": 1909, "text": "There are quarterly variations."}, {"start": 1909, "end": 1919, "text": "And, for the whole year, the CAPEX guidance of 12 to 13% of revenues remains intact."}, {"start": 1920, "end": 1938, "text": "Main investments continue to be in 5G network expansion, extending coverage, and in fixed site scenarios, continuing fiber investments and IT investments."}, {"start": 1942, "end": 1955, "text": "Comparable cash flow was 94 million, somewhat lower than a year ago."}, {"start": 1955, "end": 1964, "text": "Positive changes resulted from higher EBITDA and reduced license fee payments."}, {"start": 1966, "end": 1971, "text": "Negative impact from higher CAPEX and interest."}, {"start": 1971, "end": 1977, "text": "Although net working capital change was positive."}, {"start": 1977, "end": 1981, "text": "It was less positive than a year ago."}, {"start": 1981, "end": 1986, "text": "So impacting cash flow slightly negatively."}, {"start": 1986, "end": 1991, "text": "First half cash flow was 180 million."}, {"start": 1992, "end": 1996, "text": "Slightly higher than a year ago."}, {"start": 1996, "end": 2012, "text": "EBITDA improved due to lower license fee payments and a positive change in net working capital, while CapEx and higher interest rates had a negative impact."}, {"start": 2013, "end": 2056, "text": "EBITDA operating cash flow conversion was 58% in Q2. Moving to capital structure, we maintain a solid financial position, with net debt in line with our target at 1.8 times equity ratio, which is 35%, a decrease from Q1."}, {"start": 2058, "end": 2071, "text": "Uh, the dividend decision in Q2 and the equity ratio, then, improving in the coming quarters after that."}, {"start": 2073, "end": 2084, "text": "Return ratios continue at a good level, with a return on equity of 30.7% and a return on investments of 18.7%."}, {"start": 2085, "end": 2101, "text": "In terms of debt maturities, there are no major maturities in the near term."}, {"start": 2102, "end": 2123, "text": "Next, the fixed interest loan maturities through 2026 and average interest expenses are currently at 2.6%."}, {"start": 2124, "end": 2126, "text": "And now I will hand it over to Asa, please."}]}, {"speakerId": "spk1", "sentences": [{"start": 2132, "end": 2140, "text": "Thank you. And now we move on to the Q&A part, and we take the first question from the audience. Sammy, please."}]}, {"speakerId": "spk5", "sentences": [{"start": 2141, "end": 2142, "text": "Okay. Thank you, Sammy."}, {"start": 2143, "end": 2145, "text": "Danske Bank, I have four questions."}, {"start": 2145, "end": 2147, "text": "We'll take this one by one."}, {"start": 2148, "end": 2164, "text": "Starting from the corporate segment, do you have visibility on further improvement entering the second half of the year, or should we remain cautious as you benefited from a large deal in Estonia during the second quarter?"}]}, {"speakerId": "spk2", "sentences": [{"start": 2166, "end": 2210, "text": "If we examine the overall development of the economy, both in our domestic markets and globally, we are beginning to see some early signs of improvement."}, {"start": 2210, "end": 2217, "text": "And, of course, the order intake is improving, namely sales are improving."}, {"start": 2217, "end": 2222, "text": "So, gradually improving outlook in that part of the business."}, {"start": 2222, "end": 2238, "text": "Then, if we look at the connectivity business for B2B, as stated, the phenomenon there is that now large companies are starting to convert their subscriptions to 5G."}, {"start": 2238, "end": 2271, "text": "We also see some improvements in activity levels, particularly in investments in corporate networks, IT services related to AI and optimization, and cybersecurity services."}, {"start": 2271, "end": 2276, "text": "In this sense, I mean, there are always bigger deals that come and go."}, {"start": 2276, "end": 2279, "text": "And also, the bigger deals are part of our normal course of business."}, {"start": 2279, "end": 2291, "text": "We will have them every now and then, but underlying it all there is a first signal of improving activity level.
"}]}, {"speakerId": "spk5", "sentences": [{"start": 2293, "end": 2294, "text": "Okay."}, {"start": 2294, "end": 2301, "text": "And then, continuing on, how good is your visibility on the second half?"}, {"start": 2301, "end": 2312, "text": "Is it mostly about delivery execution, or do you actually need more orders from customers in order to reach the double-digit organic growth target for the full year?"}]}, {"speakerId": "spk2", "sentences": [{"start": 2313, "end": 2322, "text": "If we average things out a bit, for the ideas business, the typical sales cycle is, let's say, six months."}, {"start": 2323, "end": 2332, "text": "So, we have a good degree of visibility for the revenue for the remainder of the year."}, {"start": 2332, "end": 2337, "text": "So, much of the sales are, in the pocket already, so to speak."}, {"start": 2337, "end": 2347, "text": "Of course, there's always a bit of timing risk in terms of how the individual projects will proceed and how we can account for revenue."}, {"start": 2347, "end": 2365, "text": "And then, certainly, especially for Q4, we still have some sales to be done, but we reiterate our target of double-digit organic growth for Elisa during the course of the year, as we have been stating before."}]}, {"speakerId": "spk5", "sentences": [{"start": 2365, "end": 2375, "text": "Yeah. Um, thanks."}, {"start": 2376, "end": 2381, "text": "I think that's when comparables will be sort of."}, {"start": 2383, "end": 2388, "text": "They will be more demanding as you implement these pricing changes."}, {"start": 2388, "end": 2392, "text": "Uh, then related to, uh, fixed service numbers."}, {"start": 2392, "end": 2393, "text": "Yeah."}]}, {"speakerId": "spk2", "sentences": [{"start": 2393, "end": 2408, "text": "If we look at the first part of the year during Q1, we still had some impact from earlier made price changes, in addition to the speed-based upsells that we are executing during Q2."}, {"start": 2408, "end": 2413, "text": "The impact of earlier made price changes, what's notably absent."}, {"start": 2413, "end": 2421, "text": "So to a very large extent, it was only upsells that are visible in the Mobile Service Revenue in Q2."}, {"start": 2422, "end": 2436, "text": "Now, in Estonia, during Q2, we already conducted some price changes that will be visible during the remainder of the year."}, {"start": 2436, "end": 2443, "text": "And we have some price changes in the immediate pipeline."}, {"start": 2443, "end": 2449, "text": "So, we see that this will be topping off Mobile Service Revenue a bit going forward."}, {"start": 2449, "end": 2453, "text": "Still, the majority of it will come from the upsells."}, {"start": 2453, "end": 2466, "text": "And we maintain our view that Mobile Service Revenue will experience mid-single digit growth going forward."}]}, {"speakerId": "spk5", "sentences": [{"start": 2467, "end": 2474, "text": "
Thanks, Matt. And then finally, you've been acquiring several fiber assets during the past year."}, {"start": 2474, "end": 2476, "text": "Can you comment on the rationale?"}, {"start": 2476, "end": 2480, "text": "And are you planning to make further acquisitions?"}, {"start": 2481, "end": 2496, "text": "I mean, is this a way to increase the fiber market exposure without impacting the 12% CAPEX to sales ratio, and then maybe finally disclose what the typical price to book valuation in these transactions is?"}]}, {"speakerId": "spk2", "sentences": [{"start": 2496, "end": 2500, "text": "Yes. If I take the first question and you can take the second one."}, {"start": 2500, "end": 2508, "text": "
In terms of the fiber market, our strategy is that we want to stay in the middle of the road."}, {"start": 2508, "end": 2515, "text": "On one hand, we want to make sure that we will be keeping our long-term market share."}, {"start": 2516, "end": 2519, "text": "Also, in terms of the fiber business."}, {"start": 2520, "end": 2527, "text": "On the other hand, we want to steer clear from making over investments in the market."}, {"start": 2527, "end": 2538, "text": "And currently we are, and we have already ramped up our organic investments to fiber and will continue to do so."}, {"start": 2538, "end": 2543, "text": "
We are, as we speak, building fiber more than ever before."}, {"start": 2544, "end": 2559, "text": "But we are topping that off with these small bolt-ons in those regions where we see potential in Finland and overall."}, {"start": 2559, "end": 2564, "text": "If you look at the fiber market, I'm comfortable with where we are positioned."}, {"start": 2564, "end": 2571, "text": "In our own network area, we are clearly very competitive in the fiber business."}, {"start": 2571, "end": 2578, "text": "And we are not losing our market position."}, {"start": 2578, "end": 2587, "text": "
And then we are very much focusing on the fiber sales and the cross-sales on top of the fiber connections."}, {"start": 2588, "end": 2596, "text": "That is important for us to meet our financial targets and also to improve customer stickiness."}]}, {"speakerId": "spk4", "sentences": [{"start": 2598, "end": 2607, "text": "If I continue with that, the pricing point of the question."}, {"start": 2607, "end": 2619, "text": "Unfortunately, we are not disclosing the numbers also for competition reasons."}, {"start": 2619, "end": 2638, "text": "From the total, let's say, balance point of view of financing, these are fairly small acquisitions and they are comparable to doing the investments ourselves."}, {"start": 2638, "end": 2644, "text": "
So it is also accelerating our approach to marketing in fiber."}]}, {"speakerId": "spk5", "sentences": [{"start": 2644, "end": 2649, "text": "So I'm reading this so that the price to book is not materially above one."}]}, {"speakerId": "spk4", "sentences": [{"start": 2651, "end": 2652, "text": "No comment."}]}, {"speakerId": "spk5", "sentences": [{"start": 2654, "end": 2656, "text": "Okay, thanks. I don't have any further questions."}, {"start": 2656, "end": 2657, "text": "And congrats."}]}, {"speakerId": "spk1", "sentences": [{"start": 2658, "end": 2664, "text": "Thank you, Sammy. And now, we don't have any further questions from the audience."}, {"start": 2664, "end": 2667, "text": "So let's go to the conference call lines."}, {"start": 2667, "end": 2668, "text": "And the first question, please."}]}, {"speakerId": "spk6", "sentences": [{"start": 2673, "end": 2680, "text": "If you wish to ask a question, please dial Pound Key five on your telephone keypad to enter the queue."}, {"start": 2680, "end": 2687, "text": "If you wish to withdraw your question, please dial Pound Key six on your telephone keypad.
"}, {"start": 2693, "end": 2697, "text": "The next question comes from Andrew Lee from Goldman Sachs."}, {"start": 2698, "end": 2699, "text": "Please go ahead."}]}, {"speakerId": "spk7", "sentences": [{"start": 2700, "end": 2701, "text": "Good morning, everyone."}, {"start": 2701, "end": 2702, "text": "Actually, good afternoon."}, {"start": 2702, "end": 2704, "text": "Your time. And congrats to Peter."}, {"start": 2704, "end": 2706, "text": "That's quite the achievement."}, {"start": 2706, "end": 2708, "text": "I had two questions."}, {"start": 2708, "end": 2712, "text": "Just on your top line growth rates."}, {"start": 2712, "end": 2717, "text": "The first question is about mobile service revenue growth and why it wasn't a little better this quarter.
"}, {"start": 2717, "end": 2735, "text": "So if we strip out the product shift, I think the underlying mobile service revenue growth was about 3.7%, which is the lowest it has been for a while, when there had been some comments that there would be a lag between last year's price rises and consequent revenue growth."}, {"start": 2735, "end": 2742, "text": "Can you help us understand why the underlying growth trends were over a percentage point worse than what we saw in the first quarter?"}, {"start": 2742, "end": 2748, "text": "I mean, KPIs were good, friends were good, comps are a little tougher, but only by 50 basis points."}, {"start": 2748, "end": 2759, "text": "So, help us understand why we saw that kind of slight slowdown in growth and what you expect the cadence of mobile service revenue growth to be through the rest of the year?
"}, {"start": 2760, "end": 2763, "text": "My second question was just on fixed revenue growth."}, {"start": 2763, "end": 2772, "text": "You delivered plus 5% in the quarter, which contrasts with a negative number in the first quarter and 3 to 4% in the second half of last year."}, {"start": 2772, "end": 2777, "text": "I know there are quite a lot of inorganic elements or non-underlying elements going on there."}, {"start": 2777, "end": 2783, "text": "So can you help us understand what the underlying growth was in fixed and what are the drivers of that underlying improvement."}, {"start": 2783, "end": 2784, "text": "Thank, you.
"}]}, {"speakerId": "spk2", "sentences": [{"start": 2787, "end": 2790, "text": "Yeah. Hi, Andrew, this is Toby speaking."}, {"start": 2790, "end": 2809, "text": "So again, if I take the first one and you take the second one, in terms of the mobile service revenue momentum, as we did during Q1, we still enjoyed the tail effect of earlier major price increases."}, {"start": 2809, "end": 2818, "text": "So that was clearly one element impacting the comparison between the quarters."}, {"start": 2819, "end": 2834, "text": "During this quarter, there was not that kind of price increase element, but toward the end of the quarter, we made some price changes in Estonia that will bear fruit during the remainder of the year."}, {"start": 2834, "end": 2851, "text": "As mentioned, we are about to conduct some price changes that will also be supportive of the mobile service revenue development going forward.
"}, {"start": 2851, "end": 2875, "text": "And then if we look at the mobile service revenue segment by segment, now if you look at the ARPU numbers, the GPU numbers are broadly in the same ballpark, both in the B2C segment and B2B segment, where the B2B ARPU has been improving a bit lately."}, {"start": 2875, "end": 2885, "text": "And now, as I mentioned, we're starting to see especially the large companies increasingly migrating to 5G."}, {"start": 2885, "end": 2898, "text": "So that is another element that can be supportive of Mobile Service Revenue (MSR) going forward, coming from a source that has not been there previously."}, {"start": 2898, "end": 2902, "text": "So I think that these are all the dynamics that you will need to take into account."}, {"start": 2902, "end": 2908, "text": "So, if I even things out, there is quarterly fluctuation."}, {"start": 2909, "end": 2924, "text": "But when we look at the trends beyond the quarters, we are on track with our earlier guidance of seeing mid-single digit growth in MSR."}]}, {"speakerId": "spk4", "sentences": [{"start": 2927, "end": 2932, "text": "And if I continue with the fixed services."}, {"start": 2932, "end": 2939, "text": "
Um, there were these acquisitions earlier this year."}, {"start": 2939, "end": 2944, "text": "They are not impacting fixed service revenue."}, {"start": 2944, "end": 2963, "text": "Um, but there was this large deal discussed earlier in Estonian numbers that is in fixed services relating to software licenses and equipment, approximately 7 million."}, {"start": 2964, "end": 2972, "text": "So every now and then, this kind of large deal happens."}, {"start": 2972, "end": 2981, "text": "And now, in this quarter, this was maybe somewhat bigger deal."}]}, {"speakerId": "spk7", "sentences": [{"start": 2983, "end": 2987, "text": "
Thank you. What was driving the underlying improvement in fixed revenue growth?"}, {"start": 2991, "end": 2992, "text": "Stripping out that Estonian impact."}]}, {"speakerId": "spk4", "sentences": [{"start": 2994, "end": 3012, "text": "Um, yeah. Of course in fixed services overall there are several different service revenues in the corporate segment."}, {"start": 3012, "end": 3032, "text": "And corporate networks or private network type of services and cybersecurity services, which are growing especially in cybersecurity."}, {"start": 3032, "end": 3041, "text": "Overall, security services are growing quite nicely, and that is impacting."}]}, {"speakerId": "spk2", "sentences": [{"start": 3041, "end": 3052, "text": "
So the fixed network revenue increases the underlying bit very much comes back to the earlier comments made around the P2P segment."}]}, {"speakerId": "spk8", "sentences": [{"start": 3054, "end": 3055, "text": "Thank the question is helpful."}]}, {"speakerId": "spk6", "sentences": [{"start": 3064, "end": 3068, "text": "The next question comes from Andre Cabot from UBS."}, {"start": 3068, "end": 3070, "text": "Please go ahead."}]}, {"speakerId": "spk9", "sentences": [{"start": 3071, "end": 3072, "text": "The question on implementation."}, {"start": 3072, "end": 3076, "text": "
So I've got two questions, maybe one for the follow-up on mobile service revenue."}, {"start": 3076, "end": 3089, "text": "So, if I understood correctly, you mentioned that the single digit growth rate is something you're confident about not just for this year, but for the midterm as well."}, {"start": 3089, "end": 3106, "text": "And, you know, if we go back over the past couple of years, even though it's been higher than, say, 4%, that may be, some of the recent commentary would suggest then it was driven by several factors, including a lot of 4G repricing."}, {"start": 3106, "end": 3117, "text": "So just going forward, you seem to indicate that today, the vast majority of the growth that we're seeing in mobile service revenues is coming from 5G."}, {"start": 3117, "end": 3128, "text": "So just to understand, if we go into the midterm, as you say, mid-single digit growth, it sounds like you're very bullish on just 5G monetization in general, which would be a bit different from other markets."}, {"start": 3128, "end": 3137, "text": "
Or is there any other driver, including like a return of maybe 4G pricing, that actually supports the single digit growth in mobile service revenues?"}, {"start": 3137, "end": 3139, "text": "And I'll ask the second question later."}]}, {"speakerId": "spk2", "sentences": [{"start": 3141, "end": 3142, "text": "Yeah. Thank yourself for the question."}, {"start": 3142, "end": 3146, "text": "There were slightly weak lines."}, {"start": 3146, "end": 3151, "text": "So it might be that we have missed some aspects of your question."}, {"start": 3151, "end": 3159, "text": "So if that happens, please just repeat the question so that we can address it appropriately."}, {"start": 3159, "end": 3175, "text": "However, regarding the Mobile Service Revenue (MSB) - as presented, we'll start with the competitive landscape, noting that it remains largely unchanged."}, {"start": 3175, "end": 3189, "text": "If we consider the average monthly billing increase, when customers transition from 4G to 5G, it amounts to €3 per month."}, {"start": 3190, "end": 3198, "text": "Furthermore, this delta remained intact through Q2."}, {"start": 3198, "end": 3209, "text": "This strongly reflects on 5G as a sustainable source of growth, particularly through upselling.
"}, {"start": 3209, "end": 3219, "text": "Moreover, with the 5G penetration on a continually increasing trend and a modest uptick currently,"}, {"start": 3219, "end": 3227, "text": "during Q2, in the 4G category, we observed intensified competition."}, {"start": 3227, "end": 3231, "text": "We also noticed more aggressive campaigning."}, {"start": 3231, "end": 3235, "text": "Thus, the market remains highly competitive."}, {"start": 3235, "end": 3238, "text": "The level of competition has indeed remained intense.
"}, {"start": 3238, "end": 3245, "text": "This is particularly true in certain segments of the market."}, {"start": 3246, "end": 3254, "text": "It's important to remember that in Finland, there is an incoming VAT change,"}, {"start": 3255, "end": 3261, "text": "which will impact a broad array of services, including connectivity services."}, {"start": 3261, "end": 3267, "text": "This VAT increase of 1.5% will take effect."}, {"start": 3267, "end": 3290, "text": "With this change, effective from the 1st of September, we're adjusting our prices accordingly; this will slightly alter our pricing psychology over the long term.
"}, {"start": 3290, "end": 3307, "text": "In summary, we find that 5G upselling continues to be the principal driver of sustainable growth in terms of Mobile Service Revenue (MSR)."}, {"start": 3308, "end": 3316, "text": "There will also be a noticeable impact on pricing for the backlog as well."}, {"start": 3316, "end": 3330, "text": "Looking ahead, a noteworthy new trend is that large companies are increasingly transitioning to 5G, which supports B2B MSR growth."}]}, {"speakerId": "spk9", "sentences": [{"start": 3333, "end": 3335, "text": "Thank you, and I apologize for the poor quality of the connection."}, {"start": 3335, "end": 3337, "text": "I will strive to be clearer moving forward.
"}, {"start": 3337, "end": 3347, "text": "Another question I had concerns a remark you made about medium-term profitability improvements in the core business."}, {"start": 3348, "end": 3355, "text": "Clearly, we've seen significant top-line effects this year that have mechanically improved margins."}, {"start": 3355, "end": 3358, "text": "Additionally, inflation is starting to recede."}, {"start": 3358, "end": 3365, "text": "Several efficiency gains mentioned last quarter were larger than anticipated."}, {"start": 3365, "end": 3372, "text": "Thus, are we entering a period with potentially higher operating leverage than we've observed in the past two to three leukocytes?
"}, {"start": 3372, "end": 3376, "text": "This operational leverage is expected to be sustainable over the medium term."}]}, {"speakerId": "spk4", "sentences": [{"start": 3378, "end": 3381, "text": "Yes, as mentioned earlier,"}, {"start": 3381, "end": 3392, "text": "for the fourth consecutive quarter, we have seen an acceleration in EBITDA growth on a year-on-year percentage basis."}, {"start": 3392, "end": 3398, "text": "We improved the margin almost by 1 percentage point."}, {"start": 3398, "end": 3434, "text": "In this quarter, following restructuring in Q1, we continued with efficiency and productivity improvement measures and, as discussed previously in this call, revenue growth in mobile, fixed, and digital services is anticipated."}, {"start": 3435, "end": 3452, "text": "It's getting to grow asset double digit for the whole year and the second half is expected to be better than the first half in ideas."}, {"start": 3452, "end": 3457, "text": "All these factors, of course, contribute to the earnings."}, {"start": 3457, "end": 3463, "text": "And, as you said, operating leverage has improved."}, {"start": 3463, "end": 3470, "text": "We continue to work on that also going forward."}]}, {"speakerId": "spk8", "sentences": [{"start": 3472, "end": 3473, "text": "Thank you very much."}]}, {"speakerId": "spk6", "sentences": [{"start": 3481, "end": 3486, "text": "The next question comes from Oskar Enqvist from ABG Sundal Collier."}, {"start": 3486, "end": 3488, "text": "Good morning, everyone. Thank you for joining Elisa's Q2 2024 earnings call."}]}, {"speakerId": "spk10", "sentences": [{"start": 3490, "end": 3493, "text": "Thank you. Hi all, and thanks for taking my questions."}, {"start": 3493, "end": 3502, "text": "So, the first one I was just going to ask about was the 5G Standalone as a differentiator, both on the corporate and the consumer side."}, {"start": 3502, "end": 3510, "text": "If you have any sort of early indication of how it is being received by customers so far and any specific areas where they can utilize this."}, {"start": 3510, "end": 3525, "text": "Last quarter, I inquired about the potential areas in the corporate business, but also on the consumer side, do you see any exceptional interest in slicing, for instance, and how you're able to monetize that?"}, {"start": 3525, "end": 3525, "text": "Thank you for reaching out."}]}, {"speakerId": "spk2", "sentences": [{"start": 3527, "end": 3534, "text": "Yes, as I mentioned, we have recently introduced 5G Standalone."}, {"start": 3534, "end": 3538, "text": "5G plus to our new subscribers, for both consumers and corporates."}, {"start": 3538, "end": 3542, "text": "And, uh, it is still relatively fresh."}, {"start": 3543, "end": 3547, "text": "First indications are encouraging."}, {"start": 3547, "end": 3561, "text": "If we compare our pricing of the subscriptions with the 5G Plus functionality to the 5G offerings of our competitors, we are differentiating positively."}, {"start": 3561, "end": 3572, "text": "And there's a touch of price premium that we are enjoying for the moment on that one."}, {"start": 3572, "end": 3575, "text": "But that stated, early days, early days."}, {"start": 3576, "end": 3592, "text": "When we examine the early indicators of customer satisfaction regarding the 5G network, we observe improved quality, resilience, better speeds, and enhanced energy efficiency."}, {"start": 3592, "end": 3619, "text": "We observed some weak signals of improvement during the quarter in terms-less of the customer NBS for all of our clientele."}, {"start": 3619, "end": 3628, "text": "But, uh, the offering around, uh, 5G standalone, uh, is one contributing factor."}, {"start": 3628, "end": 3638, "text": "And then, when it comes to your question about the slicing capability in particular, I think that there we have introduced our first slicing products."}, {"start": 3638, "end": 3645, "text": "Elisa is a provider of fixed wireless access and has been on the market for a while."}, {"start": 3645, "end": 3648, "text": "There is some consumer pickup."}, {"start": 3648, "end": 3658, "text": "But there we don't have any sort of bigger conclusions to share at this point in time."}, {"start": 3659, "end": 3668, "text": "We are keenly observing the slicing capability and considering what kind of product development we can do with that functionality."}]}, {"speakerId": "spk10", "sentences": [{"start": 3670, "end": 3672, "text": "Perfect."}, {"start": 3672, "end": 3682, "text": "My next question would be just on the revenue to EBITDA impact or sort of the margin impact, from some effects that we see in the quarter."}, {"start": 3682, "end": 3690, "text": "First of all, the equipment sales, I see, are continuously very soft, looking at the year-over-year effect."}, {"start": 3690, "end": 3692, "text": "No, it's, uh, you know, very low EBITda margins."}, {"start": 3692, "end": 3698, "text": "But can you elaborate a little bit on the EBITDA contribution from the equipment sales?"}, {"start": 3698, "end": 3709, "text": "Just so we can sort of get the underlying effect from the weakness and also from the large B2B deal in Estonia, I think it was 7 million, right, on revenue."}, {"start": 3709, "end": 3713, "text": "So just those two factors, if you have any sort of color on the EBITDA impact."}, {"start": 3713, "end": 3714, "text": "Thanks."}]}, {"speakerId": "spk4", "sentences": [{"start": 3714, "end": 3726, "text": "
Yeah, so like you said, the equipment sales, March, you know, epitomizing is low, it is positive."}, {"start": 3726, "end": 3732, "text": "Uh, but it is low, uh, clearly below 10%."}, {"start": 3733, "end": 3742, "text": "Regarding this bigger deal, customer deal in Estonia?"}, {"start": 3743, "end": 3744, "text": "Uh, around 7 million."}, {"start": 3745, "end": 3753, "text": "It's also, uh, because it's equipment and and license resale."}, {"start": 3753, "end": 3772, "text": "So it is, uh, low margin and, uh, so therefore, uh, let's say the contribution to the total group margin is, uh, negative rather than positive."}]}, {"speakerId": "spk10", "sentences": [{"start": 3775, "end": 3777, "text": "Got it. Thank three. That was all."}]}, {"speakerId": "spk6", "sentences": [{"start": 3783, "end": 3787, "text": "
The next question comes from Titus Crone from Bank of America."}, {"start": 3788, "end": 3789, "text": "Please go ahead."}]}, {"speakerId": "spk11", "sentences": [{"start": 3793, "end": 3796, "text": "Good day everyone. Thank you very much for taking my questions."}, {"start": 3796, "end": 3801, "text": "I've just got a couple of small clarifications to follow up on, if that's fine."}, {"start": 3801, "end": 3805, "text": "Three in total. The first one is just on the VAT."}, {"start": 3805, "end": 3808, "text": "You mentioned, um, starting in September."}, {"start": 3808, "end": 3825, "text": "Will you fully pass on the VAT charge to existing and new customers, then the second question would be just if there could be any indication on the restructuring impact you had in Q2 and what you could expect for Q3 and Q4 onwards on your EBITDA."}, {"start": 3825, "end": 3829, "text": "And maybe a last a bit more fundamental question."}, {"start": 3829, "end": 3836, "text": "I think in the past, at least your CAPEX or CAPEX to sales has always been a bit more H2 weighted compared to H1."}, {"start": 3836, "end": 3845, "text": "
Is there any fundamental reason behind this, and why would it be different this year if we look at your guidance?"}, {"start": 3845, "end": 3846, "text": "Thank you so much."}]}, {"speakerId": "spk4", "sentences": [{"start": 3846, "end": 3852, "text": "Yeah. Um, VAT, yes."}, {"start": 3852, "end": 3856, "text": "We will pass that, uh, to the prices."}, {"start": 3857, "end": 3859, "text": "Um, in full. In full."}, {"start": 3859, "end": 3881, "text": "So that's, uh, the first one, the restructuring, uh, impact that we did in Q1, um, in, uh, this quarter and, uh, coming quarters, it's, uh, in the range of one, 1 to 2 million."}, {"start": 3882, "end": 3888, "text": "Improvement. Regarding, um."}, {"start": 3890, "end": 3891, "text": "Uh, what was the third one?"}, {"start": 3892, "end": 3895, "text": "Sorry, CAPEX, CAPEX on."}]}, {"speakerId": "spk8", "sentences": [{"start": 3895, "end": 3895, "text": "The capital."}]}, {"speakerId": "spk4", "sentences": [{"start": 3895, "end": 3902, "text": "Yes, as mentioned earlier."}, {"start": 3902, "end": 3914, "text": "This quarter's results are very strong, and there are various reasons why they support our full-year guidance."}, {"start": 3914, "end": 3918, "text": "The 12 to 13% is valid."}, {"start": 3918, "end": 3921, "text": "And that's how we are managing the CapEx.
"}, {"start": 3921, "end": 3929, "text": "We are maintaining these 12 to 13% from sales."}]}, {"speakerId": "spk2", "sentences": [{"start": 3930, "end": 3937, "text": "One of the reasons for a bit higher CapEx during Q2 is the fiber build."}, {"start": 3937, "end": 3942, "text": "In the Nordics, fiber is typically built during the summer, given the climate."}, {"start": 3942, "end": 3971, "text": "So, that is happening now and in a similar fashion, we are making some additional investments in our network to cater to our customers' connectivity needs during the summer when customer mobility is a bit different than during the rest of the year."}, {"start": 3971, "end": 3975, "text": "But the stated this will even out during the course of the summer.
"}, {"start": 3975, "end": 3979, "text": "And to your point, we will be sticking to our CapEx guidance at the end."}]}, {"speakerId": "spk11", "sentences": [{"start": 3981, "end": 3983, "text": "But again, thank you very much."}]}, {"speakerId": "spk6", "sentences": [{"start": 3991, "end": 3994, "text": "The next question comes from Nick Lyle from Bernstein."}, {"start": 3995, "end": 3996, "text": "Please go ahead."}]}, {"speakerId": "spk12", "sentences": [{"start": 3999, "end": 4000, "text": "Good afternoon, everyone.
"}, {"start": 4000, "end": 4002, "text": "Just a couple of very quick questions, please."}, {"start": 4002, "end": 4009, "text": "Regarding the Estonian corporate contract, the 7 million that you've mentioned, how much of that was booked and fixed, please."}, {"start": 4009, "end": 4015, "text": "Was that all in the fixed business, because that's obviously the difference between growth or decline for fixed."}, {"start": 4015, "end": 4020, "text": "So could you help us with the amount booked and also what the underlying performance in fixed is, please."}, {"start": 4020, "end": 4022, "text": "And then just a very simple one on working capital.
"}, {"start": 4022, "end": 4025, "text": "We saw a big inflow again in the second quarter."}, {"start": 4025, "end": 4028, "text": "Is that expected to reverse in the second half, please?"}, {"start": 4028, "end": 4029, "text": "Thank you."}]}, {"speakerId": "spk4", "sentences": [{"start": 4030, "end": 4036, "text": "Yes, the 7 million is in the fixed revenue."}, {"start": 4038, "end": 4041, "text": "And, sorry, we didn't catch the second question."}]}, {"speakerId": "spk12", "sentences": [{"start": 4043, "end": 4057, "text": "Sorry, I was just checking on whether the 7 million was from the large Estonian one-off, which is similar to one-off at this point last year or anything else that we should consider, or is it just a straight deduction of 7 million to determine the underlying growth rate in fixed?"}, {"start": 4057, "end": 4059, "text": "How would you expect us to handle that, please?
"}]}, {"speakerId": "spk4", "sentences": [{"start": 4059, "end": 4073, "text": "It's more of the latter, so there wasn't a similar deal last year."}]}, {"speakerId": "spk12", "sentences": [{"start": 4076, "end": 4079, "text": "Perfect. Yes, and the second question was simply on working capital.
"}, {"start": 4079, "end": 4082, "text": "What was the inflow this quarter in working capital?"}, {"start": 4082, "end": 4085, "text": "Do you expect that to reverse in the second half?"}, {"start": 4085, "end": 4086, "text": "Could you just explain what it is, please?"}, {"start": 4087, "end": 4087, "text": "Thank you."}]}, {"speakerId": "spk4", "sentences": [{"start": 4088, "end": 4098, "text": "Yes. We had a positive change of 15 million, stemming from all lines of the working capital."}, {"start": 4099, "end": 4102, "text": "Receivables. Sales."}, {"start": 4102, "end": 4104, "text": "Receivables were lower."}, {"start": 4105, "end": 4108, "text": "Accounts payables were higher."}, {"start": 4108, "end": 4113, "text": "Change in inventories was slightly positive."}, {"start": 4113, "end": 4129, "text": "And, well, we continue to work on efficiencies, also relating to working capital and, for example, inventories."}, {"start": 4129, "end": 4140, "text": "Something we are looking to be more efficient at, and we are not happy at the current level."}]}, {"speakerId": "spk12", "sentences": [{"start": 4143, "end": 4145, "text": "Okay. Thanks very much."}]}, {"speakerId": "spk6", "sentences": [{"start": 4153, "end": 4158, "text": "The next question comes from Jacob Bluestone from BNP Paribas Exane."}, {"start": 4158, "end": 4160, "text": "Please go ahead."}]}, {"speakerId": "spk13", "sentences": [{"start": 4162, "end": 4165, "text": "Hi. Jacob here from BNP."}, {"start": 4165, "end": 4169, "text": "I've got two fairly quick clarification questions."}, {"start": 4169, "end": 4175, "text": "Firstly, on your broadband net ads, you reported about just under 1000 broadband adds."}, {"start": 4175, "end": 4182, "text": "But you also mentioned that the acquisition of the fiber companies included 6000 new customers."}, {"start": 4182, "end": 4190, "text": "So just to be clear, is the like-for-like growth in your net adds 1000 or -5?"}, {"start": 4190, "end": 4194, "text": "And then, secondly, on your postpaid net adds."}, {"start": 4194, "end": 4202, "text": "If I look at Finnish postpaid net adds excluding machines to machines, they went from about -20,000 to -2."}, {"start": 4202, "end": 4215, "text": "So just to understand what drove this improvement, I think the previous quarter, as you've discussed, things like zero-hour customers and data-only customers with low ARPU."}, {"start": 4215, "end": 4220, "text": "So you could maybe just help us understand what's actually going on with your paying smartphone customers."}, {"start": 4220, "end": 4221, "text": "Thank you."}]}, {"speakerId": "spk4", "sentences": [{"start": 4222, "end": 4232, "text": "The broadband or the acquisition of the fiber networks happened in July."}, {"start": 4232, "end": 4238, "text": "So these additions are coming into the subscription numbers in Q3."}, {"start": 4238, "end": 4242, "text": "So they were not in Q2 numbers yet."}, {"start": 4242, "end": 4246, "text": "Regarding mobile networks."}, {"start": 4246, "end": 4254, "text": "Yes. The situation improved in Q2 compared to Q1."}, {"start": 4255, "end": 4271, "text": "We had, well, one could say a somewhat more internal focus in Q1 as we were undertaking this restructuring during that quarter."}, {"start": 4271, "end": 4284, "text": "And more focused on marketing and sales in Q2."}, {"start": 4284, "end": 4291, "text": "The thing that you mentioned is low due to its subscriptions."}, {"start": 4291, "end": 4301, "text": "They are still reducing and impacting the numbers."}, {"start": 4301, "end": 4310, "text": "In Q2, the change was much better than in Q1."}, {"start": 4310, "end": 4319, "text": "Of course, we continue to ensure that we are not losing ground in terms of subscription market sales."}]}, {"speakerId": "spk8", "sentences": [{"start": 4321, "end": 4321, "text": "Thank you."}]}, {"speakerId": "spk6", "sentences": [{"start": 4330, "end": 4333, "text": "The next question comes from Seb from Citi."}, {"start": 4334, "end": 4335, "text": "Welcome everyone to our second quarter 2024 financial webcast."}]}, {"speakerId": "spk14", "sentences": [{"start": 4337, "end": 4339, "text": "Hello. Good afternoon."}, {"start": 4339, "end": 4341, "text": "Thank you very much for taking my questions."}, {"start": 4341, "end": 4345, "text": "I have two plans, and those questions are more about them."}, {"start": 4345, "end": 4362, "text": "I just want to circle back to some of your opening remarks and clarify that there seems to be a pickup in terms of the 4G campaign in the market, which appears to be consistent across Europe with the low-end market competition increasing."}, {"start": 4363, "end": 4376, "text": "I'm just wondering how cautious you are that the current campaign will not lead to the market returning to what we saw two years ago in terms of 4G penetration and promotional tariffs."}, {"start": 4377, "end": 4382, "text": "And you also mentioned that you are looking at some price increases in Finland."}, {"start": 4382, "end": 4387, "text": "And just wondering if you can elaborate on what type of price increase do you expect?"}, {"start": 4387, "end": 4396, "text": "Some are more mass-market price increases, while others focus on the cohort-based price increase strategy used in the past."}, {"start": 4396, "end": 4400, "text": "And my second question is on corporate mobile."}, {"start": 4400, "end": 4404, "text": "Apple has been growing at 4% for the second consecutive quarter."}, {"start": 4405, "end": 4408, "text": "In the past, the growth was quite muted."}, {"start": 4408, "end": 4423, "text": "And I was wondering, given that corporations are starting to adopt 5G, should we consider this the reasonable run rate for the development of corporate mobile output going forward?"}, {"start": 4423, "end": 4423, "text": "Thank you."}]}, {"speakerId": "spk2", "sentences": [{"start": 4424, "end": 4428, "text": "Yes, if I start from the last one."}, {"start": 4428, "end": 4439, "text": "Yes, we see encouraging signals on corporate 5G sales and the corporate RPO has been picking up this quarter."}, {"start": 4440, "end": 4454, "text": "There's a slightly improving outlook for that going forward, as stated on the back of the overall economy."}, {"start": 4454, "end": 4458, "text": "Uh, so in the first signals of improvement."}, {"start": 4458, "end": 4469, "text": "We see corporations starting to invest more in connectivity, software, and IT services."}, {"start": 4469, "end": 4474, "text": "And that is visible across the B2B segment."}, {"start": 4474, "end": 4489, "text": "When we look at the underlying development of things, and then with respect to price increases, I think that we have largely exhausted what we have to say in this one."}, {"start": 4489, "end": 4496, "text": "So during the quarter, towards the end of Q2, we implemented some price increases and communicated these changes in Estonia."}, {"start": 4497, "end": 4501, "text": "That will be visible going forward."}, {"start": 4502, "end": 4516, "text": "In our immediate pipeline, we have several measures. We will be transferring the VAT change in Finland in full to our prices from the 1st of September onwards."}, {"start": 4517, "end": 4525, "text": "Other than that, we cannot comment on possible future price changes."}, {"start": 4526, "end": 4531, "text": "And then, could you please remind me what the first part of your question was?"}]}, {"speakerId": "spk14", "sentences": [{"start": 4534, "end": 4542, "text": "Yes, I'm just asking that, um, I think you mentioned that you see some pickup in 4G campaigns."}, {"start": 4542, "end": 4561, "text": "I'm just wondering, how do you see that developing, and would that be, um, how is this potentially going to impact market dynamics and whether we could return to a more competitive landscape like we saw back two years ago before the 4G price increase happened."}]}, {"speakerId": "spk2", "sentences": [{"start": 4562, "end": 4573, "text": "Largely, we see that the competitive landscape has remained the same during the course of the fall."}, {"start": 4573, "end": 4582, "text": "We do see the fall campaigning for 4G as mentioned, but no, no material shift."}, {"start": 4582, "end": 4595, "text": "And basically all of these factors boil down to our view that we will be seeing mid-single digit growth in Mobile Service Revenue going forward."}, {"start": 4595, "end": 4598, "text": "So that is essentially the bottom line of our commentary.
"}]}, {"speakerId": "spk14", "sentences": [{"start": 4601, "end": 4602, "text": "That's very clear."}]}, {"speakerId": "spk6", "sentences": [{"start": 4608, "end": 4613, "text": "The next question comes from Adam Fox, Analyst from Cell Side."}, {"start": 4613, "end": 4615, "text": "Welcome to the Elisa second quarter 2024 financial results webcast."}]}, {"speakerId": "spk13", "sentences": [{"start": 4619, "end": 4622, "text": "Thank you."}]}, {"speakerId": "spk15", "sentences": [{"start": 4622, "end": 4626, "text": "I appreciate you including me in your opening comments."}, {"start": 4626, "end": 4630, "text": "Right at the top of the call, you mentioned earnings improvements."}, {"start": 4630, "end": 4635, "text": "Clearly, we're seeing that with EBITWGDA, but it is far less significant at EPS."}, {"start": 4635, "end": 4640, "text": "When we look at the first half, it appears to be largely due to financial expenses."}, {"start": 4640, "end": 4651, "text": "So I wondered if you could just talk about your confidence in EPS growth for this year, whether or not the recent refinancing has changed, um, how we should think about your financial expenses?"}, {"start": 4651, "end": 4657, "text": "And then, a quick clarification on the points you were making regarding Standalone 5G."}, {"start": 4658, "end": 4662, "text": "Um, in device terms, what's needed for a standalone subscription?"}, {"start": 4662, "end": 4671, "text": "Should we effectively be expecting another adoption curve of standalone devices to sit beneath the 5G adoption curve?"}, {"start": 4671, "end": 4672, "text": "Thank you."}]}, {"speakerId": "spk4", "sentences": [{"start": 4673, "end": 4680, "text": "Well, if I start with the EPS and net financials."}, {"start": 4680, "end": 4690, "text": "Um, so there was, uh, in Q2, um, 2 million, um."}, {"start": 4692, "end": 4708, "text": "Increase in net finance expenses, including share of associated company profits, is mostly due to higher interest rates."}, {"start": 4708, "end": 4722, "text": "As we have been refinancing in the past, the fixed-rate loans have been at the lower rate."}, {"start": 4722, "end": 4739, "text": "Now, we do not have many refinancing regarding lower fixed rate loans."}, {"start": 4739, "end": 4744, "text": "The next ones are coming in 2026."}, {"start": 4744, "end": 4769, "text": "In the short term, commercial paper loans or bank loans are already priced at the current interest rate level because they are at variable rates."}, {"start": 4771, "end": 4774, "text": "Um, so that's the, uh, situation."}, {"start": 4774, "end": 4794, "text": "For the coming quarters, as we stated earlier in Q1, we expect a 2 to 3 million increase in net financial expenses per quarter this year."}, {"start": 4794, "end": 4797, "text": "So that is, uh, unchanged."}]}, {"speakerId": "spk2", "sentences": [{"start": 4799, "end": 4802, "text": "And related to your question about standalone 5G."}, {"start": 4802, "end": 4818, "text": "At this point in time, we need to remember that there are only a couple of handfuls of devices on the market that can handle 5G standalone."}, {"start": 4818, "end": 4821, "text": "And they are all Android phones as we speak."}, {"start": 4821, "end": 4827, "text": "So, iPhones do not have the Standalone 5G functionality at this point in time."}, {"start": 4827, "end": 4835, "text": "We would expect this to improve in terms of the device capability going forward."}, {"start": 4835, "end": 4846, "text": "And that certainly will also improve the commercial feasibility of Standalone 5G going forward.
"}, {"start": 4846, "end": 4856, "text": "So we are really a frontrunner in this space, also vis-à-vis the device manufacturers."}, {"start": 4857, "end": 4862, "text": "Therefore, it would be too early to say that it would need to be a category of its own."}, {"start": 4862, "end": 4872, "text": "But, it is an additional dimension that will be supportive of our increase in 5G penetration."}]}, {"speakerId": "spk15", "sentences": [{"start": 4874, "end": 4875, "text": "Got it."}]}, {"speakerId": "spk6", "sentences": [{"start": 4880, "end": 4883, "text": "The next question comes from Jason from J.P. Morgan."}, {"start": 4883, "end": 4885, "text": "Morgan. Please go ahead."}]}, {"speakerId": "spk12", "sentences": [{"start": 4890, "end": 4892, "text": "Hi there. Thanks for taking my questions."}]}, {"speakerId": "spk16", "sentences": [{"start": 4892, "end": 4899, "text": "I've got a couple. Another one on Standalone 5G, addressing the hardware question just now."}, {"start": 4900, "end": 4904, "text": "I was just wondering whether you think customers would actually pay for the service."}, {"start": 4904, "end": 4910, "text": "I mean, it is, I think, priced at an extra €13 per month, which seems like a pretty significant premium."}, {"start": 4911, "end": 4915, "text": "So, how do you plan to commercialize that?"}, {"start": 4915, "end": 4917, "text": "Um, because it seems a pretty decent step up."}, {"start": 4917, "end": 4923, "text": "And then another follow-up on the CAPEX question, which you mentioned that CAPEX tends to increase during the summer."}, {"start": 4923, "end": 4929, "text": "So does this phasing maybe indicate the peak coming more in Q2, Q3?"}, {"start": 4929, "end": 4937, "text": "Is that the kind of CAPEX phasing we should expect in future years, assuming that your fiber rollout starts to step up a bit more?"}, {"start": 4937, "end": 4938, "text": "Thank you very much."}]}, {"speakerId": "spk2", "sentences": [{"start": 4939, "end": 4942, "text": "If I take the first question, I will address the second one subsequently."}, {"start": 4942, "end": 4957, "text": "So, I think the price points you are referring to with respect to 5G Standalone relate to our premium subscriptions that do have the 5G Standalone functionality."}, {"start": 4957, "end": 4964, "text": "But on top of that, they have very, very high speeds up to one gigabit."}, {"start": 4964, "end": 4967, "text": "And those price points are there."}, {"start": 4967, "end": 4971, "text": "Both of those subscriptions are premium subscriptions.
"}, {"start": 4971, "end": 4975, "text": "So they would not be selling in large volumes."}, {"start": 4975, "end": 4992, "text": "What we have been doing with our new subscriptions offering is that we have incorporated the 5G standalone functionality into all of the speed tiers that we have for consumers."}, {"start": 4992, "end": 4998, "text": "So that means that there is a slight increase in price."}, {"start": 4998, "end": 5007, "text": "I mean, if we take, for example, a 300-megabit 5G subscription."}, {"start": 5007, "end": 5018, "text": "So with 5G Non-Standalone, the price point was 32.99, and with 5G Standalone functionality, it's €1 more."}, {"start": 5018, "end": 5022, "text": "So this is how you should be looking at it."}, {"start": 5022, "end": 5024, "text": "So across the speed tiers."}]}, {"speakerId": "spk4", "sentences": [{"start": 5026, "end": 5032, "text": "And relating to CAPEX, as mentioned earlier."}, {"start": 5032, "end": 5036, "text": "So, quarters are really different."}, {"start": 5036, "end": 5052, "text": "For the whole year, we are confident that we will be in line with the 12 to 13% sales guidance."}, {"start": 5052, "end": 5060, "text": "And there are, um, these differences relating to fiber."}, {"start": 5060, "end": 5076, "text": "Mobile 5G network rollout occurs at different times of the year and varies each quarter."}, {"start": 5076, "end": 5083, "text": "But um, as that figures, 12 to 13% for the whole year is valid."}]}, {"speakerId": "spk16", "sentences": [{"start": 5086, "end": 5086, "text": "Thank you for your reply."}]}, {"speakerId": "spk6", "sentences": [{"start": 5095, "end": 5099, "text": "The next question comes from Felix Henriksen from Nordica."}, {"start": 5099, "end": 5101, "text": "Today, we are excited to discuss Elisa's performance for the second quarter of 2024, highlighting significant growth and operational achievements."}]}, {"speakerId": "spk17", "sentences": [{"start": 5103, "end": 5104, "text": "Hi."}, {"start": 5104, "end": 5106, "text": "Um, I have a couple of follow-up questions."}, {"start": 5106, "end": 5109, "text": "Firstly, just on the corporate ARP."}, {"start": 5109, "end": 5122, "text": "I think back on your latest Capital Markets Day, you stated that the average billing increase from B2B, due to 5G migration, was about €4, as opposed to the average €3 as a whole."}, {"start": 5122, "end": 5125, "text": "Are you willing to reiterate that message?"}, {"start": 5125, "end": 5127, "text": "Is that still the case?"}, {"start": 5127, "end": 5139, "text": "Secondly, I think you mentioned EDAs as a positive contributor to operating leverage for the second half of the year if the growth there materializes."}, {"start": 5139, "end": 5146, "text": "Can you confirm that the IDs will indeed be a positive contributor to earnings and operational leverage for the second half of the year?"}, {"start": 5146, "end": 5153, "text": "Especially in light of the fact that we've understood that the business is still EBITDA negative for 2024."}, {"start": 5153, "end": 5154, "text": "Thank you."}]}, {"speakerId": "spk4", "sentences": [{"start": 5155, "end": 5160, "text": "Yes. If I start with the last one, uh."}, {"start": 5161, "end": 5165, "text": "Um, yes, as is the case with revenue."}, {"start": 5165, "end": 5173, "text": "So it's second half weighted similarities with earnings."}, {"start": 5173, "end": 5180, "text": "So, during the year, better, better."}, {"start": 5181, "end": 5185, "text": "In the second half, compared to the first half."}, {"start": 5186, "end": 5191, "text": "So the answer to your question is yes, in that sense."}, {"start": 5192, "end": 5197, "text": "Regarding our uplift."}, {"start": 5197, "end": 5205, "text": "So, this three-year-old data is for the whole company level."}, {"start": 5205, "end": 5212, "text": "This is what we are reiterating and confirming."}, {"start": 5212, "end": 5222, "text": "So, uh, €3 per uplift when customers are moving to 5G, we are not making, uh, segment specifications on that."}]}, {"speakerId": "spk17", "sentences": [{"start": 5225, "end": 5226, "text": "Okay. Fair enough. Thank you."}]}, {"speakerId": "spk6", "sentences": [{"start": 5233, "end": 5236, "text": "The next question comes from Usman from Berenberg."}, {"start": 5237, "end": 5238, "text": "Welcome to Elisa's second quarter 2024 financial webcast."}]}, {"speakerId": "spk18", "sentences": [{"start": 5241, "end": 5242, "text": "Thank you for the opportunity."}, {"start": 5243, "end": 5244, "text": "I just got three questions, please."}, {"start": 5244, "end": 5249, "text": "The first question was about the mobile service revenues."}, {"start": 5249, "end": 5268, "text": "In Q1, there was approximately 2.5 million of an artificial boost to mobile service revenues due to a reallocation of revenues from fixed to mobile in response to the special numbers regulation."}, {"start": 5268, "end": 5275, "text": "Um, I just wanted to confirm if there was a similar impact in Q2 or was that just in Q1?"}, {"start": 5276, "end": 5278, "text": "It was just one item."}, {"start": 5278, "end": 5301, "text": "The second question was just looking at the EBITDA development by consumer and business. I guess I mean the consumer seems fairly well on track to continue delivering mid to high single-digit EBITDA growth."}, {"start": 5301, "end": 5307, "text": "Corporate, which has been a drag, seems to be coming around the corner."}, {"start": 5308, "end": 5323, "text": "So, if consumer growth is in the mid to high single digits and corporate growth is in the low single digits, at the group level, it seems like you're well on track to achieving something like mid-single digit growth in EBITDA."}, {"start": 5324, "end": 5327, "text": "Is that? Is there any kind of...?"}, {"start": 5327, "end": 5339, "text": "Is that the right way to think about it, or is it too soon to declare a kind of victory in the corporate EBITDA and anticipate headwinds in the coming quarters?"}, {"start": 5339, "end": 5344, "text": "Uh, any clarification on that would be helpful."}, {"start": 5345, "end": 5364, "text": "Just on my third point regarding the fiber acquisition you're undertaking, are there many other opportunities in the Finnish market where you could potentially ramp up this activity in the coming quarters?"}, {"start": 5364, "end": 5364, "text": "Thank you."}]}, {"speakerId": "spk4", "sentences": [{"start": 5365, "end": 5378, "text": "Regarding mobile service revenue and the impact from corporate network regulation changes and new products."}, {"start": 5378, "end": 5385, "text": "It's roughly similar to Q1 in this quarter."}, {"start": 5386, "end": 5401, "text": "Then regarding Elisa, so we have for the company level in our mid-term financial targets, higher than 3% EBITDA growth."}, {"start": 5401, "end": 5407, "text": "And that is what we maintain currently."}, {"start": 5407, "end": 5431, "text": "Target and those factors previously mentioned are in accordance with what we stated regarding the consumer and corporate customer segments, showing a slightly improved performance."}, {"start": 5431, "end": 5446, "text": "Early indications also suggest opportunities in the fiber sector for the latter part of the year."}, {"start": 5446, "end": 5470, "text": "Of course, it is difficult to say when and if they are coming, but if they do come, then we will take a careful and disciplined look at those so that the price and the value creation opportunity are aligned."}, {"start": 5470, "end": 5478, "text": "There have been several other transactions in the past."}, {"start": 5478, "end": 5495, "text": "Apart from our ongoing activities, we have also observed transactions from a value creation perspective in which we did not participate, and would not consider participating."}]}, {"speakerId": "spk18", "sentences": [{"start": 5496, "end": 5507, "text": "Are you seeing increased activity in this space, or are the levels similar?"}]}, {"speakerId": "spk4", "sentences": [{"start": 5509, "end": 5518, "text": "Yes, there will likely be fiber assets on the market."}, {"start": 5518, "end": 5520, "text": "It's difficult to say."}, {"start": 5520, "end": 5540, "text": "To what extent and when is hard to determine, but it appears there are some assets in different parts of the country that could be up for sale in the near future."}, {"start": 5540, "end": 5546, "text": "However, pinpointing exactly when is challenging.
"}]}, {"speakerId": "spk2", "sentences": [{"start": 5546, "end": 5559, "text": "As mentioned, over the past six months or so, we have completed a few small asset deals in fiber."}, {"start": 5560, "end": 5571, "text": "This could indicate that the market for asset deals is becoming somewhat more active."}, {"start": 5571, "end": 5573, "text": "But we will have to live and learn."}]}, {"speakerId": "spk8", "sentences": [{"start": 5575, "end": 5575, "text": "Okay. Thank you."}]}, {"speakerId": "spk1", "sentences": [{"start": 5590, "end": 5594, "text": "It appears that we don't have any further questions from the conference call lines.
"}, {"start": 5594, "end": 5596, "text": "Thank you for that."}, {"start": 5596, "end": 5598, "text": "And thank you for participating."}, {"start": 5599, "end": 5608, "text": "We are heading into the summer holidays now, but my colleague Juha will be available for further discussions with you in the coming days if needed."}, {"start": 5608, "end": 5610, "text": "So, have a nice summer."}]}, {"speakerId": "spk2", "sentences": [{"start": 5611, "end": 5612, "text": "Thank you very much for your participation.
"}, {"start": 5612, "end": 5613, "text": "Enjoy the summer."}]}], "speakers": [{"speakerId": "spk1", "name": "Unknown 1"}, {"speakerId": "spk2", "name": "Toby Muller"}, {"speakerId": "spk3", "name": "Unknown 2"}, {"speakerId": "spk4", "name": "Unknown 3"}, {"speakerId": "spk5", "name": "Unknown 4"}, {"speakerId": "spk6", "name": "Operator"}, {"speakerId": "spk7", "name": "Unknown 5"}, {"speakerId": "spk8", "name": "Unknown 6"}, {"speakerId": "spk9", "name": "Unknown 7"}, {"speakerId": "spk10", "name": "Unknown 8"}, {"speakerId": "spk11", "name": "Unknown 9"}, {"speakerId": "spk12", "name": "Unknown 10"}, {"speakerId": "spk13", "name": "Unknown 11"}, {"speakerId": "spk14", "name": "Unknown 12"}, {"speakerId": "spk15", "name": "Unknown 13"}, {"speakerId": "spk16", "name": "Unknown 14"}, {"speakerId": "spk17", "name": "Unknown 15"}, {"speakerId": "spk18", "name": "Unknown 16"}], "id": "66965edc2690eb8f46b327b9", "createdAt": "2024-07-16T11:51:56.433Z", "updatedAt": "2024-07-16T11:51:56.433Z", "langCode": "en", "transcriptType": "ENHANCED", "amberscriptJobId": null, "speechmaticsJobId": null, "eventId": "657980be263ffa00124de9ef"}