ELISA CORPORATION INTERIM REPORT RELEASE 18 OCTOBER 2024 AT 8:30 AM
Third quarter 2024 financial highlights
· Revenue decreased by EUR 9m to EUR 536m, mainly due to lower equipment sales
and regulated revenue as well as the net impact of acquisitions and disposals.
· Mobile service revenue increased by 4.8 per cent to EUR 254m.
· EBITDA grew by EUR 7m to EUR 206m.
· EBIT increased by EUR 5m to EUR 136m.
· Comparable cash flow increased by EUR 4m to EUR 111m.
· In Finland, mobile post-paid ARPU increased to EUR 23.2 (23.1 in the
previous quarter), and
· mobile post-paid churn increased to 16.8 per cent (15.0).
· During the quarter, the number of post-paid mobile subscriptions increased
by 27,700. The M2M and IoT subscription base grew by 39,800.
· Prepaid subscriptions increased by 14,000 during the quarter.
· The number of fixed broadband subscriptions increased by 8,200 during the
quarter.
· EBITDA guidance for 2024 is upgraded to “slightly higher” (previously “same
level or slightly higher”).
Key indicators
[][][][][][][]
EUR million 3Q24 3Q23 Δ % 1Q-3Q24 1Q-3Q23 Δ %
Revenue 536 545 -1,6 % 1 612 1 617 -0,3 %
EBITDA 206 199 3,7 % 576 565 1,9 %
Comparable 206 199 3,7 % 586 565 3,7 %
EBITDA [(1]
EBIT 136 131 3,6 % 369 364 1,4 %
Comparable EBIT 136 131 3,6 % 379 364 4,2 %
[(1]
Profit before 126 125 0,4 % 343 348 -1,2 %
tax
Comparable 126 125 0,4 % 353 348 1,7 %
profit before
tax [(1]
EPS, EUR 0,63 0,63 0,3 % 1,72 1,76 -2,2 %
Comparable EPS, 0,63 0,63 0,3 % 1,77 1,76 0,7 %
EUR [(1]
Capital 93 78 19,7 % 245 213 15,4 %
expenditure
Net debt 1 298 1 356 -4,3 % 1 298 1 356 -4,3 %
Net debt / 1,7 1,8 1,7 1,8
EBITDA [(2]
Gearing ratio, % 107,5 % 114,3 % 107,5 % 114,3 %
Equity ratio, % 38,1 % 36,1 % 38,1 % 36,1 %
Cash flow [(3] 95 107 -10,7 % 233 286 -18,5 %
Comparable cash 111 107 4,1 % 291 286 1,9 %
flow [(4]
[1)] 1Q-3Q2024 excluding EUR 10m in restructuring costs.[ 2)] (Interest-bearing
debt - financial assets) / (four previous quarters' comparable EBITDA). [3)]
Cash flow before financing activities. [4)] 3Q24 excluding EUR 16m and 1Q-3Q24
excluding EUR 58m in share and business investments and loans granted.
Additional key performance indicators are available at elisa.com/investors
(Elisa Operational Data.xlsx).
CEO Topi Manner: Solid earnings development continuing
In the third quarter, Elisa continued its good performance, despite geopolitical
uncertainties and the continued soft macroeconomic environment, which prompted
companies to engage in cost savings and personnel reductions. Lower interest
rates and inflation have so far had no impact on demand. Revenue decreased by
2 per cent to EUR 536 million, mainly due to the net impact of acquisitions and
disposals, a decrease in equipment sales, and regulated revenue. EBITDA,
however, improved by 4 per cent to EUR 206 million, driven by mobile service
revenue, efficiency improvements and improving profitability in the B2B segment.
Earnings per share was EUR 0.63.
Elisa's 5G network has now reached all municipalities in Finland, covering over
95 per cent of the population. We have seen accelerated growth in the 5G
standalone (5G+) base. Customers appreciate the improved network quality and
service levels, as well as decreases in energy consumption by their devices. The
acquisition of fibre networks in the eastern and northeastern parts of Finland
from Kaisanet, announced in July, further strengthens our fibre coverage.
In September, we launched the Elisa Etuohjelma loyalty programme for our
consumer customers in Finland, rewarding customers for their long-term
relationships and for centralising their subscriptions and services with Elisa.
This loyalty programme is the first of its kind among operators in Finland and
has been well received by our customers.
Our international digital services business continues to grow. In October, we
announced an agreement acquiring the rest of the share capital of sedApta Group.
The acquisition accelerates the growth of the Elisa IndustrIQ business,
strengthening our software offering in industrial automation and Elisa's
foothold in the global manufacturing customer base. Italy-based sedApta is an
industrial software provider specialising in innovative IT solutions for
manufacturing operations and supply chain management, with over 1,500
manufacturing industry customers globally.
Elisa plays a key role in securing Finland's cyber security and critical
infrastructure. In July, Elisa participated in Cyber Fortress 3.0, a cyber
exercise related to defence cooperation between Finland and the United States.
Cooperation between business and the authorities plays a key role in protecting
critical infrastructure.
Our performance during the quarter clearly demonstrates our strong commitment to
profitable growth, creating customer value by being a frontrunner in technology,
and continuously improving our productivity and quality.
Outlook and guidance for 2024
The development in the general economy includes many uncertainties. Growth in
the Finnish economy is expected to stall. In particular, there is continuing
uncertainty relating to Russia's war in Ukraine and other conflicts. Challenges
in global supply chains may also result in uncertainties in volumes and prices.
Competition in the Finnish telecommunications market remains keen.
Full-year revenue is estimated to be at the same level as or slightly higher
than in 2023. Mobile data and digital services are expected to increase revenue.
Full-year comparable EBITDA is anticipated to be slightly higher than in 2023.
Capital expenditure is expected to be 12-13 per cent of revenue.
Elisa continues to improve productivity, for example by increasing automation
and data analytics in different processes, such as customer interaction, network
operations and delivery. Additionally, Elisa's continuous quality improvement
measures will increase customer satisfaction and efficiency, and reduce costs.
Elisa's transformation into a provider of exciting, new and relevant services
for its customers is continuing. Long-term revenue growth and profitability
improvement will derive from growth in the mobile data market, as well as
domestic and international digital services.
ELISA CORPORATION
Additional information:
Mr Topi Manner, CEO, tel. +358 10 265 1200
Mr Jari Kinnunen, CFO, tel. +358 10 262 9510
Mr Vesa Sahivirta, IR Director, tel. +358 50 520 5555
Distribution:
Nasdaq Helsinki
Principal media
elisa.com