ELISA CORPORATION HALF-YEAR FINANCIAL REPORT RELEASE 15 JULY 2025 AT 8:30 AM
Second quarter 2025 financial highlights
· Revenue increased by 2 per cent, or EUR 11m, to EUR 552m.
· Mobile service revenue increased by 3.4 per cent, or EUR 9m, to EUR 260m.
· Comparable EBITDA grew by 4 per cent, or EUR 8m, to EUR 198m.
· Comparable EBIT increased by 2 per cent, or EUR 3m, to EUR 124m.
· Comparable cash flow increased by 20 per cent, or EUR 19m, to EUR 113m.
· In Finland, mobile post-paid ARPU increased to EUR 24.1 (23.9 in the
previous quarter), and mobile post-paid churn decreased to 17.1 per cent (18.6).
· During the quarter, the number of post-paid mobile subscriptions increased
by 42,800, of which M2M and IoT subscriptions grew by 14,100.
· Prepaid subscriptions increased by 2,700 during the quarter.
· The number of fixed broadband subscriptions increased by 4,400 during the
quarter.
Key indicators
[][][][][][][][]
EUR million 2Q25 2Q24 Δ % 1H/25 1H/24 Δ %
Revenue 552 541 2,0 % 1 108 1 076 3,0 %
EBITDA 196 190 3,2 % 391 370 5,6 %
Comparable 198 190 4,3 % 397 380 4,4 %
EBITDA [(1]
EBIT 122 121 0,7 % 244 233 4,6 %
Comparable EBIT 124 121 2,4 % 250 243 2,7 %
[(1]
Profit before 112 114 -1,8 % 223 218 2,6 %
tax
Comparable 114 114 0,1 % 230 228 0,7 %
profit before
tax [(1]
EPS, EUR 0,56 0,57 -1,9 % 1,12 1,09 3,0 %
Comparable EPS, 0,57 0,57 -0,1 % 1,15 1,14 1,1 %
EUR [(1]
Capital 76 81 -6,0 % 141 139 1,5 %
expenditure [(2]
Net debt 1 495 1 383 8,1 % 1 495 1 383 8,1 %
Net debt / 1,9 1,8 1,9 1,8
EBITDA [(3]
Gearing ratio, % 137,0 % 125,2 % 137,0 % 125,2 %
Equity ratio, % 32,7 % 34,8 % 32,7 % 34,8 %
Cash flow [(4] 112 76 47,3 % 189 138 37,5 %
Comparable cash 113 94 20,4 % 196 180 8,7 %
flow [(5]
[1) ]2Q2025 excluding EUR 2m in restructuring costs, and 1H2025 excluding EUR 6m
in restructuring costs. 1H2024 excluding EUR 10m in restructuring costs. [2)
]Excluding leases, licences, shares and business acquisitions. [3) ](Interest
-bearing debt - financial assets) / (four previous quarters' comparable EBITDA).
[4)] Cash flow before financing activities. [5)] 2Q2025 excluding EUR 1m and
1H2025 excluding EUR 7m in share investments. 2Q2024 excluding EUR 18m and
1H2024 excluding EUR 43m in share investments and loans granted.
Additional key performance indicators are available at elisa.com/investors
(Elisa Operational Data.xlsx).
CEO Topi Manner: Strong growth in EBITDA and cash flow
In the second quarter, revenue grew by 2 per cent to EUR 552 million. The growth
in revenue was affected by a EUR 12 million decrease in low-margin equipment
sales, including a one-off, EUR 7 million deal in Estonia in the comparison
quarter. Comparable EBITDA improved by 4 per cent to EUR 198 million, boosted by
continuous improvements in efficiency. Comparable cash flow grew by 20 per cent,
driven by growing EBITDA, positive net working capital change and strict CAPEX
discipline. Relative to many other industries, Elisa's business will remain
stable in uncertain geopolitical times, even though we are not immune to all
customer impacts.
During the second quarter, we launched a significant upgrade to our consumer
voice subscriptions, which now include a suite of security features: mobile ID,
scam site blocking and data leakage monitoring. This upgrade was well received
by customers, as witnessed by the decreasing overall churn rate, and resulted in
an improved growth rate in mobile service revenue. We will continue the rollout
of the upgraded offering during the remainder of the year and beyond.
We became the first operator in the world to offer customers mobile
subscriptions using 5.5G (5G Advanced) technology. We announced an agreement
with Nokia on the extension of the 5.5G networks in Finland and Estonia.
We were also the first operator in Europe to achieve download speeds of up to
8 Gbps with carrier aggregation in the 5G Standalone network in Finland,
together with Ericsson and MediaTek. In Estonia, Ookla rated Elisa's 5G network
as the fastest.
To further enhance efficiency, resilience and customer experience, we announced
expanded collaboration with Google Cloud to enable the implementation of AI
-driven autonomous network operations.
In the Corporate Customers business, we gained significant new customer wins. In
IT services, the number of workstations covered by Elisa's AI-enhanced service
will increase by 40 per cent during 2025, strengthening our position among the
top four IT service companies in Finland. For our B2B customers, we launched
Moontalk AIRI, an AI-assisted service for companies that provides automatic note
-taking and call summaries for phone calls.
In International Software Services, we had several customer wins, especially in
the telecom industry. As a result, comparable organic growth for the quarter was
10 per cent. The launch of Elisa Industriq brand continued during the quarter.
Elisa's long-term sustainability work continued to gain international
recognition. In the latest report from Time Magazine and Statista, Elisa ranked
as the 55[th] most sustainable company in the world. We were also included in
the Financial Times and Statista Europe's Best Employers ranking.
Our performance during the second quarter clearly demonstrates our strong
commitment to faster profitable growth, creating customer value by being a
frontrunner in technology, and continuously improving our productivity and
quality.
Outlook and guidance for 2025
The development in the general economy includes many uncertainties. Growth in
the Finnish economy is expected to be weak. In particular, there is continuing
uncertainty relating to Russia's war in Ukraine and other geopolitical
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 2024. Mobile, digital and software services are expected to increase
revenue. Full-year comparable EBITDA is anticipated to be at the same level as
or slightly higher than in 2024. Capital expenditure is expected to be a maximum
of 12 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 digital and international software 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 (http://www.elisa.com)