Elisa - Interim report (Q1 and Q3)

Elisa’s Interim Report January-June 2012

ELISA INTERIM REPORT 13 JULY 2012 AT 8:30am

Second quarter 2012

  -- Revenue amounted to EUR 389 million (378)
  -- EBITDA was EUR 122 million (121) and EBIT was EUR 72 million (69)
  -- Profit before tax increased to EUR 66 million (61) 
  -- Earnings per share increased to EUR 0.32 (0.29)
  -- Cash flow after investments was EUR 47 million (59)
  -- The full year's outlook is reiterated
  -- Mobile ARPU was EUR 18.0 (18.1 in previous quarter)
  -- Mobile churn was 14.1 per cent (15.3 in previous quarter)
  -- The number of Elisa's mobile subscriptions increased by 93,000 during the
     quarter
  -- The number of fixed broadband subscriptions increased by 3,000 on the
     previous quarter
  -- Net debt / EBITDA was 1.8 (1.6 end 2011) and gearing 123 per cent (94 end
     2011)

January - June 2012

  -- Revenue was EUR 771 million (752)
  -- EBITDA was EUR 243 million (239), EBIT EUR 140 million (134)
  -- Cash flow after investments was EUR 85 million (86)

Key indicators:

--------------------------------------------------
                         2nd Quarter  Year-to-date
EUR million               2012  2011   2012   2011
--------------------------------------------------
--------------------------------------------------
Revenue                    389   378    771    752
EBITDA                     122   121    243    239
EBIT                        72    69    140    134
Profit before tax           66    61    127    119
Earnings per share, EUR   0.32  0.29   0.63   0.56
Capital expenditures        51    54     92     95
--------------------------------------------------

 Financial position and cash flow:

EUR million          30.6.2012  30.6.2011  End 2011
---------------------------------------------------
---------------------------------------------------
Net debt                   909        845       788
Net debt / EBITDA1)        1.8        1.7       1.6
Gearing ratio, %         123.3      108.0      93.8
Equity ratio, %           38.0       40.3      42.3
---------------------------------------------------





------------------------------------------
                 2nd Quarter  Year-to-date
EUR million       2012  2011   2012   2011
------------------------------------------
Cash flow after     47    59     85     86
investments                               
------------------------------------------

1) (interest-bearing debt - financial assets) / (four previous quarters' EBITDA
exclusive of non-recurring items) 

Additional information regarding the Key Performance Indicators is available at
www.elisa.com/investors Elisa Operational Data.xls. 


CEO Veli-Matti Mattila:

“Elisa's earnings and revenue have continued to develop favourably

Despite keen competition, Elisa's competitiveness and the demand for our
services strengthened during the second quarter of 2012. Elisa's earnings and
revenue grew in accordance with expectations. The increase in revenue was
boosted by sales of terminals, mobile voice and data services as well as new
services. 

The total number of mobile subscriptions grew by 93,000 during the second
quarter. Fixed broadband subscriptions increased by 3,000 supported by new
services and service bundles. Moreover, the demand for mobile data services
continued to grow strongly, with dongles and smartphones having established
their popularity among consumers and business users. 

Elisa's consumer services developed favourably during the period. The Elisa
Viihde entertainment service continued to grow in popularity. For example,
Elisa Viihde tablet and smartphone applications have been downloaded more than
120,000 times. Applications can be used for purposes such as recording
favourite programs. The Elisa Kirja e-book service, a forerunner for new
reading services, was included in city library selections. The libraries of
Helsinki and Oulu lend out the service on tablets for reading new Finnish
detective novels. The service was also expanded to cover more than 100
out-of-print detective novels. 

Elisa introduced several new services for corporate customers during the second
quarter. Secure identification enables health center clients to use online
services. For example, they can send nurses questions that will be recorded in
an electronic health record system. Identification is easy by means of mobile
certificates. To support corporate IT solutions, Elisa introduced the Elisa
eSali cloud service, which enables companies to acquire additional server
capacity based on their specific needs. A new technology developed by Elisa
makes it possible for companies to combine their own data centers with virtual
ones. 

Elisa continued to invest in networks, and 4G speeds were expanded to cover 160
locations during the second quarter. 4G services have been well received by
customers. Elisa constantly invests in deepening its customer understanding and
customer service. Elisa expanded its consumer customer service by enhancing the
use of social media channels. For corporate customers Elisa introduced a new
type of online IT support service provided via videoconferencing and chat. 

We will continue our determined work to develop the productivity of our
operations and customer satisfaction. Elisa creates services that improve
productivity and user experiences. Combined with our strong investment ability,
this creates a solid foundation for competitive operations in the future."

Outlook for 2012

The budget deficits and solvency issues in several European countries and banks
have impacted the Finnish economy to some extent. The macroeconomic outlook for
Finland is weaker than the outcome in 2011. Competition in the Finnish
telecommunications market also remains challenging. 

Full year revenue is estimated to be at the same level as in the previous year.
The use of mobile communications, especially mobile broadband services and
equipment sales, is continuing to rise. In addition, Elisa continues to invest
in ICT and new online services, which are expected to boost revenue. Full year
EBITDA, excluding non-recurring items, is anticipated to be at the same level,
and EBIT is expected to improve on last year given the lower level of
depreciation. Full-year capital expenditure is expected to be maximum 12 per
cent of revenue. 

In addition to its strong position as a network service provider, Elisa is
transforming itself to be able to provide customers with exciting and relevant
new services. Among the factors contributing to long-term growth and
profitability improvement is mobile data market growth, as well as new online
and ICT services. Elisa continues determinedly to employ its efficiency
measures. Elisa's financial position and liquidity are good. 

Disclosure procedure

Elisa is adopting the disclosure procedure enabled by the Standard 5.2b
published by the Finnish Financial Supervision Authority. This is a summary of
Elisa's Interim Report for January-June 2012 and the complete report is
attached as a pdf-file to this release and is also available on our website at
www.elisa.com/investors. 

ELISA CORPORATION

Additional information:

Mr. Veli-Matti Mattila, CEO, tel. +358 10 262 2635

Mr. Jari Kinnunen, CFO, tel. +358 10 262 9510

Mr. Vesa Sahivirta, IR Director, tel. +358 10 262 3036


Distribution:

NASDAQ OMX Helsinki
Principal media
www.elisa.com

Attachments:

120713INTERIM REPORT Q2 2012.pdf