Elisa - Interim report (Q1 and Q3)

Elisa's Interim Report January–March 2016

ELISA INTERIM REPORT RELEASE 15 APRIL 2016 AT 8:30 AM

First quarter 2016

  -- Revenue amounted to EUR 390 million (381)
  -- EBITDA was EUR 137 million (129), and EBIT was EUR 84 million (76)
  -- Profit before taxes amounted to EUR 77 million (71)
  -- Earnings per share were EUR 0.39 (0.37)
  -- Cash flow after investments was EUR 64 million (68)

  -- Mobile ARPU was EUR 16.3 (16.5 in previous quarter)
  -- Mobile churn was 16.1 per cent (16.2 in previous quarter)
  -- Mobile service revenue increased by 9 per cent to EUR 186 million (171)
  -- The number of Elisa’s mobile subscriptions decreased by 16,000 during the
     quarter
  -- The number of fixed broadband subscriptions decreased by 5,300 on the
     previous quarter
  -- Net debt / EBITDA was 1.7 (1.8 end 2015) and gearing 118 per cent (104 end
     2015)

Key indicators

-----------------------------------------------
                         1st Quarter  Full year
EUR million               2016  2015       2015
-----------------------------------------------
-----------------------------------------------
Revenue                    390   381      1,569
EBITDA                     137   129        532
EBIT                        84    76        312
Profit before tax           77    71        291
Earnings per share, EUR   0.39  0.37       1.52
Capital expenditure         44    52        196
-----------------------------------------------

Financial position and cash flow

EUR million           31 Mar 2016  31 Mar 2015  End 2015
--------------------------------------------------------
--------------------------------------------------------
Net debt                      899          934       962
Net debt / EBITDA 1)          1.7          1.8       1.8
Gearing ratio, %            118.1        128.5     103.9
Equity ratio, %              33.8         32.2      41.4
--------------------------------------------------------



---------------------------------------
                 1st Quarter  Full year
EUR million       2016  2015       2015
---------------------------------------
Cash flow after     64    68        253
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: Users of fast 4G mobile data connections are the most
satisfied 

Elisa's revenue and earnings grew again with strengthening of its
competitiveness, even though the general economic situation continued to be
challenging. Earnings improved, in particular, as a result of the growth of
mobile service revenue compared with last year and the improved profitability
of Elisa's operational activities. 

The active use of smartphones and apps has inspired a shift among both
consumers and corporate customers and organisations towards becoming users of
fast mobile broadband subscriptions. The number of mobile subscriptions
decreased by 16,000 during the quarter and fixed-network subscriptions by
5,300. 

The unlimited data pricing model, popular video services, and investments in
the expansion of the 4G network have taken Finland to the top of the world in
the use of mobile data. Elisa’s mobile network sees the largest amounts of data
being transferred in Finland; smartphone users get through on average of seven
gigabytes a month. We are investing in better user experience for our
customers, and we are the first in Finland to pilot maximum speeds of 450
Mbit/s in our commercial network. 

In addition to mobile and fixed communication services, we have invested in
services that bring added value to our consumer customers. Fanseat has become a
popular sports entertainment service that brings important sports series and
events for viewing to our customers both in Finland and abroad. Fanseat can be
viewed in Finland as part of Elisa Viihde, and through other operator networks
and mobile apps in Finland and abroad. 

We are strongly contributing to the digitalisation of Finnish society and
Finnish services. We implemented an indoor positioning system for the Hospital
District of Helsinki and Uusimaa to permit real-time monitoring of the location
of its medical devices. The system makes it possible to both improve the safety
of patients and make the work of the health care staff more efficient. Elisa
received valued recognition. For the Finnish public broadcasting company Yle’s
service production, we received an ISO/IEC 20000-1 certificate for the
management of IT services and the quality of the management. 

Elisa acts in a socially responsible way. We strongly assist our customers in
digitalisation, and we produce content that makes our customers’ lives easier
in the network in terms of data security and apps that help with everyday life.
We offer young people an opportunity to get familiar with working life, and we
also provide summer jobs for 200 young people together with our subsidiaries
and temporary agency employees. 

We will continue our determined work to improve the customer experience and our
operations. Improving our productivity, developing digital services for our
customers and maintaining our strong investment capability create a solid
foundation for competitive operations in the future. 

Outlook and guidance for 2016

The macroeconomic environment in Finland is still expected to be weak in 2016.
Competition in the Finnish telecommunications market also remains challenging. 

Full-year revenue is estimated to be at the same level as in 2015. Mobile data,
ICT and new online services are expected to increase revenue. Full-year EBITDA,
excluding non-recurring items, is anticipated to be at the same level in 2015.
Full-year capital expenditure is expected to be a maximum of 12 per cent of
revenue. Elisa’s financial position and liquidity are good. 

Elisa is continuing its productivity improvement measures, for example by
streamlining the product portfolio and IT systems and operations. Additionally,
Elisa is continuing to increase customer service and sales efficiency, as well
as to reduce general administrative costs. 

Elisa's transformation into a provider of exciting, new and relevant services
for its customers is continuing. Long-term growth and profitability improvement
will derive from mobile data market growth, as well as new online and ICT
services. 

Disclosure procedure

Elisa is adopting the disclosure procedure enabled by the Standard 5.2b
published by the Finnish Financial Supervision Authority. This is a summary of
Elisa’s Q1 2016 Interim Report and the complete report is attached as a
pdf-file to this release and is also available on our website at
www.elisa.com/investors. 



ELISA CORPORATION

Additional information:

Mr. Veli-Matti Mattila, CEO, tel. +358 10 262 2635
Mr. Jari Kinnunen, CFO, tel. +358 10 262 9510
Mr. Vesa Sahivirta, IR Director, tel. +358 10 262 3036

Distribution:

Nasdaq Helsinki
Principal media
www.elisa.com

Attachments:

INTERIM REPORT Q1 2016.pdf