Elisa - Interim report (Q1 and Q3)

Elisa’s Interim Report January-March 2013

ELISA INTERIM REPORT RELEASE 19 APRIL 2013 AT 8:30am

First quarter 2013
- Revenue was EUR 361 million (382)
- EBITDA was EUR 109 million (121) and excluding non-recurring items EUR 111
million 
- EBIT was EUR 59 million (68) and  excluding non-recurring items EUR 61 million
- Profit before tax amounted to EUR 53 million (61)
- Earnings per share was EUR 0.26 (0.31)
- Cash flow after investments was EUR 37 million (37)


- Mobile ARPU was EUR 15.4 (16.7 in previous quarter)
- Mobile churn was 20.0 per cent (19.3 in previous quarter)
- The number of Elisa's mobile subscriptions increased by 23,900 during the
quarter 
- The number of fixed broadband subscriptions increased by 3,600 on the
previous quarter 
- Net debt / EBITDA was 1.7 (1.7 end 2012) and gearing 119 per cent (98 end
2012) 

- Full year EBITDA, excluding non-recurring items and the pending PPO
acquisition, is anticipated to be at the same level or slightly below 2012
(previously: same level). 

Key indicators

-----------------------------------------------
                         1st Quarter  Full year
EUR million               2013  2012       2012
-----------------------------------------------
-----------------------------------------------
Revenue                    361   382      1,553
EBITDA1)                   109   121        501
EBIT                        59    68        299
Profit before tax           53    61        269
Earnings per share, EUR   0.26  0.31       1.33
Capital expenditure         47    42        193
-----------------------------------------------

1) Excluding non-recurring items: EBITDA EUR 111m, EBIT EUR 61m, profit before
tax EUR 55m and EPS EUR 0.26 



Financial position and cash flow

EUR million           31.3.2013  31.3.2012  31.12.2012
------------------------------------------------------
------------------------------------------------------
Net debt                    807        754         839
Net debt / EBITDA 1)        1.7        1.5         1.7
Gearing ratio, %          118.4       84.8        99.3
Equity ratio, %            33.3       44.8        42.3
------------------------------------------------------



-----------------------------------------
                   1st Quarter  Full year
EUR million         2013  2012       2012
-----------------------------------------
Cash flow             37    37        155
after investments                        
-----------------------------------------

1) (interest-bearing debt - financial assets) / (four previous quarters' EBITDA
excluding 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:

 “Execution of the strategy continued despite tough competition

Competition remained tough during the first quarter of the year. The
uncertainty in the general economic situation was reflected in the cautiousness
of enterprises, and to some extent of consumers as well. Despite this, demand
for new services continued to be strong. Elisa's earnings and revenue decreased
during the quarter. Lower interconnection prices both in Finland and Estonia as
well as active price campaigns for mobile subscriptions contributed to the
decrease in revenue. 

Our mobile subscription base grew by 24,000 during the first quarter of the
year. The number of fixed-network broadband subscriptions also continued to
grow, with more than 3,000 new subscriptions. The strong growth in mobile data
services continued, supported by the use of smartphones and USB modems among
consumers and corporate customers. 

Elisa was the first company in the Nordic countries to open a mobile payment
service. The Elisa Lompakko service enables contactless payments, and the Elisa
Nettimaksukortti online payment service offers a safe method of payment for
online stores. The Elisa Rahaviesti money transfer service can be used to
transfer small amounts of money to another user of the service. Online video
rental through the Elisa Viihde service has increased significantly. Nearly 60
per cent of customers have already used the video rental service, and more than
a quarter use it every week. 

Demand for ICT services continued to strengthen among corporate customers.
Elisa became the first operator in Finland to sell Office 365 cloud services
with the Elisa Toimisto 365 service, and is currently one of the leading Office
365 solution providers in Europe. The number of customers is growing by more
than 10 per cent each month. The popularity of online conferencing and new
applications are also increasing rapidly, for example banks using them to
negotiate loans online. 

We invest in corporate responsibility at Elisa. We are participating in
national action supporting young people's lives in concrete and positive ways.
Elisa began cooperation with Centria University of Applied Sciences in Central
Ostrobothnia to support the studies and employment of young people. The
objective of the cooperation is to train new professionals in customer service. 

In this more challenging market environment we have started new cost efficiency
measures to improve our profitability. These measures are for example in the
areas of streamlining product portfolio and IT systems, increasing efficiency
in customer service and sales, as well as decreasing costs in general
administration. 

We continue determined implementation of actions improving customer
satisfaction and the productivity of our operations. Improving our
productivity, developing new services for our customers and maintaining our
strong investment ability create a solid foundation for competitive operations
in the future."

Outlook for 2013

The macroeconomic environment in Finland is still expected to be weak in 2013.
Competition in the Finnish telecommunications market also remains challenging. 

Full year revenue, excluding the pending PPO acquisition, is estimated to be at
the same level as in the previous year. Mobile data, ICT and new online
services are expected to increase revenue. Full year EBITDA, excluding
non-recurring items and the pending PPO acquisition, is anticipated to be at
the same level as or slightly below 2012. Full-year capital expenditure is
expected to be a maximum of 12 per cent of revenue. Elisa's financial position
and liquidity are good. 

In order to secure a good result in a more challenging environment, Elisa has
accelerated cost efficiency measures, for example in the areas of streamlining
product portfolio and IT systems, increasing efficiency in customer service and
sales, as well as decreasing costs in general administration. 

Elisa's transformation into a provider of new, exciting and relevant services
to its customers continues. Long-term growth and profitability improvement will
derive from mobile data market growth, as well as new online and ICT services.
In addition, Elisa will continue determinedly to employ its efficiency
measures. 

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 2013 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 OMX Helsinki

Principal media

www.elisa.com

Attachments:

130419INTERIM REPORT Q1 2013.pdf