Elisa - Interim report (Q1 and Q3)

ELISA'S INTERIM REPORT JANUARY-SEPTEMBER 2011

ELISA STOCK EXCHANGE RELEASE 21 OCTOBER 2011 AT 8:30am

Third quarter 2011
  * Revenue was EUR 378 million (363)
  * EBITDA was EUR 135 million (127), EBIT was EUR 82 million (73)
  * Profit before tax amounted to EUR 74 million (68)
  * Earnings per share was EUR 0.36 (0.32)
  * Cash flow after investments was EUR 56 million (29)

  * Mobile ARPU was EUR 19.0 (19.3 in the second quarter)
  * Mobile churn increased slightly to 12.7 per cent  (11.9 in the second
    quarter, 18.1 in Q3/2010)
  * The number of mobile subscriptions increased by 103,000 during the quarter
  * The number of fixed broadband subscriptions increased by 7,900 on the
    previous quarter
  * Elisa Viihde IPTV subscriptions exceeded 100,000
  * Net debt / EBITDA was 1.6 (1.6 at the end of 2010) and gearing 94 per cent
    (93 at the end of 2010)

January-September 2011
  * Revenue was EUR 1,129 million (1,081)
  * EBITDA was EUR 374 million (362), EBIT EUR 216 million (199)
  * Cash flow after investments was EUR 142 million (144)

Key indicators:
EUR million                                 7-9/2011 7-9/2010 1-9/2011 1-9/2010
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Revenue                                          378      363    1,129    1,081

EBITDA                                           135      127      374      362

EBIT                                              82       73      216      199

Profit before tax                                 74       68      193      131

Profit before tax excl. non-recurring items       74       68      193      175

Earnings per share, EUR                         0.36     0.32     0.93     0.63

EPS, excl. non-recurring items                  0.36     0.32     0.93     0.84

Capital expenditures                              45       42      140      127
-------------------------------------------------------------------------------
1-9/2011 EBITDA excluding non-recurring items EUR 375 million

Financial position and cash flow:
EUR million            30.9.2011 30.9.2010 31.12.2010
-----------------------------------------------------
Net debt                     793       725        776

Net debt / EBITDA (1))       1.6       1.5        1.6

Gearing ratio, %            94.3      84.2       93.2

Equity ratio, %             43.4      44.8       42.5
-----------------------------------------------------

EUR million     7-9/2011 7-9/2010 1-9/2011 1-9/2010
---------------------------------------------------
Cash flow after
investments           56       29      142      144
---------------------------------------------------
(1)) (interest-bearing debt - financial assets) / (4 previous quarters' EBITDA
exclusive of non-recurring items)

Additional information regarding the Key Performance Indicators is available on
www.elisa.com/investors: Elisa Operational Data Q3 2011.xls.

CEO Veli-Matti Mattila:"Elisa delivers a strong result, exceeding four million mobile subscriptions

Elisa's earnings grew strongly during the third quarter of 2011, and the
company's revenue developed favorably. Despite tough competition, the demand for
Elisa's services remained high.

Our mobile subscription base grew by more than 100,000 during the third quarter
of the year, and we have reached the milestone of four million subscriptions.
Elisa Viihde IPTV's strong development has continued and the number of customers
has exceeded 100,000. Boosted by new services and service bundles, the number of
fixed network broadband subscriptions increased by nearly 8,000.

The demand for mobile data services continued to grow rapidly, spurred by the
high number of dongle and smartphone users. Customers are also increasingly
choosing a monthly data plan so they don't have to worry about the volume of
data transfer. In addition, business use of smartphones is on the rise.

Elisa introduced the My Invoice (Oma Lasku) service for businesses. The service
enables employees to pay for personal purchases and mobile services through
their business subscriptions. Personal purchases are invoiced separately through
Elisa My Invoice, which can help companies save hundreds of thousands of euros
per year by not paying for services unrelated to business. At the same time, the
opportunity to use business phones for personal matters increases employee
satisfaction.

For consumers, Elisa introduced new features and fascinating content through
Elisa Viihde, the most innovative IPTV entertainment platform, and the Elisa
Kirja e-book service. Elisa Viihde was complemented with a karaoke service that
offers a broad selection of Finnish and foreign songs. Finnish comic strips were
also made available on smartphones and tablets for the first time through Elisa
Kirja.

In Finland's  'Best of the Year 2011' customer service competition, Elisa's
Consumer Customers unit was awarded the Best Practices honorary mention for
investing in continuous development, making full use of customer feedback and
providing support for customer service personnel. Concrete measures, such as
real-time order monitoring and user-friendly technical support websites, have
considerably improved customer service.

We will continue our determined work to further improve productivity and
customer satisfaction. Elisa creates services that improve productivity and
provide enhanced user experiences. Combined with our strong investment
capability, this creates a solid foundation for the future."

Outlook for 2011

The budget deficits and solvency issues in several European countries have
impacted the Finnish economy to some extent. Even though the Finnish economy is
among the most stable in Europe, there are still risks inherent to the general
economic development. Competition in the Finnish telecommunications market also
remains challenging.

Full year revenue is estimated to increase slightly from the previous year. The
use of mobile communications, especially mobile broadband services and equipment
sales, is continuing to rise. In addition, ICT and new online services' revenue
will grow. Full year EBITDA, excluding non-recurring items, is expected to
improve slightly from the last year. 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 its customers with exciting and
relevant new services. Among the factors contributing to long-term growth and
profitability improvement is 3G 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.

New disclosure procedure

Elisa is now adopting the new 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-September 2011 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


[HUG#1556800]

Attachments:

Elisa Q3.pdf