2007-10-26 07:31:25 CEST
2007-10-26 07:31:25 CEST
REGULATED INFORMATION
Elisa - Quarterly report
ELISA S INTERIM REPORT FOR JULY-SEPTEMBER 2007
Revenue increased by 2 per cent to EUR 394 million (387)
EBITDA increased by 7 per cent to EUR 132 million (123) and profit
before taxes grew by 29 per cent to EUR 89 million (69)
Excluding non-recurring items, profit before taxes grew by 10 per
cent to EUR 76 million (69)
Earnings per share improved by 41 per cent to EUR 0.45 (0.32).
Earnings per share include non-recurring items of approximately EUR
0.08.
Revenue per subscription in the mobile business decreased slightly
from the previous quarter's EUR 30.2 to EUR 29.9. Churn remained on
par with the previous quarter's level at 11.2 per cent (11.4 per
cent).
The number of mobile subscriptions continued to increase during the
second quarter, due in particular to the new 3G customers
The number of broadband subscriptions increased on the previous
quarter
Key indicators:
+-----------------------------------------------------------+
| Income statement | 7-9/2007 | 7-9/2006 | 1-12/2006 |
| EUR million | | | |
|-------------------------+----------+----------+-----------|
| Revenue | 394 | 387 | 1 518 |
|-------------------------+----------+----------+-----------|
| EBITDA | 132 | 123 | 434 1) |
|-------------------------+----------+----------+-----------|
| EBIT | 82 | 73 | 225 |
|-------------------------+----------+----------+-----------|
| Profit before taxes | 89 2) | 69 | 212 |
|-------------------------+----------+----------+-----------|
| Earnings per share, EUR | 0.45 | 0.32 | 0.97 |
|-------------------------+----------+----------+-----------|
| Capital expenditures | 44 | 40 | 207 |
+-----------------------------------------------------------+
Figures excluding non-recurring items: 1) EUR 445 million,
2) EUR 76 million
Figures describing the financial position and cash flow:
+----------------------------------------------------------------+
| Financial position | 30 Sep 2007 | 30 Sep 2006 | 31 Dec 2006 |
| EUR million | | | |
|----------------------+-------------+-------------+-------------|
| Net debt | 646 | 336 | 377 |
|----------------------+-------------+-------------+-------------|
| Net debt / EBITDA 1) | 1.2 | 0.7 | 0.9 |
|----------------------+-------------+-------------+-------------|
| Gearing ratio, % | 65.3 | 25.2 | 28.7 |
|----------------------+-------------+-------------+-------------|
| Equity ratio, % | 45.7 | 65.5 | 63.1 |
|----------------------+-------------+-------------+-------------|
| Cash flow statement | 7-9/2007 | 7-9/2006 | 1-12/2006 |
| | | | |
| Cash flow after | | | |
| investments | 6 | 36 | 118 |
+----------------------------------------------------------------+
1) (interest-bearing debt - liquid assets) /
(adjusted EBITDA for the period x 4)
Figures including the effect of the payment of extra dividend for
EUR 158 million on 25 October 2007: net debt EUR 804 million,
net debt / EBITDA 1.5 and gearing ratio 81.2%
CEO Veli-Matti Mattila:"The 3G market remains a good driver for the development of the
entire communications industry. 3G subscriptions comprise a
significant proportion of new subscriptions, and customers are
increasingly using a wide variety of content services. There are
almost 900,000 3G customers in Finland.
The numbers of our customers and subscriptions are still growing. An
increasing numbers of Finns have two or more subscriptions for
different communications needs. The number of broadband subscriptions
continues to grow, and competitive pricing for mobile broadband has
also increased demand.
We are continuing to make substantial investments in expanding the 3G
network and increasing its data rates and capacity. The coverage and
quality of our network are the best in the industry. By the end of
the first quarter of 2008, population coverage will be approximately
75 per cent.
We are in the process of replacing our customer management and
invoicing system in order to improve customer service and
productivity. Introduction of the new system delayed invoicing, such
that customers received invoices less frequently than expected. We
will be issuing invoices for five months' services during the next
four months, enabling us to return to the normal invoicing schedule
within a few months. The number of customer service enquiries has
increased due to the change. A good quality of customer service is
important for us, and therefore we have employed and trained 250 new
people for customer service tasks.
Our January-September revenue increased by 4 per cent on the previous
year in spite of simultaneous decreases in interconnection and
roaming fees, for example. Our profitability improved clearly on the
previous year thanks to new services and productivity improvements.
We are going to continue determinedly systematic efforts to improve
the effectiveness of our operations and development of the market.
In the short term, a potential labour dispute may affect our
operations. A strike would hamper the company's operations and
possibly pose a risk for maintaining communications connections. We
hope that the parties will reach an amicable settlement, which would
allow customer connections to remain unaffected.
I foresee excellent long-term prospects for the operator business,
particularly in Finland where consumer and corporate customers'
interest in the new opportunity of 3G services and internet is
growing strongly."
ELISA CORPORATION
Mr Vesa Sahivirta
Director, IR and Financial Communications
Further information:
Mr Veli-Matti Mattila, President and CEO, tel. +358 10 262 2635
Mr Jari Kinnunen, CFO, tel. +358 10 262 951
Mr Vesa Sahivirta, Director, IR and Financial Communications, tel.
+358 10 262 3036
Distribution:
Helsinki Stock Exchange
Principal media
INTERIM REPORT FOR JULY-SEPTEMBER 2007
This interim report has been prepared in accordance with the IFRS
recognition and measurement principles. The information presented in
this interim report is unaudited.
Market situation
The base of mobile communications subscriptions and the use of data
services have evolved favourably in Finland with 3G subscriptions
comprising a significant proportion of new subscriptions. The use of
new services made available through 3G subscriptions has also
increased. Churn has been on the decline, and competition has been
more focused on services.
The fixed network business continued its earlier trend: the number of
broadband subscriptions continued to grow, while the number and usage
of traditional subscriptions decreased. The broadband market has
continued to grow slightly.
Revenue
+---------------------------------------------------------+
| EUR million | 7-9/2007 | 7-9/2006 | Change, % |
|-----------------------+----------+----------+-----------|
| Mobile communications | 252 | 246 | 2 |
|-----------------------+----------+----------+-----------|
| Fixed network | 157 | 156 | 1 |
|-----------------------+----------+----------+-----------|
| Inter-segment sales | -15 | -16 | -6 |
|-----------------------+----------+----------+-----------|
| Total | 394 | 387 | 2 |
+---------------------------------------------------------+
Elisa's July-September revenue increased by 2 per cent on the
corresponding period in 2006. Reasons contributing to the growth
included an increased number of broadband and mobile subscriptions
and increased use of mobile communications services. Revenue was
hampered by lower interconnection fees and declined equipment sales,
as well as decreases in the number of traditional fixed network
subscriptions and the volume of traffic.
Performance
+---------------------------------------------------------+
| EUR million | 7-9/2007 | 7-9/2006 | Change, % |
|-----------------------+----------+----------+-----------|
| Mobile communications | | | |
| EBITDA | 80 | 72 | 11 |
| EBITDA, % | 32 | 29 | |
| EBIT | 53 | 49 | 8 |
|-----------------------+----------+----------+-----------|
| Fixed network | | | |
| EBITDA | 54 | 52 | 4 |
| EBITDA, % | 34 | 33 | |
| EBIT | 31 | 26 | 19 |
|-----------------------+----------+----------+-----------|
| Corporate functions | | | |
| EBITDA | -3 | -1 | 200 |
| EBIT | -3 | -1 | 200 |
|-----------------------+----------+----------+-----------|
| Group, total | | | |
| EBITDA | 132 | 123 | 7 |
| EBITDA, % | 33 | 32 | |
| EBIT | 82 | 73 | 12 |
+---------------------------------------------------------+
Elisa's EBITDA showed growth of 7 per cent on the corresponding
period in 2006. The EBITDA improvement was attributable to factors
such as new services in the mobile communication business, as well as
efficiency measures. The improved profitability of the fixed network
was affected by changes in broadband subscription prices, the
increased number of subscriptions and improved cost efficiency.
The Group's financial income and expenses amounted to EUR +7 million
(-4). The financial income includes EUR 13 million of sales gains
from Comptel shares, as well as an unrealised financial gain of
approximately EUR 2 million from changes in the fair value of
derivatives that does not affect cash flow. Therefore, comparable
financial expenses amounted to EUR -8 million. The increase in
comparison to the corresponding period last year was mostly due to
increased net debt.
Income taxes in the period under review amounted to EUR -17 million
(-16).
The Group's July-September result after taxes was EUR 72 million
(53). The Group's earnings per share (EPS) amounted to EUR 0.45
(0.32). At the end of September, consolidated shareholders' equity
per share stood at EUR 6.24 (EUR 8.07 at the end of 2006).
Changes in corporate structure
On 5 July 2007, the General Meeting of Lounet Oy and Elisa's Board of
Directors accepted a merger plan according to which Lounet was merged
with Elisa Corporation. The merger was registered on 30 September
2007.
First Orange Contact Oy and Elisa Ventures Oy merged with Elisa on 31
August 2007.
Elisa Corporation and Oy L M Ericsson Ab have signed an agreement on
outsourcing the remote management of telephone systems and PBX
installations for Elisa's corporate customers, as well as the partial
outsourcing of field activities related to PBX installations, to
Ericsson. The operations were transferred on 28 September 2007.
The personnel of Elisa's subsidiary Saunalahti became Elisa's
employees in a transfer of business as of 1 October 2007. In the
transfer of business, approximately 170 Saunalahti employees were
transferred to Elisa and joined Elisa's Consumer Customers and Small
Enterprise Customers unit staff of approximately 900.
Mobile business
+-------------------------------------------------------------------+
| Number of subscriptions | 30 Sep 2007 | 30 Sep 2006 | 31 Dec 2006 |
|-------------------------+-------------+-------------+-------------|
| Total number of | | | |
| subscriptions | 2,622,300 | 2,452,500 | 2,488,900 |
|-------------------------+-------------+-------------+-------------|
| - Network operator | | | |
| in Finland | 2,309,800 | 2,163,900 | 2,194,400 |
|-------------------------+-------------+-------------+-------------|
| - Subscriptions | | | |
| in Estonia | 312,500 | 288,600 | 294,500 |
+-------------------------------------------------------------------+
+------------------------------------------------------------+
| User-specific indicators 1) | Q3/2007 | Q3/2006 | 2006 |
|---------------------------------+---------+---------+------|
| Average revenue/subscription, | | | |
| €/month | 29.9 | 30.5 | 30.2 |
|---------------------------------+---------+---------+------|
| Annual churn, % | 11.2 | 11.7 | 13.8 |
|---------------------------------+---------+---------+------|
| Outgoing calls, | | | |
| min/subscription/month | 217 | 207 | 203 |
|---------------------------------+---------+---------+------|
| SMS, msg/subscription/month | 51 | 50 | 50 |
|---------------------------------+---------+---------+------|
| Value-added services/revenue, % | 19 | 17 | 17 |
+------------------------------------------------------------+
+-------------------------------------------------------------+
| Indicators on network use 2) | Q3/2007 | Q3/2006 | 2006 |
|---------------------------------+---------+---------+-------|
| Outgoing calls, million minutes | 1,428 | 1,265 | 4,888 |
|---------------------------------+---------+---------+-------|
| SMS, million msg | 382 | 303 | 1,193 |
+-------------------------------------------------------------+
1) Elisa's service operators in Finland
(excluding prepaid subscriptions)
2) Elisa's network operator in Finland
Elisa had 2,309,800 subscriptions in Finland at the end of September,
representing an increase of approximately 146,000 on the
corresponding period last year. The third-quarter increase was
approximately 53,000 subscriptions, contributed to by the good
success of the 3G service bundles, mobile broadband subscriptions and
prepaids.
The call minutes per subscription of Elisa's own service operators
rose by approximately 5 per cent and the number of SMS messages
increased by approximately 2 per cent on the corresponding period
last year. Due to the increase in the number of subscriptions of
Elisa's service operators, the total call minutes in the network grew
by 13 per cent and the number of SMS messages increased by 26 per
cent.
Mobile business' revenues increased by 2 per cent. Factors hampering
revenue included new interconnection fees in force as of the
beginning of the year, as well as reduced roaming fees, while
increases in the volume of use and the number of subscriptions
resulted in revenue improvements.
Revenue per subscription in the mobile network decreased slightly
from the previous quarter's EUR 30.2 to EUR 29.9 mainly due to lower
roaming prices.
Elisa adjusted its Mobile Broadband prices as of 1 August and its
roaming fees in European Union countries as of 30 August.
Elisa ordered a 3G network extension from Ericsson that will double
the coverage and capacity of Elisa's existing WCDMA/HSPA network: the
number of base stations will be more than doubled and data
communication rates will increase.
Elisa will continue the development of its 3G network through
cooperation with Ericsson, and will be the first Nordic operator to
introduce the HSUPA (High Speed Uplink Packet Access) technology to
its 3G network. The technology will more than triple the data rate
from the terminal to the network (max. 1.4 Mbps).
The mobile business of Elisa's Estonian subsidiary continued to grow
in terms of revenue as well as in the number of subscriptions.
Revenue growth was 10 per cent, with revenue amounting to EUR 30.6
million (27.8) and the number of customers to 312,500 (288,600).
Profitability improved as well: EBITDA increased by 5 per cent to EUR
10.1 million (9.6) and EBIT by 7 per cent to EUR 7.4 million (6.9).
Fixed network business
+-------------------------------------------------------------------+
| Number of subscriptions | 30 Sep 2007 | 30 Sep 2006 | 31 Dec 2006 |
|-------------------------+-------------+-------------+-------------|
| Broadband subscriptions | 518,400 | 479,600 | 496,300 |
|-------------------------+-------------+-------------+-------------|
| ISDN channels | 70,900 | 110,200 | 76,200 |
|-------------------------+-------------+-------------+-------------|
| Cable TV subscriptions | 235,700 | 223,200 | 226,000 |
|-------------------------+-------------+-------------+-------------|
| Analogue and | | | |
| other subscriptions | 483,500 | 528,800 | 521,100 |
|-------------------------+-------------+-------------+-------------|
| Subscriptions, total | 1,308,500 | 1,341,800 | 1,319,600 |
+-------------------------------------------------------------------+
The number of broadband subscriptions increased by approximately
4,500 on the previous quarter, representing an increase of 38,800
subscriptions or 8 per cent on the previous year.
The number of traditional subscriptions continued to decrease
steadily as voice calls shifted to the mobile communication network
and data transfers to broadband subscriptions.
Elisa introduced HDTV (High Definition Television) broadcasts to its
cable TV network on 3 September 2007. There are initially two HDTV
channels but the offering will be substantially increased in the
future. Elisa's nationwide cable TV network covers approximately
226,000 households.
On 5 September 2007, Elisa introduced the Broadband Super service
that provides households with a data rate as high as 100 Mbps. It
enables the use of services that require increasingly fast
connections, such as TV and video on demand. Broadband Super is
available apartment-specifically in buildings covered by Elisa's
broadband optical fibre network.
Personnel
During July-September, the average number of personnel at Elisa was
3,326 (an average of 4,264 in 2006).
Personnel by segment
+------------------------------------------------------------------+
| | 30 Sep 2007 | 30 Sep 2006 | 31 Dec 2006 |
|-----------------------+--------------+-------------+-------------|
| Mobile communications | 1,313 | 1,355 | 1,329 |
|-----------------------+--------------+-------------+-------------|
| Fixed network | 1,878 | 2,267 | 2,224 |
|-----------------------+--------------+-------------+-------------|
| Corporate functions | 38 | 39 | 38 |
|-----------------------+--------------+-------------+-------------|
| Total | 3,229 | 3,661 | 3,592 |
+------------------------------------------------------------------+
In connection with the transfer of PBX remote management from Elisa's
Corporate Customers unit, a total of 56 employees transferred to
Ericsson.
Investments
+------------------------------------------------------------+
| EUR million | 7-9/2007 | 7-9/2006 | 1-12/2006 |
|--------------------------+----------+----------+-----------|
| Capital expenditures | 44 | 40 | 207 |
| - mobile business | 21 | 14 | 78 |
| - GSM leasing liability | | | |
| buy-backs | 0 | 0 | 2 |
| - fixed network business | 23 | 27 | 127 |
| - others | 0 | 0 | 0 |
| Shares | 6 | 7 | 10 |
| | | | |
| Total | 51 | 47 | 218 |
+------------------------------------------------------------+
The primary investment targets were the expansion of the 3G network
and increases in the speed and capacity of the broadband network, as
well as the new invoicing and customer management system, the first
phase of which has been introduced into use.
Extra dividend
On 31 July 2007, Elisa's Board of Directors decided on the
distribution of an extra dividend per share of EUR 1.00. The dividend
ex-date was 16 October 2007, the record date was 18 October 2007, and
the payment date was 25 October 2007.
The dividend distribution totalled approximately EUR 158 million. No
dividend was paid on treasury shares held by Elisa.
Financial position
The capital structure has been developed according to the set goals.
Elisa's financial position and liquidity remained good during the
quarter. The group's July-September cash flow after investments
amounted to EUR 6 million (36). Cash flow was substantially weakened
by delays in invoicing due to the introduction of the invoicing and
customer management system.
In September, Elisa sold 7 million Comptel Corporation shares,
reducing Elisa's holding in Comptel from 19.9 per cent to 13.4 per
cent. The sales price for the shares was EUR 13.2 million, EUR 13.1
million of which was tax-free sales gain. The sales gain was booked
as a non-recurring financial income item.
Financial key indicators
+-----------------------------------------------------------------+
| EUR million | 30 Sep 2007 | 30 Sep 2006 | 31 Dec 2006 |
|----------------------+--------------+-------------+-------------|
| Net debt | 646 | 336 | 377 |
|----------------------+--------------+-------------+-------------|
| Net debt / EBITDA 1) | 1.2 | 0.7 | 0.9 |
|----------------------+--------------+-------------+-------------|
| Gearing, % | 65.3 | 25.2 | 28.7 |
|----------------------+--------------+-------------+-------------|
| Equity ratio, % | 45.7 | 65.5 | 63.1 |
|----------------------+--------------+-------------+-------------|
| | | | |
|----------------------+--------------+-------------+-------------|
| | 7-9/2007 | 7-9/2006 | 1-12/2006 |
|----------------------+--------------+-------------+-------------|
| Cash flow after | | | |
| investments | 6 | 36 | 118 |
+-----------------------------------------------------------------+
1) (interest-bearing debt - liquid assets) /
(adjusted EBITDA for the period x 4)
Figures including the effect of the payment of extra dividend for EUR
158 million on 25 October 2007: net debt EUR 804 million, net debt /
EBITDA 1.5 and gearing ratio 81.2%
Valid financing arrangements
+--------------------------------------------------------------+
| EUR million | Maximum amount | In use on |
| | | 30 Sep 2007 |
|-------------------------------+----------------+-------------|
| Committed credit line | 170 | 0 |
|-------------------------------+----------------+-------------|
| Commercial paper programme 1) | 150 | 0 |
|-------------------------------+----------------+-------------|
| EMTN programme 2) | 1,000 | 666 |
+--------------------------------------------------------------+
1) The programme is not committed.
2) European Medium Term Note programme, not committed.
Long-term credit ratings
+------------------------------------------------------+
| Credit rating agency | Classification | Outlook |
|---------------------------+----------------+---------|
| Moody's Investor Services | Baa2 | Stable |
|---------------------------+----------------+---------|
| Standard & Poor's | BBB | Stable |
+------------------------------------------------------+
Share
The total number of Elisa shares at the end of September was
166,307,586. As Lounet's merger consideration, 241,570 new Elisa
shares were issued and became objects of trading on 1 October 2007.
The closing price at the end of the review period was EUR 21.80,
representing an increase of 5.1 per cent compared with EUR 20.75 at
the end of the year. Compared with a year ago, the share price has
increased by 25.3 percent from EUR 17.40. At the end of the review
period, market capitalisation was at EUR 3,450 million.
In June-September, a total of 72.0 million shares were traded on the
Helsinki Stock Exchange for an aggregate of EUR 1,465.6 million. The
trading volume was 45.5 per cent of the number of shares on the
market.
The General Meeting on 19 March 2007 authorised the Board of
Directors to acquire treasury shares to a maximum number of
16,000,000, of which 4 million shares have been acquired. No treasury
shares were acquired during the review period. At the end of
September, Elisa held 8,049,976 shares (4,125,000 at the end of
2006), having a counter value of EUR 4.02 million and representing
4.85 per cent of the share capital and votes.
Distributable funds
Elisa Corporation's distributable funds at the end of the review
period stood at approximately EUR 8 million.
Elisa's General Meeting on 28 June 2007 decided to transfer the share
premium fund to the distributable funds.
Significant legal issues
There were no significant developments in Elisa's legal issues in
July-September.
Short-term risks and uncertainties
The Union of Salaried Employees (Toimihenkilöunioni, TU) has warned
of a strike that could begin on 1 November 2007, and Ylempien
toimihenkilöiden neuvottelukunta (YTN), which represents professional
employees, has warned of a strike that could begin on 2 November
2007. If realised, a strike would hamper the company's operations and
possibly pose a risk for maintaining communications connections. A
potential strike would particularly impact attendance to customer
needs in customer service and network operations. The functionality
of fixed network voice services, mobile calls and mobile data, SMS
messaging, mobile positioning and corporate communications services
might also suffer.
There has been an interruption in invoicing due to changes in the
invoicing and customer management system. The return to normal
invoicing schedule has been delayed to the first quarter of 2008. The
delayed schedule may affect business.
The telecommunications business is under intense competition in
Elisa's main market areas, which may affect Elisa's business.
The rapid developments in telecommunications technology may have a
significant impact on Elisa's business.
Elisa's main market is Finland, where the number of mobile phones per
inhabitant is among the highest in the world. Thus the overall market
of mobile subscriptions in Finland cannot grow significantly.
Furthermore, the share of phone traffic in Elisa's fixed network has
decreased over the past few years. These factors may limit the
opportunities for growth.
The telecommunications industry is subject to heavy regulation. Elisa
and its business are monitored and regulated by several public
authorities. This regulation also affects the price level of some
products and services offered by Elisa.
Events after the reporting period
Elisa will continue to develop the operations of the Consumer
Customers and Small Enterprise Customers unit and improve its
efficiency. Saunalahti's employees were transferred to Elisa in a
transfer of business on 1 October 2007. Negotiations in compliance
with the Act on Cooperation within Undertakings were initiated on 24
October 2007 with the aim of reducing the personnel by approximately
80. The unit employs almost 1,100 employees in total, of which
approximately 300 are within the scope of the cooperation
negotiations.
On 28 June 2007, Elisa's AGM resolved to transfer the funds in the
share premium fund to the invested free equity fund. As part of the
process, the Trade Register has issued a public announcement to the
company's creditors, setting a deadline for the creditors' opposition
that expired on 23 October 2007. Elisa has been informed about cases
of opposition filed in the Trade Register that may delay the
implementation of the resolution.
Outlook for 2007
Outlook for the rest of the year has not changed.
Competition in the Finnish telecommunications market remains
challenging, while the focus is increasingly on services. The use of
mobile communications and broadband products is continuing to rise.
Elisa's aim is to further reinforce its position as the service
leader.
The Group's revenue is expected to grow on last year and EBITDA and
EBIT excluding non-recurring items are expected to improve. The
contributory factors include the growth in the 3G market and the
efficiency measures. During the second half of the year, EBITDA and
EBIT excluding non-recurring items are expected to improve clearly on
the first half on the year, while the fourth quarter is expected to
be slightly on the lower level that the third quarter.
Capital expenditures during the year are estimated to total 11 to 13
per cent of the revenue, and cash flow will remain clearly positive.
BOARD OF DIRECTORS
Elisa Corporation
1.1. - 30.9.2007
Unaudited
CONSOLIDATED INCOME STATEMENT
7-9 7-9 1-9 1-9 1-12
EUR million Note 2007 2006 2007 2006 2006
Revenue 1 394,5 386,9 1 166,3 1 117,7 1 518,4
Other operating income 4,8 2,8 19,7 6,7 8,7
Materials and services -175,4 -178,6 -529,7 -507,0 -689,3
Employee benefit
expenses -38,3 -43,2 -130,5 -160,1 -213,9
Other operating
expenses -53,7 -44,9 -152,5 -141,0 -189,4
EBITDA 1 131,9 123,0 373,3 316,3 434,5
Depreciation -49,9 -49,8 -145,5 -161,3 -209,1
EBIT 1 82,0 73,2 227,8 155,0 225,4
Financial income and
expense, net 7,2 -3,9 -8,1 -12,3 -13,7
Share of associated
companies' profit 0,0 0,0 0,1 0,0 0,1
Profit before tax 89,2 69,3 219,8 142,7 211,8
Income taxes -17,0 -16,3 -49,7 -32,3 -50,4
Profit for the period 72,2 53,0 170,1 110,4 161,4
Attributable to:
Equity holders of
the parent 72,4 52,6 169,7 109,6 160,3
Minority interest -0,2 0,4 0,4 0,8 1,1
72,2 53,0 170,1 110,4 161,4
Earnings per share
(EUR)
Basic 0,45 0,32 1,06 0,66 0,97
Diluted 0,45 0,32 1,06 0,66 0,97
Average number of outstanding
shares
(1000 shares)
Basic 158 016 165 941 159 808 165 933 165 417
Diluted 158 016 165 941 159 808 165 933 165 417
Elisa Corporation
1.1. - 30.9.2007
Unaudited
CONSOLIDATED BALANCE SHEET
30.9. 31.12.
EUR million 2007 2006
Non-current assets
Property, plant and equipment 630,0 645,5
Goodwill 773,7 772,3
Other intangible assets 196,6 190,4
Investments in associated companies 0,1 0,4
Available-for-sale investments 38,2 48,4
Other receivables 6,6 4,8
Deferred tax receivable 31,3 33,7
1 676,5 1 695,5
Current assets
Inventories 23,2 38,4
Trade and other receivables 437,1 334,8
Cash and cash equivalents 31,4 22,2
491,7 395,4
Total assets 2 168,2 2 090,9
Equity attributable to equity holders of the
parent 988,2 1 307,6
Minority interest 1,9 4,7
Total equity 990,1 1 312,3
Non-current liabilities
Deferred tax liabilities 34,6 36,3
Provisions 7,2 8,2
Interest-bearing debt 639,1 321,1
Other non-current liabilities 22,4 16,1
703,3 381,7
Current liabilities
Trade and other payables 414,1 287,5
Tax liabilities 19,9 28,7
Provisions 2,4 2,7
Interest-bearing debt 38,4 78,0
474,8 396,9
Total equity and liabilities 2 168,2 2 090,9
Elisa
Corporation
1.1. -
30.9.2007
Unaudited
STATEMENT OF CHANGES
IN EQUITY
Share
Share issue Treasury Other Retained Minority Total
EUR million capital premium shares reserves earnings interest equity
Total equity
at 1.1.2006 83,0 530,4 -2,5 418,9 307,5 12,4 1349,7
Available
for sale
investments -2,6 -2,6
Other
changes -0,2 -0,4 0,2 -0,4
Items
recognised
directly in
equity -2,8 -0,4 0,2 -3,0
Profit for
the period 109,6 0,8 110,4
Total
recognised
income and
expense for
the period -2,8 109,2 1,0 107,4
Acquisitions
of
subsidiaries -0,1 -4,8 -4,9
Dividends -116,2 -2,0 -118,2
Sales of
treasury
shares 0,8 -0,4 0,4
Share based
compensation 1,0 1,0
Total equity
at 30.9.2006 83,0 530,4 -1,8 416,1 301,1 6,6 1335,4
Total equity
at 1.1.2007 83,0 530,4 -81,3 422,1 353,4 4,7 1312,3
Available
for sale
investments -10,2 -10,2
Items
recognised
directly in
equity -10,2 -10,2
Profit for
the period 169,7 0,4 170,1
Total
recognised
income and
expense for
the period -10,2 169,7 0,4 159,9
Acquisitions
of
subsidiaries 5,3 -0,8 -2,8 1,7
Dividends -401,5 -0,4 -401,9
Purchase of
treasury
shares -85,6 -85,6
Sales of
treasury
shares 1,1 0,4 1,5
Share based
compensation 2,2 2,2
Total equity
at 30.9.2007 83,0 530,4 -165,8 417,2 123,4 1,9 990,1
Elisa Corporation
1.1. - 30.9.2007
Unaudited
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
1-9 1-9 1-12
EUR million 2007 2006 2006
Cash flow from operating activities
Profit before tax 219,8 142,7 211,8
Depreciation 145,5 161,3 209,1
Other adjustments to profit before tax -7,7 10,1 8,3
Change in working capital -118,6 -69,5 -76,8
Cash generated from operations 239,0 244,6 352,4
Financial items, net -15,8 -18,5 -17,5
Taxes paid -59,1 -0,9 -0,3
Net cash flow from operating activities 164,1 225,2 334,6
Cash flow from investments
Capital expenditure -135,4 -136,7 -205,7
Purchase of shares and other investments -4,9 -24,6 -25,4
Proceeds from asset disposal 37,4 13,7 14,9
Net cash used in investing activities -102,9 -147,6 -216,2
Cash flow before financing activities 61,2 77,6 118,4
Cash flow from financing activities
Purchase of treasury shares -85,6 -79,4
Proceeds from treasury shares 1,7 0,9 1,0
Proceeds from long-term borrowings 350,0
Repayment of long-term borrowings -44,2 -122,4 -122,4
Change in short-term borrowings -25,0 25,0
Repayment of finance lease liabilities -5,3 -7,5 -9,5
Dividends paid -243,6 -122,5 -123,6
Net cash from/used in financing activities -52,0 -251,5 -308,9
Change in cash and cash equivalents 9,2 -173,9 -190,5
Cash and cash equivalents at beginning of
period 22,2 212,7 212,7
Cash and cash equivalents at end of period 31,4 38,8 22,2
Elisa
Corporation
1.1 .-
30.9.2007
Unaudited
NOTES
BASIS OF
PREPARATION
This Interim report has been prepared in accordance with the IFRS
recognition and measurement principles. The Interim consolidated
financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) effective at
the time of preparing and adopted for use by European Union.
The accounting principles applied in the Interim report are the
same as those applied in the Consolidated financial statements
at 31 December 2006. This Interim consolidated financial
statements should be read in conjunction with the 2006
Consolidated financial statements.
The Group adopted the following standards, amendments to
standards and interpretations as from 1 January 2007 onward:
IFRS 7
Financial Instruments;
Disclosure
IAS 1
Presentation of Financial Statements;
Capital Disclosures
IFRIC 8
Scope of IFRS 2
IFRIC 9
Reassessment of
Embedded Derivatives
IFRIC 10
Interim Financial Reporting
and Impairment
These newly adopted standards and interpretations
have not had any effect on Interim consolidated
financial statements.
1. BUSINESS SEGMENT
INFORMATION
7-9/2007 Fixed Other Unallocated Group
EUR million Mobile Network business items Eliminations Total
External
sales 246,0 148,3 0,0 0,2 394,5
Inter-segment
sales 5,8 9,1 -14,9 0,0
Revenue 251,8 157,4 0,0 0,2 -14,9 394,5
EBITDA 80,4 54,2 -2,7 131,9
EBIT 53,4 31,5 -2,9 82,0
Financial
income and
expense 7,2 7,2
Share of
associated
companies'
profit 0,0 0,0
Profit before
tax 89,2
7-9/2006 Fixed Other Unallocated Group
EUR million Mobile Network business items Eliminations Total
External
sales 239,2 147,4 0,3 386,9
Inter-segment
sales 6,5 9,0 -15,5 0,0
Revenue 245,7 156,4 0,3 -15,5 386,9
EBITDA 72,3 52,0 -1,3 123,0
EBIT 48,7 25,5 -1,0 73,2
Financial
income and
expense -3,9 -3,9
Share of
associated
companies'
profit 0,0 0,0
Profit before
tax 69,3
Elisa
Corporation
1.1. -
30.9.2007
Unaudited
1-9/2007 Fixed Other Unallocated Group
EUR million Mobile Network business items Eliminations Total
External
sales 711,7 454,1 0,0 0,5 1166,3
Inter-segment
sales 15,1 26,2 -41,3 0,0
Revenue 726,8 480,3 0,0 0,5 -41,3 1166,3
EBITDA 219,9 159,3 -5,9 373,3
EBIT 143,1 90,6 -5,9 227,8
Financial
income
and expense -8,1 -8,1
Share of
associated
companies'
profit 0,1 0,1
Profit before
tax 219,8
Investments 62,6 75,2 137,8
1-9/2006 Fixed Other Unallocated Group
EUR million Mobile Network business items Eliminations Total
External
sales 657,6 459,8 0,3 1117,7
Inter-segment
sales 19,5 42,8 -62,3 0,0
Revenue 677,1 502,6 0,3 -62,3 1117,7
EBITDA 182,6 137,7 -4,0 316,3
EBIT 107,9 51,8 -4,7 155,0
Financial
income
and expense -12,3 -12,3
Share of
associated
companies'
profit 0,0 0,0
Profit before
tax 142,7
Investments 53,2 84,4 137,6
1-12/2006 Fixed Other Unallocated Group
EUR million Mobile Network business items Eliminations Total
External
sales 905,5 612,8 0,1 1518,4
Inter-segment
sales 24,4 52,2 -76,6 0,0
Revenue 929,9 665,0 0,1 -76,6 1518,4
EBITDA 259,0 181,1 -5,6 434,5
EBIT 161,7 70,6 -6,9 225,4
Financial
income
and expense -13,7 -13,7
Share of
associated
companies'
profit 0,1 0,1
Profit before
tax 211,8
Investments 80,0 127,4 207,4
Elisa Corporation
1.1. - 30.9.2007
Unaudited
2. OPERATING LEASE COMMITMENTS
30.9. 31.12.
EUR million 2007 2006
Due within 1 year 17,5 21,5
Due after 1 year but within 5 years 31,2 37,8
Due after 5 years 11,6 21,4
Total 60,3 80,7
3. CONTINGENT LIABILITIES
30.9. 31.12.
EUR million 2007 2006
Mortgages, pledges and guarantees
Pledges given
Pledges given as surety 0,7 0,7
Guarantees given
For others (* 42,8 0,5
Mortgages, pledges and guarantees total 43,5 1,2
Other commitments
Repurchase commitments 0,3 0,4
Contingent liabilities in QTE-arrangement
Lease-leaseback agreement (QTE facility)
Total value of the arrangement 143,2 154,1
Termination risk 15,0 18,6
*) 44,3 milj. euros is related to hedging of
the guarantor bank in the QTE-arrangement
4. DERIVATIVE INSTRUMENTS
30.9. 31.12.
EUR million 2007 2006
Interest rate swaps
Nominal value 150,0
Fair value recognised in the balance sheet 0,6
Credit default swaps (*
Nominal value 48,4
Fair value recognised in the balance sheet 0,4
*) CDS is related to hedging of the guarantor bank
in the QTE-arrangement
Elisa Corporation
1.1. - 30.6.2007
Unaudited
KEY FIGURES
1-9 1-9 1-12
EUR million 2007 2006 2006
Shareholders' equity/share, EUR 6,24 8,01 8,07
Net debt 646,0 336,0 376,9
Gearing 65,3% 25,2% 28,7%
Equity ratio 45,7% 65,5% 63,1%
Return on investment (ROI) *) 19,3% 12,3% 13,2%
Gross investments in fixed assets 137,8 137,6 207,4
of which finance lease investments 2,5 1,0 1,7
Gross investments as % of revenue 11,8% 12,3% 13,7%
Investments in shares, 11,3 8,2 10,3
Average number of personnel 3 364 4 239 4 086
*) rolling 12 months profit preceding
the reporting date
Formulae for financial indicators
Gearing %
Interest-bearing debt -
cash and cash equivalents
---------------------------------- x 100
Total equity
Equity ratio %
Total equity
------------------------- x 100
Balance sheet total -
advances received
Return on investment % (ROI)
Profit before taxes +
interest costs and other financial expenses
-----------------------------------------x 100
Balance sheet total -
non-interest bearing liabilities (average)
Net debt
Interest-bearing debt - cash and cash equivalents
Shareholders' equity/share
Equity attributable to equity holders
of the parent
------------------------------------------------
Number of shares outstanding
at end of period
Earnings/share
Profit for the period attributable to
equity holders of parent
---------------------------------------------------
Average number of outstanding shares
© 2024 Nasdaq, Inc. All Rights Reserved |