2008-02-12 07:30:00 CET
2008-02-12 07:30:49 CET
REGULATED INFORMATION
Elisa - Financial Statement Release
ELISA'S FINANCIAL STATEMENT BULLETIN FOR 2007
Year 2007
Revenue in 2007 increased by 3.3 per cent to EUR 1,568 million
(1,518)
EBITDA exclusive of non-recurring items improved by 10 per cent to
EUR 491 million (445) and EBIT improved by 25 per cent to EUR 294
million (236)
Profit before tax increased by 34 per cent to EUR 285 million (212)
Earnings per share improved by 42 per cent to EUR 1.38 (0.97)
The Board of Directors proposes a capital repayment to the
shareholders amounting to EUR 1.80 per share for 2007
October to December 2007
Revenue was EUR 402 million (401)
EBITDA exclusive of non-recurring items improved by 8 per cent to EUR
128 million (119) and EBIT improved by 7 per cent to EUR 76 million
(71)
Profit before tax amounted to EUR 65 million (69)
Earnings per share were EUR 0.32 (0.31)
Revenue per subscription (ARPU) in the mobile network improved from
the previous quarter's EUR 29.9 to EUR 30.1. Churn was 12.6 per cent
(11.2).
The number of mobile subscriptions continued to increase during the
final quarter, due in particular to the new 3G customers.
The number of broadband subscriptions increased on the previous
quarter.
Key indicators:
+-----------------------------------------------------------------+
| Income | 10-12/2007 | 10-12/2006 | 1-12/2007 | 1-12/2006 |
| statement | | | | |
| EUR million | | | | |
|---------------+------------+------------+-----------+-----------|
| Revenue | 402 | 401 | 1 568 | 1 518 |
|---------------+------------+------------+-----------+-----------|
| EBITDA | 126 ¹) | 118 ²) | 499 ³) | 434 4) |
|---------------+------------+------------+-----------+-----------|
| EBIT | 74 | 70 | 302 | 225 |
|---------------+------------+------------+-----------+-----------|
| Profit before | | | | |
| taxes | 65 | 69 | 285 | 212 |
|---------------+------------+------------+-----------+-----------|
| Earnings per | | | | |
| share, EUR | 0.32 | 0.31 | 1.38 | 0.97 |
|---------------+------------+------------+-----------+-----------|
| Capital | | | | |
| expenditures | 69 | 70 | 206 | 207 |
+-----------------------------------------------------------------+
EBITDA excluding non-recurring items: 1) EUR 128 million, 2) EUR 119
million, 3) EUR 491 million and 4) EUR 445 million.
Figures describing the financial position and cash flow:
+---------------------------------------------------------+
| Financial position | 31 Dec 2007 | 31 Dec 2006 |
|-----------------------------+-------------+-------------|
| Net debt | 738 | 377 |
|-----------------------------+-------------+-------------|
| Net debt / EBITDA 1) | 1.5 | 0.9 |
|-----------------------------+-------------+-------------|
| Gearing ratio, % | 71.3 | 28.7 |
|-----------------------------+-------------+-------------|
| Equity ratio, % | 47.9 | 63.1 |
|-----------------------------+-------------+-------------|
| | | |
| Cash flow statement | 1-12/2007 | 1-12/2006 |
| Cash flow after investments | 114 | 118 |
+---------------------------------------------------------+
1) (interest-bearing debt - liquid assets) / (adjusted EBITDA)
The Board of Directors proposes to the General Meeting that capital
be repaid to shareholders to the amount of EUR 1.80 per share on the
basis of the balance sheet of 31 December 2007 approved by the
General Meeting. EUR 0.80 per share is in accordance with the profit
distribution policy, and EUR 1.00 constitutes additional distribution
of funds to develop the capital structure. The Board of Directors
proposes that the capital repayment be distributed out of the reserve
for invested non-restricted equity. Furthermore, the Board of
Directors proposes to the General Meeting that the Board of Directors
be authorised to acquire 15 million treasury shares, which
corresponds to 9 per cent of the entire stock. The Board of Directors
also decided to propose to the General Meeting that the Board of
Directors be authorised to distribute funds out of the retained
earnings account or the reserve for invested non-restricted equity
to a maximum of EUR 250 million.
CEO Veli-Matti Mattila:"In terms of profitability and earnings 2007 was the best year in our
history. Profit before tax amounted to EUR 285 million, which is a 35
per cent improvement on the previous year. Our revenue increased by
more than 3 per cent, which outperforms the average of European
operators.
Our mobile subscription base increased by almost 7 per cent or about
170,000 subscriptions on the previous year. Churn decreased by more
than one percentage point on the previous year to approximately 12
per cent. Our market position has strengthened further, particularly
with regard to 3G services and broadband. The expansion of mobile
Internet was boosted by extending 3G network coverage and introducing
consumer-friendly pricing and devices that enable a better Internet
experience.
We also strengthened our market position in corporate and
institutional customers. Mobile work solutions are increasing the
efficiency, availability and flexibility of operations for an
increasing number of our customers. Customers have adopted
smartphones and mobile broadband to productive use both in the home
market and internationally through the Vodafone partnership.
An important investment in 2007 has been the construction of the 3G
network that enables faster mobile broadband. By the end of 2007,
Elisa's 3G network covered 75 per cent of Finland's population and
was the best network in terms of coverage and quality. Elisa has an
approximate market share of 50 per cent of 3G users. The fact that we
have exceeded the limit of one million 3G customers proves that
allowing bundling has had a positive effect on overall market
development.
We have made significant investments in customer care and billing
systems. Billing will return to the normal rhythm by the end of
March. The accuracy of billing has been good from the start. However,
the change of system has increased the number of customer contacts,
which in turn has unfortunately lengthened our telephone service
queuing times. As customer service is very important to us, we have
increased the number of customer service staff.
We believe that 2008 will be an even better year. Growth is boosted
by increases in the number of subscriptions and new services. We
still see substantial opportunities to develop productivity and will
continue systematic efforts to improve profitability. New services,
communities and earnings logic emerging on the Internet will create
interesting business opportunities also for Elisa, both in the home
market and in new market areas."
ELISA
Vesa Sahivirta
Director, IR and Financial Communications
Additional information:
Mr Veli-Matti Mattila, CEO, tel. +358 10 262 2635
Mr Jari Kinnunen, CFO, tel. +358 10 262 9510
Mr Vesa Sahivirta, Director, IR and Financial Communications, tel.
+358 10 262 3036
Distribution:
Helsinki Stock Exchange
Principal media
Financial report 1 January to 31 December 2007
The financial report has been prepared in accordance with the IFRS
recognition and measurement principles but not all of the IAS 34
requirements have been observed.
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. Another factor contributing to the increase has been the
use of multiple terminal devices for different purposes. Churn has
been at a normal level in relation to the market situation, 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.
Development of revenue, earnings and financial position
+---------------------------------------------+
| EUR million | 2007 | 2006 | 2005 |
|---------------------+-------+-------+-------|
| Revenue | 1,568 | 1,518 | 1,337 |
|---------------------+-------+-------+-------|
| EBITDA* | 499 | 434 | 446 |
|---------------------+-------+-------+-------|
| EBITDA, %* | 31.8 | 28.6 | 33.4 |
|---------------------+-------+-------+-------|
| EBIT* | 302 | 225 | 233 |
|---------------------+-------+-------+-------|
| EBIT, %* | 19.3 | 14.8 | 17.4 |
|---------------------+-------+-------+-------|
| Return on equity, % | 18.8 | 12.1 | 15.9 |
|---------------------+-------+-------+-------|
| Equity ratio, % | 47.9 | 63.1 | 61.7 |
+---------------------------------------------+
* Figures excluding non-recurring items: EBITDA 2007 EUR 491 million,
2006 EUR 445 million and 2005 EUR 346 million, EBITDA percentage 2007
31.3%, 2006 29.3% and 2005 25.9%, EBIT 2007 EUR 294 million, 2006 EUR
236 million and 2005 EUR 133 million, and EBIT percentage 2007 18.8%,
2006 15.5% and 2005 9.9%
Revenue development by segments:
+-----------------------------------------------+
| EUR million | 1-12/2007 | 1-12/2006 |
|-----------------------+-----------+-----------|
| Mobile communications | 980 | 930 |
|-----------------------+-----------+-----------|
| Fixed network | 642 | 665 |
|-----------------------+-----------+-----------|
| Inter-segment sales | -54 | -77 |
|-----------------------+-----------+-----------|
| Total | 1,568 | 1,518 |
+-----------------------------------------------+
Elisa's revenue increased by 3 per cent in 2007. 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 and roaming fees and
declined equipment sales, as well as decreases in the number of
traditional fixed network subscriptions and the volume of traffic.
Earnings development by segment:
+-------------------------------------------------------------------+
| | Financial statements | Excluding non-recurring |
| | | items |
|----------------+-----------------------+--------------------------|
| EUR million | 1-12/2007 | 1-12/2006 | 1-12/2007* | 1-12/2006** |
|----------------+-----------+-----------+------------+-------------|
| Mobile | | | | |
| communications | | | | |
| EBITDA | 299 | 259 | 300 | 263 |
| EBITDA, % | 30.5 | 28 | 30.7 | 28 |
| EBIT | 195 | 162 | 196 | 166 |
|----------------+-----------+-----------+------------+-------------|
| Fixed network | | | | |
| EBITDA | 206 | 181 | 197 | 187 |
| EBITDA, % | 32.1 | 27 | 30.7 | 28 |
| EBIT | 113 | 71 | 104 | 77 |
|----------------+-----------+-----------+------------+-------------|
| Corporate | | | | |
| functions | | | | |
| EBITDA | -6 | -6 | -6 | -6 |
| EBIT | -6 | -7 | -6 | -7 |
|----------------+-----------+-----------+------------+-------------|
| Total | | | | |
| EBITDA | 499 | 434 | 491 | 445 |
| EBITDA, % | 31.8 | 29 | 31.3 | 29 |
| EBIT | 302 | 225 | 294 | 236 |
+-------------------------------------------------------------------+
* Capital gains on real estate EUR 11 million and provision for
reorganising operations EUR -3 million.
** Provision for reorganising operations EUR -10 million
Elisa's EBITDA excluding non-recurring items improved by 10 per cent
on the previous year. 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.
Financial income and expenses totalled EUR -17 million (-14). The
financial items include a EUR 13 million gain on the sale of Comptel
shares, as well as an unrealised change in the fair values of
derivatives amounting to approximately EUR -2 million that does not
affect cash flow. Comparable financial income and expenses thus
totalled EUR -28 million (-14). The increase on the previous year was
mainly attributable to increased net debt.
Income taxes in the income statement amounted to EUR -65 million
(-50).
Elisa's January-December earnings after taxes were EUR 220 million
(161). The Group's earnings per share (EPS) amounted to EUR 1.38
(0.97). At the end of 2007, the Group's equity per share was EUR 6.53
(8.07 at the end of 2006).
Changes in corporate structure
In February, Elisa acquired the entire stock of the contact centre
system supplier First Orange Contact Oy from its executive management
and Aura Capital Oy for a price of EUR 4.3 million. The company
merged with Elisa on 31 August 2007.
On 24 May 2007, a merger plan was signed by the Boards of Directors
of Elisa and Lounet Oy, according to which Lounet will be merged with
Elisa. On 5 July 2007, Lounet's Extraordinary General Meeting of
Shareholders and Elisa's Board of Directors approved the merger, and
it was registered on 30 September 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 Plc 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 communication business
+-----------------------------------------------------------+
| | 31 Dec 2007 | 31 Dec 2006 |
|-------------------------------+-------------+-------------|
| Total number of subscriptions | 2,657,400 | 2,488,900 |
|-------------------------------+-------------+-------------|
| - Network operator in Finland | 2,334,600 | 2,194,400 |
|-------------------------------+-------------+-------------|
| - Subscriptions in Estonia | 322,800 | 294,500 |
+-----------------------------------------------------------+
+----------------------------------------------------------------------+
|User-specific indicators 1) |10-12/2007|10-12/2006|1-12/2007|1-12/2006|
|----------------------------+----------+----------+---------+---------|
|Average revenue/ | | | | |
|subscription, €/month | 30.1| 30.8| 30.0| 30.2|
|----------------------------+----------+----------+---------+---------|
|Annual churn, % | 12.6| 14.0| 12.2| 13.8|
|----------------------------+----------+----------+---------+---------|
|Outgoing calls, | | | | |
|min/subscription/ | | | | |
|month | 217| 213| 218| 203|
|----------------------------+----------+----------+---------+---------|
|SMS, msg/ | | | | |
|subscription/month | 57| 54| 53| 50|
|----------------------------+----------+----------+---------+---------|
|Value-added services/ | | | | |
|revenue, % | 19| 17| 19| 17|
+----------------------------------------------------------------------+
+-------------------------------------------------------------------+
| Indicators on | 10-12/2007 | 10-12/2006 | 1-12/2007 | 1-12/2006 |
| network use 2) | | | | |
|-----------------+------------+------------+-----------+-----------|
| Outgoing calls, | | | | |
| million minutes | 1,447 | 1,330 | 5,661 | 4,888 |
|-----------------+------------+------------+-----------+-----------|
| SMS, million | | | | |
| msg | 407 | 336 | 1,550 | 1,193 |
+-------------------------------------------------------------------+
1) Elisa's service operators in Finland (excluding prepaid
subscriptions)
2) Elisa's network operator in Finland
Elisa's network operator in Finland increased the number of its
subscriptions by some 140,000 in 2007. The increase was markedly due
to the success of 3G service bundles, mobile broadband and prepaid
subscriptions. The number of subscriptions at the end of the year was
approximately 2,334,600. The fourth-quarter increase was
approximately 25,000 subscriptions.
In 2007, the call minutes per subscription of Elisa's own service
operators rose by approximately 7 per cent and the number of SMS
messages increased by approximately 6 per cent on the previous year.
Due to the increase in the number of subscriptions of Elisa's service
operators, the total call minutes in the network grew by 16 per cent
and the number of SMS messages increased by 30 per cent.
Mobile communication revenues increased by 5 per cent in spite of
declined interconnection fees and equipment sales. Revenue per
subscription declined by slightly less than one per cent on the
previous year due to lower interconnection fees as of the beginning
of the year and lower roaming fees as of September.
The pricing model for mobile calls from Elisa's private customer
subscriptions changed in 2007 with the introduction of a start-up fee
of EUR 0.049 for mobile calls placed in Finland. The minute rates for
subscriptions remained unchanged.
Elisa and other mobile operators have agreed on new interconnection
fees for 2007-2008. The operators have also agreed on the calculation
principles for the fees for 2009-2010. The interconnection fees
levied by operators on each other will go down and the differences
will even out. Equal fees will be effective as of 1 December 2009.
From 1 January 2007, Elisa's new interconnection fee was 7.0 cents
per minute and in 2008, it is 5.1 cents per minute.
Saunalahti was the first company in Finland to start selling Mobile
VoIP subscriptions. Saunalahti's service is based on standardised UMA
technology. UMA (Unlicensed Mobile Access) combines the GSM network
and WLAN networks into a seamless whole, enabling subscription users
to even make calls free of charge.
Elisa adjusted its Mobile Broadband prices as of 1 August and its
roaming fees in European Union countries as of 30 August.
Studies have proven that the coverage and quality of Elisa's 3G
network are the best in the industry. At the end of 2007, Elisa's 3G
services covered approximately 75 per cent of the Finnish population
in more than 120 municipalities. Elisa was the first in the world to
introduce UMTS900 technology into commercial operation. It allows the
construction of a 3G network in rural areas and brings 3G services to
all of Finland within a few years. The speed of Elisa's 3G network
will be substantially increased during 2008, which makes mobile
broadband comparable to a very fast fixed broadband subscription.
Mobile broadband will enable remote working almost everywhere in
Finland.
In December, Elisa introduced the multiSIM service to its customers,
enabling the use of the same telephone number in two separate mobile
phones or, with a Saunalahti subscription, as many as five separate
mobile phones. The service involves a parallel card linked to the
mobile subscription's SIM card with the same telephone number.
The mobile communication business of Elisa's Estonian subsidiary
continued to grow in terms of revenue as well as in the number of
subscriptions. Revenue increased to EUR 113.1 million (102.9), EBITDA
to EUR 36.2 million (32.6) and EBIT to EUR 25.2 million (22.5). The
number of subscriptions stood at 322,800 (294,500) at the end of
2007.
Fixed network business
+-----------------------------------------------------------------+
| Number of subscriptions | 31 Dec 2007 | 31 Dec 2006 | Change, % |
|-------------------------+-------------+-------------+-----------|
| Broadband subscriptions | 521,844 | 496,300 | 5 |
|-------------------------+-------------+-------------+-----------|
| ISDN channels | 70,815 | 76,200 | -7 |
|-------------------------+-------------+-------------+-----------|
| Cable TV subscriptions | 237,109 | 226,000 | 5 |
|-------------------------+-------------+-------------+-----------|
| Analogue and other | | | |
| subscriptions | 471,542 | 521,100 | -10 |
|-------------------------+-------------+-------------+-----------|
| Subscriptions, total | 1,301,310 | 1,319,600 | -1 |
+-----------------------------------------------------------------+
The growth of Elisa's broadband subscriptions continued throughout
2007, representing an increase of approximately 25,600 subscriptions
or 5 per cent on the previous year. The fourth-quarter increase in
broadband was approximately 3,400 subscriptions. Elisa continued as
the Finnish broadband market leader.
The number of traditional subscriptions continued to decrease as
voice calls shifted to the mobile communication network and data
transfers to broadband subscriptions.
At the beginning of July, Elisa reformed the fixed call pricing model
for private and corporate customers nationwide. The pricing structure
was harmonised so that local calls made from landline subscriptions
and the local network fee will have the same price in all of Elisa's
areas. In addition, the start-up fee and the minute rate for local
calls changed.
Elisa and Microsoft launched a partnership under which Elisa offered
Microsoft's corporate products to its corporate customers as a
service, providing a real-time opportunity to work in a networked
corporate environment independent of time and place. The joint
solutions are aimed particularly at small and medium-sized
enterprises.
Cisco granted Elisa the highly esteemed Cisco Gold Certified Partner
certificate as proof of Elisa's know-how and devotion to the
development of innovative communication solutions and customer
satisfaction. A Gold Partner masters the design, management and
support services of networks, even in demanding environments.
Saunalahti introduced a new type of digital TV set-top box. During
normal television viewing, the SaunaVisio set-top box operates as any
digital TV set in the antenna network, but when programmes are
recorded, they are not recorded in the set-top box's own memory but
rather on a virtual disc in the network. Users may record up to five
terabytes (5,000 GB) worth of programmes.
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
237,000 households.
The Broadband Super service was introduced in September. It provides
households with a data rate as high as 100 Mbps and thus 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.
In November, Elisa introduced an automatic fault reporting service
for broadband customers based on voice recognition. The solution
provides customers with an easy and quick way of making fault reports
without the need to queue, and the service is available around the
clock.
The World Wide Wippies community established by the Finnish online
community Wippies in the spring of 2007 expanded at a high rate. At
the end of the year, Wippies had approximately 9,000 World Wide
Wippies networks in Finland and Sweden. Wippies also operates in
Estonia and will expand to other countries.
In December, Elisa launched the new Traxmeet sports service, which is
an Internet-based service accessible through a sports computer for
training, coaching, virtual competition and internal contacts within
sports communities.
Personnel
Elisa employed 3,299 people on average in 2007 (2006 average 4,086
people and 2005 average 4,989 people). Wages and salaries in 2007
totalled EUR 148 million (2006 EUR 173 million, 2005 EUR 194
million). At the end of 2007 the number of personnel was 3,015
(3,592).
Personnel by segments:
+-----------------------------------------------------------------+
| | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2005 |
|-----------------------+-------------+-------------+-------------|
| Mobile communications | 1,252 | 1,329 | 1,629 |
|-----------------------+-------------+-------------+-------------|
| Fixed network | 1,727 | 2,224 | 3,001 |
|-----------------------+-------------+-------------+-------------|
| Other business | | | |
| operations | - | - | - |
|-----------------------+-------------+-------------+-------------|
| Corporate functions | 36 | 38 | 51 |
|-----------------------+-------------+-------------+-------------|
| Total | 3,015 | 3,592 | 4,681 |
+-----------------------------------------------------------------+
Reorganisation of operations within Elisa continued in 2007. Elisa
and Barona Solutions Oy agreed upon the outsourcing of Elisa's
operations related to order management and invoicing of corporate
customers to Barona as of 1 February 2007. In connection with the
transfer, 187 employees transferred from Elisa to Barona as
established employees. The 16 employees of First Orange Contact Oy
acquired by Elisa in February are included in the above figures.
Elisa outsourced the planning and operations of fixed network
exchanges to Nokia Siemens Networks on 1 May 2007. Due to the
outsourcing, 46 Elisa employees transferred to Nokia Siemens
Networks.
In connection with the transfer of PBX remote management from Elisa's
Corporate Customers unit, a total of 56 employees transferred to
Ericsson.
At the beginning of December, Elisa outsourced its Contact Centre
functions related to customer service in Tampere and Jyväskylä to
Teleperformance Finland Oy. The outsourcing involved the transfer of
61 Elisa employees.
The statutory negotiations concerning integration and rationalisation
measures in Elisa's Consumer Customers and Small Enterprise Customers
unit concluded on 4 December 2007. The negotiations resulted in areduction of 52 employees in the unit. The estimated preliminary need
for redundancies was 80 employees. The redundancies were not targeted
at employees who are in direct customer service tasks.
EUR 4.3 million of the year's earnings will be transferred to the
personnel fund.
In December, Elisa's Board of Directors decided to grant stock
options to key employees of Elisa and its subsidiaries, as well as to
a fully-owned subsidiary. The stock option scheme is targeted at
approximately 150 to 200 key employees who are not included in the
share-based incentive plan for senior management decided in 2006. No
employee may belong to both the stock option scheme and the
share-based incentive plan.
Investments
+------------------------------------------------------------------+
| EUR million | 1-12/2007 | 1-12/2006 | 1-12/2005 |
|------------------------------+-----------+-----------+-----------|
| Capital expenditures, | | | |
| of which | 206 | 207 | 204 |
| - mobile communication | | | |
| business | 91 | 78 | 86 |
| - GSM leasing liability | | | |
| buy-backs | 2 | 2 | 4 |
| - fixed network business | 113 | 127 | 112 |
| - others | | | 2 |
|------------------------------+-----------+-----------+-----------|
| Shares | 12 | 10 | 415 |
| - of which achieved through | | | |
| an exchange of shares | 5 | | 361 |
|------------------------------+-----------+-----------+-----------|
| Total | 218 | 218 | 619 |
+------------------------------------------------------------------+
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.
Financial position
The capital structure has been developed in accordance with the
established targets by distributing EUR 401 million in dividends and
acquiring treasury shares for EUR 86 million. These measures have
brought the capital structure to the target level. Elisa's financial
position and liquidity remained good. Cash flow after investments
amounted to EUR 114 million (118).
On 15 February 2007 Elisa agreed upon the issuance of two bonds
totalling EUR 350 million. A three-year floating-rate bond amounts to
EUR 50 million while a seven-year bond amounts to EUR 300 million.
The bonds were issued under the European Medium Term Note programme.
At the same time, Elisa signed a seven-year interest rate swap under
which EUR 150 million was converted from fixed rate to floating rate.
In March, Elisa made an arrangement for hedging the financial
institution risk associated with a QTE arrangement made in 1999. The
risk was hedged using a CDS debt derivative. The hedge was covered by
a CDO debt derivative portfolio from approximately 100 issuers with
credit ratings corresponding to the original. The arrangement is not
expected to have any essential cash or earnings effects.
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.
On 23 November 2007 Elisa entered into a seven-year EUR 130 million
revolving credit facility. The credit facility is a committed credit
limit intended for the enterprise's general financing needs.
Financial key indicators:
+----------------------------------------------------------+
| EUR million | 31 Dec 2007 | 31 Dec 2006 |
|-----------------------------+--------------+-------------|
| Net debt | 738 | 377 |
|-----------------------------+--------------+-------------|
| Gearing, % | 71.3 | 28.7 |
|-----------------------------+--------------+-------------|
| Equity ratio, % | 47.9 | 63.1 |
|-----------------------------+--------------+-------------|
| | | |
|-----------------------------+--------------+-------------|
| | 1-12/2007 | 1-12/2006 |
|-----------------------------+--------------+-------------|
| Cash flow after investments | 114 | 118 |
+----------------------------------------------------------+
Valid financing arrangements:
+-------------------------------------------------------------------+
| EUR million | Maximum amount | In use on 31 Dec |
| | | 2007 |
|-------------------------------+----------------+------------------|
| Committed credit limits | 300 | 0 |
|-------------------------------+----------------+------------------|
| Commercial paper programme 1) | 250 | 92 |
|-------------------------------+----------------+------------------|
| 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 | Rating | Outlook |
|---------------------------+--------+---------|
| Moody's Investor Services | Baa2 | Stable |
|---------------------------+--------+---------|
| Standard & Poor's | BBB | Stable |
+----------------------------------------------+
Share
At the end of the year Elisa's total number of shares was 166,307,586
(166,066,016), all within one share series. The closing price was EUR
21.00 (20.75), representing an increase of 1.2 per cent. The market
value of Elisa's outstanding shares at the end of the year was EUR
3,323 million (3,360).
Elisa distributed total dividends of EUR 401 million or EUR 2.50 per
share in 2007. The company acquired 4 million treasury shares during
the period.
As Lounet's merger consideration, 241,570 new Elisa shares were
issued and became objects of trading on 1 October 2007.
In 2007, a total of 316 million Elisa shares (247) were traded on the
Helsinki Stock Exchange for an aggregate of EUR 6,737 million
(4,218). The trading volume was 199.7 per cent of the number of
shares on the market (153). Nominee-registered holdings decreased
from 47 per cent to 38 per cent. Elisa's shares are also traded on
other regulated marketplaces.
At the end of 2007, Elisa had valid stock options corresponding to a
maximum of 2,550,000 shares. The options consisted of A, B and C
options, 850,000 in each series. The share subscription prices for
each option are determined on the basis of the trading-weighted price
in November. The price for A options was set at EUR 20.84 in 2007.
The prices for B and C options are to be calculated correspondingly
in 2008 and 2009. The share subscription period is from 1 December
2009 to 31 May 2013. There is a compelling financial reason to grant
the stock options because they are intended to be a part of the
incentive and commitment scheme for the Group's key employees. The
stock options are granted without consideration.
The General Meeting on 19 March 2007 authorised the Board of
Directors to acquire treasury shares to a maximum number of
16,000,000. At the end of the year, Elisa held 8,049,976 shares
(4,125,000 held by the company and its subsidiaries at the end of
2006), having a counter value of EUR 4.02 million and representing
4.84 per cent of the share capital and votes.
At the closing of the accounts, the members of the Board of Directors
and the CEO held 52,870 Elisa shares, representing 0.03 per cent of
the share capital and votes.
On 13 December 2007, Elisa received a notification pursuant to
Chapter 2, Section 9 of the Securities Markets Act from Ilmarinen
Mutual Pension Insurance Company, Varma Mutual Pension Insurance
Company, the State Pension Fund, Etera Mutual Pension Insurance
Company and Mutual Insurance Company Pension-Fennia. According to the
notification, the parties jointly held more than one-twentieth (5 per
cent) of Elisa's shares and votes. The notification indicated that
the parties would vote in unison and collect proxies for Elisa's
Extraordinary General Meeting on 21 January 2008. Elisa received a
notification on 22 January 2008 that the grounds for notification
specified in the notice of 13 December 2007 ceased after the
conclusion of the Extraordinary General Meeting on 21 January 2008.
The distribution of shareholdings by type of shareholder and size of
holding, as well as major shareholders, are presented in section"Shares and shareholders" within the financial statements.
Distributable funds
Elisa's General Meeting on 28 June 2007 decided to transfer the share
premium fund of EUR 530 million to the reserve for invested
non-restricted equity. The transfer was executed on 5 November 2007.
Elisa's distributable funds at the end of the year were approximately
EUR 657 million.
Research and development
The Group invested EUR 8 million in research and development in 2007
(EUR 6 million in 2006 and EUR 8 million in 2005), corresponding to
0.5 per cent of revenue (0.4 per cent in 2006 and 0.6 per cent in
2005). Due to changes in the corporate structure, the figures are not
fully comparable with previous years.
Elisa's General Meeting of Shareholders
In accordance with the proposal of the Board of Directors, Elisa's
Annual General Meeting on 19 March 2007 decided that a dividend of
EUR 0.50 per share for 2006 and an additional dividend of EUR 1.00
per share be distributed, totalling EUR 1.50 per share. The number of
members of the Board of Directors was confirmed at six, and the
following members were re-elected for the ensuing term, ending at the
close of the next Annual General Meeting: Mika Ihamuotila, Pekka
Ketonen, Lasse Kurkilahti, Matti Manner and Ossi Virolainen, while
Risto Siilasmaa was elected as a new member.
KPMG Oy Ab, authorised public accountants, with APA Pekka Pajamo as
the responsible auditor, was appointed the company's auditor.
The Board of Directors' authorisations
The Annual General Meeting approved the proposal of the Board of
Directors to authorise the Board of Directors to decide on increasing
the company's share capital and granting special rights. The
authorisation is valid until 31 March 2009, and the maximum number of
shares to be issued by virtue of it is 30 million. Out of the
authorisation, 2,550,000 shares have been used for the stock option
scheme and 241,570 shares for the Lounet merger, totalling 2,797,500
shares.
The Annual General Meeting decided on an authorisation to acquire
treasury shares. The authorisation otherwise corresponds to the
original proposal by the Board of Directors but the number of shares
was increased to a maximum of 16,000,000. The authorisation has been
used for up to 4 million shares and is valid until 31 August 2008.
Elisa's Extraordinary General Meeting of Shareholders
In accordance with the proposal of the Board of Directors, Elisa's
Extraordinary General Meeting on 28 June 2007 resolved to decrease
the share premium fund recorded in the balance sheet on 31 December
2006 by EUR 530,412,283.69 by moving all funds in the share premium
fund recorded in the balance sheet on 31 December 2006 to the reserve
for invested non-restricted equity.
In addition, the Extraordinary General Meeting authorised the Board
of Directors to pass a resolution concerning the payment of
additional dividends to a maximum amount of EUR 165,000,000 in
addition to the resolution to pay dividends made by the Annual
General Meeting of Shareholders on 19 March 2007. The dividend may be
paid in one or several instalments. The Board of Directors has the
right to decide on other matters related to the payment of dividends.
The authorisation is valid until the beginning of the following
Annual General Meeting of Shareholders.
In accordance with the authorisation granted by the General Meeting,
the Board of Directors decided on 31 July 2007 to pay an additional
dividend of EUR 1.00 per share. The dividends were paid on 25 October
2007 and totalled EUR 158 million.
Significant legal issues
On 31 October 2007, the Helsinki District Court rendered its verdict
in the proceedings concerning the stock exchange disclosures of
Jippii Group in 2001. The prosecutor had requested that a corporate
fine of EUR 800,000 and a forfeiture of approximately EUR 215,000 be
imposed on Elisa's subsidiary Saunalahti Group Plc. In its judgment,
the District Court did not impose any corporate fine or forfeiture on
the company. The prosecutor has appealed against the decision.
The Estonian communications authority has issued a decision on the
level of interconnection fees. Elisa has appealed against the
decision, and proceedings are pending. Elion Ettevõtted AS has
presented a claim for refunding excess interconnection fees of
approximately EUR 1.8 million based on a pricing difference in
interconnection fees and also claimed other damages. Elisa has denied
the claim.
The Finnish Competition Authority is investigating Elisa's broadband
pricing.
Substantial risks associated with Elisa's operations
Risk management is part of Elisa's internal auditing system. It aims
at ensuring that risks affecting the company's business are
identified, influenced and monitored. The company classifies risks
into strategic, operational, insurable and financial risks.
Strategic and operational risks:
The telecommunications industry is under intense competition in
Elisa's main market areas, which may have an impact on Elisa's
business. 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.
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, which means that growth
in subscriptions is limited. Furthermore, the volume of phone traffic
in Elisa's fixed network has decreased in the past few years. These
factors may limit the opportunities for growth.
Accident risks:
The company's core operations are covered by insurance against damage
and interruptions caused by accidents. Accident risks also include
litigations and claims.
Financial risks:
There were no substantial changes in Elisa's risk management policy
in 2007. Financial risks are described in more detail in the
company's financial statements.
In order to manage interest rate risk, the Group's borrowing and
investments are diversified in fixed- and variable-rate instruments.
Interest rate derivatives were used to manage interest rate risk.
Most of Elisa Group's cash flows are denominated in euro, which means
that the exchange rate risk is minor.
The objective of liquidity risk management is to ensure the Group's
financing in all circumstances. The Group's liquid assets, committed
credit limits and investments totalled EUR 317 million at the end of
2007 (EUR 192 million).
Liquid assets are invested within confirmed limits to investment
targets with a good credit rating. The business units are liable for
credit risk associated with accounts receivable. Credit risk
concentrations in accounts receivable are minor as the customer base
is wide.
The company used credit derivatives to manage counterparty risks.
Environmental issues
Elisa carries out high-quality and environmentally friendly
telecommunications services. The utilisation of these services
reduces the need to move people and goods around, which leads to a
reduction in traffic.
Elisa monitors the environmental impact of its operations and
continuously strives to improve their environmental friendliness.
Elisa evaluates suppliers and subcontractors according to their
environmental criteria, and improves the awareness of environmental
issues among the personnel by openly and regularly providing
information on their effects.
Elisa's environment group collected data on the environmental load
(energy, water and fuel consumption, waste), followed the development
in environmental legislation as well as other areas, and increased
environmental awareness among the personnel by directing the
operations that contribute to the environmental load.
The principal projects in 2007 included: continuing the design of a
standardised environmental management system, further development of
the environmental load data reporting system, improving waste sorting
and developing the production waste processes.
Diverse cooperation with environmental management companies has
continued. Elisa is collaborating with Vodafone, the Association for
Environmental Management (www.yjy.fi) and the Ekokumppanit Klubi
association (based in Pirkanmaa) on environmental issues.
Events after the financial period
Elisa's Extraordinary General Meeting of Shareholders on 21 January
2008
Elisa's Extraordinary General Meeting was concluded on 22 November
2007 on the request of Novator Finland Oy and held on 21 January
2008. The General Meeting turned down Novator's proposal of releasing
the members of Elisa's present Board of Directors from office.
Other events after the financial period
Wholesale prices levied by telecommunications companies on each other
declined by approximately one-third of the previous level on 1
February 2008. This was evident as a reduction in the retail prices
of calls placed to corporate numbers, for example.
Outlook for 2008
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.
Elisa's revenue is expected to increase on the previous year. Elisa
expects to see an improvement in full-year EBITDA and EBIT excluding
non-recurring items. The contributory factors include the growth in
the 3G market and the efficiency measures.
Full-year capital expenditures are expected to be 10 to 12 per cent
of revenue, and cash flow will substantially improve on the previous
year due to factors such as change in net working capital.
Capital repayment
In accordance with Elisa's profit distribution policy, profit
distribution is 40-60 per cent of the profit for the financial
period. Distribution of profit includes dividend payment, capital
repayment and purchase of treasury shares.
The Board of Directors proposes to the General Meeting that capital
be repaid to shareholders to the amount of EUR 1.80 per share on the
basis of the balance sheet of 31 December 2007 approved by the
General Meeting. EUR 0.80 per share is in accordance with the profit
distribution policy, and EUR 1.00 constitutes additional distribution
of funds to develop the capital structure. The capital repayment
corresponds to 130 per cent of the period's earnings. The Board of
Directors proposes that the funds be distributed out of the reserve
for invested non-restricted equity. Shareholders who are listed in
the company's register of shareholders maintained by the Finnish
Central Securities Depository Ltd on 25 March 2008 are entitled to
funds distributed by the General Meeting. The Board of Directors
proposes that the payment date be 1 April 2008. The profit for the
period shall be added to accrued earnings.
Furthermore, the Board of Directors decided to propose to the General
Meeting that the Board of Directors be authorised to acquire 15
million treasury shares, which corresponds to 9 per cent of the
entire stock.
The Board of Directors also decided to propose to the General Meeting
that the Board of Directors be authorised to distribute funds out of
the retained earnings account or the reserve for invested
non-restricted equity to a maximum of EUR 250 million.
The parent company's distributable proceeds at year-end amounted to
EUR 657 million.
BOARD OF DIRECTORS
Elisa Corporation
1.1. - 31.12.2007
Information in this release is based on
the company's audited Financial Statements.
The Auditor's Report has been given on
11 February 2008.
CONSOLIDATED INCOME STATEMENT
10-12 10-12 1-12 1-12
EUR million Note 2007 2006 2007 2006
Revenue 1 402,1 400,7 1 568,4 1 518,4
Other operating income 1,3 2,0 21,0 8,7
Materials and services -177,3 -182,4 -707,0 -689,3
Employee benefit expenses -50,7 -53,7 -181,2 -213,9
Other operating expenses -49,3 -48,4 -201,8 -189,4
EBITDA 1 126,0 118,2 499,4 434,5
Depreciation -51,9 -47,8 -197,4 -209,1
EBIT 1 74,2 70,4 302,0 225,4
Financial income 3,8 4,2 27,9 9,8
Financial expense -12,6 -5,6 -44,7 -23,5
Share of associated companies'
profit 0,0 0,1 0,0 0,1
Profit before tax 65,4 69,1 285,2 211,8
Income taxes -15,2 -18,1 -64,9 -50,4
Profit for the period 50,2 51,0 220,3 161,4
Attributable to:
Equity holders of the parent 50,1 50,7 219,8 160,3
Minority interest 0,1 0,3 0,5 1,1
50,2 51,0 220,3 161,4
Earnings per share (EUR)
Basic 0,32 0,31 1,38 0,97
Diluted 0,32 0,31 1,38 0,97
Average number of outstanding shares
(1000 shares)
Basic 158 258 163 885 159 417 165 417
Diluted 158 258 163 885 159 417 165 417
Elisa Corporation
1.1. - 31.12.2007
Information in this release is based on
the company's audited Financial Statements.
The Auditor's Report has been given on
11 February 2008.
CONSOLIDATED BALANCE SHEET
31.12. 31.12.
EUR million 2007 2006
Non-current assets
Property, plant and equipment 637,3 645,5
Goodwill 773,6 772,3
Other intangible assets 194,5 190,4
Investments in associated companies 0,1 0,4
Available-for-sale investments 30,9 48,4
Other receivables 7,3 4,8
Deferred tax receivable 31,7 33,7
1 675,4 1 695,5
Current assets
Inventories 28,5 38,4
Trade and other receivables 454,8 334,8
Cash and cash equivalents 16,9 22,2
500,2 395,4
Total assets 2 175,6 2 090,9
Equity attributable to equity holders of the
parent 1 033,4 1 307,6
Minority interest 2,0 4,7
Total equity 1 035,4 1 312,3
Non-current liabilities
Deferred tax liabilities 34,9 36,3
Provisions 7,3 8,2
Interest-bearing debt 627,3 321,1
Other non-current liabilities 24,6 16,1
694,1 381,7
Current liabilities
Trade and other payables 303,2 287,5
Tax liabilities 10,8 28,7
Provisions 4,1 2,7
Interest-bearing debt 128,0 78,0
446,1 396,9
Total equity and liabilities 2 175,6 2 090,9
Elisa
Corporation
1.1. -
31.12.2007
Information in this release is based on
the company's audited Financial Statements.
The Auditor's Report has been
given on
11 February 2008.
STATEMENT OF CHANGES
IN EQUITY
Reserve
for
invested
Share Trea- non Retai- Mino-
issue sury restricted ned rity Total
Share pre- sha- Other equi- ear- inte- equi-
EUR million capital mium. res reserves ty nings rest ty
Total equity
at 1.1. 2006 83,0 530,4 -2,5 418,9 307,5 12,4 1349,7
Available
for sale
investments 3,4 3,4
Other
changes -0,2 -0,5 -0,7
Items
recognised
directly in
equity 3,2 -0,5 2,7
Profit for
the period 160,3 1,1 161,4
Total
recognised
income and
expense for
the period 3,2 159,8 1,1 164,1
Acquisitions
of
subsidiaries -0,2 -5,8 -6,0
Dividends -116,2 -3,0 -119,2
Purchase of
treasury
shares -79,4 -79,4
Sales of
treasury
shares 0,8 0,1 0,9
Share based
compensation 2,2 2,2
Total equity
at 31.12.
2006 83,0 530,4 -81,3 422,1 353,4 4,7 1312,3
Total equity
at 1.1. 2007 83,0 530,4 -81,3 422,1 353,4 4,7 1312,3
Share
premium
reduction
and transfer -530,4 530,4
Available
for sale
investments -18,2 -18,2
Other
changes 1,6 1,6
Items
recognised
directly in
equity -530,4 -18,2 530,4 1,6 -16,6
Profit for
the period 219,8 0,5 220,3
Total
recognised
income and
expense for
the period -530,4 -18,2 530,4 221,4 0,5 203,7
Acquisitions
of
subsidiaries 5,3 -0,8 -2,8 1,7
Dividends -401,7 -0,4 -402,1
Purchase of
treasury
shares -85,6 -85,6
Sales of
treasury
shares 1,1 0,4 1,5
Share based
compensation 3,9 3,9
Total equity
at 31.12.
2007 83,0 -165,8 403,9 535,7 176,6 2,0 1035,4
Elisa Corporation
1.1. - 31.12.2007
Information in this release is based on
the company's audited Financial Statements.
The Auditor's Report has been given
on 11 February 2008.
CONSOLIDATED CASH FLOW STATEMENT
1-12 1-12
EUR million 2007 2006
Cash flow from operating activities
Profit before tax 285,2 211,8
Adjustments
Depreciation 197,4 209,1
Financial income and expenses 16,8 13,7
Gains and losses on disposal of fixed assets -14,7 -3,2
Gains and losses on disposal of shares -0,1 -0,9
Change in provisions in the income statement 0,5 -1,9
Other adjustments 1,1 0,6
201,0 217,4
Change in working capital
Change in trade and other receivables -116,0 -95,4
Change in inventories 10,0 -18,1
Change in trade and other payables 6,5 36,7
-99,5 -76,8
Dividends received 1,2 1,0
Interest received 6,8 7,3
Interest paid -26,9 -25,8
Taxes paid -82,2 -0,3
Net cash flow from operating activities 285,6 334,6
Cash flow from investments
Acquisition of subsidiaries net of cash acquired -4,2 -25,3
Capital expenditure -203,7 -205,7
Purchase of available-for-sale investments -2,0 -0,1
Proceeds from sale of subsidiaries 4,5
Proceeds from sale of associated companies 0,3
Proceeds from asset disposal 23,8 5,1
Proceeds from sale of available-for-sale investments 14,1 1,1
Non-current receivables 4,2
Net cash flow from investments -171,7 -216,2
Cash flow from financing activities
Purchase of treasury shares -85,6 -79,4
Proceeds from treasury shares 1,7 1,0
Proceeds from long-term borrowings 350,0
Repayment of long-term borrowings -44,2 -122,4
Change in short-term borrowings 67,0 25,0
Repayment of finance lease liabilities -6,7 -9,5
Dividends paid -401,4 -123,6
Net cash from/used in financing activities -119,2 -308,9
Change in cash and cash equivalents -5,3 -190,5
Cash and cash equivalents at beginning of period 22,2 212,7
Cash and cash equivalents at end of period 16,9 22,2
Elisa
Corporation
1.1.-31.12.2007
Information in this release is based on
the company's audited Financial Statements.
The Auditor's Report has been
given on 11 February 2008.
NOTES
BASIS OF
PREPARATION
Consolidated Financial Statements has been prepared in
accordance with the IFRS recognition and measurement
principles, although all requirements of IAS 34 standard
have not been followed. The 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 Consolidated Financial
Statement are the same as those applied in Consolidated
Financial Statements at 31 December 2006.
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 IFRS2
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
10-12/2007 Fixed Other Unallocated Group
EUR million Mobile Network business items Eliminations Total
External
sales 247,4 154,4 402,1
Inter-segment
sales 5,1 7,3 -12,4 0,0
Revenue 252,8 161,7 -12,4 402,1
EBITDA 79,6 46,7 -0,3 126,0
EBIT 51,7 22,8 -0,3 74,2
Financial
income and
expense -8,8 -8,8
Share of
associated
companies'
profit 0,0
Profit before
tax 65,4
10-12/2006 Fixed Other Unallocated Group
EUR million Mobile Network business items Eliminations Total
External
sales 247,7 153,0 400,7
Inter-segment
sales 5,1 9,3 -14,4 0,0
Revenue 252,8 162,3 -14,4 400,7
EBITDA 76,4 43,4 -1,6 118,2
EBIT 53,8 18,8 -2,2 70,4
Financial
income and
expense -1,4 -1,4
Share of
associated
companies'
profit 0,1 0,1
Profit before
tax 69,1
Elisa
Corporation
1.1.-31.12.2007
Information in this release is based
on the company's audited Financial Statements.
The Auditor's Report has been
given on 11 February 2008.
1-12/2007 Fixed Other Unallocated Group
EUR million Mobile Network business items Eliminations Total
External
sales 959,7 608,7 1 568,4
Inter-segment
sales 20,2 33,5 -53,7 0,0
Revenue 979,9 642,2 -53,7 1 568,4
EBITDA 299,5 206,0 -6,1 499,4
EBIT 194,8 113,4 -6,2 302,0
Financial
income
and expense -16,8 -16,8
Share of
associated
companies'
profit 0,0
Profit before
tax 285,2
Investments
in associates
companies 0,1 0,1
Total assets 1 516,6 571,9 87,1 2 175,6
Total
liabilities 174,9 162,3 803,0 1 140,2
Investments 92,8 113,6 206,4
1-12/2006 Fixed Other Unallocated Group
EUR million Mobile Network business items Eliminations Total
External
sales 905,5 612,8 0,1 1 518,4
Inter-segment
sales 24,4 52,2 -76,6 0,0
Revenue 929,9 665,0 0,1 -76,6 1 518,4
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
in associates
companies 0,4 0,4
Total assets 1 384,2 597,0 109,7 2 090,9
Total
liabilities 181,2 170,8 426,6 778,6
Investments 80,0 127,4 207,4
Elisa
Corporation
1.1.-31.12.2007
Information in this release is based on
the company's audited Financial Statements.
The Auditor's Report has been
given on 11 February 2008.
2. OPERATING LEASE COMMITMENTS
31.12. 31.12.
EUR million 2007 2006
Due within 1 year 16,3 21,5
Due after 1 year but within 5 years 35,3 37,8
Due after 5 years 21,1 21,4
Total 72,7 80,7
3. CONTINGENT LIABILITIES
31.12. 31.12.
EUR million 2007 2006
Mortgages, pledges and guarantees
Pledges given
Pledges given as surety 1,3 0,7
Guarantees given
For others (* 42,3 0,5
Mortgages, pledges and guarantees total 43,6 1,2
Other commitments
Repurchase commitments 0,2 0,4
Contingent liabilities in QTE-arrangement
Lease-leaseback agreement (QTE facility)
Total value of the arrangement 137,9 154,1
Termination risk 14,5 18,6
*) 40,8 milj. euros is related to hedging of
the guarantor bank in the QTE-arrangement
4. DERIVATIVE INSTRUMENTS
31.12. 31.12.
EUR million 2007 2006
Interest rate swaps
Nominal value 150,0
Fair value recognised in the balance sheet -3,0
Credit default swaps (*
Nominal value 45,6
Fair value recognised in the balance sheet 1,0
*) CDS is related to hedging of the guarantor bank
in the QTE-arrangement
Elisa
Corporation
1.1. -
31.12.2007
Information in this release is based on
the company's audited Financial Statements.
The Auditor's Report has been
given on 11 February 2008.
KEY FIGURES
1-12 1-12
EUR million 2007 2006
Shareholders' equity/share, EUR 6,53 8,07
Interest bearing net debt 738,4 376,9
Gearing 71,3% 28,7%
Equity ratio 47,9% 63,1%
Return on investment (ROI) *) 18,8% 13,2%
Gross investments in fixed assets 206,4 207,4
of which finance lease investments 2,7 1,7
Gross investments as % of revenue 13,2% 13,7%
Investments in shares, 12,4 10,3
Average number of personnel 3 299 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
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