2009-07-17 07:30:00 CEST
2009-07-17 07:31:52 CEST
REGULATED INFORMATION
Elisa - Interim report (Q1 and Q3)
ELISA'S INTERIM REPORT JANUARY-JUNE 2009
Second quarter 2009
Revenue was EUR 355 million (372)
EBITDA excluding non-recurring items was EUR 116 million (109), EBIT
EUR 64 million (57)
Profit before tax amounted to EUR 56 million (38)
Earnings per share was EUR 0.27 (0.20)
Cash flow after investments was strong, EUR 89 million (59)
The full year outlook is reiterated
Revenue per subscription (ARPU) in the mobile business was at the
previous quarter's level EUR 24.0 (24.1 in the first quarter)
Churn was 14.7 per cent (14.0 in the first quarter)
The number of Elisa's mobile subscriptions increased by 127 000
during the quarter, due in particular to the new 3G and 2G customers,
as well as mobile broadband
The number of fixed broadband subscriptions decreased by 13,600 on
the previous quarter
Net debt / EBITDA was 1.6 (1.7 at the end of 2008) and gearing 89%
(93 at the end of 2008)
January-June 2009
Revenue was EUR 706 million (739)
EBITDA was EUR 231 million (213), EBIT EUR 126 million (110)
EBITDA excluding non-recurring items was EUR 231 million (220), EBIT
EUR 126 million (117)
Cash flow after investments was EUR 135 million (125)
Key indicators:
EUR million 4-6/2009 4-6/2008 1-6/2009 1-6/2008
Revenue 355 372 706 739
EBITDA 116 105 231 213
EBITDA excluding
non-recurring items 116 109 231 220
EBIT 64 53 126 110
Profit before tax 56 38 109 90
Earnings per share, EUR 0.27 0.20 0.53 0.45
Capital expenditures 36 41 70 78
Financial position and cash flow:
EUR million 30.6.2009 30.6.2008 31.12.2008
Net debt 773 898 812
Net debt / EBITDA 1) 1.6 1.9 1.7
Gearing ratio, % 89.2 109.3 92.8
Equity ratio, % 44.6 40.4 43.3
+-------------------------------------------------------------+
| EUR million | 4-6/2009 | 4-6/2008 | 1-6/2009 | 1-6/2008 |
|-----------------+----------+----------+----------+----------|
| Cash flow after | | | | |
| investments | 89 | 59 | 135 | 125 |
+-------------------------------------------------------------+
1) (interest-bearing debt - financial assets) / (4 previous quarters'
EBITDA exclusive of non-recurring items)
Additional information regarding the Key Performance Indicators is
available on www.elisa.com/investors, in the section: Financial info,
Financial Statements & Interim Reports: Elisa Quarterly Data.
CEO Veli-Matti Mattila:"Elisa's result good despite economic downturn
Elisa's profitability continued to be strong. Continuous improvement
of productivity and service quality have created prerequisites for a
good result despite the general economic downturn. In the second
quarter, cash flow also continued to be strong. Revenue fell slightly
from the previous year, mainly as a result of lower equipment sales
volume as well as decreased interconnection fees and roaming revenue.
The competitive situation remained challenging. In the consumer
business, we continued to develop an attractive service and product
offering as well as to improve productivity. We launched the Elisa
Viihde service - a modern, versatile digital IPTV service. Elisa was
the first in Finland to launch a mobile broadband prepaid
subscription, which has been well received. Elisa has also managed to
strengthen its position in the corporate customer business.
We continued to build our 3G network, which has the best coverage in
Finland. The network currently covers an area of almost five million
inhabitants. Through our cooperation partners we can also offer
excellent global mobile coverage to our customers. Together with a
strong growth in subscriptions, our mobile network consolidates our
position as a 3G market leader.
We continue determinedly to implement our strategy by developing the
productivity of our operations and by offering our customers more
services relevant to them. Our competitiveness in cost and investment
efficiency, as well as good cash flow allows us to continue
implementing this strategy. However, the general economic downturn
will continue to affect our business to some extent. We believe that
with firm improvement of productivity and expanding service offering,
we can meet these challenges and that our business will continue to
develop favourably in the years to come."
ELISA
Vesa Sahivirta
Director, IR and Financial Communications
tel. +358 50 520 5555
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 50 520 5555
Distribution:
NASDAQ OMX Helsinki
Principal media
www.elisa.com
INTERIM REPORT JANUARY-JUNE 2009
The interim report has been prepared in accordance with the IAS 34
standard, "Interim reports". The information presented in this
interim report is unaudited.
Market situation
The general economic downturn has so far had only a marginal impact
on the telecom operator business. The impact has been felt mainly in
equipment sales, roaming revenues and corporate customer business.
Elisa's Estonian business has also suffered to some extent. It is
still uncertain how much the possible deterioration of the corporate
business environment will impact the telecom sector.
The competitive environment has been keen but stable in Finland. The
number of mobile 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 services made
available through 3G subscriptions has also increased. Another factor
contributing to the growth has been the use of multiple terminal
devices for different purposes and mobile broadband services. Churn
in mobile subscriptions has been at a normal level, and competition
has been mainly in services and campaigning.
The number and usage of traditional fixed network subscriptions
decreased at the same pace as in the previous year. The fixed
broadband market has matured, while the strong subscription growth in
mobile broadband continued.
Revenue, earnings and financial position
Revenue and earnings:
EUR million 4-6/2009 4-6/2008 1-6/2009 1-6/2008
Revenue 355 372 706 739
EBITDA 116 105 231 213
EBITDA-% 32.8 28.2 32.8 28.8
EBITDA excl. non-recurring items 116 109 231 220
EBITDA-% excl.
non-recurring items 32.8 29.3 32.8 29.7
EBIT 64 53 126 110
EBIT excl. non-recurring items 64 57 126 117
EBIT-% excl. non-recurring items 18.0 15.4 17.8 15.9
Second quarter 2009
Revenue decreased by 4 per cent mainly due to lower equipment sales
volumes, lower interconnection fees both in Finland and Estonia and a
decrease in traditional fixed business.
EBITDA improved by 11 per cent and EBITDA excluding non-recurring
items by 7 per cent on the previous year. The improvement was mainly
due to improved efficiency measures. The total OPEX decreased by EUR
28million. In 2008, extra implementation costs of the billing and CRM
system, as well as revenue correction affected EBITDA negatively.
Financial income and expenses totalled EUR -8 million (-15). The
decrease in financial expenses was mainly due to mark-to-market
valuation of the interest rate swap (negative effect in 2008),
decrease in net debt and lower interest rates. Income taxes in the
income statement amounted to EUR -14 million (-6). Elisa's earnings
after taxes were EUR 42 million (32). The Group's earnings per share
(EPS) amounted to EUR 0.27 (0.20).
January-June 2009
Elisa's revenue decreased by 4 per cent on last year mainly given the
same reasons as in the second quarter.
EBITDA improved by 9 per cent and EBITDA excluding non-recurring
items by 5 per cent on the previous year. The improvement was mainly
due to improved efficiency measures. The total OPEX decreased by EUR
51 million. In 2008, extra implementation costs of the billing and
CRM system, as well as revenue correction affected EBITDA negatively.
During the first half of 2009, sales costs increased due the strong
growth in mobile subscriptions.
Financial income and expenses totalled EUR -16 million (-20). The
decrease in financial expenses was mainly attributed to
mark-to-market valuation of the interest rate swap (negative effect
in 2008), a decrease in net debt and lower interest rates. Income
taxes in the income statement amounted to EUR -26 million (-18).
Elisa's earnings after taxes were EUR 84 million (72). The Group's
earnings per share (EPS) amounted to EUR 0.53 (0.45).
Financial position:
EUR million 30.6.2009 30.6.2008 31.12.2008
Net debt 773 898 812
Net debt / EBITDA 1) 1.6 1.9 1.7
Gearing ratio, % 89.2 109.3 92.8
Equity ratio, % 44.6 40.4 43.3
+-------------------------------------------------------------+
| EUR million | 4-6/2009 | 4-6/2008 | 1-6/2009 | 1-6/2008 |
|-----------------+----------+----------+----------+----------|
| Cash flow after | | | | |
| investments | 89 | 59 | 135 | 125 |
+-------------------------------------------------------------+
1) (interest-bearing debt - financial assets) / (4 previous quarters'
EBITDA exclusive of non-recurring items)
Second quarter 2009
Elisa's financial position and liquidity remained good. Elisa's net
debt decreased from EUR 898 million to EUR 773 million. April - June
cash flow after investments increased by 51 per cent to EUR 89
million mainly due to the improved result, the decrease in capital
expenditure and investment in shares.
January-June 2009
Cash flow after investments increased by 8 per cent to EUR 135
million (125) on the previous year mainly due to the improved result
and the decrease in capital expenditure.
Changes in corporate structure
January-June 2009
In February, Elisa acquired the entire share capital of Xenetic Oy.
Xenetic is a hosting service company, the business of which consists
of data centres, monitoring, data communications and data security
services and equipment, and application leasing among other things.
In February Elisa also acquired the business operations of Trackway
Oy, which provides e.g. solutions for asset tracking. There were no
major changes in the corporate structure in the second quarter 2009.
Consumer Customer business
EUR million 4-6/2009 4-6/2008 1-6/2009 1-6/2008
Revenue 209 218 410 439
EBITDA 68 56 132 123
EBITDA-% 32.5 25.8 32.1 28.0
EBIT 38 27 71 64
CAPEX 19 22 37 43
Second quarter 2009
The Consumer Customer business revenue was EUR 209 million (218) and
EBITDA EUR 68 million (56). The decrease in revenue was mainly a
result of lower equipment sales volumes, lower interconnection fees
both in Finland and Estonia and a decrease in the traditional fixed
business. EBITDA was positively affected by productivity improvement
measures. Total OPEX decreased by EUR 22 million. The decrease in the
Estonian business due to the general economic downturn had a negative
effect on EBITDA.
January-June 2009
The Consumer Customer business revenue was EUR 410 million (439) and
EBITDA EUR 132 million (123). The decrease in revenue was mainly
attributable to the to same reasons as in the second quarter. EBITDA
was positively affected by productivity improvement measures and
interconnection costs. Total OPEX decreased by EUR 38 million. The
decrease in the Estonian business due to the general economic
downturn had a negative effect on EBITDA.
Corporate Customer business
EUR million 4-6/2009 4-6/2008 1-6/2009 1-6/2008
Revenue 146 153 296 299
EBITDA 48 48 100 90
EBITDA-% 33,2 31,6 33,7 30,1
EBIT 26 26 54 47
CAPEX 17 19 33 35
Second quarter 2009
Corporate Customers business revenue was EUR 146 million (153) and
EBITDA EUR 48 million (48). The decrease in revenue was mainly due to
lower interconnection fees, a decrease in mobile revenue and a
decrease in the traditional fixed business. Growth in ICT services
increased revenue. EBITDA was positively affected by productivity
improvement measures and negatively by decreased revenue. Total OPEX
decreased by EUR 7 million.
January-June 2009
Corporate Customers business revenue was EUR 296 million (299) and
EBITDA EUR 100 million (90). The decrease in revenue was mainly due
to lower interconnection fees, decrease in equipment sales volumes
and decrease in the traditional fixed business. Growth in ICT
services increased revenue. Increase in EBITDA was mainly due to
productivity improvement. Total OPEX decreased by EUR 13 million.
Personnel
In January-June the average number of personnel at Elisa was 3,143
(2,970). Personnel by segment at the end of the period:
30.6.2009 30.6.2008 31.12.2008
Consumer Customers 1,596 1,545 1,522
Corporate Customers 1,725 1,309 1,495
Total 3,321 2,854 3,017
The number of personnel increased by about 300 from the beginning of
the year. Personnel growth mainly occurred in call centers as a
result of an increase in the customer service business. The call
center headcount varies flexibly according to customer demand and
business activity.
Investments
EUR million 4-6/2009 4-6/2008 1-6/2009 1-6/2008
Capital expenditures, of which 36 41 70 78
- Consumer Customers 19 22 37 43
- Corporate Customers 17 19 33 35
Shares 1 11 6 13
Total 37 52 76 91
The main capital expenditures arose from the capacity and coverage
increase of the 3G network.
Financing arrangements and ratings
Valid financing arrangements:
Maximum amount In use on 30.6.2009
EUR million
Committed credit limits 300 5
Commercial paper programme ¹) 250 119
EMTN programme ²) 1,000 600
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
The Group's cash and undrawn committed credit lines totalled EUR 324
million at 30 June 2009 (EUR 258 million at the end of 2008). There
are no major refinancing needs expected before the year 2011.
Share
Trading of shares 4-6/2009 4-6/2008 1-6/2009 1-6/2008
Shares traded, millions 57.2 94.4 106.4 177.2
Volume, EUR million 602.3 1,372 1156.6 2,984
% of shares 34 57 64 107
Shares and market values 30.6.2009 30.6.2008 31.12.2008
Total number of shares 166,307,586 166,307,586 166,307,586
Treasury shares 10,688,629 7,688,629 10,688,629
Outstanding shares 155,618,957 158,618,957 155,618,957
Closing price, EUR 11.73 13.33 12.30
Market capitalisation,
EUR million 1,825 2,114 1,914
Treasury shares, % 6.4 4.6 6.4
In March, Elisa distributed a dividend of 0.60 euros per share,
totalling EUR 93.4 million, in accordance with the decision of the
Annual General Meeting.
In June, the Government of Finland transferred its Elisa shares to
its fully-owned company Solidium Oy. Following this transfer, the
Government of Finland has no direct ownership in Elisa. The number of
shares that transferred to Solidium Oy was 16,006,000 representing
9.62 per cent of the share capital and votes.
In June, Solidium Oy announced that it has exceeded 10 per cent
ownership in Elisa. Solidium Oy's ownership increased to 16,631,000
shares, or 10.00 per cent of the share capital and votes.
The Board of Directors' authorisations
On 18 March 2009, the Annual General Meeting accepted the proposal to
authorize the Board of Directors to decide on the distribution of
funds from the unrestricted equity to a maximum of EUR 150,000,000.
The authorization is effective until the beginning of the following
Annual General Meeting.
The Annual General Meeting decided on the authorization to repurchase
or accept as pledge the company's own shares. The repurchase may be
directed. The amount of shares under this authorization is 15,000,000
shares at maximum. The authorization is effective until June 30,
2010.
The Annual General Meeting approved the proposal of the Board of
Directors on the issuance of shares as well as the issuance of
special rights entitling to shares. The issue may be directed. The
authorization is effective until June 30, 2013. A maximum aggregate
of 50 million of the company's shares can be issued under the
authorization.
Regulatory issues
On April 2009, Elisa was handed a decision made by the Finnish
Communications Regulatory Authority, that Elisa was allocated more
frequencies in both the 1,800Mhz and 2,100Mhz wavebands. In the
1,800Mhz waveband, the radio license is valid until November 2017
and in the 2,100Mhz waveband, the radio licence is valid to March
2019. The 1,800Mhz frequencies can be used for the LTE (Long Term
Evolution technology).
Significant legal issues
On 28 May 2009, The Court of Appeal of Helsinki rendered its verdict
in the proceedings concerning the stock exchange disclosures of the
Jippii Group in 2001. Jippii is Saunalahti Group's predecessor, which
Elisa acquired in 2005. The Court has ordered Elisa to pay a
corporate fine of EUR 200,000 and a forfeiture of EUR 85,000
concerning the events of 2001.
The Finnish Competition Authority has withdrawn its intent to make a
report concerning the pricing of Elisa's broadband and removed the
matter from the agenda.
Substantial risks and uncertainties associated with Elisa's
operations
Risk management is part of Elisa's internal control system. It aims
to ensure 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 businesses 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.
The deterioration of the economic environment may impact the demand
for Elisa's services and products, and therefore growth prospects.
However, a good demand for communication services is expected to
continue also during a recession.
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:
In order to manage interest rate risk, the Group's loans and
investments are diversified in fixed- and variable-rate instruments.
Interest rate derivatives are used to manage interest rate risk.
As most of Elisa Group's cash flow is denominated in euros, the
exchange rate risk is minor. Elisa's Estonian business, which is
approximately 7 per cent of the consolidated revenue is denominated
in Estonian crowns.
The objective of liquidity risk management is to ensure the Group's
financing in all circumstances. The Group's cash and undrawn
committed credit lines totalled EUR 324 million at 30 June 2009 (EUR
258 million at the end of 2008).
Liquid assets are invested within confirmed limits to investment
targets with a good credit rating. Credit risk concentrations in
accounts receivable are minor as the customer base is wide.
In connection to the counterparty risk hedging Elisa provided a
maximum USD 60 million guarantee for a credit derivative portfolio
(CDO). The risk for the guarantee being called increased due to the
credit crisis in 2008, after which there have not been any material
changes. The rating of the portfolio is at B1 level. The guarantee is
valid until 15 December 2012. The maximum liability USD 60 million,
if realised, would mean cash payments of USD 0.5 million in 2010, USD
33.0 million in 2011 and USD 26.5 million in 2012.
Given the recent financial market turmoil, the banking sector has
suffered and the banks' ability to finance companies have
deteriorated, with some capital market activities not operating
fully. However, Elisa has cash reserves, committed credit facilities
and a sustainable cash flow to cover its foreseeable financing needs.
A detailed description of the financial risk management can be found
in the 2008 Annual Report on page 15.
Events after the financial period
There have not been any significant events following the reporting
period.
Outlook for 2009
The current economic environment and financial market turmoil creates
uncertainty for the 2009 outlook. Competition in the Finnish
telecommunications market remains challenging.
The general economic downturn has so far had a slight impact on the
Elisa's Estonian business and the Corporate Customer segment. The
main risks still relate to the development of the Estonian economy
and the corporate customer business.
Full year revenue is estimated to be at the same or slightly lower
level than last year. The use of mobile communications and mobile
broadband products is continuing to rise. The equipment sales volumes
and service sales in some customer segments may decrease. EBITDA
excluding non-recurring items is also expected to be at the same or
slightly lower level than last year. Elisa will determinedly continue
to stimulate demand for its services and continue to drive
productivity improvements of its operations. Likewise, capital
expenditure will be actively controlled to a maximum 12 per cent of
revenue, and it may be reduced clearly if the general economy
deteriorates further.
The contributory factors for long-term growth and profitability
improvement include the 3G market growth and efficiency measures,
which are continuing as expected. Elisa's financial position and
liquidity are good. There are no major refinancing needs expected
before the year 2011.
BOARD OF DIRECTORS
Elisa Corporation
1.1. - 30.6.2009
Unaudited
CONSOLIDATED INCOME
STATEMENT
4-6 4-6 1-6 1-6 1-12
EUR million Note 2009 2008 2009 2008 2008
Revenue 1 354,9 371,5 705,9 738,5 1485,0
Other operating income 1,1 1,1 2,0 2,0 6,5
Materials and services -143,6 -169,2 -289,3 -327,7 -652,4
Employee expenses 7 -47,6 -41,7 -94,5 -87,0 -162,5
Other operating expenses -48,4 -57,0 -92,8 -112,9 -205,0
EBITDA 1 116,4 104,7 231,3 212,9 471,6
Depreciation and
amortisation 3 -52,5 -51,5 -105,7 -102,5 -207,1
EBIT 1 63,9 53,2 125,6 110,4 264,5
Financial income 2,7 1,9 6,1 8,7 17,1
Financial expense -10,8 -17,3 -22,5 -28,9 -54,0
Share of associated
companies' profit 0,0 0,0 0,0 0,0 0,0
Profit before tax 55,8 37,8 109,2 90,2 227,6
Income taxes -13,5 -6,0 -25,7 -18,2 -50,6
Profit for the period 42,3 31,8 83,5 72,0 177,0
Attributable to:
Owners of the parent 42,1 31,7 83,1 71,7 176,3
Non-controlling
interests 0,2 0,1 0,4 0,3 0,7
42,3 31,8 83,5 72,0 177,0
Earnings per share (EUR)
Basic and diluted 0,27 0,20 0,53 0,45 1,12
Average number of
outstanding shares
(1000 shares)
Basic and diluted 155 619 158 492 155 619 158 375 157 450
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
Profit for the period 42,3 31,8 83,5 72,0 177,0
Other comprehensive
income, net of tax:
Available-for-sale
investments 1,0 -2,3 -0,1 -1,8 -10,4
Total comprehensive
income 43,3 29,5 83,4 70,2 166,6
Total comprehensive
income attributable to:
Owners of the parent 43,1 29,4 83,0 69,9 165,9
Non-controlling
interests 0,2 0,1 0,4 0,3 0,7
43,3 29,5 83,4 70,2 166,6
Elisa Corporation
1.1. - 30.6.2009
Unaudited
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30.6. 31.12.
EUR million Note 2009 2008
Non-current assets
Property, plant and equipment 3 610,2 630,5
Goodwill 3 781,6 778,6
Other intangible assets 3 166,8 177,5
Investments in associated companies 0,1 0,1
Available-for-sale investments 29,2 29,0
Receivables 12,5 12,4
Deferred tax assets 27,7 28,3
1628,1 1656,4
Current assets
Inventories 4 22,3 21,7
Trade and other receivables 272,9 319,4
Cash and cash equivalents 28,8 33,0
324,0 374,1
Total assets 1952,1 2030,5
Equity attributable to owners of the parent 5 864,8 873,4
Non-controlling interests 1,2 1,6
Total equity 866,0 875,0
Non-current liabilities
Deferred tax liabilities 26,3 30,9
Provisions 5,1 5,6
Interest-bearing debt 6 622,5 672,3
Other non-current liabilities 14,1 14,0
668,0 722,8
Current liabilities
Trade and other payables 232,3 255,5
Tax liabilities 5,5 3,4
Provisions 1,4 1,5
Interest-bearing debt 6 178,9 172,3
418,1 432,7
Total equity and liabilities 1952,1 2030,5
Elisa Corporation
1.1. - 30.6.2009
Unaudited
CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOWS
1-6 1-6 1-12
EUR million 2009 2008 2008
Cash flow from operating activities
Profit before tax 109,2 90,2 227,6
Adjustments
Depreciation and amortisation 105,7 102,5 205,8
Other adjustments 15,5 20,3 32,1
121,2 122,8 237,9
Change in working capital
Change in trade and other receivables 51,0 110,0 132,5
Change in inventories -0,5 3,6 6,7
Change in trade and other payables -16,3 -61,2 -56,2
34,2 52,4 83,0
Financial items, net -17,0 -19,8 -38,8
Taxes paid -34,5 -33,6 -59,5
Net cash flow from operating activities 213,1 212,0 450,2
Cash flow from investing activities
Capital expenditure -69,6 -77,4 -179,2
Purchase of shares -9,3 -10,0 -11,6
Proceeds from asset disposal 0,8 0,4 0,8
Net cash used in investing activities -78,1 -87,0 -190,0
Cash flow before financing activities 135,0 125,0 260,2
Cash flow from financing activities
Purchase of treasury shares -43,3
Proceeds from long-term borrowings 80,0 80,0
Repayment of long-term borrowings -36,0 -30,0 -30,0
Change in short-term borrowings -6,9 109,9 38,6
Repayment of finance lease liabilities -2,4 -2,0 -4,0
Dividends paid and capital repayment -93,9 -284,9 -285,4
Net cash used in financing activities -139,2 -127,0 -244,1
Change in cash and cash equivalents -4,2 -2,0 16,1
Cash and cash equivalents at beginning of
period 33,0 16,9 16,9
Cash and cash equivalents at end of period 28,8 14,9 33,0
Elisa
Corporation
1.1. -
30.6.2009
Unaudited
STATEMENT OF CHANGES IN EQUITY
Reserve
for
invested non-
Share Treasury Other restricted Retained Minority Total
EUR million capital shares reserves equity earnings interest equity
Balance at
January 1,
2008 83,0 -165,8 403,9 535,7 176,6 2,0 1035,4
Capital
repayment -284,9 -284,9
Dividends -0,6 -0,6
Share-based
compensation 7,0 -5,7 1,3
Total
comprehensive
income -1,8 71,7 0,3 70,2
Balance at
June 30,
2008 83,0 -158,8 402,1 250,8 242,6 1,7 821,4
EUR million
Balance at
January 1,
2009 83,0 -202,0 393,5 250,8 348,1 1,6 875,0
Dividends -93,4 -0,8 -94,2
Share-based
compensation 1,8 1,8
Total
comprehensive
income -0,1 83,1 0,4 83,4
Balance at
June 30,
2009 83,0 -202,0 393,4 250,8 339,6 1,2 866,0
Elisa Corporation
1.1. - 30.6.2009
Unaudited
NOTES
BASIS OF PREPARATION
The Interim consolidated financial statements are
in compliance with IAS 34 "Interim Financial Reporting".
The Interim consolidated financial statements have been
prepared in accordance with International Financial
Reporting Standards (IFRS) effective at the time of
preparation and adopted for use by the European Union.
This Interim consolidated financial statements should be read
in conjunction with the 2008 consolidated financial statements.
Except for accounting principle changes listed below,
the accounting principles applied in this Interim report
are the same as in the Consolidated financial statements
at December 31, 2008.
Changes in accounting
principles
The Group adopted the following standards, amendments to
standards and interpretations as from 1 January 2009 onward:
- IFRS 8 Operating Segments standard which requires segment
information to be presented on the basis of internal reporting
provided to management. Elisa's internal organizational and
management structure is based on a customer-oriented operating
model. The new operating segments to be presented are Consumer
Customers and Corporate Customers. Accounting principles and
comparable figures for 2008 have been published on 17 April, 2009.
- IAS 1 Presentation of Financial Statements. The amendments
concerning the income statement and statement of changes in
equity have affected the presentation of Interim consolidated
financial statements.
Following newly adopted standards and interpretations have not
had any effect on Interim consolidated financial statements.
- Revised IAS 23 Borrowing Costs
- Revised IFRS 2 Share-based Payment
- IFRIC 13 Customer Loyalty Programmes
- IFRIC 14 The Limit on a Defined Benefit Assets,
Minimum Funding Requirements and their Interaction
1. SEGMENT INFORMATION
4-6/2009 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
Revenue 208,7 146,2 354,9
EBITDA 67,9 48,5 116,4
Depreciation and amortisation -30,1 -22,4 -52,5
EBIT 37,8 26,1 63,9
Financial income 2,7 2,7
Financial expense -10,8 -10,8
Share of associated
companies' profit 0,0 0,0
Profit before tax 55,8
Investments 18,9 17,4 36,3
4-6/2008 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
Revenue 218,3 153,2 371,5
EBITDA 56,3 48,4 104,7
Depreciation and amortisation -29,6 -21,9 -51,5
EBIT 26,7 26,5 53,2
Financial income 1,9 1,9
Financial expense -17,3 -17,3
Share of associated
companies' profit 0,0 0,0
Profit before tax 37,8
Investments 22,2 18,5 40,7
Elisa Corporation
1.1. - 30.6.2009
Unaudited
1-6/2009 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
Revenue 410,2 295,7 705,9
EBITDA 131,7 99,6 231,3
Depreciation and amortisation -60,5 -45,2 -105,7
EBIT 71,2 54,4 125,6
Financial income 6,1 6,1
Financial expense -22,5 -22,5
Share of associated
companies' profit 0,0 0,0
Profit before tax 109,2
Investments 37,2 33,0 70,2
1-6/2008 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
Revenue 439,2 299,3 738,5
EBITDA 122,8 90,1 212,9
Depreciation and amortisation -59,0 -43,5 -102,5
EBIT 63,8 46,6 110,4
Financial income 8,7 8,7
Financial expense -28,9 -28,9
Share of associated
companies' profit 0,0 0,0
Profit before tax 90,2
Investments 42,8 35,5 78,3
1-12/2008 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
Revenue 881,5 603,5 1485,0
EBITDA 267,3 204,3 471,6
Depreciation and amortisation -118,7 -88,4 -207,1
EBIT 148,6 115,9 264,5
Financial income 17,1 17,1
Financial expense -54,0 -54,0
Share of associated
companies' profit 0,0 0,0
Profit before tax 227,6
Total assets 1143,3 780,8 106,4 2030,5
Investments 101,8 82,1 183,9
Elisa Corporation
1.1. - 30.6.2009
Unaudited
2. ACQUISITIONS
Elisa Oyj acquired all shares of Xenetic Oy on
February 13, 2009. Xenetic was founded in 2000
and it is a leading Finnish hosting service company,
the business of which consists of computer rooms,
monitoring, control, data communications, data
security services and equipment, and application
leasing. Xenetic Oy was consolidated with the Group
since March 2009. If the acquisition had been made
as of the beginning of the financial period 2009, it would
not have had any major impact in Group's revenue
or earnings for the period.
In a business deal signed on 6 February 2009,
Elisa Oyj has acquired the asset management
and logistics system business of Trackway Oy.
The total acquisition cost was EUR 5.1 million,
of which EUR 6.2 million effected on cash flow
(including cash limit repayment). The business
combinations resulted in goodwill of
EUR 2.0 million.
Additional purchase price relating to previous
year's acquisitions resulted in goodwill of
EUR 1.0 million.
3. PROPERTY, PLANT AND
EQUIPMENT AND INTANGIBLE ASSETS
Property Other
plant and intangible
EUR million equipment Goodwill assets
Cost, 1 January 2009 2320,3 778,6 379,3
Additions 57,6 12,6
Acquisitions of subsidiaries 2,2 3,0 2,5
Disposals -0,5
Reclassifications 0,5 -0,5
30 June 2009 2380,1 781,6 393,9
Accumulated depreciation/
amortisation, 1 January 2009 1689,8 201,8
Depreciation for the period 80,5 25,3
Disposals and reclassifications -0,4
30 June 2009 1769,9 227,1
Net carrying amounts:
1 January 2009 630,5 778,6 177,5
30 June 2009 610,2 781,6 166,8
Commitments to purchase property, plant
and equipment and intangible assets amounts to
EUR 33,9 million as at 30 June 2009.
4. INVENTORIES
Write-downs of inventories amounting to
EUR 0,7 million were recognised at 30
June, 2009 (EUR 1,6 million,
31 December, 2008)
5. EQUITY
Dividends
On 18 March, 2009 Elisa's Annual General Meeting
decided of a dividend of 0,60 euros per share.
The total dividend amounts to EUR 93,4 million and
payment started on 30 March, 2009.
Elisa Corporation
1.1. - 30.6.2008
Unaudited
6. ISSUANCES AND
REPAYMENTS OF DEBT
No bonds have been issued
during the first half of 2009.
Repayments of Bonds
Nominal
Nominal Book interest Effective Maturity
EUR million value value rate interest date
EMTN programme 2001/
EUR 1,000 million
6-month euribor +
III/2002 20,0 20,0 1,02% 6,439 % 8.4.2009
6-month
euribor +
V/2002 6,0 6,0 1,00% 6,419 % 8.4.2009
6-month
euribor +
VI/2002 10,0 10,0 1,00% 6,419 % 8.4.2009
Total of repayments 36,0 36,0
The unused amount of EUR 1,000 million
EMTN program is EUR 400 million as at
30 June 2009.
7. RELATED PARTY TRANSACTIONS
Elisa Group's related parties include
subsidiaries, associates and key management.
Key management consists of Elisa's Board of
Directors, the CEO and the Executive Board.
Changes in subsidiary relationships
during the period are as follows:
Xenetic Oy acquired 100 %
Related party transactions
with associated companies 1-6/2009
Sales 0,0
Purchases 0,3
Management remuneration will be announced
in Annual financial statements.
Elisa Corporation
1.1. - 30.6.2009
Unaudited
8. OPERATING LEASE COMMITMENTS
30.6. 31.12.
EUR million 2009 2008
Due within 1 year 20,9 22,2
Due after 1 year but within 5 years 35,9 36,8
Due after 5 years 15,6 15,2
Total 72,4 74,2
9. CONTINGENT LIABILITIES
30.6. 31.12.
EUR million 2009 2008
Mortgages
For own and group companies 0,7 0,4
Pledges given
Pledges given as surety 0,8
Guarantees given
For others (* 43,4 44,3
Mortgages, pledges and guarantees total 44,1 45,5
Other commitments
Repurchase commitments 0,0 0,1
*) EUR 42.5 million is related to the guarantee given
on a CDO portfolio.
10. DERIVATIVE INSTRUMENTS
30.6. 31.12.
EUR million 2009 2008
Interest rate swaps
Nominal value 150,0 150,0
Fair value recognised in the balance sheet 1,6 1,0
Credit default swaps (*
Nominal value 44,8 47,4
*) CDS is related to hedging of the guarantor bank
in the QTE-arrangement. In 2008 Elisa wrote down
the fair value of the CDS agreement.
11. EVENTS AFTER
THE BALANCE SHEET DATE
No significant events have taken place
after the balance sheet date.
Elisa Corporation
1.1. - 30.6.2009
Unaudited
KEY FIGURES
1-6 1-6 1-12
EUR million 2009 2008 2008
Shareholders' equity per share, EUR 5,56 5,17 5,61
Interest bearing net debt 772,6 898,1 811,6
Gearing 89,2% 109,3% 92,8%
Equity ratio 44,6% 40,4% 43,3%
Return on investment (ROI) *) 17,0% 16,3% 15,6%
Gross investments in fixed assets 70,2 78,3 183,9
of which finance lease investments 0,6 0,9 4,7
Gross investments as % of revenue 10,0% 10,6% 12,4%
Investments in shares 6,2 12,6 14,8
Average number of employees 3143 2970 2946
*) 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 and other
financial expenses
------------------------------------------x 100
Total equity +
interest bearing liabilities (average)
Net debt
Interest-bearing debt -
cash and cash equivalents
Shareholders' equity per 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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