2007-04-24 07:31:47 CEST
2007-04-24 07:31:47 CEST
REGULATED INFORMATION
Elisa - Quarterly report
ELISA S INTERIM REPORT JANUARY-MARCH 2007
* Revenue increased by 9 per cent to EUR 378 million (348)
* EBITDA improved to EUR 115 million (99, exclusive of
non-recurring items 103) and pre-tax profit to EUR 64 million (39,
exclusive of non-recurring items 43)
* Revenue per subscription (ARPU) in the mobile network
declined slightly from the previous quarter's EUR 30.8 to EUR 29.7
due to decreased interconnection fees. Churn remained on a par with
the previous quarter's level at 14.2 per cent (14.0 per cent).
* The number of mobile subscriptions continued to increase
during the first quarter, due in particular to the new 3G service
bundles
* The number of broadband subscriptions increased by
approximately 17,000 on the previous quarter.
* The capital structure has been developed towards the
company's mid-term targets. After the dividend payout, the equity
ratio at the end of March stood at 51 per cent (63 at the end of
2006), while net debt amounted to EUR 578 million (377 at the end
of 2006).
Key indicators:
+-----------------------------------------------------------+
| Income statement | 1-3/2007 | 1-3/2006 | 1-12/2006 |
| EUR million | | | |
|-------------------------+----------+----------+-----------|
| Revenue | 378 | 348 | 1 518 |
|-------------------------+----------+----------+-----------|
| EBITDA | 115 | 99 1) | 434 2) |
|-------------------------+----------+----------+-----------|
| EBIT | 68 | 43 | 225 |
|-------------------------+----------+----------+-----------|
| Profit before taxes | 64 | 39 | 212 |
|-------------------------+----------+----------+-----------|
| Earnings per share, EUR | 0.30 | 0.18 | 0.97 |
|-------------------------+----------+----------+-----------|
| Capital expenditures | 45 | 43 | 207 |
+-----------------------------------------------------------+
EBITDA excluding non-recurring items: 1) EUR 103 million, 2) EUR 445
million
Figures describing the financial position and cash flow:
+------------------------------------------------------------------+
| Financial position | 31.3.2007 | 31.3.2006 | 31.12.2006 |
| EUR million | | | |
|-----------------------------+-----------+-----------+------------|
| Net debt | 578 | 293 | 377 |
|-----------------------------+-----------+-----------+------------|
| Net debt/EBITDA* | 1.3 | 0.9 | 0.9 |
|-----------------------------+-----------+-----------+------------|
| Equity ratio, % | 51.0 | 61.5 | 63.1 |
|-----------------------------+-----------+-----------+------------|
| | | | |
| Cash flow statement | 1-3/2007 | 1-3/2006 | 1-12/2006 |
| Cash flow after investments | 18 | 13 | 118 |
+------------------------------------------------------------------+
* (interest-bearing net debt - liquid assets) / (report period EBITDA
x4)
CEO Veli-Matti Mattila:"Growth in the use of new services
The law allowing third-generation service bundles has been in force
for one year. High consumer interest in the bundles has proven that
the law was necessary, and the wireless information society has taken
great steps forward. It is thus desirable that the new Government and
Parliament would legislate for the interim law to be codified.
The increased use of new services is the result of high speed mobile
data transfer enabled by 3G. In particular, e-mail and internet have
been very popular. The proportion of non-voice services increased to
almost one-fifth of revenue.
Elisa has determinedly continued the expansion of its
third-generation network and efforts to double transmission speeds.
Elisa's geographical 3G coverage reaches more than 40 per cent of
Finns.
Elisa's market position strengthened during the first quarter. The
number of subscriptions increased both in mobile communications and
on the broadband market. The growth in mobile communications was
particularly attributable to healthy demand for 3G bundles.
The first quarter was also a financial success. Revenue continued to
increase and earnings improved significantly. Mobile churn remained
close to 14 per cent and was thus one-fifth lower than a year
earlier. Competition through new services is increasingly visible in
the market."
ELISA CORPORATION
Vesa Sahivirta
Director, IR and Financial Communications
Further information:
Mr Veli-Matti Mattila, President and CEO, tel. +358 10 262 2635
Mr Jari Kinnunen, CFO, tel. +358 10 262 9510
Mr Vesa Sahivirta, Director, IR and Financial Communication, tel.
+358 10 262 3036
Distribution:
Helsinki Stock Exchange
Principal media
Interim report for January-March 2007
This interim report has been prepared in accordance with the IFRS
recognition and measurement principles. The information presented in
this interim report is unaudited.
Market situation
The mobile communications subscriptions base has evolved favourably
in Finland with 3G handsets comprising a significant proportion of
new subscriptions sold and more than 10 per cent of the entire
subscription base. 3G service bundles, which offer new services, were
highly popular and clearly intensified the service competition. The
number of Elisa mobile network subscriptions, as well as the usage of
subscriptions, increased.
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. Healthy growth in Elisa
broadband subscriptions continued, outperforming the previous
quarter. Broadband penetration is over 60 per cent of Finnish
households.
Revenue
+---------------------------------------------------------+
| EUR million | 1-3/2007 | 1-3/2006 | Change, % |
|-----------------------+----------+----------+-----------|
| Mobile communications | 229 | 192 | 19 |
|-----------------------+----------+----------+-----------|
| Fixed network | 163 | 180 | -9 |
|-----------------------+----------+----------+-----------|
| Other businesses | 0 | 0 | |
|-----------------------+----------+----------+-----------|
| Inter-segment sales | -13 | -24 | 46 |
|-----------------------+----------+----------+-----------|
| Total | 378 | 348 | 9 |
+---------------------------------------------------------+
Elisa's revenue for January-March was up 9 per cent on last year.
Factors contributing to the growth included sales of terminals
associated with 3G service bundles, as well as the increased use of
mobile communication services.
Performance
+---------------------------------------------------------+
| EUR million | 1-3/2007 | 1-3/2006 | Change, % |
|-----------------------+----------+----------+-----------|
| Mobile communications | | | |
| EBITDA | 67 | 53 | 26 |
| EBITDA, % | 29 | 28 | |
| EBIT | 44 | 30 | 47 |
|-----------------------+----------+----------+-----------|
| Fixed network | | | |
| EBITDA | 49 | 46 | 7 |
| EBITDA, % | 30 | 26 | |
| EBIT | 26 | 15 | 73 |
|-----------------------+----------+----------+-----------|
| Other business and | | | |
| corporate functions | | | |
| EBITDA | -1 | -1 | |
| EBIT | -1 | -2 | |
|-----------------------+----------+----------+-----------|
| Group, total | | | |
| EBITDA | 115 | 99 * | 16 |
| EBITDA, % | 30 | 28 | |
| EBIT | 68 | 43 | 58 |
+---------------------------------------------------------+
* EBITDA includes a cost provision of EUR -4 million for the
reorganisation of operations
Elisa's EBITDA excluding non-recurring items showed growth of 12 per
cent on the corresponding period in 2006. The EBITDA improvement was
attributable to factors such as new services in the mobile
communication business, as well as efficiency measures. The improved
profitability of the fixed network was affected by changes in
broadband subscription prices and the increased number of
subscriptions.
The Group's financial income and expenses totalled EUR -4 million
(-4). Income taxes in the period under review amounted to EUR -15
million (-9).
The Group's January-March result after taxes was EUR 49 million (30).
The Group's earnings per share (EPS) amounted to EUR 0.30 (0.18). At
the end of March, consolidated shareholders' equity per share stood
at EUR 6.89 (EUR 8.07 at the end of 2006).
Changes in corporate structure
In February, Elisa acquired the entire share capital of the contact
centre system supplier First Orange Contact Oy from its executive
management and Aura Capital Oy for a price of EUR 3.5 million.
Mobile communication business
+-------------------------------------------------------------------+
| Number of subscriptions | 31.3.2007 | 31.3.2006 | 31.12.2006 |
|------------------------------+-----------+-----------+------------|
| Total number of | 2 534 600 | 2 261 400 | 2 488 900 |
| subscriptions | | | |
|------------------------------+-----------+-----------+------------|
| - Network operator in | 2 235 100 | 1 983 900 | 2 194 400 |
| Finland | | | |
|------------------------------+-----------+-----------+------------|
| - Subscriptions in Estonia | 299 500 | 277 500 | 294 500 |
+-------------------------------------------------------------------+
+-------------------------------------------------------------------+
| | 1-3/2007 | 1-3/2006 | 1-12/2006 |
|---------------------------------+----------+----------+-----------|
| Revenue/subscription**(ARPU),€ | 29,7 | 28,0 | 30,2 |
|---------------------------------+----------+----------+-----------|
| Churn**, % | 14,2 | 19,0 | 13,8 |
|---------------------------------+----------+----------+-----------|
| Usage, million minutes* | 1 361 | 1 087 | 4 888 |
|---------------------------------+----------+----------+-----------|
| Usage, min/subscription/month** | 216 | 187 | 203 |
|---------------------------------+----------+----------+-----------|
| SMS, million msg* | 323 | 265 | 1 193 |
|---------------------------------+----------+----------+-----------|
| SMS, msg/subscription/month** | 51 | 46 | 50 |
|---------------------------------+----------+----------+-----------|
| Value-added services/revenue, % | 19 | 16 | 17 |
+-------------------------------------------------------------------+
* Elisa's network operator in Finland
** Elisa's service operators in Finland (excluding prepaid)
Elisa's network operator in Finland had 2,235,100 subscriptions in
March, representing an increase of 13 per cent on the previous year.
The first-quarter increase was approximately 41,000 subscriptions.
The growth drivers included the success of 3G service bundles and
prepaid subscriptions.
The call minutes per subscription of Elisa's own service operators
rose by approximately 16 per cent and the number of SMS messages
increased by approximately 11 per cent on the corresponding period
last year. The call minutes of the network operator rose by 25 per
cent and SMS messages by 22 per cent.
Revenue per subscription (ARPU) increased by approximately 6 per cent
on the comparison period. Compared to the previous quarter, revenue
per subscription decreased by approximately 4 per cent from EUR 30.8
to EUR 29.7 as the result of a lower interconnection fee introduced
as of the beginning of the year (7 cents per minute compared to 8.4
cents per minute in 2006).
Elisa started the doubling of its 3G network speed in January and
will simultaneously expand the coverage of mobile broadband so that
by the end of 2007, the network will cover all major airports, as
well as most congress centres and chain hotels. The new 2-megabit
maximum speed will serve corporate customers in particular.
The pricing model for mobile calls from Elisa's private customer
subscriptions changed on 1 March 2007 with the introduction of an
opening 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 is 7.0 cents per
minute and in 2008, 5.1 cents per minute.
The mobile business of Elisa's Estonian subsidiary continued to grow
in terms of revenue as well as the number of subscriptions. Revenue
growth was 17 per cent, with revenue amounting to EUR 26.0 million
(22.3) and the number of customers to 299,500 (277,500).
Profitability improved as well: EBITDA increased by 21 per cent to
EUR 8.3 million (6.8) and EBIT by 30 per cent to EUR 5.7 million
(4.4).
Fixed network business
+-------------------------------------------------------------------+
| Number of subscriptions | 31.3.2007 | 31.3.2006 | 31.12.2006 |
|------------------------------+-----------+-----------+------------|
| Broadband subscriptions | 513 400 | 459 800 | 496 300 |
|------------------------------+-----------+-----------+------------|
| ISDN channels | 72 400 | 121 200 | 76 200 |
|------------------------------+-----------+-----------+------------|
| Cable TV subscriptions | 228 100 | 217 600 | 226 000 |
|------------------------------+-----------+-----------+------------|
| Analogue and other | | | |
| subscriptions | 516 000 | 557 900 | 521 100 |
|------------------------------+-----------+-----------+------------|
| Subscriptions, total | 1 329 800 | 1 356 500 | 1 319 600 |
+-------------------------------------------------------------------+
The number of broadband subscriptions rose by 17,100 in the
January-March period, showing an increase of 12 per cent on the
previous year.
The number of traditional subscriptions continued to decrease
steadily as voice calls shifted to the mobile communication network
and data transfers to broadband subscriptions.
Elisa announced that it will renew the pricing of landline calls for
its private and corporate customers on a national basis, starting 1
July 2007. The change means the pricing structure will be harmonised
so that local calls made from landline subscriptions and the local
network fee will have the same price in all Elisa's areas. In
addition, the opening fee and the minute price for local calls will
change.
Elisa and Microsoft launched a partnership under which Elisa will
offer Microsoft's corporate products as a service under its solutions
offering. Elisa will offer its corporate customers with 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, which is Cisco's superior recognition for partners. The
certificate is 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.
Elisa's General Meeting on 19 March 2007
Elisa's Annual General Meeting 2007, held on 19 March 2007, confirmed
the financial statements and released the Board of Directors from
liability for 2006. At the meeting, the shareholders resolved to pay
a dividend of EUR 0.50 per share and an additional dividend of EUR
1.00 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 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 received an authorisation to decide on a share
issue and the granting of special rights. The authorisation is valid
until 31 March 2009, and the maximum number of shares to be issued by
virtue of it is 30.0 million.
The General Meeting decided on the acquisition of treasury shares,
with the authorisation capped at 16,000,000 shares. The authorisation
is in effect until 31 August 2008.
Furthermore, the General Meeting approved the Board of Directors'
proposal to amend Articles 3, 4, 5, 8, 9 and 12 within the Articles
of Association.
A detailed stock exchange release concerning the resolutions of the
General Meeting was issued on 19 March 2007. The release is available
on Elisa's Web site at www.elisa.fi.
Personnel
During January-March, the average number of personnel at Elisa was
3,435 (an average of 4,496 in 2006).
Personnel by segments:
+-------------------------------------------------------------+
| | 31.3.2007 | 31.3.2006 | 31.12.2006 |
|-----------------------+------------+-----------+------------|
| Mobile communications | 1 325 | 1 506 | 1 329 |
|-----------------------+------------+-----------+------------|
| Fixed network | 1 995 | 2 816 | 2 224 |
|-----------------------+------------+-----------+------------|
| Corporate functions | 38 | 45 | 38 |
|-----------------------+------------+-----------+------------|
| Total | 3 358 | 4 367 | 3 592 |
+-------------------------------------------------------------+
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 transfered 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.
Investments
+-------------------------------------------------------------------+
| EUR million | 1-3/2007 | 1-3/2006 | 1-12/2006 |
|---------------------------------+----------+----------+-----------|
| Capital expenditures, | 45 | 43 | 207 |
| - mobile communication business | 20 | 15 | 78 |
| - GSM network buy-backs | 0 | 2 | 2 |
| - fixed network business | 25 | 26 | 127 |
| - others | 0 | 0 | 0 |
| Shares | 5 | 0 | 10 |
| Total | 49 | 43 | 218 |
+-------------------------------------------------------------------+
Financial position
Elisa's financial position and liquidity remained good during the
quarter. The group's January-March cash flow after investments
amounted to EUR 18 million (13). Elisa paid out a dividend of EUR 220
million in March, which is a key reason for changes in the financial
indicators. The proportion of tax attributable to the dividends, EUR
23 million, will be paid in April.
On 15 February 2007, Elisa decided on 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.
In the same connection 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 rating corresponding to the original. The arrangement is not
expected to have any essential cash or earnings effects.
Financial key indicators
+-------------------------------------------------------------------+
| EUR million | 31.3.2007 | 31.3.2006 | 31.12.2006 |
|-----------------------------+------------+-----------+------------|
| Net debt | 578 | 293 | 377 |
|-----------------------------+------------+-----------+------------|
| Net debt/EBITDA* | 1.3 | 0.9 | 0.9 |
|-----------------------------+------------+-----------+------------|
| Gearing, % | 51.6 | 23.2 | 28.7 |
|-----------------------------+------------+-----------+------------|
| Equity ratio, % | 51.0 | 61.5 | 63.1 |
|-----------------------------+------------+-----------+------------|
| | | | |
|-----------------------------+------------+-----------+------------|
| | 1-3/2007 | 1-3/2006 | 1-12/2006 |
|-----------------------------+------------+-----------+------------|
| Cash flow after investments | 18 | 13 | 118 |
+-------------------------------------------------------------------+
* (interest-bearing net debt - liquid assets) / (report period EBITDA
x4)
Valid financing arrangements
+-------------------------------------------------------------------+
| EUR million | Maximum amount | In use on 31 March |
| | | 2007 |
|-----------------------------+----------------+--------------------|
| Committed credit line | 170 | 0 |
|-----------------------------+----------------+--------------------|
| Commercial paper programme | 150 | 0 |
| 1) | | |
|-----------------------------+----------------+--------------------|
| 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
The number of total shares of the Group was 166,066,016 at the end of
March, with 4,125,000 held by Elisa or Group companies. The closing
share price on 31 March 2007, was EUR 21.69, an increase of 5 per
cent compared to the year-end closing price of EUR 20.75 (31 December
2006). Compared to the share price of EUR 16.38 a year ago (31 March
2006), it represents a 32 per cent increase. An ex-dividend date for
EUR 1.50 dividend was 20 March, 2007. As of 31 March 2007, the market
capitalisation was EUR 3,513 million.
In January-March, a total of 92.7 million shares were traded on the
Helsinki Stock Exchange for an aggregate of EUR 2,051.6 million. The
trading volume was 57.2 per cent of the number of shares on the
market.
Treasury shares and the parent company's distributable funds
The General Meeting on 19 March 2007 authorised the Board of
Directors to acquire treasury shares. The authorisation has not been
used. At the end of March, Elisa and its Group companies held
4,125,000 shares (4,125,000 at the end of 2006), having a counter
value of EUR 2.1 million and representing 2.48 per cent of the share
capital and votes.
The acquisition cost of EUR 79.4 million booked on treasury shares
held by the parent company restricts the company's profit
distribution. The company's distributable funds on 31 March 2007
totalled EUR 251 million, taking the dividend payout of EUR 243
million into account. In addition to this, the parent company's
earnings for the period under review amounted to EUR 27 million.
The company further specifies an item disclosed in the previous
financial statements: The parent company's retained earnings in the
financial statements amounted to EUR 574 million. The parent
company's distributable funds on 31 December 2006 amounted to a total
of EUR 494 million, including the EUR 79.4 million acquisition cost
of treasury shares held by the parent company that restricts the
distribution of profits.
Significant legal issues
There have been no significant events concerning Elisa's legal issues
after the publication of the Elisa Annual Report 2006.
Short-term risks and uncertainties
The telecommunications business is under intense competition in
Elisa's main market areas. Intense competition may affect Elisa's
business.
The rapid developments in telecommunications technology may have a
significant impact on Elisa's business.
Elisa's main market is Finland, where the number of mobile phones per
inhabitant is among the highest in the world. Thus the overall market
of mobile subscriptions in Finland cannot grow significantly.
Furthermore, the share of phone traffic in Elisa's fixed network has
decreased in the past few years. These factors may limit the
opportunities for growth.
The telecommunications industry is subject to heavy regulation. Elisa
and its business are monitored and regulated by several public
authorities. This regulation also affects the price level of some
products and services offered by Elisa.
Events after the reporting period
There have been no essential events to report following the reporting
period.
Outlook for 2007
Competition in the Finnish telecommunications market remains
challenging, while the focus is increasingly on services. The use of
mobile communications and broadband products is continuing to rise.
Elisa's aim is to further reinforce its position as the service
leader.
The group's revenue is expected to increase on the previous year, and
full-year EBITDA and EBIT excluding non-recurring items to improve.
This will be affected by factors such as the increasing 3G market and
efficiency measures. EBITDA and EBIT for the second quarter excluding
non-recurring items are expected to be at the same level with the
first quarter, but clear improvement is expected in the second half
of the year.
Capital expenditures during the year are estimated to total 11 to 13
per cent of the revenue, and cash flow will remain clearly positive.
BOARD OF DIRECTORS
Figures are not audited.
CONSOLIDATED INCOME STATEMENT
1-3 1-3 1-12
EUR million 2007 2006 2007
Revenue 378,4 348,4 1 518,4
Other operating income 1,2 2,8 8,7
Materials and services -174,6 -148,8 -689,3
Employee benefit expenses -44,0 -56,7 -213,9
Other operating expenses -46,3 -47,2 -189,4
EBITDA 114,7 98,5 434,5
Depreciation -46,2 -55,3 -209,1
EBIT 68,5 43,2 225,4
Financial income and expenses -4,6 -4,3 -13,7
Share of associated companies' profit 0,0 0,0 0,1
Profit before tax 63,9 38,9 211,8
Income taxes -14,8 -9,0 -50,4
Profit for the period 49,1 29,9 161,4
Attributable to:
Equity holders of the parent 48,8 29,6 160,3
Minority interest 0,3 0,3 1,1
Profit for the period 49,1 29,9 161,4
Earnings per share (EUR)
Basic 0,30 0,18 0,97
Diluted 0,30 0,18 0,97
Average number of outstanding shares (1000 shares)
Basic 161 941 165 917 165 417
Diluted 161 941 165 917 165 417
CONSOLIDATED BALANCE SHEET
31.3. 31.12.
EUR million 2007 2006
Non-current assets
Property, plant and equipment 639,5 645,5
Goodwill 772,3 772,3
Other intangible assets 199,0 190,4
Investments in associated companies 0,4 0,4
Available-for-sale investments 49,7 48,4
Other receivables 6,3 4,8
Deferred tax receivable 34,3 33,7
1 701,5 1 695,5
Current assets
Inventories 27,2 38,4
Trade and other receivables 333,2 334,8
Cash and cash equivalents 143,6 22,2
504,0 395,4
Total assets 2 205,5 2 090,9
Equity attributable to equity holders of the parent 1 115,4 1 307,6
Minority interest 4,9 4,7
Total equity 1 120,3 1 312,3
Non-current liabilities
Deferred tax liabilities 36,0 36,3
Provisions 8,3 8,2
Interest-bearing debt 667,7 321,1
Other non-current liabilities 18,7 16,1
730,7 381,7
Current liabilities
Trade and other payables 258,0 287,5
Tax liabilities 41,3 28,7
Provisions 0,9 2,7
Interest-bearing debt 54,3 78,0
354,5 396,9
Total equity and liabilities 2 205,5 2 090,9
STATEMENT OF CHANGES IN
EQUITY
Share
Share issue Treasury Other Retained Minority Total
EUR million capital premium shares reserves earnings interest equity
Total equityat 1.1.2006 83,0 530,4 -2,5 418,9 307,5 12,4 1349,7
Available
for sale
investments 1,1 1,1
Other
changes -0,2 -0,6 -0,8
Items
recognised
directly in
equity 0,9 -0,6 0,3
Profit for
the period 29,6 0,3 29,9
Total
recognised
income and 0,9 29,0 0,3 30,2
expense for
the period
Dividends -116,2 -116,2
Purchase of
treasury
shares 0,8 0,8
Total equity
at 31.3.2006 83,0 530,4 -1,7 419,8 220,3 12,7 1264,5
Total equity
at 1.1.2007 83,0 530,4 -81,3 422,1 353,4 4,7 1312,3
Available
for sale
investments 1,1 1,1
Items
recognised
directly in
equity 1,1 0,0 1,1
Profit for
the period 48,8 0,3 49,1
Total
recognised
income and 1,1 48,8 0,3 50,2
expense for
the period
Investment
in
subsidiaries -0,1 -0,1
Dividends -242,9 -242,9
Share based
compensation 0,8 0,8
Total equity
at 31.3.2007 83,0 530,4 -81,3 423,2 160,1 4,9 1120,3
CONSOLIDATED CASH FLOW STATEMENT
1-3 1-3 1-12
EUR million 2007 2006 2006
Cash flow from operating activities
Profit before tax 63,9 38,9 211,8
Depreciation 46,3 55,3 209,1
Other adjustments to profit before tax 3,2 4,1 8,3
Change in working capital -44,4 -39,4 -76,8
Cash generated from operations 69,0 58,9 352,4
Received dividends and interests, interest paid -0,3 -6,2 -17,5
Taxes paid -4,0 -0,9 -0,3
Net cash flow from operating activities 64,7 51,8 334,6
Cash flow from investments
Capital expenditure -44,4 -43,1 -205,7
Purchase of shares and other investments -2,6 -2,5 -25,4
Proceeds from asset disposal 0,8 6,8 14,9
Net cash used in investing activities -46,2 -38,8 -216,2
Cash flow before financing activities 18,5 13,0 118,4
Cash flow from financing activities
Purchase of treasury shares -79,4
Proceeds from treasury shares 0,9 1,0
Proceeds from long-term borrowings 350,0
Repayment of long-term borrowings -122,4 -122,4
Change in short-term borrowings -25,0 25,0
Repayment of finance lease liabilities -1,8 -2,9 -9,5
Dividends paid -220,3 -5,0 -123,6
Net cash used in financing activities 102,9 -129,4 -308,9
Change in cash and cash equivalents 121,4 -116,4 -190,5
Cash and cash equivalents at beginning of period 22,2 212,7 212,7
Cash and cash equivalents at end of period 143,6 96,3 22,2
NOTES
The accounting principles applied in this interim report are
the same
as in the financial statements at 31 December,
2006.
1. SEGMENT INFORMATION
REVENUE BY BUSINESS SEGMENTS
1-3 1-3 1-12
EUR million 2007 2006 2006
Mobile 228,9 191,9 929,9
Fixed Network 162,6 179,9 665,0
Other Companies 0,1
Intra-segment sales elimination -13,1 -23,4 -76,6
Corporation total 378,4 348,4 1 518,4
EBITDA BY BUSINESS SEGMENTS
1-3 1-3 1-12
EUR million 2007 2006 2006
Mobile 67,2 53,3 259,0
Fixed Network 49,2 46,4 181,1
Unallocated -1,7 -1,2 -5,6
Corporation total 114,7 98,5 434,5
EBIT BY BUSINESS SEGMENTS
1-3 1-3 1-12
EUR million 2007 2006 2006
Mobile 43,7 30,2 161,7
Fixed Network 26,4 15,1 70,6
Unallocated -1,6 -2,1 -6,9
Corporation total 68,5 43,2 225,4
2. LIABILITIES
31.3. 31.12.
EUR million 2007 2006
Mortgages, pledges and guarantees
Pledges given
Pledges given as surety 0,7 0,7
Guarantees given
For others (* 45,6 0,5
Mortgages, pledges and guarantees total 46,3 1,2
*) 45,1 milj. euros is related to hedging of
the guarantor bank in the QTE-arrangement
Leasing contracts and
other commitments
Leasing commitments 9,7 12,8
Repurchase commitments 0,5 0,4
Real estate leases 57,4 67,8
Lease liabilities total 67,6 81,1
Contingent liabilities in QTE-arrangement
Lease-leaseback agreement (QTE facility)
Termination risk 16,0 18,6
Total value of the arrangement 152,4 154,1
3. DERIVATIVE INSTRUMENTS
31.3. 31.3.
EUR million 2007 2006
Interest rate swaps
Nominal value 150,0
Fair value recorded in the balance sheet -0,8
Credit default swaps (*
Nominal value 51,5
Fair value recorded in the balance sheet 0,3
*) CDS is related to hedging of the financial
institution
risk in the QTE-arrangement
KEY FIGURES
1-3 1-12
EUR million 2007 2006
Shareholders' equity/share, EUR 6,89 8,07
Net debt 578,4 376,9
Gearing 51,6 % 28,7 %
Equity ratio 51,0 % 63,1 %
Return on investment (ROI) *) 16,2 % 13,2 %
Gross investments in fixed assets 44,8 207,4
of which finance lease investments 0,3 1,7
Gross investments as % of revenue 11,8 % 13,7 %
Investments in shares, 4,6 10,3
Average number of personnel 3 435 4 086
*) profit in the period multiplied by four
Formulae for financial indicators
Interest-bearing debt - cash and cash
equivalents
Gearing % -------------------------- x 100
Total equity
Total equity
Equity ratio % -------------------------- x 100
Balance sheet total - advances received
Profit before taxes + interest costs and other
financial expenses
Return on investment %
(ROI) --------------------------- x 100
Balance sheet total - non-interest bearing
liabilities (average)
Interest-bearing debt - cash and cash
Net debt equivalents
Equity attributable to equity holders of the
parent
Shareholders'
equity/share -------------------------------
Number of shares outstanding at end of period
Profit for the period attributable to equity
holders of parent
Earnings/share -------------------------------
Average number of outstanding shares
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