2008-04-25 07:30:00 CEST
2008-04-25 07:34:32 CEST
REGULATED INFORMATION
Elisa - Interim report (Q1 and Q3)
ELISA'S INTERIM REPORT JANUARY-MARCH 2008
Revenue was EUR 367 million (378)
Revenue was negatively affected by 2007 revenue adjustment of mobile
segment, approximately EUR 7 million. This was due to correction of
2007 revenue estimate of delayed customer billing
New mobile interconnection fees as of 1st of January lowered revenue
by approximately EUR 14 million compared to the previous quarter
EBITDA exclusive of non-recurring items of EUR 3 million was EUR 111
million (115) and EBIT EUR 57 million (68)
Revenue adjustment and implementation costs of the new billing and
CRM system affected negatively on EBITDA and EBIT by approximately
EUR 12 million, which is not booked as a non-recurring item
Profit before tax amounted to EUR 52 million (64)
Earnings per share was EUR 0.25 (0.30)
Cash flow after investments more than tripled to EUR 66 million
Revenue per subscription (ARPU) in the mobile business decreased from
the previous quarter's EUR 29.9 to EUR 25.9. Effect of revenue
correction on ARPU was approximately EUR 1.0 and lower
interconnection fee EUR 2.2.
Churn was 15.6 per cent (12.6)
The number of mobile subscriptions in Finland increased by 33,000
during the quarter, due in particular to the new 3G customers, mobile
broadband and prepaid subscriptions
The number of broadband subscriptions increased by 4,600 on the
previous quarter
Net debt / EBITDA was 2.2x (1.5x at the end of 2007) and gearing 121%
(71 at the end of 2007)
Elisa's 2008 revenue, EBITDA and EBIT exclusive non-recurring items
are expected to be at the same level as in 2007
Key indicators:
+-----------------------------------------------------------+
| Income statement | 1-3/2008 | 1-3/2007 | 1-12/2007 |
| EUR million | | | |
|-------------------------+----------+----------+-----------|
| Revenue | 367 | 378 | 1 568 |
|-------------------------+----------+----------+-----------|
| EBITDA | 108 1) | 115 | 499 2) |
|-------------------------+----------+----------+-----------|
| EBIT | 57 | 68 | 302 |
|-------------------------+----------+----------+-----------|
| Profit before tax | 52 | 64 | 285 |
|-------------------------+----------+----------+-----------|
| Earnings per share, EUR | 0.25 | 0.30 | 1.38 |
|-------------------------+----------+----------+-----------|
| Capital expenditures | 38 | 45 | 206 |
+-----------------------------------------------------------+
EBITDA excluding non-recurring items: 1) EUR 111 million, 2) EUR 491
million.
Figures describing the financial position and cash flow:
+----------------------------------------------------------------+
| Financial position | 31 Mar 2008 | 31 Mar 2007 | 31 Dec 2007 |
|----------------------+-------------+-------------+-------------|
| Net debt | 955 | 578 | 738 |
|----------------------+-------------+-------------+-------------|
| Net debt / EBITDA 1) | 2.2 | 1.3 | 1.5 |
|----------------------+-------------+-------------+-------------|
| Gearing ratio, % | 120.6 | 51.6 | 71.3 |
|----------------------+-------------+-------------+-------------|
| Equity ratio, % | 37.7 | 51.0 | 47.9 |
|----------------------+-------------+-------------+-------------|
| Cash flow statement | 1-3/2008 | 1-3/2007 | 1-12/2007 |
| Cash flow after | | | |
| investments | 66 | 18 | 114 |
+----------------------------------------------------------------+
1) (interest-bearing debt - financial assets) / (EBITDA exclusive of
non-recurring items x 4)
CEO Veli-Matti Mattila:
"The best network coverage and quality are the engine of Elisa's 3G
success
The 3G market continues to grow strongly and Elisa still dominates
half of it thanks to, according to studies, the best network in terms
of coverage, among other things. At the moment, over 1.1 million
Finnish 3G customers can utilise mobile access when using their
e-mail, googling information or surfing the Internet like via the
usual fixed broadband. We estimate that by the end of the year there
will be up to 1.4 million people using 3G services.
The fast development of the 3G market has been made possible
especially by the service bundles that consumers have been able to
choose since the ban on bundling was terminated. To ensure the
positive development of the Finnish information society it is very
important to make sure that consumers continue to have this choice in
purchasing. For our customers it is important that we can offer
similar choices than in other industries.
In spite of higher than expected implementation costs of the billing
and CRM system, the renewal project proceeds as previously
communicated. By the end of March we managed to catch up with our
invoicing as promised to our customers. The queuing time in phone
services shortened significantly and customer satisfaction has also
improved.
The profitability of the first quarter was lower than we anticipated
due to revenue adjustment and the additional temporary implementation
costs of the new billing and CRM system. We are determined to
continue developing one Elisa and to improve our profitability
according to our strategy. We will strengthen growth by introducing
new services to our wide range of customers."
ELISA CORPORATION
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:
Helsinki Stock Exchange
Principal media
www.elisa.com
INTERIM REPORT JANUARY-MARCH 2008
The interim 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 and prepaid
subscriptions. 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
Revenue by segments:
+---------------------------------------------------------+
| EUR million | 1-3/2008 | 1-3/2007 | Change, % |
|-----------------------+----------+----------+-----------|
| Mobile communications | 223 | 229 | -3 |
|-----------------------+----------+----------+-----------|
| Fixed network | 156 | 163 | -4 |
|-----------------------+----------+----------+-----------|
| Inter-segment sales | -12 | -13 | 8 |
|-----------------------+----------+----------+-----------|
| Total | 367 | 378 | -3 |
+---------------------------------------------------------+
Elisa's revenue for January-March decreased by 3 per cent on last
year, primarily due to the 2007 revenue adjustment of EUR 7 million,
which is booked to the mobile segment. The adjustment served to
correct the 2007 revenue estimate affected by the delayed customer
billing. Revenue was also hampered by lower interconnection, EUR 14
million, and roaming fees and declined equipment sales, as well as
decreases in the number of traditional fixed network subscriptions.
Earnings by segments:
+---------------------------------------------------------+
| EUR million | 1-3/2008 | 1-3/2007 | Change, % |
|-----------------------+----------+----------+-----------|
| Mobile communications | | | |
| EBITDA | 60 | 67 | -10 |
| EBITDA, % | 27 | 29 | |
| EBIT | 31 | 44 | -30 |
|-----------------------+----------+----------+-----------|
| Fixed network | | | |
| EBITDA | 50 | 49 | 2 |
| EBITDA, % | 32 | 30 | |
| EBIT | 28 | 26 | 8 |
|-----------------------+----------+----------+-----------|
| Corporate functions | | | |
| EBITDA | -2 | -1 | |
| EBIT | -2 | -1 | |
|-----------------------+----------+----------+-----------|
| Total | | | |
| EBITDA | 108 | 115 | -6 |
| EBITDA, % | 29 | 30 | |
| EBIT | 57 | 68 | -16 |
+---------------------------------------------------------+
Elisa's EBITDA declined by 6 per cent on the previous year. The
EBITDA decrease was mainly due to the 2007 revenue adjustment of EUR
7 million and implementation costs of the new billing and CRM system,
together approximately EUR 12 million. On the other hand, new
services in the mobile communication business, as well as efficiency
measures improved EBITDA. The improved profitability of the fixed
network was driven by the increased number of broadband
subscriptions, and improved cost efficiency.
Financial income and expenses totalled EUR -5 million (-5). Income
taxes in the income statement amounted to EUR -12 million (-15).
Elisa's January-March earnings after taxes were EUR 40 million (49).
The Group's earnings per share (EPS) amounted to EUR 0.25 (0.30). At
the end of March, the Group's equity per share was EUR 4.99 (6.53 at
the end of 2007).
Changes in corporate structure
There were no major changes in Elisa's corporate structure in
January-March 2008. At the end of February Elisa acquired 51 per cent
of Kuntokompassi Oy. This acquisition has no material impact on
Elisa's profit or balance sheet.
Mobile communication business
+--------------------------------------------------------------+
| | 31 Mar 2008 | 31 Mar 2007 | 31 Dec 2007 |
|--------------------+-------------+-------------+-------------|
| Total number of | | | |
| subscriptions | 2,695,000 | 2,534,600 | 2,657,400 |
|--------------------+-------------+-------------+-------------|
| - Network operator | | | |
| in Finland | 2,367,600 | 2,235,100 | 2,334,600 |
|--------------------+-------------+-------------+-------------|
| - Subscriptions | | | |
| in Estonia | 327,400 | 299,500 | 322,800 |
+--------------------------------------------------------------+
+-----------------------------------------------------------------+
| User-specific indicators 1) | 1-3/2008 | 1-3/2007 | 1-12/2007 |
|-------------------------------+----------+----------+-----------|
| Average revenue/subscription, | | | |
| €/month | 25.9 | 29.7 | 30.0 |
|-------------------------------+----------+----------+-----------|
| Annual churn, % | 15.6 | 14.2 | 12.2 |
|-------------------------------+----------+----------+-----------|
| Outgoing calls, min/ | | | |
| subscription/month | 218 | 216 | 218 |
|-------------------------------+----------+----------+-----------|
| SMS, msg/subscription/month | 54 | 51 | 53 |
|-------------------------------+----------+----------+-----------|
| Non-voice services/revenue, % | 19 | 19 | 19 |
+-----------------------------------------------------------------+
+-------------------------------------------------------------------+
| Indicators on network use 2) | 1-3/2008 | 1-3/2007 | 1-12/2007 |
|---------------------------------+----------+----------+-----------|
| Outgoing calls, million minutes | 1,465 | 1,361 | 5,661 |
|---------------------------------+----------+----------+-----------|
| SMS, million msg | 375 | 323 | 1,550 |
+-------------------------------------------------------------------+
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 132,500 from a year ago. The increase was
markedly due to the success of 3G service bundles, mobile broadband
and prepaid subscriptions. The increase in subscription in the first
quarter was approximately 33,000. The total number of subscriptions
at the end of March was approximately 2.7 million.
In January-March, the call minutes per subscription of Elisa's own
service operators were at last year's level and the number of SMS
messages increased by approximately 8 per cent on the corresponding
period last year. Due to the increase in the number of subscriptions
of Elisa's service operators, the total call minutes in the network
grew by 8 per cent and the number of SMS messages increased by 16 per
cent.
Mobile communication revenues decreased by 3 per cent given the 2007
revenue adjustment, lower interconnection fees and equipment sales.
Revenue per subscription declined 13 per cent on the previous year to
EUR 25.9 due to the 2007 revenue adjustment as well as lower
interconnection fees as of the beginning of the year and lower
roaming fees as of September 2007. The effect of the revenue
correction on ARPU was approximately EUR 1.0 and the lower
interconnection fee EUR 2.2 compared to the previous quarter's ARPU
of EUR 30.1.
As of 1 February 2008 the fee for calling from mobile telephone to
010 Company Number decreased to 8.21 cent/call + 16.90 cent/minute.
The new lower fee also includes 020 or 030 Company Numbers that were
transferred to Elisa.
The mobile communication business of Elisa's Estonian subsidiary has
been hampered by lower interconnection fees since December 2007.
Revenue declined to EUR 24.2 million (26.0) and EBIT to EUR 5.4
million (5.7). However, EBITDA increased to EUR 8.6 million (8.3),
and the number of subscriptions increased by 27,900 to 327,400
(299,500).
Fixed network business
+-----------------------------------------------------------------+
| Number of subscriptions | 31Mar 2008 | 31Mar 2007 | 31 Dec 2007 |
|-------------------------+------------+------------+-------------|
| Broadband subscriptions | 526,000 | 513,400 | 521,800 |
|-------------------------+------------+------------+-------------|
| ISDN channels | 52,100 | 72,400 | 70,800 |
|-------------------------+------------+------------+-------------|
| Cable TV subscriptions | 239,300 | 228,100 | 237,100 |
|-------------------------+------------+------------+-------------|
| Analogue and other | | | |
| subscriptions | 474,700 | 516,000 | 471,500 |
|-------------------------+------------+------------+-------------|
| Subscriptions, total | 1,292,100 | 1,329,800 | 1,301,300 |
+-----------------------------------------------------------------+
The growth of Elisa's broadband subscriptions continued in
January-March 2008, representing an increase of approximately 13,000
subscriptions or 2.5 per cent on the previous year. The first quarter
increase in broadband was approximately 4,200 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. A portion of the ISDN
subscriptions were reallocated to broadband subscriptions.
On 1 February 2008, wholesale prices levied by telecommunications
companies on each other declined by approximately one-third of the
previous level on 1 February 2008.
Elisa launched a full triple-play service called Kotitotaali, under
Saunalahti brand, which offers customers high-speed broadband,
television and fixed line telephony services with one single monthly
fee.
The World Wide Wippies community established in the spring of 2007 by
the Finnish online community Wippies, expanded at a high rate. At
the end of March, Wippies had over 10,000 World Wide Wippies networks
in Finland and Sweden. Wippies also operates in Estonia and will
expand to other countries.
Personnel
Elisa employed 3,008 people on average during January-March 2008
(3,435).
Personnel by segments:
+-----------------------------------------------------------------+
| | 31 Mar 2008 | 31 Mar 2007 | 31 Dec 2007 |
|-----------------------+-------------+-------------+-------------|
| Mobile communications | 1,257 | 1,325 | 1,252 |
|-----------------------+-------------+-------------+-------------|
| Fixed network | 1,678 | 1,995 | 1,727 |
|-----------------------+-------------+-------------+-------------|
| Corporate functions | 36 | 38 | 36 |
|-----------------------+-------------+-------------+-------------|
| Total | 2,971 | 3,358 | 3,015 |
+-----------------------------------------------------------------+
Investments
+-------------------------------------------------------------------+
| EUR million | 1-3/2008 | 1-3/2007 | 1-12/2007 |
|---------------------------------+----------+----------+-----------|
| Capital expenditures, of which | 38 | 45 | 206 |
| - mobile communication business | 19 | 20 | 91 |
| - GSM leasing liability | | | |
| buy-backs | 2 | 0 | 2 |
| - fixed network business | 17 | 25 | 113 |
|---------------------------------+----------+----------+-----------|
| Shares | 1 | 5 | 12 |
| - of which achieved through an | | | |
| exchange of shares | | | 5 |
|---------------------------------+----------+----------+-----------|
| Total | 39 | 49 | 218 |
+-------------------------------------------------------------------+
The ADSL network upgrade was completed during the first quarter,
which lowered the amount of investments in the fixed network
business.
Financial position
Elisa's financial position and liquidity remained good. The
January-March cash flow after investments amounted to EUR 66 million
(18). A capital repayment of EUR 285 million was paid out in March,
which is the key reason for changes in Elisa's financial indicators.
Elisa drew down committed credit lines totalling EUR 220 million and
increased outstanding commercial paper by EUR 26 million to finance
the capital repayment.
Financial key indicators:
+--------------------------------------------------------------+
| EUR million | 31 Mar 2008 | 31 Mar 2007 | 31 Dec 2007 |
|-------------------+-------------+-------------+--------------|
| Net debt | 955 | 578 | 738 |
|-------------------+-------------+-------------+--------------|
| Gearing, % | 120.6 | 51.6 | 71.3 |
|-------------------+-------------+-------------+--------------|
| Equity ratio, % | 37.7 | 51.0 | 47.9 |
|-------------------+-------------+-------------+--------------|
| | | | |
|-------------------+-------------+-------------+--------------|
| | 1-3/2008 | 1-3/2007 | 1-12/2007 |
|-------------------+-------------+-------------+--------------|
| Cash flow | | | |
| after investments | 66 | 18 | 114 |
+--------------------------------------------------------------+
Valid financing arrangements:
+-------------------------------------------------------------+
| EUR million | Maximum amount | In use on |
| | | 31Mar 2008 |
|-------------------------------+----------------+------------|
| Committed credit limits | 300 | 220 |
|-------------------------------+----------------+------------|
| Commercial paper programme 1) | 250 | 118 |
|-------------------------------+----------------+------------|
| 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 March 2008, Elisa's total number of shares was
166,307,586, all within one share series. The closing price was EUR
15.82 (21.69), representing a decline of 27.1 per cent in the first
quarter 2008. Elisa's market capitalisation at the end of March 2008
was EUR 2,504 million (3,513).
In March Elisa distributed a capital repayment of EUR 285 million or
EUR 1.80 per share in accordance with the decision of the AGM.
In January-March 2008, a total of 82.8 million Elisa shares (92.7)
were traded on the Helsinki Stock Exchange for an aggregate of EUR
1,612 million (2,052). The trading volume was 49.8 per cent of the
number of shares on the market (57.2).
At the end of March 2008, Elisa held 8,049,976 shares (8,049,976 at
the end of 2007), having a counter value of EUR 4.02 million and
representing 4.84 per cent of the share capital and votes.
Elisa's Annual General Meeting of shareholders
On 18 March 2008, and in accordance with the proposal of the Board of
Directors, Elisa's Annual General Meeting decided on the capital
repayment to shareholders in the amount of EUR 1,80 per share on the
basis of the 31 December 2007 balance sheet approved by the General
Meeting.
The Annual General Meeting confirmed the financial statements for the
period in question. The members of the Board of Directors and the CEO
were discharged from liability for 2007.
The number of the members of the Board of Directors was confirmed at
six (6), and members Risto Siilasmaa and Ossi Virolainen were
re-elected to the Board of Directors and Mr Tomas Otto Hansson
(Director, Novator), Mr Orri Hauksson (Director, Novator Finland), Mr
Pertti Korhonen (CEO Elektrobit Corporation) and Ms Eira
Palin-Lehtinen (prev. Director in Nordea Bank) were elected as new
members.
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 accepted the proposal to authorise the
Board of Directors to decide on the distribution of funds out of
distributable equity up to a maximum of EUR 250,000,000. The
authorization is valid until the commencement of the next Annual
General Meeting.
The Annual General Meeting approved the proposal of the Board of
Directors to authorise the Board of Directors to issue shares and
special rights. The authorisation is valid until 31 March 2010. A
maximum aggregate of 50.0 million of the company's shares can be
issued under the authorization.
The Annual General Meeting decided on the authorisation to acquire
treasury shares. The amount of shares that may be purchased under the
authorisation is maximum 15,000,000 treasury shares. The
authorisation is valid until August 31, 2009.
Elisa's Extraordinary General Meeting of shareholders
on 21 January 2008
Elisa's Extraordinary General Meeting was concluded on 22 November
2007 at 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 Board of Directors from office.
Significant legal issues
Elisa has received from TeliaSonera a claim for refund of benefit by
unjust enrichment of over EUR 3 million due to price difference based
on TeliaSonera's own miscoding of the traffic.
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:
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 euros, 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 123 million at the end of
March 2008 (EUR 317 million at the end of 2007 ).
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.
Events after the financial period
Elisa will adjust its data roaming prices in foreign countries as of
1 May 2008. The mobile data connection prices will decrease 30-50 per
cent depending on the area zone. The price cut applies to Internet,
MSS and WAP connections.
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, EBITDA and EBIT excluding non-recurring items are
expected to be at the same level as in 2007. The extra implementation
costs of the billing and CRM system will continue until the end of
the year. This factor combined with the more challenging overall
market situation is expected to effect the 2008 EBITDA and EBIT.
However, the contributory factors for long-term growth and
profitability improvement include the 3G market growth and efficiency
measures,
which are continuing as expected.
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.
BOARD OF DIRECTORS
Elisa Corporation
1.1. - 31.3.2008
Unaudited
CONSOLIDATED INCOME STATEMENT
1-3 1-3 1-12
EUR million Note 2008 2007 2007
Revenue 1 367,0 378,4 1 568,4
Other operating income 0,9 1,2 21,0
Materials and services -158,5 -174,6 -707,0
Employee expenses -45,3 -44,0 -181,2
Other operating expenses -55,9 -46,3 -201,8
EBITDA 1 108,2 114,7 499,4
Depreciation and amortisation -51,0 -46,2 -197,4
EBIT 1 57,2 68,5 302,0
Financial income 6,8 3,3 27,9
Financial expense -11,6 -7,9 -44,7
Share of associated companies' profit 0,0 0,0 0,0
Profit before tax 52,4 63,9 285,2
Income taxes -12,2 -14,8 -64,9
Profit for the period 40,2 49,1 220,3
Attributable to:
Equity holders of the parent 40,0 48,8 219,8
Minority interest 0,2 0,3 0,5
40,2 49,1 220,3
Earnings per share (EUR)
Basic 0,25 0,30 1,38
Diluted 0,25 0,30 1,38
Average number of outstanding shares
(1000 shares)
Basic 158 258 161 941 159 417
Diluted 158 258 161 941 159 417
Elisa Corporation
1.1. - 31.3.2008
Unaudited
CONSOLIDATED BALANCE SHEET
31.3. 31.12.EUR million 2008 2007
Non-current assets
Property, plant and equipment 625,8 637,3
Goodwill 774,6 773,6
Other intangible assets 190,6 194,5
Investments in associated companies 0,1 0,1
Available-for-sale investments 31,4 30,9
Receivables 8,7 7,3
Deferred tax assets 30,4 31,7
1 661,6 1 675,4
Current assets
Inventories 24,8 28,5
Trade and other receivables 383,2 454,8
Cash and cash equivalents 43,3 16,9
451,3 500,2
Total assets 2 112,9 2 175,6
Equity attributable to equity holders of the
parent 789,9 1 033,4
Minority interest 2,2 2,0
Total equity 792,1 1 035,4
Non-current liabilities
Deferred tax liabilities 32,6 34,9
Provisions 7,5 7,3
Interest-bearing debt 627,2 627,3
Other non-current liabilities 13,7 24,6
681,0 694,1
Current liabilities
Trade and other payables 252,5 303,2
Tax liabilities 12,1 10,8
Provisions 4,1 4,1
Interest-bearing debt 371,1 128,0
639,8 446,1
Total equity and liabilities 2 112,9 2 175,6
Elisa Corporation
1.1. - 31.3.2008
Unaudited
CONDENSED CONSOLIDATED
CASH FLOW STATEMENT
1-3 1-3 1-12
EUR million 2008 2007 2007
Cash flow from operating activities
Profit before tax 52,4 63,9 285,2
Adjustments
Depreciation and amortisation 51,0 46,3 197,4
Other adjustments 4,8 3,2 3,6
55,8 49,5 201,0
Change in working capital
Change in trade and other receivables 67,2 2,3 -116,0
Change in inventories 3,7 11,2 10,0
Change in trade and other payables -48,7 -57,9 6,5
22,2 -44,4 -99,5
Financial items, net -14,1 -0,3 -18,9
Taxes paid -11,8 -4,0 -82,2
Net cash flow from operating activities 104,5 64,7 285,6
Cash flow from investing activities
Capital expenditure -37,4 -44,4 -203,7
Purchase of shares -0,9 -2,6 -6,2
Proceeds from asset disposal 0,1 0,8 38,2
Net cash used in investing activities -38,2 -46,2 -171,7
Cash flow before financing activities 66,3 18,5 113,9
Cash flow from financing activities
Purchase of treasury shares -85,6
Proceeds from treasury shares 1,7
Proceeds from long-term borrowings 350,0 350,0
Repayment of long-term borrowings -44,2
Change in short-term borrowings 245,5 -25,0 67,0
Repayment of finance lease liabilities -1,2 -1,8 -6,7
Dividends paid and capital repayment -284,2 -220,3 -401,4
Net cash used in financing activities -39,9 102,9 -119,2
Change in cash and cash equivalents 26,4 121,4 -5,3
Cash and cash equivalents at beginning
of period 16,9 22,2 22,2
Cash and cash equivalents at end
of period 43,3 143,6 16,9
Elisa
Corporation
1.1. -
31.3.2008
Unaudited
STATEMENT OF CHANGES
IN EQUITY
Reserve
for
Trea- invested Retai- Mino-
Share sury non- ned rity
Share pre- sha- Other restricted ear- inte- Total
capital mium res reserves equity nings rest equity
EUR million
Balance at
January 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 1,1
Profit for
the period 48,8 0,3 49,1
Total
recognised
income and
expense for
the period 1,1 48,8 0,3 50,2
Acquisitions
of
subsidiaries -0,1 -0,1
Dividends -242,9 -242,9
Share-based
compensation 0,8 0,8
Balance at
March 31,
2007 83,0 530,4 -81,3 423,2 160,1 4,9 1120,3
Balance at
January 1,
2008 83,0 -165,8 403,9 535,7 176,6 2,0 1035,4
Available-
for-sale
investments 0,5 0,5
Items
recognised
directly
in equity 0,5 0,5
Profit for
the period 40,0 0,2 40,2
Total
recognised
income and
expense for
the period 0,5 40,0 0,2 40,7
Capital
repayment -284,9 -284,9
Share-based
compensation 0,9 0,9
Balance at
March 31,
2008 83,0 -165,8 404,4 250,8 217,5 2,2 792,1
Elisa Corporation
1.1. - 31.3.2008
Unaudited
NOTES
BASIS OF PREPARATION
The Interim report has been prepared in accordance
with the IFRS recognition and measurement principles,
although all requirements of IAS 34 standard have not
been followed. The Interim consolidated financial statements
have been prepared in accordance with International Financial
Reporting Standards (IFRS) effective at the time of preparing
and adopted for use by European Union. The accounting
principles applied in the Interim report are the same as
those applied in the Consolidated financial statements
at December 31, 2007. This Interim consolidated financial
statements should be read in conjunction with the 2007
Consolidated financial statements.
1. BUSINESS SEGMENT INFORMATION
1-3/2008 Fixed Unallocated Group
EUR million Mobile Network items Eliminations Total
External
sales 219,3 147,7 367,0
Inter-segment
sales 3,7 8,4 -12,1 0,0
Revenue 223,0 156,1 -12,1 367,0
EBITDA 59,7 50,2 -1,7 108,2
EBIT 31,0 27,9 -1,7 57,2
Financial
income and
expense -4,8 -4,8
Share of
associated companies'
profit 0,0 0,0
Profit before
tax 52,4
Investments 20,8 16,8 37,6
1-3/2007 Fixed Unallocated Group
EUR million Mobile Network items Eliminations Total
External
sales 224,2 154,2 378,4
Inter-segment
sales 4,8 8,5 -13,3 0,0
Revenue 229,0 162,7 -13,3 378,4
EBITDA 67,2 49,2 -1,7 114,7
EBIT 43,7 26,4 -1,6 68,5
Financial
income and
expense -4,6 -4,6
Share of
associated companies'
profit 0,0 0,0
Profit before
tax 63,9
Investments 19,8 25,0 44,8
Elisa Corporation
1.1. - 31.3.2008
Unaudited
1-12/2007 Fixed Unallocated Group
EUR million Mobile Network 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 0,0
Profit before
tax 285,2
Investments 92,8 113,6 206,4
Elisa Corporation
1.1. - 31.3.2008
Unaudited
2. OPERATING LEASE COMMITMENTS
31.3. 31.12.
EUR million 2008 2007
Due within 1 year 19,8 20,6
Due after 1 year but within 5 years 39,9 42,6
Due after 5 years 20,1 21,1
Total 79,8 84,3
3. CONTINGENT LIABILITIES
31.3. 31.12.
EUR million 2008 2007
Pledges given
Pledges given as surety 1,2 1,3
Guarantees given
For others (* 39,4 42,3
Pledges and guarantees given, total 40,6 43,6
Other commitments
Repurchase commitments 0,2 0,2
Contingent liabilities in QTE-arrangement
Lease-leaseback agreement (QTE facility)
Total value of the arrangement 128,4 137,9
Termination risk 11,4 14,5
*) 37,9 milj. euros is related to hedging of
the guarantor bank in the QTE-arrangement
4. DERIVATIVE INSTRUMENTS
31.3. 31.12.
EUR million 2008 2007
Interest rate swaps
Nominal value 150,0 150,0
Fair value recognised in the balance sheet -0,6 -3,0
Credit default swaps (*
Nominal value 41,7 45,6
Fair value recognised in the balance sheet 2,4 1,0
*) CDS is related to hedging of the guarantor bank
in the QTE-arrangement
Elisa
Corporation
1.1. - 31.3.2008
Unaudited
KEY FIGURES
1-3 1-3 1-12
EUR million 2008 2007 2007
Shareholders' equity per share, EUR 4,99 6,89 6,53
Interest bearing net debt 955,1 578,4 738,4
Gearing 120,6% 51,6% 71,3%
Equity ratio 37,7% 51,0% 47,9%
Return on investment (ROI) *) 17,2% 14,9% 18,3%
Gross investments in fixed assets 37,6 44,8 206,4
of which finance lease investments 0,2 0,3 2,7
Gross investments as % of revenue 10,2% 11,8% 13,2%
Investments in shares, 1,1 4,6 12,4
Average number of employees 3008 3435 3299
*) 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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