2010-10-22 07:30:00 CEST
2010-10-22 07:30:32 CEST
REGULATED INFORMATION
Elisa - Interim report (Q1 and Q3)
ELISA'S INTERIM REPORT JANUARY-SEPTEMBER 2010
ELISA STOCK EXCHANGE RELEASE 22 OCTOBER 2010 AT 8.30 am
Third quarter 2010
* Revenue was EUR 363 million (360)
* EBITDA was EUR 127 million (131), EBIT was EUR 73 million (77)
* Profit before tax amounted to EUR 68 million (70)
* Earnings per share was EUR 0.32 (0.34)
* Cash flow after investments was EUR 29 million (43)
* Mobile ARPU was EUR 21.2 (22.4 in the second quarter)
* Mobile churn increased to 18.1 per cent (15.9 in the second quarter)
* The number of mobile subscriptions increased by 102,000 during the quarter,
due in particular to the new 3G customers, as well as mobile broadband
customers
* The number of fixed broadband subscriptions increased by 2,200 on the
previous quarter
* Net debt / EBITDA was 1.5 (1.5 at the end of 2009) and gearing 84 per cent
(80 at the end of 2009)
January-September 2010
* Revenue was EUR 1,081 million (1,066)
* EBITDA was EUR 362 million (363), EBIT EUR 199 million (203)
* Cash flow after investments was EUR 144 million (178)
Key indicators:
EUR million 7-9/2010 7-9/2009 1-9/2010 1-9/2009
-------------------------------------------------------------------------
Revenue 363 360 1,081 1,066
EBITDA 127 131 362 363
EBIT 73 77 199 203
Profit before tax 68 70 131 179
Profit before tax excl. non-recurring
items 1) 175
Earnings per share, EUR 0.32 0.34 0.63 0.87
EPS, excl. non-recurring items 1) 0.84
Capital expenditures 42 40 127 111
-------------------------------------------------------------------------
1) Excluding non-recurring item: provision for possible guarantee expense booked
in Q1/2010
Financial position and cash flow:
EUR million 30.9.2010 30.9.2009 31.12.2009
---------------------------------------------------
Net debt 725 729 719
Net debt / EBITDA 1) 1.5 1.5 1.5
Gearing ratio, % 84.2 79.2 79.8
Equity ratio, % 44.8 47.7 46.1
---------------------------------------------------
EUR million 7-9/2010 7-9/2009 1-9/2010 1-9/2009
---------------------------------------------------
Cash flow after
investments 29 43 144 178
---------------------------------------------------
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 Elisa Quarterly Data.xls.
CEO Veli-Matti Mattila:"Growth through new services, focus on the smartphone market
Elisa's revenue developed favorably during the third quarter of the year. New
services and increased mobile communications business generated growth in the
Consumer Business. Revenue in the Corporate Customers Business remained strong,
as did cash flow and profitability. Profitability was burdened by investments in
new services and customer service quality as well as sales expenses related to
higher churn rates. For the first nine months of the year, EBITDA was at the
previous year's level.
Competition remained keen. Although competition in mobile broadband was tougher
than in the previous quarter, we increased our mobile subscription base by more
than 102,000 during the third quarter of the year. Fixed network broadband
subscriptions resumed growth.
In line with our strategy, we strengthened our Elisa Viihde entertainment
service by launching a cooperation agreement with Voddler, a Swedish video
service. Now, through the service, Elisa's customers have access to thousands of
free movies on the Internet. In addition to new services, we focused on
expanding our smartphone selection. Besides new Android and Nokia Symbian 3
smartphones, we released Apple's iPhone 4 for sale in Finland.
Favorable development in the Corporate Customer Business continued with new ICT
services. During the third quarter, we introduced a new Internet-based financial
management solution for small and medium-sized enterprises (SMEs). Offered as a
service, this software helps SMEs transfer to electronic invoicing and financial
management.
We continued to invest in improving customer service to better meet our
customers' needs. We launched Omaguru, an all-in-one technical support service
for households and small enterprises. Users can select a specific support person
by checking their availability and areas of expertise online.
We also continued our determined and consistent investments in the 3G network by
expanding its coverage in the Savo region, Northern and Southern Karelia and
Kymenlaakso.
The competitive situation in Finland's telecommunications market continues to be
challenging. Improving customer satisfaction and profitability still offer
significant opportunities. We will continue determinedly to further develop our
operations. In addition, our expanding service portfolio and investment ability
lay a solid foundation for the future."
ELISA CORPORATION
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-SEPTEMBER 2010
The 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
Positive trends in the general economy have continued. However, general business
activity has not yet recovered to its pre-recession level.
The competitive environment has been keen in Finland. The mobile subscription
base and the use of data services continued to evolve favourably. The use of
services made available through 3G subscriptions has increased. Another factor
contributing to the growth has been the use of multiple terminal devices for
different purposes, mobile broadband services and prepaid subscriptions. Churn
in mobile subscriptions has increased due to more aggressive campaigning. With
broader assortment now available, the smartphone market is gradually starting to
pick up.
The number and usage of traditional fixed network subscriptions decreased at the
same pace as in the previous quarters. The number of fixed broadband
subscriptions increased slightly, while the strong subscription growth in mobile
broadband continued.
Revenue, earnings and financial position
Revenue and earnings:
EUR million 7-9/2010 7-9/2009 1-9/2010 1-9/2009
-----------------------------------------------
Revenue 363 360 1,081 1,066
EBITDA* 127 131 362 363
EBITDA-% 35 36 33 34
EBIT* 73 77 199 203
EBIT-% 20 21 18 19
-----------------------------------------------
* There were no non-recurring items in EBITDA or EBIT
Third quarter 2010
Revenue increased by 1 per cent on the previous year. Revenue grew in the
Consumer Customers mobile services and equipment sales, as well as in Corporate
Customers mobile and ICT services. Consumer Customers online services also
contributed positively to revenue growth. Development of traditional fixed
telecom services in both segments affected revenue negatively.
EBITDA decreased on the previous year. Strong growth in the number of mobile
subscriptions together with higher churn increased the sales costs. Personnel
costs were also higher than a year ago as a result of higher call centre
activities.
Financial income and expenses totalled EUR -5 million (-8). Financial expenses
decreased due to a foreign exchange rate change related to a USD denominated
provision of possible guarantee expense made in the first quarter of 2010.
Income taxes in the income statement amounted to EUR -17 million (-17). Elisa's
earnings after taxes were EUR 51 million (53). The Group's earnings per share
(EPS) amounted to EUR 0.32 (0.34).
January-September 2010
Revenue increased by 1 per cent on last year mainly for the same reasons as in
the third quarter.
EBITDA remained at the previous year's level. Sales costs were higher given
increased market activities and service launches. The increased costs were
compensated by improved efficiency measures.
Financial income and expenses totalled EUR -69 million (-24). Financial expenses
increased due to a EUR 45 million (USD 60 million) provision of possible
guarantee expense made in the first quarter of 2010. Income taxes in the income
statement amounted to EUR -32 million (-43). Elisa's earnings after taxes were
EUR 99 million (136). The Group's earnings per share (EPS) amounted to EUR 0.63
(0.87).
Financial position:
EUR million 30.9.2010 30.9.2009 31.12.2009
---------------------------------------------------
Net debt 725 729 719
Net debt / EBITDA 1) 1.5 1.5 1.5
Gearing ratio, % 84.2 79.2 79.8
Equity ratio, % 44.8 47.7 46.1
---------------------------------------------------
EUR million 7-9/2010 7-9/2009 1-9/2010 1-9/2009
---------------------------------------------------
Cash flow after
investments 29 43 144 178
---------------------------------------------------
1) (interest-bearing debt - financial assets) / (4 previous quarters' EBITDA
exclusive of non-recurring items)
Third quarter 2010
Elisa's financial position and liquidity remained good. July - September cash
flow after investments was EUR 29 million (43). The decrease in cash flow was
mainly due to higher tax payments, lower profitability and negative development
in net working capital.
January-September 2010
Elisa's cash flow after investments was EUR 144 million (178). Cash flow was
lower than a year ago mainly as a result of negative development in net working
capital and higher capital expenditure.
Changes in corporate structure
January-September 2010
In May, Elisa strengthened its position as an ICT player by acquiring a majority
holding in Videra Oy, a leading video conferencing company in the Nordic
countries. Videra became part of the Elisa Group and Elisa's holding will be
68.8 per cent. Videra continues its operations as Elisa's subsidiary. Videra's
annual revenue is approximately EUR 14 million, and the acquisition price is a
maximum EUR 13 million.
In September, Elisa launched cooperation with Voddler, a Swedish internet video
service. To engage in closer cooperation and to support the internationalization
of Voddler, Elisa invested EUR 3 million and received 8 per cent of Voddler's
shares.
Consumer Customer business
EUR million 7-9/2010 7-9/2009 1-9/2010 1-9/2009
-----------------------------------------------
Revenue 225 220 656 631
EBITDA 77 81 219 213
EBITDA-% 34.4 36.8 33.3 33.8
EBIT 46 50 125 122
CAPEX 26 21 76 59
-----------------------------------------------
Third quarter 2010
The Consumer Customer business revenue was EUR 225 million (220) and EBITDA EUR
77 million (81). Revenue growth was good in mobile services as a result of
increased subscriptions and equipment sales. There was also growth in online
services. Revenue development was negative in the fixed network services. EBITDA
was negatively affected by increased sales costs and new service launch costs.
The Estonian business' revenue and EBITDA were at the previous year's level.
January-September 2010
The Consumer Customer business revenue was EUR 656 million (631) and EBITDA EUR
219 million (213). The growth in revenue was mainly attributable to the same
reasons as in the third quarter. EBITDA was positively affected by revenue
growth and efficiency measures and negatively by increased sales costs and new
service launches. The decrease in the Estonian business given the general
economic situation also had a negative effect on EBITDA.
Corporate Customer business
EUR million 7-9/2010 7-9/2009 1-9/2010 1-9/2009
-----------------------------------------------
Revenue 139 139 424 435
EBITDA 50 50 143 150
EBITDA-% 35.9 36.0 33.7 34.5
EBIT 27 27 74 82
CAPEX 16 19 51 52
-----------------------------------------------
Third quarter 2010
Corporate Customers business revenue was EUR 139 million (139) and EBITDA EUR
50 million (50). Usage of mobile services and increased number of subscription
increased revenue. ICT services also experienced growth. Traditional fixed
telecom services revenue was lower than a year ago.
January-September 2010
Corporate Customers business revenue was EUR 424 million (435) and EBITDA EUR
143 million (150). Usage of mobile services and the increased number of
subscriptions boosted revenue. ICT services also grew. Traditional fixed telecom
services revenue was lower than a year ago. The decrease in EBITDA was
attributable mainly to the decline in revenue and increased sales costs.
Personnel
In January-September, the average number of personnel at Elisa was 3,421
(3,181).
Personnel by segment at the end of the period:
30.9.2010 30.9.2009 31.12.2009
-----------------------------------------------------
Consumer Customers 2,054 1,592 1,975
Corporate Customers 1,430 1,662 1,356
Total 3,484 3,254 3,331
-----------------------------------------------------
Compared to the corresponding period last year, personnel growth mainly occurred
in call centres, as well as from the Videra acquisition. The call centre
headcount varies flexibly according to business activity.
Investments
EUR million 7-9/2010 7-9/2009 1-9/2010 1-9/2009
------------------------------------------------------------------
Capital expenditures, of which 42 40 127 111
- Consumer Customers 26 21 76 59
- Corporate Customers 16 19 51 52
------------------------------------------------------------------
Shares 4 0 15 6
------------------------------------------------------------------
Total 46 40 142 117
------------------------------------------------------------------
The main capital expenditures relate to the capacity and coverage increase of
the 3G network, as well as to other network and IT investments.
Financing arrangements and ratings
Valid financing arrangements:
Maximum amount In use on 30.9.2010
EUR million
----------------------------------------------------------------
Committed credit lines 300 0
Commercial paper programme ¹) 250 68
EMTN programme ²) 1,000 601
----------------------------------------------------------------
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 317 million as
of 30 September 2010 (EUR 331 million at the end of 2009).
Share
Trading of shares 7-9/2010 7-9/2009 1-9/2010 1-9/2009
-----------------------------------------------------------
Shares traded, millions 34.6 38.6 106.2 145.0
Volume, EUR million 534.5 504.8 1,610.9 1,661.4
% of shares 20.8 23.2 63.8 87.2
-----------------------------------------------------------
Shares and market values 30.9.2010 30.9.2009 31.12.2009
------------------------------------------------------------
Total number of shares 166,307,586 166,307,586 166,307,586
Treasury shares 10,534,506 10,688,629 10,688,629
Outstanding shares 155,773,080 155,618,957 155,618,957
Closing price, EUR 16.85 14.02 15.96
Market capitalisation,
EUR million 2,625 2,182 2,484
Treasury shares, % 6.33 6.43 6.43
------------------------------------------------------------
The Board of Directors' authorisations
On 18 March 2010, the shareholders at the Annual General Meeting authorised the
Board of Directors to donate a maximum of EUR 700,000 to support activities of
Finnish universities and colleges during 2010. Based on this authorization, the
Board of Directors has decided to make donations to these institutions.
The shareholders at the Annual General Meeting accepted the proposal of the
Board of Directors to resolve to distribute funds from unrestricted equity to a
maximum amount of EUR 100 million. The authorisation is effective until the
beginning of the following Annual General Meeting.
The shareholders at the Annual General Meeting decided on the authorisation to
repurchase or accept as pledge the company's own shares. The repurchase may be
directed. The amount of shares under this authorisation is maximum 10 million.
The authorisation is effective until 30 June 2011.
The shareholders at 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 entitled to shares. The issue may be directed. The authorisation is
effective until 30 June 2014. A maximum aggregate of 15 million of the company's
shares can be issued under the authorisation.
Significant legal issues
Third quarter 2010
In May, the Finnish Communications Regulatory Authority (FICORA) issued a
decision on pricing local loop access, according to which Elisa must reduce its
pricing to a level based on Ficora's decision. Elisa appealed against the
Ficora's decision and looked for interruption of the enforcement from the
Supreme Administrative Court, which gave an interim judgement and dismissed the
interruption of the enforcement in August 2010. The judgement did not concern
the principal claim and the proceedings continue in the Supreme Administrative
Court.
Regulatory issues
The Ministry of Transport and Communications is currently preparing a change to
the Communications Market Act, which might alter the current telephone number
portability practices. The key content of the possible change is that number
portability should be allowed despite the fact that the customer has a valid
fixed-term contract. The approximate timetable for the entry to have this change
implemented is Spring 2011.
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, accidental
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, and growth in subscriptions is thus 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, 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 swaps can be
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 6 per cent of
the consolidated revenue, is denominated in Estonian crowns. Estonia will join
the European monetary union as of 1 January 2011 with the current exchange rate,
which removes this exchange risk.
The provision for possible guarantee expense, USD 60 million, is denominated in
US Dollars, and thus carries exchange rate risk. The majority of this guarantee
expense has been hedged with forward rate agreements.
The objective of liquidity risk management is to ensure the Group's financing in
all circumstances. Elisa has cash reserves, committed credit facilities and a
sustainable cash flow to cover its foreseeable financing needs.
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.
A detailed description of the financial risk management can be found in note 34
of Elisa's 2009 Consolidated Financial Statements.
Events after the financial period
On 22 October 2010, Elisa's Board of Directors decided to pay an extraordinary
dividend of EUR 0.50 per share. The extraordinary distribution totals
approximately EUR 77.9 million. No dividend will be paid on treasury shares held
by Elisa. The ex-date is 25 October 2010, the record date 27 October 2010, and
the payment will occur starting on 3 November 2010.
This decision is based on the favourable development of the company's result and
financial position as well as on maintaining the company's capital structure in
line with the set financial targets.
Outlook for 2010
Positive trends of the general economy have continued. Risks are related to
nervousness of the financial markets and its possible impacts on the general
economic development. Competition in the Finnish telecommunications market
remains challenging.
The outlook for revenue, EBITDA and capital expenditure is reiterated. Full year
revenue is estimated to be at the same level as last year. The use of mobile
communications and mobile broadband products is continuing to rise. Full year
EBITDA, excluding non-recurring items, is expected to be at the same level as
last year. Full-year capital expenditure is expected to be 10 to 12 per cent of
revenue.
In addition to its strong position as a network service provider, Elisa is
transforming itself to be able to provide its customers with exciting and
relevant new services. Among the factors contributing to long-term growth and
profitability improvement is 3G market growth. Elisa continues determinedly to
employ its efficiency measures. Elisa's financial position and liquidity are
good.
BOARD OF DIRECTORS
Elisa Corporation
1.1. - 30.9.2010
Unaudited
CONSOLIDATED INCOME STATEMENT
--------------------------------------------------------------------------
7-9 7-9 1-9 1-9 1-12
EUR million Note 2010 2009 2010 2009 2009
--------------------------------------------------------------------------
Revenue 1 363,3 359,6 1080,6 1065,5 1430,4
Other operating income 0,8 0,2 2,6 2,2 4,2
Materials and services -148,4 -143,0 -436,9 -432,3 -576,3
Employee expenses -46,2 -43,0 -153,3 -137,5 -188,8
Other operating expenses -42,2 -42,5 -131,5 -135,3 -185,6
--------------------------------------------------------------------------
EBITDA 1 127,3 131,3 361,5 362,6 483,9
Depreciation and
amortisation -53,9 -53,9 -162,1 -159,6 -216,4
--------------------------------------------------------------------------
EBIT 1 73,4 77,4 199,4 203,0 267,5
Financial income 5,4 2,1 10,6 8,2 10,5
Financial expense -10,7 -10,0 -79,3 -32,5 -43,1
Share of associated
companies' profit 0,0 0,1 0,0 0,1 0,0
--------------------------------------------------------------------------
Profit before tax 68,1 69,6 130,7 178,8 234,9
Income taxes -17,3 -17,0 -32,0 -42,7 -57,9
--------------------------------------------------------------------------
Profit for the period 50,8 52,6 98,7 136,1 177,0
Attributable to:
Owners of the parent 50,7 52,4 98,3 135,6 176,3
Non-controlling
interests 0,1 0,2 0,4 0,5 0,7
--------------------------------------------------------------------------
50,8 52,6 98,7 136,1 177,0
Earnings per share (EUR)
Basic 0,32 0,34 0,63 0,87 1,13
Diluted 0,32 0,34 0,63 0,87 1,13
Average number of
outstanding shares
(1000 shares)
Basic 155 773 155 619 155 740 155 619 155 619
Diluted 156 149 155 619 156 116 155 619 155 809
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
--------------------------------------------------------------------------
Profit for the period 50,8 52,6 98,7 136,1 177,0
Other comprehensive
income, net of tax:
Available-for-sale
investments 1,4 1,8 0,8 1,7 1,2
--------------------------------------------------------------------------
Total comprehensive
income 52,2 54,4 99,5 137,8 178,2
Total comprehensive income
attributable to:
Owners of the parent 52,1 54,2 99,1 137,3 177,5
Non-controlling interest 0,1 0,2 0,4 0,5 0,7
--------------------------------------------------------------------------
52,2 54,4 99,5 137,8 178,2
Elisa Corporation
1.1. - 30.9.2010
Unaudited
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
-------------------------------------------------------------
30.9. 31.12.
EUR million 2010 2009
-------------------------------------------------------------
Non-current assets
Property, plant and equipment 605,8 617,9
Goodwill 787,6 782,0
Other intangible assets 122,9 148,2
Investments in associated companies 0,1 0,1
Available-for-sale investments 35,2 30,7
Receivables 18,6 19,4
Deferred tax assets 30,2 25,7
-------------------------------------------------------------
1600,4 1624,0
Current assets
Inventories 35,4 31,2
Trade and other receivables 280,3 278,4
Cash and cash equivalents 17,1 31,0
-------------------------------------------------------------
332,8 340,6
Total assets 1933,2 1964,6
Equity attributable to owners of the parent 858,2 899,2
Non-controlling interests 2,7 0,8
-------------------------------------------------------------
Total equity 860,9 900,0
Non-current liabilities
Deferred tax liabilities 23,0 26,6
Pension obligations 0,7 0,8
Provisions 26,2 3,7
Interest-bearing debt 445,4 592,3
Other non-current liabilities 12,7 13,4
-------------------------------------------------------------
508,0 636,8
Current liabilities
Trade and other payables 244,8 263,3
Tax liabilities 1,0 6,4
Provisions 22,0 0,9
Interest-bearing debt 296,5 157,2
-------------------------------------------------------------
564,3 427,8
Total equity and liabilities 1933,2 1964,6
Elisa Corporation
1.1. - 30.9.2010
Unaudited
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
--------------------------------------------------------------------
1-9 1-9 1-12
EUR million 2010 2009 2009
--------------------------------------------------------------------
Cash flow from operating activities
Profit before tax 130,7 178,8 234,9
Adjustments
Depreciation and amortisation 162,1 159,6 216,4
Other adjustments 70,2 22,0 29,5
--------------------------------------------------------------------
232,3 181,6 245,9
Change in working capital
Change in trade and other receivables 4,3 26,3 36,3
Change in inventories -3,1 -2,8 -9,4
Change in trade and other payables -11,9 -12,4 10,1
--------------------------------------------------------------------
-10,7 11,1 37,0
Financial items, net -26,5 -28,7 -29,6
Taxes paid -47,2 -45,9 -57,2
--------------------------------------------------------------------
Net cash flow from operating activities 278,6 296,9 431,0
Cash flow from investing activities
Capital expenditure -126,2 -109,7 -170,3
Purchase of shares -8,9 -9,7 -9,7
Proceeds from asset disposal 0,5 0,8 0,9
--------------------------------------------------------------------
Net cash used in investing activities -134,6 -118,6 -179,1
Cash flow before financing activities 144,0 178,3 251,9
Cash flow from financing activities
Proceeds from long-term borrowings 75,0
Repayment of long-term borrowings -80,2 -36,0 -36,1
Change in short-term borrowings -6,1 -69,2 -56,6
Repayment of finance lease liabilities -3,0 -3,6 -4,5
Dividends paid and capital repayment -143,6 -93,9 -156,7
--------------------------------------------------------------------
Net cash used in financing activities -157,9 -202,7 -253,9
Change in cash and cash equivalents -13,9 -24,4 -2,0
Cash and cash equivalents at beginning
of period 31,0 33,0 33,0
--------------------------------------------------------------------
Cash and cash equivalents at end of period 17,1 8,6 31,0
Elisa
Corporation
1.1. -
30.9.2010
Unaudited
STATEMENT OF CHANGES
IN EQUITY
--------------------------------------------------------------------------------
Reserve
for
invested Non-
non- control-
Share Treasury Other restricted Retained ling Total
EUR million capital shares reserves equity earnings interests equity
--------------------------------------------------------------------------------
Balance at
January
1, 2009 83,0 -202,0 393,5 250,8 348,1 1,6 875,0
--------------------------------------------------------------------------------
Dividends -93,4 -1,5 -94,9
Share-
based
compen-
sation 2,5 2,5
Total
compre-
hensive
income 1,7 135,6 0,5 137,8
--------------------------------------------------------------------------------
Balance at
September
30, 2009 83,0 -202,0 395,2 250,8 392,8 0,6 920,4
EUR million
--------------------------------------------------------------------------------
Balance at
January
1, 2010 83,0 -202,0 394,7 188,6 434,9 0,8 900,0
--------------------------------------------------------------------------------
Dividends
and capital
repayment -143,3 -0,5 -143,8
Share-
based
compen-
sation 3,0 0,4 3,4
Other
changes -0,2 2,0 1,8
Total
compre-
hensive
income 0,8 98,3 0,4 99,5
--------------------------------------------------------------------------------
Balance at
September
30, 2010 83,0 -199,0 395,5 45,3 533,4 2,7 860,9
Elisa Corporation
1.1. - 30.9.2010
Unaudited
NOTES
ACCOUNTING PRINCIPLES
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 information
has been prepared in accordance with
International Financial Reporting
Standards (IFRS) effective at the time
of preparation and adopted for use by
European Union. Apart from the changes
in accounting principles stated below,
the accounting principles applied in the
interim report are the same as in the
financial stantements at December
31, 2009.
Changes in the accounting principles
The Group adopted the following
standards, amendments to standards and
interpretations as from 1 January 2010
onward:
- Revised IFRS 3 Business Combinations. The revision enables
valuation of minority intrest and goodwill at fair value. The
method to be used is selected on a case-by-case basis. In
case of successive acquisitions, the previously acquired share
of ownership is revaluated at the fair value on the acquisition date,
and this influences the recognized goodwill. Changes in contingent
purchase price and cost related to the acquisition are recognized
through profit or loss.
- Revised IAS 27 Consolidated and Separate Financial Statements.
The manner in which increases and decreases in the shares of
ownership of the Group's subsidiaries are handled is changed. Losses
of the subsidiaries are allocated as minority interest, including the
share exceeding the investment made by the subsidiary in question.
Following newly adopted standards and interpretations have not
had any effect on interim financial statements:
- Revised IFRS 2 Share-based
Payment
- Revised IAS 39 Financial
Instruments: Recognition and
Measurement
- IFRIC 17 Distributions of
Non-cash Assets to Owners
- IFRIC 18 Transfers of
Assets from customers
1. SEGMENT INFORMATION
7-9/2010 Consume Corporat Unallocated Group
EUR million Customers Customers Items Total
-----------------------------------------------------------------------------
Revenue 224,6 138,7 363,3
EBITDA 77,4 49,9 127,3
Depreciation and amortisation -31,4 -22,5 -53,9
EBIT 46,0 27,4 73,4
Financial income 5,4 5,4
Financial expense -10,7 -10,7
Share of associated
companies' profit 0,0 0,0
Profit before tax 68,1
Investments 25,7 16,0 41,7
7-9/2009 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
-----------------------------------------------------------------------------
Revenue 220,4 139,2 359,6
EBITDA 80,9 50,4 131,3
Depreciation and amortisation -30,6 -23,3 -53,9
EBIT 50,3 27,1 77,4
Financial income 2,1 2,1
Financial expense -10,0 -10,0
Share of associated
companies' profit 0,1 0,1
Profit before tax 69,6
Investments 21,5 18,8 40,3
Elisa Corporation
1.1. - 30.9.2010
Unaudited
1-9/2010 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
----------------------------------------------------------------------------
Revenue 656,1 424,5 1080,6
EBITDA 218,6 142,9 361,5
Depreciation and amortisation -93,5 -68,6 -162,1
EBIT 125,1 74,3 199,4
Financial income 10,6 10,6
Financial expense -79,3 -79,3
Share of associated
companies' profit 0,0 0,0
Profit before tax 130,7
Investments 76,4 50,9 127,3
1-9/2009 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
----------------------------------------------------------------------------
Revenue 630,6 434,9 1065,5
EBITDA 212,6 150,0 362,6
Depreciation and amortisation -91,1 -68,5 -159,6
EBIT 121,5 81,5 203,0
Financial income 8,2 8,2
Financial expense -32,5 -32,5
Share of associated companies' profit 0,1 0,1
Profit before tax 178,8
Investments 58,7 51,8 110,5
1-12/2009 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
----------------------------------------------------------------------------
Revenue 847,8 582,7 1430,5
EBITDA 283,8 200,1 483,9
Depreciation and amortisation -123,1 -93,3 -216,4
EBIT 160,7 106,8 267,5
Financial income 10,5 10,5
Financial expense -43,1 -43,1
Share of associated
companies' profit 0,0 0,0
Profit before tax 234,9
Total assets 1059,5 766,3 138,8 1964,6
Investments 91,9 79,5 171,4
Elisa Corporation
1.1. - 30.9.2010
Unaudited
2. OPERATING LEASE COMMITMENTS
30.9. 31.12.
EUR million 2010 2009
-------------------------------------------------------------------------------
Due within 1 year 20,1 19,2
Due after 1 year but within 5 years 32,6 34,8
Due after 5 years 10,2 13,5
-------------------------------------------------------------------------------
Total 62,9 67,5
3. CONTINGENT LIABILITIES
30.9. 31.12.
EUR million 2010 2009
-------------------------------------------------------------------------------
Pledges given
Pledges given as surety 0,8 0,7
Guarantees given
For others (* 0,5 42,4
-------------------------------------------------------------------------------
Mortgages, pledges and
guarantees total 1,3 43,1
*) 31.12.2009 EUR 41.6 million was related to the guarantee given
on a CDO portfolio. The guarantee was posted to Balance Sheet
as a provision at 31.3.2010 and the provision amounted
EUR 44.0 million at 30.9.2010.
4. DERIVATIVE INSTRUMENTS
30.9. 31.12.
EUR million 2010 2009
-------------------------------------------------------------------------------
Interest rate swaps
Nominal value 150,0 150,0
Fair value 1,2 1,5
Credit default swaps (*
Nominal value 46,0 44,0
Currency forward
Nominal value 33,8
Fair value -1,8
-------------------------------------------------------------------------------
*) 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.
Elisa Corporation
1.1. - 30.9.2010
Unaudited
----------------------------------------------------------------------
----------------------------------------------------------------------
KEY FIGURES
----------------------------------------------------------------------
1-9 1-9 1-12
EUR million 2010 2009 2009
----------------------------------------------------------------------
Shareholders' equity per share, EUR 5,51 5,91 5,78
Interest bearing net debt 724,8 729,0 718,5
Gearing 84,2% 79,2% 79,8%
Equity ratio 44,8% 47,7% 46,1%
Return on investment (ROI) *) 13,5% 17,0% 16,0%
Gross investments in fixed assets 127,3 110,5 171,4
of which finance lease investments 1,1 0,8 1,1
Gross investments as % of revenue 11,8% 10,4% 11,9%
Investments in shares 14,5 6,3 6,3
Average number of employees 3421 3181 3216
*) 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
[HUG#1454277]
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