2009-10-23 07:30:00 CEST
2009-10-23 07:31:33 CEST
REGULATED INFORMATION
Elisa - Interim report (Q1 and Q3)
ELISA'S INTERIM REPORT JANUARY-SEPTEMBER 2009
Third quarter 2009
Revenue was EUR 360 million (374)
EBITDA improved to EUR 131 million (129), EBIT was EUR 77 million
(77)
Profit before tax amounted to EUR 70 million (67)
Earnings per share was EUR 0.34 (0.33)
Cash flow after investments was EUR 43 million (51)
Revenue per subscription (ARPU) in the mobile business was EUR 23.2
(24.0 in the second quarter)
Churn was at the same level, 14.5 per cent (14.7 in the second
quarter)
The number of Elisa's mobile subscriptions increased by 65,000 during
the quarter, due in particular to the new 3G and 2G customers, as
well as mobile broadband customers
The number of fixed broadband subscriptions decreased by 6,000 on the
previous quarter
Net debt / EBITDA was 1.5 (1.7 at the end of 2008) and gearing 79 per
cent (93 at the end of 2008)
January-September 2009
Revenue was EUR 1,066 million (1,113)
EBITDA was EUR 363 million (342), EBIT EUR 203 million (187)
EBITDA excluding non-recurring items was EUR 363 million (349), EBIT
EUR 203 million (194)
Cash flow after investments was EUR 178 million (176)
Key indicators:
EUR million 7-9/2009 7-9/2008 1-9/2009 1-9/2008
Revenue 360 374 1,066 1,113
EBITDA 131 129 363 342
EBITDA excluding
non-recurring items 131 129 363 349
EBIT 77 77 203 187
Profit before tax 70 67 179 157
Earnings per share, EUR 0.34 0.33 0.87 0.78
Capital expenditures 40 42 111 120
Financial position and cash flow:
EUR million 30.9.2009 30.9.2008 31.12.2008
Net debt 729 891 812
Net debt / EBITDA 1) 1.5 1.9 1.7
Gearing ratio, % 79.2 107.4 92.8
Equity ratio, % 47.7 40.8 43.3
+-------------------------------------------------------------+
| EUR million | 7-9/2009 | 7-9/2008 | 1-9/2009 | 1-9/2008 |
|-----------------+----------+----------+----------+----------|
| Cash flow after | | | | |
| investments | 43 | 51 | 178 | 176 |
+-------------------------------------------------------------+
1) (interest-bearing debt - financial assets) / (4 previous
quarters' EBITDA exclusive of non-recurring items)
Additional information regarding the Key Performance Indicators is
available on www.elisa.com/investors, in the section: Financial info,
Financial Statements & Interim Reports: Elisa Quarterly Data.
CEO Veli-Matti Mattila:"EBITDA guidance upgraded and additional profit distribution decided
Elisa's profitability continued to be strong in the third quarter.
Determined measures to improve productivity and service quality
continued to strengthen our competitiveness and profitability even
though the overall economic environment has not improved. Cash flow
continued to be strong. Revenue fell slightly from the previous year,
which was mostly due to lower terminal sales volume as well as
decreased interconnection fees and roaming revenue.
Despite a challenging competitive situation, Elisa continued to
strengthen its market position in its main market areas. In addition
to improving productivity, the consumer business focused on
developing its service and product offering. Our modern, versatile
IPTV service Elisa Viihde, which was well-received in the markets was
introduced in two more cities: Tampere and Riihimäki.
Corporate customers are increasingly seeking productivity
improvements. Elisa's service offering provides excellent solutions
for these needs. For example the demand for modern virtual conference
solutions increased and we established new customer relationships.
Moreover, Elisa launched new ICT services to make business activities
more effective, such as a field force automation service which
promotes the steering of mobile work.
Construction of the 3G network continued. The widest coverage of
Elisa's 3G network was confirmed by the Market Court in its decision.
The strong growth in subscriptions further consolidates our position
as the 3G market leader.
The general economic decline will continue to affect our business to
some extent. Determined productivity improvements in accordance with
our strategy, an expanding service offering and our capability to
invest based on our strong cash flow create a good base for the
future. We believe that our business activities will continue to
develop favourably in the coming years.
We have upgraded our EBITDA outlook for 2009. Due to the favourable
development in the company's result and financial position as well as
maintaining the company's capital structure targets, Elisa has
decided to distribute an extraordinary capital repayment of EUR 0.40
per share to the shareholders."
ELISA
Vesa Sahivirta
Director, IR and Financial Communications
tel. +358 50 520 5555
Additional information:
Mr. Veli-Matti Mattila, CEO, tel. +358 10 262 2635
Mr. Jari Kinnunen, CFO, tel. +358 10 262 9510
Mr. Vesa Sahivirta, Director, IR and Financial Communications,
tel. +358 50 520 5555
Distribution:
NASDAQ OMX Helsinki
Principal media
www.elisa.com
INTERIM REPORT JANUARY-SEPTEMBER 2009
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
The general economic downturn has so far had only a marginal impact
on the telecom operator business. The impact has been felt mainly in
equipment sales, roaming revenues and corporate customer business.
Elisa's Estonian business has also suffered more than in Finland.
Although there have been some positive signs in the general economic
environment, short term development is still unclear. The
unemployment rate is expected to increase and the corporate business
environment may deteriorate further. These could have a negative
impact on the telecom sector.
The competitive environment has been keen but stable in Finland. The
number of mobile subscriptions and the use of data services have
evolved favourably in Finland with 3G subscriptions comprising a
significant proportion of new subscriptions. The use of services made
available through 3G subscriptions has also increased. Another factor
contributing to the growth has been the use of multiple terminal
devices for different purposes and mobile broadband services. Churn
in mobile subscriptions has been at a normal level, and competition
has been mainly in services and campaigning.
The number and usage of traditional fixed network subscriptions
decreased from the previous year. The fixed broadband market has
matured, while the strong subscription growth in mobile broadband
continued.
Revenue, earnings and financial position
Revenue and earnings:
EUR million 7-9/2009 7-9/2008 1-9/2009 1-9/2008
Revenue 360 374 1,066 1,113
EBITDA 131 129 363 342
EBITDA-% 36 35 34 31
EBITDA excl. non-recurring items 131 129 363 349
EBITDA-% excl.
non-recurring items 36 35 34 31
EBIT 77 77 203 187
EBIT excl. non-recurring items 77 77 203 194
EBIT-% excl. non-recurring items 21 21 19 17
Third quarter 2009
Revenue decreased by 4 per cent mainly due to lower equipment sales
volumes, lower interconnection fees both in Finland and Estonia and a
decrease in traditional fixed business.
EBITDA improved by 2 per cent on the previous year. The improvement
was mainly due to improved efficiency measures. In 2008, extra
implementation costs of the billing and CRM system affected EBITDA
negatively.
Financial income and expenses totalled EUR -8 million (-10). The
decrease in financial expenses was mainly due to a decrease in net
debt and lower interest rates. Income taxes in the income statement
amounted to EUR -17 million (-16). Elisa's earnings after taxes were
EUR 53 million (51). The Group's earnings per share (EPS) amounted to
EUR 0.34 (0.33).
January-September 2009
Elisa's revenue decreased by 4 per cent on last year mainly given the
same reasons as in the third quarter.
EBITDA improved by 6 per cent and EBITDA excluding non-recurring
items by 4 per cent on the previous year. The improvement was mainly
due to improved efficiency measures. In 2008, extra implementation
costs of the billing and CRM system, as well as revenue correction
affected EBITDA negatively.
Financial income and expenses totalled EUR -24 million (-30). The
decrease in financial expenses was mainly attributed to a decrease in
net debt and lower interest rates. Income taxes in the income
statement amounted to EUR -43 million (-34). Elisa's earnings after
taxes were EUR 136 million (123). The Group's earnings per share
(EPS) amounted to EUR 0.87 (0.78).
Financial position:
EUR million 30.9.2009 30.9.2008 31.12.2008
Net debt 729 891 812
Net debt / EBITDA 1) 1.5 1.9 1.7
Gearing ratio, % 79.2 107.4 92.8
Equity ratio, % 47.7 40.8 43.3
+-------------------------------------------------------------+
| EUR million | 7-9/2009 | 7-9/2008 | 1-9/2009 | 1-9/2008 |
|-----------------+----------+----------+----------+----------|
| Cash flow after | | | | |
| investments | 43 | 51 | 178 | 176 |
+-------------------------------------------------------------+
1) (interest-bearing debt - financial assets) / (4 previous quarters'
EBITDA exclusive of non-recurring items)
Third quarter 2009
Elisa's financial position and liquidity remained good. July -
September cash flow after investments decreased from EUR 51 million
to EUR 43 million mainly due to the net working capital development.
January-September 2009
Elisa's net debt decreased from EUR 812 million to EUR 729 million
due to positive cash flow. Cash flow after investments was at the
same level, EUR 178 million (176). There was a positive contribution
to cash flow in 2008 given the change in net working capital from
delayed billing in 2007.
Changes in corporate structure
January-September 2009
In February, Elisa acquired the entire share capital of Xenetic Oy.
Xenetic is a hosting service company, the business of which consists
of data centres, monitoring, data communications and data security
services and equipment, and application leasing among other things.
In February, Elisa also acquired the business operations of Trackway
Oy, which provides e.g., solutions for asset tracking.
There were no major changes in the corporate structure in the third
quarter 2009.
Consumer Customer business
EUR million 7-9/2009 7-9/2008 1-9/2009 1-9/2008
Revenue 220 225 631 665
EBITDA 81 72 213 195
EBITDA-% 36.8 32.0 33.8 29.3
EBIT 50 42 122 106
CAPEX 21 23 59 66
Third quarter 2009
The Consumer Customer business revenue was EUR 220 million (225) and
EBITDA EUR 81 million (72). The decrease in revenue was mainly a
result of lower equipment sales volumes, lower interconnection fees
both in Finland and Estonia and a decrease in the traditional fixed
voice business. EBITDA was positively affected by productivity
improvement measures. The decrease in the Estonian business due to
the general economic downturn had a negative effect on EBITDA.
January-September 2009
The Consumer Customer business revenue was EUR 631 million (665) andEBITDA EUR 213 million (195). The decrease in revenue was mainly
attributable to the same reasons as in the third quarter. EBITDA was
positively affected by productivity improvement measures and
interconnection costs. The decrease in the Estonian business due to
the general economic downturn had a negative effect on EBITDA.
Corporate Customer business
EUR million 7-9/2009 7-9/2008 1-9/2009 1-9/2008
Revenue 139 149 435 448
EBITDA 50 57 150 148
EBITDA-% 36.0 38.3 34.5 33.0
EBIT 27 35 82 81
CAPEX 19 19 52 54
Third quarter 2009
Corporate Customers business revenue was EUR 139 million (149) and
EBITDA EUR 50 million (57). The decrease in revenue was mainly due to
lower roaming revenues, a decrease in mobile usage and a decrease in
the traditional fixed business. Growth in ICT services increased
revenue. EBITDA was positively affected by productivity improvement
measures and negatively by decreased revenue. Total OPEX decreased by
EUR 3 million.
January-September 2009
Corporate Customers business revenue was EUR 435 million (448) and
EBITDA EUR 150 million (148). The decrease in revenue was mainly due
to lower interconnection fees, decreased equipment sales volumes and
a decrease in the traditional fixed business. Growth in ICT services
increased revenue. The increase in EBITDA was mainly attributable to
productivity improvement.
Personnel
In January-September, the average number of personnel at Elisa was
3,181 (2,938).
Personnel by segment at the end of the period:
30.9.2009 30.9.2008 31.12.2008
Consumer Customers 1,592 1,540 1,522
Corporate Customers 1,662 1,336 1,495
Total 3,254 2,876 3,017
The number of personnel increased by about 240 from the beginning of
the year. Personnel growth mainly occurred in call centres as a
result of an increase in the customer service business. The call
centre headcount varies flexibly according to customer demand and
business activity.
Investments
EUR million 7-9/2009 7-9/2008 1-9/2009 1-9/2008
Capital expenditures, of which 40 42 111 120
- Consumer Customers 21 23 59 66
- Corporate Customers 19 19 52 54
Shares 0 0 6 13
Total 40 42 117 133
The main capital expenditures relate to the mobile network,
especially 3G, the fixed network including broadband and corporate
networks, and IT investments.
Financing arrangements and ratings
Valid financing arrangements:
Maximum amount In use on 30.9.2009
EUR million
Committed credit lines 300 0
Commercial paper programme ¹) 250 62
EMTN programme ²) 1,000 600
1) The programme is not committed.
2) European Medium Term Note programme, not committed.
Long-term credit ratings:
Credit rating agency Rating Outlook
Moody's Investor Services Baa2 Stable
Standard & Poor's BBB Stable
The Group's cash and undrawn committed credit lines totalled EUR 309
million at 30 September 2009 (EUR 258 million at the end of 2008).
There are no major refinancing needs expected before the year 2011.
Share
Trading of shares 7-9/2009 7-9/2008 1-9/2009 1-9/2008
Shares traded, millions 38.6 83.7 145.0 262.7
Volume, EUR million 504.8 1,145.9 1,661.4 4,159.7
% of shares 23.2 53.8 87.2 168.7
Shares and market values 30.9.2009 30.9.2008 31.12.2008
Total number of shares 166,307,586 166,307,586 166,307,586
Treasury shares 10,688,629 10,688,629 10,688,629
Outstanding shares 155,618,957 155,618,957 155,618,957
Closing price, EUR 14.02 13.74 12.30
Market capitalisation,
EUR million 2,182 2,138 1,914
Treasury shares, % 6.4 6.4 6.4
On 29 September 2009, Elisa was notified, in accordance with Chapter
2, Section 9 of the Finnish Securities Market Act, of a change in the
company's ownership as follows:
DNA Oy, Lännen Teletieto Oy and Oulun Puhelin Holding Oyj have sold
all their Elisa shares.
PHP Liiketoiminta Oyj's, KPY Sijoitus Oy's, Kuopion Puhelin Oy's
aggregate ownership in Elisa shares and votes decreases below 5 per
cent.
The Board of Directors' authorisations
On 18 March 2009, the Annual General Meeting accepted the proposal to
authorize the Board of Directors to decide on the distribution of
funds from the unrestricted equity to a maximum of EUR 150,000,000.
The authorization is effective until the beginning of the following
Annual General Meeting.
The Annual General Meeting decided on the authorization to repurchase
or accept as pledge the company's own shares. The repurchase may be
directed. The amount of shares under this authorization is 15,000,000
at maximum. The authorization is effective until June 30, 2010.
The Annual General Meeting approved the proposal of the Board of
Directors on the issuance of shares as well as the issuance of
special rights entitling to shares. The issue may be directed. The
authorization is effective until June 30, 2013. A maximum aggregate
of 50 million of the company's shares can be issued under the
authorization.
Significant legal issues
The Market Court of Finland, in its verdict on 29 September 2009, has
decided that Elisa and Saunalahti have shown evidence to prove that
Elisa's 3G network has the widest coverage in Finland. Based on this
decision, Elisa may use this statement in its marketing activities.
The Market Court also determined, however, that based on the study
Elisa was not able to prove conclusively that its network is
ultimately "the best", and both companies are therefore prohibited to
make that claim in advertising.
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, which means that growth
in subscriptions is limited. Furthermore, the volume of phone traffic
in Elisa's fixed network has decreased in the past few years. These
factors may limit the opportunities for growth.
The deterioration of the economic environment may impact the demand
for Elisa's services and products, and therefore growth prospects.
However, a good demand for communication services is expected to
continue also during a recession.
Accident risks:
The company's core operations are covered by insurance against damage
and interruptions caused by accidents. Accident risks also include
litigations and claims.
Financial risks:
In order to manage interest rate risk, the Group's loans and
investments are diversified in fixed- and variable-rate instruments.
Interest rate swaps are used to manage interest rate risk.
As most of Elisa Group's cash flow is denominated in Euros, the
exchange rate risk is minor. Elisa's Estonian business, which is
approximately 6 per cent of the consolidated revenue is denominated
in Estonian crowns.
The objective of liquidity risk management is to ensure the Group's
financing in all circumstances. The Group's cash and undrawn
committed credit lines totalled EUR 309 million at 30 September 2009
(EUR 258 million at the end of 2008). 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.
In connection to the counterparty risk hedging, Elisa provided a
maximum USD 60 million guarantee for a credit derivative portfolio
(CDO). The risk for the guarantee being called increased due to the
credit crisis in 2008, after which there have not been any material
changes. The rating of the portfolio is level B1. The guarantee is
valid until 15 December 2012. The maximum liability of USD 60
million, if realised, would mean cash payments of USD 0.5 million in
2010, USD 33.0 million in 2011 and USD 26.5 million in 2012.
A detailed description of the financial risk management can be found
in the 2008 Annual Report on page 15.
Events after the financial period
Elisa's Board of Directors decided on the additional distribution of
a capital repayment per share of EUR 0.40. The capital repayment
distribution totals approximately EUR 62.2 million. No capital
repayment will be paid on treasury shares held by Elisa. The ex-date
is 26 October 2009, the record date 28 October 2009, and the payment
will occur starting on 6 November 2009.
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 2009
There have been some positive signs in the general economic
environment. However, the unemployment rate is expected to increase
and the corporate business environment may deteriorate further. These
factors could continue to have a negative impact on the telecom
sector. Competition in the Finnish telecommunications market remains
challenging.
The general economic downturn has so far mainly impacted Elisa's
Estonian business and the Corporate Customer segment. The main risks
still relate to the development of the Estonian economy and the
corporate customer business.
Full year revenue is estimated to be at the same or slightly lower
level than last year. The use of mobile communications and mobile
broadband products is continuing to rise. The equipment sales volumes
and service sales in some customer segments may decrease. The outlook
for 2009 EBITDA has been updated: Full year EBITDA excluding
non-recurring items is expected to be at the same level as last year.
Fourth quarter EBITDA is expected to be lower than in the
corresponding quarter last year due to higher than normal expenses
relating to market and service launch activities.
Elisa will determinedly continue to stimulate demand for its services
and continue to drive productivity improvements in its operations.
Likewise, capital expenditure will be actively controlled to a
maximum 12 per cent of revenue.
The contributory factors for long-term growth and profitability
improvement include the 3G market growth and efficiency measures,
which are continuing as expected. Elisa's financial position and
liquidity are good. There are no major refinancing needs expected
before the year 2011.
BOARD OF DIRECTORS
Elisa Corporation
1.1. - 30.9.2009
Unaudited
CONSOLIDATED INCOME
STATEMENT
7-9 7-9 1-9 1-9 1-12
EUR million Note 2009 2008 2009 2008 2008
Revenue 1 359,6 374,4 1065,5 1112,9 1485,0
Other operating income 0,2 1,5 2,2 3,5 6,5
Materials and services -143,0 -165,7 -432,3 -493,4 -652,4
Employee expenses -43,0 -32,3 -137,5 -119,3 -162,5
Other operating expenses -42,5 -48,5 -135,3 -161,4 -205,0
EBITDA 1 131,3 129,4 362,6 342,3 471,6
Depreciation and
amortisation -53,9 -52,5 -159,6 -155,0 -207,1
EBIT 1 77,4 76,9 203,0 187,3 264,5
Financial income 2,1 1,2 8,2 9,9 17,1
Financial expense -10,0 -11,0 -32,5 -39,9 -54,0
Share of associated
companies' profit 0,1 0,0 0,1 0,0 0,0
Profit before tax 69,6 67,1 178,8 157,3 227,6
Income taxes -17,0 -15,8 -42,7 -34,0 -50,6
Profit for the period 52,6 51,3 136,1 123,3 177,0
Attributable to:
Owners of the parent 52,4 51,3 135,6 123,0 176,3
Non-controlling
interests 0,2 0,0 0,5 0,3 0,7
52,6 51,3 136,1 123,3 177,0
Earnings per share (EUR)
Basic and diluted 0,34 0,33 0,87 0,78 1,12
Average number of
outstanding shares
(1000 shares)
Basic and diluted 155 619 157 451 155 619 158 065 157 450
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
Profit for the period 52,6 51,3 136,1 123,3 177,0
Other comprehensive
income, net of tax:
Available-for-sale
investments 1,8 -0,6 1,7 -2,4 -10,4
Total comprehensive
income 54,4 50,7 137,8 120,9 166,6
Total comprehensive
income attributable to:
Owners of the parent 54,2 50,7 137,3 120,6 165,9
Non-controlling
interests 0,2 0,0 0,5 0,3 0,7
54,4 50,7 137,8 120,9 166,6
Elisa Corporation
1.1. - 30.9.2009
Unaudited
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30.9. 31.12.
EUR million 2009 2008
Non-current assets
Property, plant and equipment 606,0 630,5
Goodwill 781,6 778,6
Other intangible assets 156,4 177,5
Investments in associated companies 0,1 0,1
Available-for-sale investments 31,1 29,0
Receivables 17,3 12,4
Deferred tax assets 28,5 28,3
1621,0 1656,4
Current assets
Inventories 24,5 21,7
Trade and other receivables 287,7 319,4
Cash and cash equivalents 8,6 33,0
320,8 374,1
Total assets 1941,8 2030,5
Equity attributable to owners of the parent 919,8 873,4
Non-controlling interests 0,6 1,6
Total equity 920,4 875,0
Non-current liabilities
Deferred tax liabilities 25,8 30,9
Provisions 4,2 5,6
Interest-bearing debt 592,3 672,3
Other non-current liabilities 13,8 14,0
636,1 722,8
Current liabilities
Trade and other payables 233,6 255,5
Tax liabilities 5,7 3,4
Provisions 0,8 1,5
Interest-bearing debt 145,2 172,3
385,3 432,7
Total equity and liabilities 1941,8 2030,5
Elisa Corporation
1.1. - 30.9.2009
Unaudited
CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS
1-9 1-9 1-12
EUR million 2009 2008 2008
Cash flow from operating
activities
Profit before tax 178,8 157,3 227,6
Adjustments
Depreciation and
amortisation 159,6 155,0 205,8
Other adjustments 22,0 26,4 32,1
181,6 181,4 237,9
Change in working
capital
Change in trade and
other receivables 26,3 104,6 132,5
Change in inventories -2,8 3,9 6,7
Change in trade and
other payables -12,4 -58,1 -56,2
11,1 50,4 83,0
Financial items, net -28,7 -35,1 -38,8
Taxes paid -45,9 -48,8 -59,5
Net cash flow from
operating activities 296,9 305,2 450,2
Cash flow from investing
activities
Capital expenditure -109,7 -119,1 -179,2
Purchase of shares -9,7 -10,6 -11,6
Proceeds from asset
disposal 0,8 0,6 0,8
Net cash used in
investing activities -118,6 -129,1 -190,0
Cash flow before
financing activities 178,3 176,1 260,2
Cash flow from financing
activities
Purchase of treasury
shares -43,3 -43,3
Proceeds from long-term
borrowings 80,0 80,0
Repayment of long-term
borrowings -36,0 -30,0 -30,0
Change in short-term
borrowings -69,2 109,0 38,6
Repayment of finance
lease liabilities -3,6 -2,8 -4,0
Dividends paid and
capital repayment -93,9 -284,8 -285,4
Net cash used in
financing activities -202,7 -171,9 -244,1
Change in cash and
cash equivalents -24,4 4,2 16,1
Cash and cash
equivalents at
beginning of
period 33,0 16,9 16,9
Cash and cash
equivalents at end of
period 8,6 21,1 33,0
Elisa
Corporation
1.1. -
30.9.2009
Unaudited
STATEMENT OF CHANGES
IN EQUITY
Reserve
for
invested
non-
Share Treasury Other restricted Retained Minority Total
EUR million capital shares reserves equity earnings interest equity
Balance at
January 1,
2008 83,0 -165,8 403,9 535,7 176,6 2,0 1035,4
Capital
repayment -284,9 -284,9
Dividends -0,6 -0,6
Purchase of
treasury
shares -43,3 -43,3
Share-based
compensation 7,1 -5,3 1,8
Total
comprehensive
income -2,4 123,0 0,3 120,9
Balance at
September 30,
2008 83,0 -202,0 401,5 250,8 294,3 1,7 829,3
EUR million
Balance at
January 1,
2009 83,0 -202,0 393,5 250,8 348,1 1,6 875,0
Dividends
and capital
repayment -93,4 -1,5 -94,9
Share-based
compensation 2,5 2,5
Total
comprehensive
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
Elisa Corporation
1.1. - 30.9.2009
Unaudited
NOTES
BASIS OF PREPARATION
The Interim Report has been prepared in accordance
with the IFRS recognition and measurement principles,
althought all requirements of the 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 preparation and adopted for
use by the European Union.
This Interim consolidated financial statements should
be read in conjunction with the 2008 consolidated
financial statements.
Except for accounting principle changes listed below,
the accounting principles applied in this Interim report
are the same as in the Consolidated financial statements
at December 31, 2008.
Changes in
accounting
principles
The Group adopted the following standards, amendments to
standards and interpretations as from 1 January 2009 onward:
- IFRS 8 Operating Segments standard which requires segment
information to be presented on the basis of internal reporting
provided to management. Elisa's internal organizational and
management structure is based on a customer-oriented operating
model. The new operating segments to be presented are Consumer
Customer and Corporate Customers. Accounting principles and
comparable figures for 2008 have been published on 17 April, 2009.
- IAS 1 Presentation of Financial Statements. The amendments
concerning the income statement and statement of changes in
equity have affected the presentation of Interim consolidated
financial statements.
Following newly adopted standards and interpretations have not
had any effect on Interim consolidated financial statements.
- Revised IAS 23
Borrowing Costs
- Revised IFRS 2
Share-based
Payment
- IFRIC 13
Customer Loyalty
Programmes
- IFRIC 14
The Limit on a Defined Benefit Assets,
Minimum Funding Requirements and their Interaction
1. SEGMENT
INFORMATION
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
7-9/2008 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
Revenue 225,4 149,0 374,4
EBITDA 72,0 57,4 129,4
Depreciation and
amortisation -29,9 -22,6 -52,5
EBIT 42,1 34,8 76,9
Financial income 1,2 1,2
Financial expense -11,0 -11,0
Share of associated
companies' profit 0,0 0,0
Profit before tax 67,1
Investments 23,3 18,6 41,9
Elisa Corporation
1.1. - 30.9.2009
Unaudited
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
1-9/2008 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
Revenue 664,6 448,3 1112,9
EBITDA 194,8 147,5 342,3
Depreciation and amortisation -88,9 -66,1 -155,0
EBIT 105,9 81,4 187,3
Financial income 9,9 9,9
Financial expense -39,9 -39,9
Share of associated companies'
profit 0,0 0,0
Profit before tax 157,3
Investments 66,1 54,1 120,2
1-12/2008 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
Revenue 881,5 603,5 1485,0
EBITDA 267,3 204,3 471,6
Depreciation and amortisation -118,7 -88,4 -207,1
EBIT 148,6 115,9 264,5
Financial income 17,1 17,1
Financial expense -54,0 -54,0
Share of associated companies'
profit 0,0 0,0
Profit before tax 227,6
Total assets 1143,3 780,8 106,4 2030,5
Investments 101,8 82,1 183,9
Elisa Corporation
1.1. - 30.9.2009
Unaudited
2. OPERATING LEASE COMMITMENTS
30.9. 31.12.
EUR million 2009 2008
Due within 1 year 19,3 22,2
Due after 1 year but within 5 years 34,8 36,8
Due after 5 years 14,5 15,2
Total 68,6 74,2
3. CONTINGENT LIABILITIES
30.9. 31.12.
EUR million 2009 2008
Mortgages
For own and group companies 0,4
Pledges given
Pledges given as surety 0,7 0,8
Guarantees given
For others (* 41,8 44,3
Mortgages, pledges and guarantees
total 42,5 45,5
Other commitments
Repurchase commitments 0,0 0,1
*) EUR 41.0 million is related to the
guarantee
given on a CDO portfolio.
4. DERIVATIVE INSTRUMENTS
30.9. 31.12.
EUR million 2009 2008
Interest rate swaps
Nominal value 150,0 150,0
Fair value recognised in the
balance sheet 1,6 1,0
Credit default swaps (*
Nominal value 43,3 47,4
*) CDS is related to hedging of the guarantor bank
in the QTE-arrangement. In 2008 Elisa wrote down
the fair value of the CDS agreement.
Elisa Corporation
1.1. - 30.9.2009
Unaudited
KEY FIGURES
1-9 1-9 1-12
EUR million 2009 2008 2008
Shareholders' equity per share, EUR 5,91 5,32 5,61
Interest bearing net debt 729,0 890,9 811,6
Gearing 79,2% 107,4% 92,8%
Equity ratio 47,7% 40,8% 43,3%
Return on investment (ROI) *) 17,0% 15,7% 15,6%
Gross investments in fixed assets 110,5 120,2 183,9
of which finance lease investments 0,8 1,0 4,7
Gross investments as % of revenue 10,4% 10,8% 12,4%
Investments in shares 6,3 12,9 14,8
Average number of employees 3181 2938 2946
*) rolling 12 months profit preceding
the reporting date
Formulae for financial indicators
Gearing %
Interest-bearing debt -
cash and cash equivalents
------------------------------------ x 100
Total equity
Equity ratio %
Total equity
-------------------------------x 100
Balance sheet total -
advances received
Return on investment % (ROI)
Profit before taxes +
interest and other
financial expenses
------------------------------------------x 100
Total equity +
interest bearing liabilities (average)
Net debt
Interest-bearing debt -
cash and cash equivalents
Shareholders' equity per share
Equity attributable to equity holders
of the parent
------------------------------------------------
Number of shares outstanding
at end of period
Earnings/share
Profit for the period attributable to
equity holders of parent
---------------------------------------------------
Average number of outstanding shares
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