2017-07-18 07:30:27 CEST
2017-07-18 07:30:27 CEST
REGULATED INFORMATION
DNA Oyj - Half Year financial report
DNA Plc's Half Year Financial Report 1-6/2017: DNA had a strong first half - net sales and profitability increased also in the second quarter
DNA PLC STOCK EXCHANGE RELEASE 18 JULY 2017 AT 8:30 AM EEST
DNA arranges two news conferences today. News conference for media and analysts
is held at 10:00 am EEST at DNA House. Conference call for analysts and
institutional investors is at 2:00 pm EEST. Details of the events can be found
at the end of this release.
This is a summary of DNA's Half Year Financial Report 2017. The complete report
is attached to this release and is also available at www.dna.fi/investors.
Summary
Unless otherwise stated, the comparison figures in brackets refer to the
corresponding period in the previous year (reference period). Figures are
unaudited.
April-June 2017
* Net sales increased 4.3% and amounted to EUR 219.3 million (210.2 million).
* EBITDA increased 15.5% to EUR 67.6 million (58.6 million) or 30.8% of net
sales (27.9%).
* The operating result increased 36.8% and was EUR 30.5 million (22.3
million). Operating result as a percentage of net sales increased and was
13.9% (10.6%).
* Revenue per user (ARPU) for mobile communications amounted to EUR 18.5
(16.8).
* The mobile communication subscription turnover rate (CHURN) was 15.4%
(15.0%).
January-June 2017
* Net sales increased 5.0% and amounted to EUR 432.7 million (412.2 million).
* EBITDA increased 12.5% to EUR 133.6 million (118.7 million) or 30.9% of net
sales (28.8%).
* The operating result increased 25.2% and was EUR 59.4 million (47.4
million). Operating result as a percentage of net sales increased and was
13.7% (11.5%).
* The mobile communication subscription base grew 3.2%, totalling 2,754,000
(2,668,000).
* Revenue per user (ARPU) for mobile communications amounted to EUR 18.0
(16.6).
* The mobile communication subscription turnover rate (CHURN) was 18.1%
(14.3%).
* The fixed-network subscription base (voice, broadband and cable television)
grew slightly and was 1,125,000 subscriptions at the end of June
(1,116,000).
DNA's outlook for 2017 remains unchanged
DNA's net sales are expected to remain at the same level and the comparable
operating result is expected to improve somewhat in 2017 compared to 2016. The
Group's financial position and liquidity is expected to remain at a healthy
level.
Key figures
+------------------+--------+-----+---------+--------+--------+---------+------+
| | |4-6/ | | | | | 1-12/|
|EUR million |4-6/2017|2016 |Change, %|1-6/2017|1-6/2016|Change, %| 2016|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Net sales | 219.3|210.2| 4.3%| 432.7| 412.2| 5.0%| 858.9|
+------------------+--------+-----+---------+--------+--------+---------+------+
|EBITDA | 67.6| 58.6| 15.5%| 133.6| 118.7| 12.5%| 236.3|
+------------------+--------+-----+---------+--------+--------+---------+------+
|- % of net sales | 30.8%|27.9%| | 30.9%| 28.8%| |27.5 %|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Comparable EBITDA*| 67.6| 58.6| 15.5%| 133.6| 118.7| 12.5%| 247.1|
+------------------+--------+-----+---------+--------+--------+---------+------+
|- % of net sales | 30.8%|27.9%| | 30.9%| 28.8%| | 28.8%|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Depreciation, | | | | | | | |
|amortisation and | | | | | | | |
|impairment | 37.1| 36.3| | 74.2| 71.3| | 145.0|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Operating result, | | | | | | | |
|EBIT | 30.5| 22.3| 36.8%| 59.4| 47.4| 25.2%| 91.2|
+------------------+--------+-----+---------+--------+--------+---------+------+
|- % of net sales | 13.9%|10.6%| | 13.7%| 11.5%| | 10.6%|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Comparable | | | | | | | |
|operating result* | 30.5| 22.3| 36.8%| 59.4| 47.4| 25.2%| 102.1|
+------------------+--------+-----+---------+--------+--------+---------+------+
|- % of net sales | 13.9%|10.6%| | 13.7%| 11.5%| | 11.9%|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Net result before | | | | | | | |
|tax | 28.1| 19.9| 41.2%| 54.7| 42.6| 28.4%| 81.7|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Net result for the| | | | | | | |
|period | 22.5| 15.9| 41.6%| 43.7| 34.0| 28.3%| 65.2|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Return on | | | | | | | |
|investment (ROI), | | | | | | | |
|% | 13.2| 9.6| | 12.5| 10.0| | 9.6|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Return on equity | | | | | | | |
|(ROE), % | 16.2| 12.4| | 15.1| 13.0| | 11.6|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Capital | | | | | | | |
|expenditure | 24.4| 33.8| -27.9%| 45.5| 54.6| -16.6%| 143.6|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Cash flow after | | | | | | | |
|investing | | | | | | | |
|activities | 33.2| 11.2| | 43.5| 40.3| | 83.5|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Net debt, EUR | | | | | | | |
|million | 358.3|412.4| | 358.3| 412.4| | 321.7|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Net debt/EBITDA | 1.32| 1.76| | 1.34| 1.74| | 1.36|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Net gearing, % | 63.6| 79.5| | 63.6| 79.5| | 53.9|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Equity ratio, % | 47.5| 44.9| | 47.5| 44.9| | 48.4|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Basic earnings per| | | | | | | |
|share, EUR | 0.17| 0.12| | 0.33| 0.27| | 0.51|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Diluted earnings | | | | | | | |
|per share, EUR | 0.17| 0.12| | 0.33| 0.27| | 0.51|
+------------------+--------+-----+---------+--------+--------+---------+------+
|Personnel at the | 1,666|1,702| | 1,666| 1,702| | |
|end of period | | | | | | | 1,668|
+------------------+--------+-----+---------+--------+--------+---------+------+
*Group key figures
CEO's review
DNA had a strong first half of 2017. Our net sales increased 5% to EUR 432.7
million. Growth of service revenue (net sales less sales of devices and
interconnection charges) continued, and good development of mobile device sales
also had a positive effect on net sales. Service revenue was boosted in
particular by the growth in the amount of mobile subscriptions and increased
share of 4G subscriptions. In January-June, our profitability continued to
improve and our operating result grew 25.2% and was EUR 59.4 million, or 13.7%
(11.5%) of net sales.
Our results continued to develop favourably in the second quarter. Our EBITDA
increased 15.5% and was EUR 67.6 million and our operating result grew 36.8% to
EUR 30.5 million. The result of the second quarter was also fuelled by the
improved cost-efficiency of our modern network platforms. While we expect
operative capital expenditure to increase during the second half of the 2017, it
will remain at a lower level than in 2016.
Demand for mobile communications services developed favourably in the second
quarter. Mobile communication network subscription volumes were up 86,000 from
the reference period. DNA's revenue per user (ARPU) improved and was EUR 18.5 in
the second quarter. The subscription turnover rate (CHURN), which increased in
the first quarter due to changes in the price and product design of certain
subscription types, returned back to its normal level during the second quarter.
Our broadband and cable television subscriptions increased in total by 21,000
subscriptions, adding 9,000 new subscriptions to our fixed-network subscription
base (fixed voice, fixed broadband and cable television).
The new EU roaming regulation entered into force on 15 June 2017. Since then,
our customers have paid the domestic rate for roaming calls and messages in the
EU, and the unit price of data used in the EU fell by more than 90%. The new EU
pricing scheme is valid within fair usage limits and for periodic roaming. We
also launched new subscriptions in June that include an EU data package in the
monthly fee.
After the new "roam like at home" rules came into force, our customers' use of
mobile data abroad has multiplied. Similarly, foreign travellers now use more
mobile communications services while visiting Finland. Our customers' phone
calls and text messages in EU countries have also increased by dozens of
percentages. Our roaming costs are compensated by the EU-baseline tariff of old
subscriptions and the higher price of the new subscriptions with an EU data
package.
We took another important step toward 5G by testing data transfer at 1 Gbps
speed in our mobile communications network.
Competition is expected to remain intense for the rest of the year and our
outlook for 2017 remains unchanged. We will continue to serve our customers with
our strategic objectives in mind.
Jukka Leinonen
President and CEO
Additional information:
Jukka Leinonen, CEO, DNA Plc, tel. +358 44 044 1000, jukka.leinonen(at)dna.fi
Timo Karppinen, CFO, DNA Plc, tel. +358 44 044 5007, timo.karppinen(at)dna.fi
Marja Mäkinen, Head of IR, DNA Plc, tel. +358 44 044 1262,
marja.makinen(at)dna.fi
DNA Corporate Communications, tel. +358 44 044 8000, communications(at)dna.fi
DNA's financial publications and Capital Markets Day in 2017:
* Interim Report January-September and news conferences, 20 October 2017
* DNA Capital Markets Day, 21 November 2017
News conferences
DNA will arrange a news conference for media and analysts in Finnish at 10:00 am
EEST. The event will take place at DNA House, Läkkisepäntie 21, Helsinki.
Registration for the event is requested by email to communications@dna.fi. The
news conference will also be webcasted live on www.dna.fi/investors.
Conference call for analysts and institutional investors in English at 2:00 pm
EEST
The audience is welcome to participate and ask questions through a conference
call. Participants are requested to dial in a couple of minutes before the
scheduled time;
* UK: +44(0)20 3427 1909
* USA: +1646 254 3366
* Finland: +358(0)9 6937 9543
* confirmation code: 628 9627
The result bulletin and presentation materials as well as a link to the webcast
will be available on DNA's website before the event:
www.dna.fi/investors. Recordings of the both events will be available on DNA's
website, www.dna.fi/investors, later during the day.
Distribution:
Nasdaq Helsinki
Key media
www.dna.fi
DNA Plc is a Finnish telecommunications group providing high-quality voice, data
and TV services for communication, entertainment and working. DNA is Finland's
largest cable operator and the leading pay TV provider in both cable and
terrestrial networks. For DNA, the key area for growth in corporate business is
the new way of working, independent of time and place, facilitated by smart
terminal devices, diverse communications services and rapid connections. In
2016, DNA recorded net sales of EUR 859 million and an operating profit of EUR
91 million. DNA has more than 3.8 million subscriptions in its fixed and mobile
communications networks. The Group also includes DNA Store, Finland's largest
retail chain selling mobile phones. DNA shares are listed on Nasdaq Helsinki
Ltd. For further information, visit www.dna.fi or follow us on Twitter @DNA_fi,
@DNA_Business and @DNA_Palvelu and Facebook.
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