2009-04-24 07:30:00 CEST
2009-04-24 07:31:33 CEST
REGULATED INFORMATION
Elisa - Interim report (Q1 and Q3)
ELISA'S INTERIM REPORT JANUARY-MARCH 2009
Revenue was EUR 351 million (367)
EBITDA excluding non-recurring items was EUR 115 million (111), EBIT
EUR 62 million (60) Strong growth in mobile subscriptions increased
sales costs
EBITDA margin increased to 33 per cent (29)
Profit before tax amounted to EUR 53 million (52)
Earnings per share was EUR 0.26 (0.25)
Cash flow after investments was EUR 46 million (66)
The number of Elisa's mobile subscriptions increased by a record
146,000 during the quarter, due in particular to the new 3G and 2G
customers, mobile broadband and prepaid subscriptions
Due to strong subscription growth and a lower interconnection fee,
ARPU in the mobile business decreased from the previous quarter to
EUR 24.1 (26.3)
Churn increased to 14.0 per cent from the previous quarter (12.0)
The number of fixed broadband subscriptions decreased by 6,000 on the
previous quarter
Net debt / EBITDA was 1.8 (1.7 at the end of 2008) and gearing 104
per cent (93 at the end of 2008)
Key indicators:
EUR million 1-3/2009 1-3/2008 2008
Revenue 351 367 1,485
EBITDA 115 108 472
EBITDA excluding non-recurring items 115 111 478
EBIT 62 57 264
Profit before tax 53 52 228
Earnings per share, EUR 0.26 0.25 1.12
Capital expenditures 34 38 184
Financial position and cash flow:
EUR million 31.3.2009 31.3.2008 31.12.2008
Net debt 854 955 812
Net debt / EBITDA 1) 1.8 1.9 1.7
Gearing ratio, % 103.8 120.6 92.8
Equity ratio, % 41.3 37.7 43.3
+----------------------------------------------------------+
| EUR million | 1-3/2009 | 1-3/2008 | 2008 |
|-----------------------------+----------+----------+------|
| Cash flow after investments | 46 | 66 | 260 |
+----------------------------------------------------------+
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:"The target of three million mobile subscriptions has been exceeded
Elisa has continued to strengthen its quality of service and
competitiveness in a determined manner. Profitability and cash flow
for the first quarter were strong. Revenue fell slightly from the
previous year, mainly as a result of the lower equipment sales volume
and decreased interconnection fees, and roaming revenue. Elisa's
financial position and liquidity are good.
The consumer business continued to enjoy excellent success in the
mobile communication market. During the first quarter, our mobile
subscription base increased by over 146,000 new subscriptions. At the
same time, the rapid growth of the subscription base means that the
target of three million subscriptions was exceeded sooner than
expected. This has further established our position as the 3G market
leader.
Our market position strengthened in the corporate customer business.
Collaboration solutions provided by Elisa have proven to be
successful in situations where an increasing number of customers are
searching for alternatives to improve productivity of operations and
work flexibility. Elisa continued to implement its strategy through
new bolt-on acquisitions, strengthening its position as a provider of
ICT services.
In the first quarter, we continued to invest in the construction of a
3G network enabling mobile broadband. According to the latest
results, Elisa's 3G network has the best coverage and voice quality.
Elisa was the first company in Finland to utilize wind power as an
electricity source for its network.
A clear improvement in competitiveness has been achieved through our
determined operational enhancements and providing an appealing
product and service range for new customer groups, now also in the
field of mobile marketing.
We will determinedly continue to implement our strategy by developing"one Elisa", by improving our profitability and by providing new
services. Our strategy execution has resulted in improved
profitability and strengthened our market position. Our
competitiveness in cost and investment efficiency, combined with good
cash flow allows us to further implement this strategy. The
prevailing general economic uncertainty makes for a less predictable
business environment, and our industry is no exception. However, we
are confident and believe that our business will continue to develop
favourably in the years to come."
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-MARCH 2009
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 presented in
this interim report is unaudited.
Market situation
The general economic decline has so far had only a marginal impact on
the telecom operator business. The impact has been felt mainly in
equipment sales and roaming revenues. Elisa's Estonian business has
also suffered to some extent. It is still uncertain how much the
possible deterioration of the enterprise business environment will
impact the telecom sector.
The competitive environment has been keen but stable in Finland. The
base 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, mobile broadband services and prepaid
subscriptions. 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 at a slightly slower pace than in 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 1-3/2009 1-3/2008 2008
Revenue 351 367 1,485
EBITDA 115 108 472
EBITDA-% 32.7 29.5 31.8
EBITDA excl. non-recurring items 115 111 478
EBITDA-%, excl. non-recurring items 32.8 30.2 32.2
EBIT 62 57 264
EBIT excl. non-recurring items 62 60 271
EBIT-%, excl. non-recurring items 17.6 16.3 18.3
Elisa's revenue decreased by 4 per cent on the previous year mainly
due to lower equipment sales volumes, mobile interconnection fees and
roaming revenues.
EBITDA improved by 6 per cent and EBITDA excluding non-recurring
items by 4 per cent on the previous year. In 2008, extra
implementation costs of the billing and CRM system, as well as
revenue correction affected EBITDA negatively. During the first
quarter of 2009, sales costs increased due the strong growth in
mobile subscriptions.
Financial position:
EUR million 31.3.2009 31.3.2008 31.12.2008
Net debt 854 955 812
Net debt / EBITDA 1) 1.8 1.9 1.7
Gearing ratio, % 103.8 120.6 92.8
Equity ratio, % 41.3 37.7 43.3
+----------------------------------------------------------+
| EUR million | 1-3/2009 | 1-3/2008 | 2008 |
|-----------------------------+----------+----------+------|
| Cash flow after investments | 46 | 66 | 260 |
+----------------------------------------------------------+
1) (interest-bearing debt - financial assets) / (4 previous quarters'
EBITDA exclusive of non-recurring items)
The financial position and liquidity are good. Cash and undrawn
credit lines totalled EUR 261 million at the end of the quarter and
there are no major refinancing needs expected before September 2011.
During the first quarter net debt increased to EUR 854 million mainly
due to dividend payment of EUR 85.7 million in March 2009.
Withholding tax of EUR 7.7 million was paid in April.
Cash flow after investments decreased on the previous year to EUR 46
million (66). Cash flow was exceptionally high during the first
quarter of 2008 due to the influx of delayed invoice payments from
2007 resulting from the billing and CRM system change.
Changes in corporate structure
Elisa acquired the entire share capital of Xenetic Oy. Xenetic is a
hosting service company, the business of which consists of computer
rooms, monitoring, data communications and data security services and
equipment, and application leasing among other things. Elisa has also
acquired the business operations of Trackway Oy, whose business
includes e.g. solutions for asset tracking.
Elisa's operating segments under IFRS 8
Elisa adopted the IFRS 8 Operating Segments standard from the
beginning of 2009. The change of reporting applies to the
presentation of financial statement information and does not affect
the Group's earnings or financial position. The standard requires
that segment information 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 Customers and
Corporate Customers.
Consumer Customer business
EUR million 1-3/2009 1-3/2008 2008
Revenue 202 221 882
EBITDA 64 67 267
EBITDA-% 31.6 30.1 30.3
EBIT 33 37 149
CAPEX 18 21 102
The Consumer Customer business unit provides telecommunication and
telecommunications based services such as voice and data services for
Finnish and Estonian consumers and households. Consumer Customer
business unit serves more than 1.5 million households, which have
more than 3 million Elisa mobile communications and fixed network
subscriptions.
The Consumer Customer business revenue was EUR 202 million (221) and
EBITDA EUR 64 million (67). The decrease in revenue was mainly due to
lower terminal sales volumes and mobile interconnection fees both in
Finland and Estonia. EBITDA was negatively affected by increased
sales costs due to strong growth in mobile subscriptions and a
decrease in the Estonian business due to the general economic
decline. First quarter 2008 EBITDA was affected negatively by
implementation costs of the billing and CRM system.
Corporate Customer business
EUR million 1-3/2009 1-3/2008 2008
Revenue 150 146 604
EBITDA 51 42 204
EBITDA-% 34.2 28.5 33.9
EBIT 28 20 116
CAPEX 16 17 82
The Corporate Customer business unit provides ICT solutions to
corporate and community customers to improve their productivity and
efficiency, both in the domestic market and international operating
environment. Services provided for the Corporate Consumer segment
include voice and data services and other ICT solutions and contact
center services.
Corporate Customers business revenue was EUR 150 million (146) and
EBITDA EUR 51 million (42). Revenue has increased through several
minor acquisitions in 2008 and in the first quarter of 2009. Lower
mobile interconnection fees also negatively affected Corporate
Customer revenue. The EBITDA improvement was mainly due to efficiency
programs. The first quarter of 2008 was temporarily weak given the
implementation costs of the billing and CRM system.
Personnel
In January-March the average number of personnel at Elisa was 3,024
(3,008).
Personnel by segments at the end of period:
31.3.2009 31.3.2008 31.12.2008
Consumer Customers 1,558 1,638 1,522
Corporate Customers 1,518 1,333 1,495
Total 3,076 2,971 3,017
The number of personnel increased from the corresponding period last
year mainly due to several minor acquisitions in the Corporate
Customer business.
In February 2009, Tampereen Tietoverkko Oy (TTV) outsourced its
entire personnel (19 employees) to Elisa in a business transfer. With
the transfer, Elisa and TTV are strengthening their cable-TV and
pay-TV services. Elisa owns approx. 63 per cent of TTV.
Investments
EUR million 1-3/2009 1-3/2008 1-12/2008
Capital expenditures, of which 34 38 184
- Consumer Customers 18 21 102
- Corporate Customers 16 17 82
Shares 7 1 15
Total 41 39 199
The main capital expenditures arose from the capacity and coverage
increase of the 3G network. The EUR 7 million investments in shares
were mainly attributable to the acquisition of Xenetic Oy.
Financing arrangements and ratings
On 3 March, the counterparty bank to the EUR 150 million interest
rate swap exercised its annual right to swap the floating rate leg to
a fixed rate. For the remaining maturity, until March 2014, Elisa
will pay a 4.50 per cent fixed rate per annum and receive a 4.75 per
cent fixed rate per annum for the swap.
On 27 March, Elisa updated the European Mid Term Notes (EMTN)
Programme.
Valid financing arrangements:
Maximum amount In use on 31.3.2009
EUR million
Committed credit limits 300 70
Commercial paper programme ¹) 250 101
EMTN programme ²) 1,000 636
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
Trading of shares 1-3/2009 1-3/2008 2008
Shares traded, millions 49.2 82.8 338.8
Volume, EUR million 554.3 1,612 5,041.1
% of shares 29.6 49.8 217.7
Shares and market values 31.3.2009 31.3.2008 31.12.2008
Total number of shares 166,307,586 166,307,586 166,307,586
Treasury shares 10,688,629 8,049,976 10,688,629
Outstanding shares 155,618,957 158,257,610 155,618,957
Closing price, EUR 10.99 15.82 12.30
Market capitalisation,
EUR million 1,710 2,504 1,914
Treasury shares, % 6.43 4.84 6.43
In March, Elisa distributed a dividend of 0.60 euros per share,
totalling EUR 93.4 million, in accordance with the decision of the
Annual General Meeting.
The Annual General Meeting
On 18 March 2009, and in accordance with the proposal of the Board of
Directors, Elisa's Annual General Meeting decided on a dividend to
shareholders in the amount of 0.60 euros per share on the basis of
the 31 December 2008 balance sheet approved by the Annual General
Meeting.
The Annual General Meeting adopted the financial statements for the
period in question. The members of the Board of Directors and the CEO
were discharged from liability for 2008.
The number of the members of the Board of Directors was confirmed at
six (6). The following members were re-elected to the Board of
Directors: Mr Risto Siilasmaa, Mr Ossi Virolainen, Mr Pertti Korhonen
and Ms Eira Palin-Lehtinen. Mr Ari Lehtoranta (Executive Vice
President, Kone Corporation) and Raimo Lind (Executive Vice
President, CFO, Wärtsilä Corporation) were elected as new members.
KPMG Oy Ab, authorised public accountants was appointed the company's
auditor. APA Pekka Pajamo is the responsible auditor.
The Annual General Meeting accepted the proposal to amend the
Operations of the Company in the articles of association. The main
change was the addition of ICT services to the Operations of the
Company.
The Board of Directors' authorisations
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
shares 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 50.0 million of the company's shares can be issued under the
authorization.
Significant legal issues
Elisa and TeliaSonera have reached a settlement on the disagreement
relating to the claim on unjust enrichment due to miscoding of
traffic.
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, 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.
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 derivatives 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 7 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 261 million at 31 March 2009 (EUR
258 million at the end of 2008).
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.
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 has increased due to
the credit crisis. The rating of the portfolio is at B1 level. The
guarantee is valid until 15 December 2012. The maximum liability 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.
Given the recent financial market turmoil, the banking sector has
suffered and the banks' ability to finance companies have
deteriorated, with some capital market activities not operating
fully. However, Elisa has cash reserves, committed credit facilities
and a sustainable cash flow to cover its foreseeable financing needs.
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 and other mobile operators have agreed on interconnection fees
for 2009-2011. The operators have also agreed on the calculation
principles for the fees for 2011-2012. Based on the agreement made
earlier, the mobile operators will have equal rates from 1 December
2009. The fee is 4.9 cents per minute, which is the current Elisa
interconnection fee. The interconnection fee will be lowered to 4.4
cents per minute from 1 December 2010. In addition, the operators are
committed to negotiating and agreeing on a new interconnection fee in
2011, which will take effect on 1 December 2011 and will be valid to
the end of 2012.
Cisco granted Elisa the Cisco Gold Certified Partner certificate,
which is Cisco's highest partner level reward and it reflects Elisa's
devotion to innovative communication solutions and customer
satisfaction.
Outlook for 2009
The current economic environment and financial market turmoil creates
uncertainty for the 2009 outlook. Competition in the Finnish
telecommunications market remains challenging.
Elisa's business has so far been impacted only marginally by the
general economic decline. However, Elisa will not be immune to the
negative economic development. The main risks relate to the
development of the Estonian economy and the Corporate Customer
segment.
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 terminal sales volumes and other
sales in some customer segments may decrease. EBITDA excluding
non-recurring items is also expected to be at the same or slightly
lower level than last year. Elisa will determinedly continue to
stimulate demand for its services and continue to drive productivity
improvements of its operations. Likewise, capital expenditure will be
actively controlled to a maximum 12 per cent of revenue, and it may
be reduced clearly, if the general economy deteriorates further.
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.
Elisa Corporation
1.1. - 31.3.2009
Unaudited
CONSOLIDATED INCOME STATEMENT
1-3 1-3 1-12
EUR million Note 2009 2008 2008
Revenue 1 351,0 367,0 1485,0
Other operating income 0,9 0,9 6,5
Materials and services -145,7 -158,5 -652,4
Employee expenses -46,9 -45,3 -162,5
Other operating
expenses -44,4 -55,9 -205,0
EBITDA 1 114,9 108,2 471,6
Depreciation and
amortisation -53,2 -51,0 -207,1
EBIT 1 61,7 57,2 264,5
Financial income 3,4 6,8 17,1
Financial expense -11,7 -11,6 -54,0
Share of associated
companies' profit 0,0 0,0 0,0
Profit before tax 53,4 52,4 227,6
Income taxes -12,2 -12,2 -50,6
Profit for the period 41,2 40,2 177,0
Attributable to:
Owners of the parent 41,0 40,0 176,3
Non-controlling interests 0,2 0,2 0,7
41,2 40,2 177,0
Earnings per share (EUR)
Basic and diluted 0,26 0,25 1,12
Average number of outstanding
shares (1000 shares)
Basic and diluted 155 619 158 258 157 450
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
Profit for the period 41,2 40,2 177,0
Other comprehensive income,
net of tax:
Available-for-sale investments -1,1 0,5 -10,4
Total comprehensive income 40,1 40,7 166,6
Total comprehensive income
attributable to:
Owners of the parent 39,9 40,5 165,9
Non-controlling interests 0,2 0,2 0,7
40,1 40,7 166,6
Elisa Corporation
1.1. - 31.3.2009
Unaudited
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31.3. 31.12.
EUR million 2009 2008
Non-current assets
Property, plant and equipment 620,4 630,5
Goodwill 780,6 778,6
Other intangible assets 173,1 177,5
Investments in associated companies 0,1 0,1
Available-for-sale investments 28,3 29,0
Receivables 13,4 12,4
Deferred tax assets 31,2 28,3 1647,1 1656,4
Current assets
Inventories 20,1 21,7
Trade and other receivables 302,6 319,4
Cash and cash equivalents 31,2 33,0
353,9 374,1
Total assets 2001,0 2030,5
Equity attributable to owners of the parent 821,0 873,4
Non-controlling interests 1,0 1,6
Total equity 822,0 875,0
Non-current liabilities
Deferred tax liabilities 27,9 30,9
Provisions 5,4 5,6
Interest-bearing debt 622,7 672,3
Other non-current liabilities 13,8 14,0
669,8 722,8
Current liabilities
Trade and other payables 241,3 255,5
Tax liabilities 4,9 3,4
Provisions 0,8 1,5
Interest-bearing debt 262,2 172,3
509,2 432,7
Total equity and liabilities 2001,0 2030,5
Elisa Corporation
1.1. - 31.3.2009
Unaudited
CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOWS
1-3 1-3 1-12
EUR million 2009 2008 2008
Cash flow from operating activities
Profit before tax 53,4 52,4 227,6
Adjustments
Depreciation and amortisation 53,2 51,0 205,8
Other adjustments 8,0 4,8 32,1
61,2 55,8 237,9
Change in working capital
Change in trade and other receivables 12,4 67,2 132,5
Change in inventories 1,6 3,7 6,7
Change in trade and other payables -10,1 -48,7 -56,2 3,9 22,2 83,0
Financial items, net -15,1 -14,1 -38,8
Taxes paid -16,9 -11,8 -59,5
Net cash flow from operating activities 86,5 104,5 450,2
Cash flow from investing activities
Capital expenditure -33,6 -37,4 -179,2
Purchase of shares -7,3 -0,9 -11,6
Proceeds from asset disposal 0,1 0,8
Net cash used in investing activities -40,9 -38,2 -190,0
Cash flow before financing activities 45,6 66,3 260,2
Cash flow from financing activities
Purchase of treasury shares -43,3
Proceeds from long-term borrowings 80,0
Repayment of long-term borrowings -30,0
Change in short-term borrowings 40,0 245,5 38,6
Repayment of finance lease liabilities -1,1 -1,2 -4,0
Dividends paid and capital repayment -86,3 -284,2 -285,4
Net cash used in financing activities -47,4 -39,9 -244,1
Change in cash and cash equivalents -1,8 26,4 16,1
Cash and cash equivalents at beginning of
period 33,0 16,9 16,9
Cash and cash equivalents at end of period 31,2 43,3 33,0
Elisa
Corporation
1.1. -
31.3.2009
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
Share-based
compensation 0,9 0,9
Total
comprehensive
income 0,5 40,0 0,2 40,7
Balance at
March 31,
2008 83,0 -165,8 404,4 250,8 217,5 2,2 792,1
EUR million
Balance at
January 1,
2009 83,0 -202,0 393,5 250,8 348,1 1,6 875,0
Dividends -93,4 -0,8 -94,2
Share-based
compensation 1,1 1,1
Total
comprehensive
income -1,1 41,0 0,2 40,1
Balance at
March 31,
2009 83,0 -202,0 392,4 250,8 296,8 1,0 822,0
BOARD OF DIRECTORS
Elisa Corporation
1.1. - 31.3.2009
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. 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
Customers and Corporate Customers. Accounting principles
and comparable figures 2008 has been published on
17 April, 2009.
- IAS 1 Presentation of Financial Statements. The amendments
concerning the income statement and statement of changes in
equity has 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
Elisa Corporation
1.1. - 31.3.2009
Unaudited
1. SEGMENT INFORMATION
1-3/2009 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
Revenue 201,5 149,5 351,0
EBITDA 63,8 51,1 114,9
Depreciation and amortisation -30,4 -22,8 -53,2
EBIT 33,4 28,3 61,7
Financial income 3,4 3,4
Financial expense -11,7 -11,7
Share of associated
companies' profit 0,0 0,0
Profit before tax 53,4 53,4
Investments 18,3 15,6 33,9
1-3/2008 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
Revenue 220,9 146,1 367,0
EBITDA 66,5 41,7 108,2
Depreciation and amortisation -29,4 -21,6 -51,0
EBIT 37,1 20,1 57,2
Financial income 6,8 6,8
Financial expense -11,6 -11,6
Share of associated
companies' profit 0,0 0,0
Profit before tax 52,4 52,4
Investments 20,6 17,0 37,6
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 227,6 227,6
Total assets 1143,3 780,8 106,4 2030,5
Investments 101,8 82,1 183,9
Elisa Corporation
1.1. - 31.3.2009
Unaudited
2. OPERATING LEASE COMMITMENTS
31.3. 31.12.
EUR million 2009 2008
Due within 1 year 20,9 22,2
Due after 1 year but within 5 years 35,9 36,8
Due after 5 years 15,5 15,2
Total 72,3 74,2
3. CONTINGENT LIABILITIES
31.3. 31.12.
EUR million 2009 2008
Mortagages
For own and group companies 0,4
Pledges given
Pledges given as surety 0,8 0,8
Guarantees given
For others (* 46,1 44,3
Mortgages, pledges and
guarantees, total 46,9 45,5
Other commitments
Repurchase commitments 0,1 0,1
*) EUR 45,1 million is related to the guarantee
given on a CDO portfolio.
4. DERIVATIVE INSTRUMENTS
31.3. 31.12.
EUR million 2009 2008
Interest rate swaps
Nominal value 150,0 150,0
Fair value recognised in the balance sheet 1,7 1,0
Credit default swaps (*
Nominal value 47,6 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. - 31.3.2009
Unaudited
KEY FIGURES
1-3 1-3 1-12
EUR million 2009 2008 2008
Shareholders' equity per share, EUR 5,28 4,99 5,61
Interest bearing net debt 853,6 955,1 811,6
Gearing 103,8% 120,6% 92,8%
Equity ratio 41,3% 37,7% 43,3%
Return on investment (ROI) *) 15,7% 17,2% 15,6%
Gross investments in fixed assets 33,9 37,6 183,9
of which finance lease investments 0,3 0,2 4,7
Gross investments as % of revenue 9,7% 10,2% 12,4%
Investments in shares, 7,3 1,1 14,8
Average number of employees 3024 3008 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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