Elisa - Interim report (Q1 and Q3)

Elisa’s Interim Report January-March 2012

ELISA STOCK EXCHANGE RELEASE 27 APRIL 2012 AT 8:30am

First quarter 2012

  -- Revenue was EUR 382 million (374)
  -- EBITDA grew to EUR 121 million (118) and EBIT to EUR 68 million (65)
  -- Profit before tax amounted to EUR 61 million (58) 
  -- Earnings per share increased to EUR 0.31 (0.27)
  -- Cash flow after investments was EUR 37 million (27)



  -- Mobile ARPU was EUR 18.1 (18.7 in previous quarter)
  -- Mobile churn was 15.3 per cent (13.4 in previous quarter)
  -- The number of Elisa's mobile subscriptions increased by 86,600 during the
     quarter
  -- The number of fixed broadband subscriptions increased by 2,100 on the
     previous quarter
  -- Net debt / EBITDA was 1.5 (1.6 end 2011) and gearing 85 per cent (94 end
     2011)





Key indicators



-----------------------------------------------
                         1st Quarter  Full year
EUR million               2012  2011       2011
-----------------------------------------------
-----------------------------------------------
Revenue                    382   374      1,530
EBITDA                     121   118        506
EBIT                        68    65        295
Profit before tax           61    58        265
Earnings per share, EUR   0.31  0.27       1.29
Capital expenditures        42    41        197
-----------------------------------------------



 Financial position and cash flow



EUR million           31.3.2012  31.3.2011  31.12.2011
------------------------------------------------------
------------------------------------------------------
Net debt                    754        752         788
Net debt / EBITDA 1)        1.5        1.5         1.6
Gearing ratio, %           84.6      102.0        93.8
Equity ratio, %            44.9       37.6        42.3
------------------------------------------------------





-----------------------------------------
                   1st Quarter  Full year
EUR million         2012  2011       2011
-----------------------------------------
Cash flow             37    27        207
after investments                        
-----------------------------------------

1) (interest-bearing debt - financial assets) / (four previous quarters' EBITDA
exclusive of non-recurring items) 

Additional information regarding the Key Performance Indicators is available on
www.elisa.com/investors Elisa Operational Data.xls. 


CEO Veli-Matti Mattila:

“A solid quarter according to our expectations

Elisa's earnings and revenue grew according to expectations during the first
quarter of the year. Despite challenging competition, the demand for Elisa's
services remained high and competitiveness was strengthened. 

The first quarter increase in the mobile subscription base was more than 86,000
subscriptions. The number of fixed network broadband subscriptions continued to
increase by more than 2,000 during the first quarter. Growth was boosted by new
services and service bundles. The demand for mobile data services continued its
strong growth as dongles and smart phones are becoming more common among
consumers and corporate users. 

The demand for Elisa's video services has continued to rise. Elisa's video
solutions have already been delivered to more than 10,000 sites in 80
countries. In addition, during the quarter, Elisa introduced a solution through
which companies can offer their customers a possibility to make small-scale web
purchases through a mobile phone. Mobile certificates were also deployed by a
number of companies during the quarter. In the future, Nordic customers will
also be able to use mobile certificates. 

Elisa again introduced new, interesting content for consumer services. Elisa
Kirja, Finland's largest e-book service for Finnish literature, further
expanded its offering to include radio plays by YLE, the Finnish national
public service broadcasting company. The Elisa Viihde IPTV service gives
customers an opportunity to experience the excitement of Formula 1 races and to
follow the upcoming Ice Hockey World Championship in Finland with exceptional
new features and user friendly appeal. 

An independent study conducted during the quarter confirmed that Elisa's 3G
network has the widest coverage. In addition, 4G speeds are already available
in Elisa's network in 150 localities. Better connection speeds increase user
experience and enable use of entirely new services, for example, for sharing
and watching videos and for teleworking. Customers have experienced the 4G
services positively, and demand for them has been active. 

Elisa is the first telecommunication and ICT service company to start reporting
on the emissions savings of the services it offers. According to the report
published during the quarter, Elisa's services allowed emissions savings of
more than 15,000 carbon dioxide tonnes in 2011. The most significant factors
reducing emissions were the increasing popularity of mobile work solutions and
the strong growth in demand for video conferencing solutions. 

We will continue our determined work to enhance the productivity of our
operations and customer satisfaction. Elisa creates services that improve
productivity and provide enhanced user experiences. Combined with our strong
investment ability, this creates a solid foundation for competitive operations
in the future."

Outlook for 2012

The budget deficits and solvency issues in several European countries have
impacted the Finnish economy to some extent. The macroeconomic outlook for
Finland is weaker than the outcome in 2011. Competition in the Finnish
telecommunications market also remains challenging. 

Full year revenue is estimated to be at the same level as in the previous year.
The use of mobile communications, especially mobile broadband services and
equipment sales, is continuing to rise. In addition, Elisa continues to invest
in ICT and new online services, which are expected to boost revenue. Full year
EBITDA, excluding non-recurring items, is anticipated to be at the same level,
and EBIT is expected to improve on last year given the lower level of
depreciation. Full-year capital expenditure is expected to be maximum 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 customers with exciting and relevant
new services. Among the factors contributing to long-term growth and
profitability improvement is mobile data market growth, as well as new online
and ICT services. Elisa continues determinedly to employ its efficiency
measures. Elisa's financial position and liquidity are good. 

Disclosure procedure

Elisa is adopting the disclosure procedure enabled by the Standard 5.2b
published by the Finnish Financial Supervision Authority. This is a summary of
Elisa's Interim Report for January-March 2012 and the complete report is
attached as a pdf-file to this release and is also available on our website at
www.elisa.com/investors. 



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, IR Director, tel. +358 10 262 3036



Distribution:

NASDAQ OMX Helsinki
Principal media
www.elisa.com

Attachments:

120427INTERIM REPORT Q1 2012.pdf