Elisa - Interim report (Q1 and Q3)

ELISA'S INTERIM REPORT JANUARY-JUNE 2011

ELISA STOCK EXCHANGE RELEASE 19 JULY 2011 AT 8:30am

Second quarter 2011
  * Revenue was EUR 378 million (364)
  * EBITDA was EUR 121 million (119), EBIT EUR 69 million (65)
  * Profit before tax amounted to EUR 61 million (53)
  * Earnings per share was EUR 0.29 (0.26)
  * Cash flow after investments was EUR 59 million (70)
  * The full year outlook is reiterated


  * The number of Elisa's mobile subscriptions increased by 92,500 during the
    quarter
  * ARPU in the mobile business was at the previous quarter's level EUR 19.3
    (19.5 in the previous quarter)
  * Churn decreased to 11.9 per cent  (14.3 in the first quarter)
  * The number of fixed broadband subscriptions decreased by 3,000 on the
    previous quarter
  * Net debt / EBITDA was 1.7 (1.6 at the end of 2010) and gearing 108 per cent
    (93 at the end of 2010)


January - June 2011
  * Revenue was EUR 752 million (717)
  * EBITDA was EUR 239 million (234), EBIT EUR 134 million (126)
  * Cash flow after investments was EUR 86 million (115)


Key indicators:
EUR million                                 4-6/2011 4-6/2010 1-6/2011 1-6/2010
-------------------------------------------------------------------------------
Revenue                                          378      364      752      717

EBITDA                                           121      119      239      234

EBIT                                              69       65      134      126

Profit before tax                                 61       53      119       63

Profit before tax excl. non-recurring items       61       53      119      107

Earnings per share, EUR                         0.29     0.26     0.56     0.31

EPS excl. non-recurring items, EUR              0.29     0.26     0.56     0.52

Capital expenditures                              54       47       95       86
-------------------------------------------------------------------------------
1-6/2011 EBITDA excluding non-recurring items EUR 240m

Financial position and cash flow:
EUR million         30.6.2011 30.6.2010 31.12.2010
--------------------------------------------------
Net debt                  845       752        776

Net debt / EBITDA1)       1.7       1.5        1.6

Gearing ratio, %        108.0      93.2       93.2

Equity ratio, %          40.3      42.0       42.5
--------------------------------------------------

EUR million     4-6/2011 4-6/2010 1-6/2011 1-6/2010
---------------------------------------------------
Cash flow after
investments           59       70       86      115
---------------------------------------------------
1) (interest-bearing debt - financial assets) / (four previous quarters' EBITDA
exclusive of non-recurring items)

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

CEO Veli-Matti Mattila:"Elisa's revenue and profit increased

Elisa's revenue continued to develop favorably in the second quarter of 2011. In
addition to increased demand for new services, this growth was boosted by
equipment sales as well as acquisitions completed in 2010. Earnings before
interest and taxes grew more than revenue.

The competitive situation remained challenging, but Elisa's market position and
competitivenes developed strongly. Our mobile subscription base grew by more
than 90,000 users during the second quarter of the year. The number of fixed
network broadband subscriptions decreased by a few thousand.

The popularity of smartphones has fostered the rapid development of Elisa's 3G
network. According to an independent study, Elisa's 3G network has the best
coverage and the highest number of base stations in Finland. This enables Elisa
and Saunalahti to guarantee their customers trouble-free mobile services across
the country. During the second quarter of 2011, Elisa improved the coverage of
its 3G network in central Finland, eastern Finland, Ostrobothnia in the west and
the Uusimaa region in the south. Elisa's 4G network is already available to
corporate customers in southern Finland. We will continue to invest in the
development of national 3G and 4G networks.

Elisa was the first provider in Finland to introduce the super-fast 250 Mbps
broadband subscription. This product is particularly suitable for teleworkers
who need to transfer large files, such as graphics and image files.

Elisa was the first company in the world to introduce multiparty and multidevice
HD video conferencing solutions, which enable users to take part viapractically
all possible equipment from videoconference room systems to laptops and other
portable 3G devices. This Bringio service has been developed in particular for
the dynamic daily collaboration needs of corporate users.

Elisa was the first Finnish operator to offer a fixed daily pricing model for
data roaming within and outside the European Union. Intended for corporate
customers, the Daily Traveller service makes data roaming costs predictable when
travelling abroad. Compared with other Finnish operators, Elisa is able to offer
superior coverage with the Daily Traveller service because of our cooperation
with Vodafone and Telenor.

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

Outlook for 2011

Positive trends in the Finnish economy have continued, however there are risks
related to nervousness caused by the budget deficits and solvency issues in
several European countries and their possible impacts on the general economic
development. Competition in the Finnish telecommunications market remains
challenging.

Full year revenue is estimated to increase slightly from the previous year. The
use of mobile communications, especially mobile broadband services and equipment
sales, is continuing to rise. In addition, ICT and new online services' revenue
will grow. Full year EBITDA, excluding non-recurring items, is expected to
improve slightly from the last year. 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 its customers with exciting and
relevant new services. Among the factors contributing to long-term growth and
profitability improvement is 3G 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.

New disclosure procedure

Elisa is now adopting the new 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-June 2011 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


[HUG#1531837]

Attachments:

Elisa Q2 2011.pdf