Elisa - Financial Statement Release

Elisa’s Financial Statements 2011

ELISA STOCK EXCHANGE RELEASE 3 FEBRUARY 2012 AT 8:30am


Year 2011

  -- Revenue increased to EUR 1,530 million (1,463)
  -- EBITDA grew to EUR 506 million (485) and EBIT to EUR 295 million (268)
  -- Profit before tax amounted to EUR 265 million (197)
  -- Earnings per share was EUR 1.29 (0.96)
  -- Cash flow after investments was EUR 207 million (172)
  -- The number of  Elisa Viihde IPTV customers exceeded 100,000 during Q3
  -- The Board of Directors proposes a dividend of EUR 1.30 per share



Fourth quarter 2011

  -- Revenue increased to EUR 401 million (383)
  -- EBITDA grew to EUR 133 million (123) and EBIT to EUR 79 million (69)
  -- Cash flow after investments was EUR 65 million (28)
  -- Mobile ARPU was EUR 18.7 (19.0 in the third quarter)
  -- Churn was to 13.4 per cent  (12.7 in the third quarter)
  -- The number of Elisa's mobile subscriptions increased by 64,000 during the
     quarter.
  -- The number of fixed broadband subscriptions increased by 4,000 on the
     previous quarter
  -- Net debt/EBITDA was 1.6 (1.6 end 2010) and gearing 94 per cent (93 end
     2010)



Key indicators



----------------------------------------------------
                           4th Quarter   Full year  
EUR million                 2011  2010   2011   2010
----------------------------------------------------
----------------------------------------------------
Revenue                      401   383  1,530  1,463
EBITDA                       133   123    506    485
EBIT                          79    69    295    268
Profit before tax1)           72    66    265    197
Earnings per share, EUR1)   0.36  0.33   1.29   0.96
Capital expenditures          58    56    197    184
----------------------------------------------------

1) Excluding non-recurring CDO guarantee settlement profit before tax
10-12/2010 EUR 61 mil and 1-12/2010 

EUR 237 mil, and earnings per share 10-12/2010 EUR 0.31 and 1-12/2010 EUR 1.15.



Financial position and cash flow



EUR million           End 2011  End 2010
----------------------------------------
----------------------------------------
Net debt                   788       776
Net debt / EBITDA 1)       1.6       1.6
Gearing ratio, %          93.8      93.2
Equity ratio, %           42.3      42.5
----------------------------------------





----------------------------------------
                 4th Quarter   Full year
EUR million       2011  2010  2011  2010
----------------------------------------
Cash flow after     65    28   207   172
investments 2)                          
----------------------------------------

1) (interest-bearing debt - financial assets) / (4 previous quarters' EBITDA
exclusive of non-recurring items) 

2) Excluding non-recurring CDO guarantee settlement 10-12/2010 EUR 68 mil and
1-12/2010 EUR 212 mil 



The Board of Directors proposes to the Annual General Meeting a dividend of EUR
1.30 per share. The Board of Directors decided also to propose to the General
Meeting an authorisation to acquire maximum 5 million treasury shares, which
corresponds to 3 per cent of the totalshares. 



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

CEO Veli-Matti Mattila:



“Solid growth in 2011



Elisa's revenue developed well and earnings increased in 2011. Revenue from the
mobile business and sales of terminal equipment and new services developed
favorably. Earnings were strengthened by consistent productivity improvements
in line with the strategy. The competitive situation continued to be
challenging in 2011. Nevertheless, Elisa was able to strengthen both its market
position and competitiveness. 



The growth in mobile subscriptions continued and the number of subscriptions
increased by more than 360,000 during the year, while fixed broadband grew by
19,000. During the last quarter of the year, mobile subscriptions grew by more
than 64,000 and fixed broadband subscriptions by about 4,000. 



The Consumer Customers business' revenue developed well with the growth of
mobile revenue and new services. The use of smart phones boosted mobile revenue
growth. Elisa's mobile connections also expanded to all PlayStation® Vita
handheld consoles sold in Finland. The popular Elisa Viihde service passed an
important milestone when the number of users exceeded 100,000 in the third
quarter. Elisa was the first in Finland to combine a new era TV service with
the possibility of watching recordings on a tablet. Elisa Viihde can now also
be viewed through Android and iPad tablet applications. 



The Corporate Customers business was strengthened with the growth of ICT
services. We further reinforced the ICT service offering to improve companies'
profitability and flexibility by introducing several new services to the
market. For example, by means of customer service implemented through a video
connection, companies and public administration organizations can offer their
customers personal service face-to-face over the network. Elisa obtained
significant openings in the delivery of ICT solutions for public administration
with, among other things, KL-Kuntahankinnat, which is responsible for the
procurements of over 400 municipal organizations, and Kuntien Tiera, which
offers municipalities' information management services. 



In 2011, we continued to strengthen the capacity and speed of our 3G network.
An independent study proved once again that, compared to other Finnish operator
networks, Elisa's 3G network has the widest coverage. This time the study
showed that Elisa's 3G network is also the fastest. Elisa was the first Finnish
operator to introduce test base stations based on LTE800 technology. Elisa
introduced 4G speeds in its 3G network in over one hundred locations. The new
speeds enable, for example, faster net surfing, games and video conferences
over mobile broadband. 



Our consistent improvement in customer satisfaction and productivity will
continue. Elisa creates services that improve customers' productivity and
provide enhanced user experiences. Combined with our strong financial position,
this creates a solid foundation for the future.” 



Outlook for 2012



The budget deficits and solvency issues in several European countries have
impacted the Finnish economy to some extent. The macro economic outlook for
Finland has weakened from the previous year. The risk of an even less
favourable general economic development creates uncertainty. 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. 



Profit distribution



The Board of Directors proposes to the Annual General Meeting a dividend of EUR
1.30 per share. The payment corresponds to 101 per cent of the financial
period's net result. 



Shareholders who are listed in the company's register of shareholders
maintained by Euroclear Finland Ltd on 11 April 2012 are entitled to funds
distributed by the General Meeting. The Board of Directors proposes that the
payment date be 18 April 2012. The profit for the period shall be added to
retained earnings. 



The Board of Directors decided also to propose to the General Meeting that the
Board of Directors be authorised to acquire a maximum of 5 million treasury
shares, which corresponds to 3 per cent of the total shares. 



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 Financial Statements 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, Director, IR and Financial Communications, tel. +358 10 262
3036 



Distribution:
NASDAQ OMX Helsinki

Principal media

www.elisa.com

Attachments:

120203FINANCIAL STATEMENTS 2011.pdf