Elisa - Interim report (Q1 and Q3)

Elisa’s Interim Report January - September 2012

ELISA INTERIM REPORT RELEASE 19 0CTOBER 2012 AT 8:30am

Third quarter 2012
- Revenue amounted to EUR 387 million (378)
- EBITDA was EUR 134 million (135) and EBIT was EUR 85 million (82)
- Profit before taxes amounted to EUR 78 million (74)
- Earnings per share increased to EUR 0.38 (0.36)
- Cash flow after investments was EUR 37 million (56)

- Mobile ARPU was EUR 17.3 (18.0 in previous quarter)
- Mobile churn was 17.2 per cent (14.1 in previous quarter)
- The number of Elisa's mobile subscriptions increased by 89,300 during the
quarter 
- The number of fixed broadband subscriptions increased by 6,600 on the
previous quarter 
- Net debt / EBITDA was 1.7 (1.6 end 2011) and gearing 110 per cent (94 end
2011) 

January - September 2012
- Revenue was EUR 1,158 million (1,129)
- EBITDA was EUR 377 million (374), EBIT EUR 225 million (216)
- Cash flow after investments was EUR 121 million (142)

 Key indicators



--------------------------------------------------
                         3rd Quarter  Year-to-date
EUR million               2012  2011   2012   2011
--------------------------------------------------
--------------------------------------------------
Revenue                    387   378  1,158  1,129
EBITDA                     134   135    377    374
EBIT                        85    82    225    216
Profit before tax           78    74    205    193
Earnings per share, EUR   0.38  0.36   1.02   0.93
Capital expenditures        51    45    143    140
--------------------------------------------------

 Financial position and cash flow



EUR million          30.9.2012  30.9.2011  End 2011
---------------------------------------------------
---------------------------------------------------
Net debt                   874        793       788
Net debt / EBITDA1)        1.7        1.6       1.6
Gearing ratio, %         109.5       94.3      93.8
Equity ratio, %           40.7       43.4      42.3
---------------------------------------------------





------------------------------------------
                 3rd Quarter  Year-to-date
EUR million       2012  2011   2012   2011
------------------------------------------
Cash flow after     37    56    121    142
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 at
www.elisa.com/investors Elisa Operational Data.xls. 

CEO Veli-Matti Mattila:

“Elisa's earnings and revenue continued to grow at a good rate

Despite challenging competition, Elisa's competitiveness continued to
strengthen during the third quarter of 2012. The demand for our services
continued to be high, and our earnings and revenue grew in accordance with
expectations. The increase in revenue continued to be driven by terminal sales,
mobile voice and data services as well as new services. 

The total number of mobile subscriptions grew by more than 89,000 during the
third quarter. Fixed broadband subscriptions increased by 6,600, boosted by new
services and service bundles. The use of smartphones and dongles continued to
increase among consumers and corporate customers, contributing to the strong
growth in mobile data services. 

Elisa introduced two new services for consumers during the third quarter. Elisa
Vahti Live is further developed video service that enables users to stream
high-quality live video from home on their mobile phone or tablet. The Elisa
Lompakko (Elisa Wallet) service includes contactless payments, separate online
payment cards, online and mobile application as well as money transfers between
users. Elisa and the student-owned company Lyyra will make the service
available to more than 100,000 students at the end of 2012. 

 Elisa continued to develop its customer service and made many improvements for
the benefit of consumers. These proved to be successful, as our consumer
customer service won the large organisation category in the Best of the Year
2012 customer service competition. 

The demand for ICT services continued to strengthen among corporate customers.
During the third quarter, our IT business continued its growth with agreements
with several customers, for example the parliament of Finland. Also, we are
providing next generation cloud services to more than 250 municipalities
through the Kuntien Tiera ICT service centre. Additionally, we strongly
increased deliveries in our visual communications business. We provided
enhanced video services to the City of Gothenburg and OP-Pohjola Group, among
other clients. 

Elisa continued to make significant investments in networks. During the third
quarter, 4G speeds were available in nearly 200 locations. Our mobile
subscriptions now work in 200 countries, which make Elisa the Finnish operator
with the most comprehensive international network. 

We will continue our determined work to improve customer satisfaction and the
productivity of our operations. Elisa creates services that provide enhanced
user experiences and improve productivity. 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 and banks
as well as increasing uncertainties of global economy have impacted Finland.
The macroeconomic environment in Finland is weaker than in 2011, and for
example several companies have announced employee reductions. 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-September 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:

121019INTERIM REPORT Q3 2012.pdf