Elisa Oyj : Interim Report Q1 2020

Elisa's Interim Report Q1 2020

ELISA CORPORATION INTERIM REPORT RELEASE 22 APRIL 2020 AT 8:30 AM

First quarter 2020 financial highlights

•    Revenue increased by EUR 28m to EUR 468m, mainly due to Polystar
acquisition.
•    Mobile service revenue increased by 2.1 per cent to EUR 208m.
•    Comparable EBITDA grew by EUR 8m to EUR 166m.
•    Comparable EBIT increased by EUR 7m to EUR 99m.
•    Cash flow grew by EUR 5m to EUR 73m, mainly due to growth in EBITDA.
•    Mobile post-paid ARPU was at the previous quarter's level EUR 19.3 (19.3).
•    Mobile post-paid churn decreased to 18.9 per cent (20.1 in previous
quarter).
•    Number of post-paid mobile subscriptions increased by 20,800 from the
previous quarter.
•    Due to seasonality prepaid subscriptions decreased by 12,900 during the
quarter.
•    The number of fixed broadband subscriptions decreased by 400 during the
quarter.
•    Guidance for 2020 is unchanged.

Key indicators

[]
EUR million              1Q20    1Q19      Δ %     2019
Revenue                   468     440    6,5 %    1 844
EBITDA                    166     155    6,9 %      661
Comparable EBITDA         166     158    5,2 %      668
EBIT                       99      90   10,0 %      395
Comparable EBIT            99      92    7,1 %      402
Profit before tax          95      83   14,8 %      372
Comparable PBT             95      85   11,5 %      379
EPS, EUR                 0,49    0,43   13,2 %     1,90
Comparable EPS, EUR      0,49    0,44   10,1 %     1,93
Capital expenditure        51      57  -10,8 %      256
Net debt                1 117   1 075    3,9 %    1 184
Net debt / EBITDA[1)]     1,7     1,7   -0,7 %      1,8
Gearing ratio, %       91,9 %  90,2 %           103,0 %
Equity ratio, %        42,4 %  41,9 %            41,0 %
Cash flow                  73      68    7,3 %      257
Comparable Cash flow       73      68    7,3 %      323

[1)] (Interest-bearing debt - financial assets) / (four previous quarters'
comparable EBITDA).

Additional key performance indicators are available at
elisa.com/investors (http://www.elisa.com/investors) (Elisa Operational
Data.xlsx).

CEO Veli-Matti Mattila: Strong quarter in challenging circumstances

In the first quarter, Elisa's revenue increased by 6 per cent to EUR 468 million
from the previous year, mainly due to growth in mobile and digital services,
equipment sales  and the Polystar acquisition. Comparable EBITDA improved by 5
percent, to EUR 166 million and earnings per share by 10 per cent, to EUR 0.49.
Both the Consumer Customers and Corporate Customers business segments performed
well.

The quarter was unique, with the coronavirus crisis (COVID-19), and we have
actively adjusted our operations in several areas. At the same time, we have
been helping our corporate customers, for example with their increasing demand
for virtual tools to be able to work remotely. Consumers have also been faced
with a new situation as they have had to stay home. Our reliable and high
-quality network guarantees good connections for remote work and entertainment.

Elisa's new mission, a sustainable future through digitalisation, has become
more relevant than ever. The mission, created together with Elisa employees,
means that Elisa is enabling the everyday communication, work, daily routines
and entertainment for millions of people, securely and with care. With
digitalisation, Elisa is providing solutions that are important for people and
sustainable development.

In April, the Finnish government-owned Erillisverkot Group decided to acquire
radio network services from Elisa for the public safety network, Virve 2.0.
Elisa was chosen as the sole supplier due to its high-quality and extensive
network. This selection underlines Elisa's competitiveness in quality. The
contract period is ten years.

The continuous improvement of the customer experience and quality are integral
parts of our corporate culture, and we will continue to focus on them strongly.
Increasing productivity, expanding our digital services internationally and
creating value with data, as well as our strong investment capability, will
continue to lay a solid foundation for creating value competitively in the
future.

Outlook and guidance for 2020

The current coronavirus (COVID-19) situation may significantly slow down
economic growth and create uncertainty in macroeconomic development. A strong
economic slowdown may impact Elisa. Competition in the Finnish
telecommunications market remains keen.

Guidance for 2020 is unchanged. Full-year revenue is estimated to be at the same
level or slightly higher than in 2019. Mobile data and digital services are
expected to increase revenue. Full-year comparable EBITDA is anticipated to be
at the same level or slightly higher than in 2019. Capital expenditure is
expected to be a maximum of 12 per cent of revenue.

Elisa is continuing its productivity improvement development, for example by
increasing automation and data analytics in different processes, such as
customer interactions, network operations and delivery. Additionally, Elisa's
continuous quality improvement measures will increase customer satisfaction and
efficiency, and reduce costs.

Elisa's transformation into a provider of exciting, new and relevant services
for its customers is continuing. Long-term growth and profitability improvement
will derive from growth in the mobile data market, as well as digital online and
ICT services.

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 Q1 2020 and the complete report is attached as a pdf-file
to this release and is also available on our website at
elisa.com/investors (http://www.elisa.com/investors)

ELISA CORPORATION

Additional information:

Mr Veli-Matti Mattila, CEO, tel. [phone]
Mr Jari Kinnunen, CFO, tel. [phone]
Mr Vesa Sahivirta, IR Director, tel. [phone]

Distribution:

Nasdaq Helsinki
Principal media
www.elisa.com

Attachments:
Interim Report Q1 2020.pdf