ELISA FINANCIAL STATEMENT RELEASE
Fourth quarter 2021 financial highlights
- Revenue increased by
EUR 37m toEUR 536m , mainly due to the camLine acquisition, Elisa Viihde Viaplay cooperation and growth in mobile revenue. -
Mobile service revenue increased by 6.1 per cent to
EUR 222m . -
Comparable EBITDA grew by
EUR 7m toEUR 178m . -
Comparable EBIT increased by
EUR 8m toEUR 111m . -
Comparable cash flow decreased by
EUR 12m toEUR 87m , mainly due to higher capital expenditure and a change in net working capital. -
In
Finland , mobile post-paid ARPU increased toEUR 20.7 (20.1 in the previous quarter), and mobile post-paid churn increased to 20.5 percent (16.3) . - During the quarter, the net increase in post-paid mobile subscriptions was 7,100. M2M and IoT subscriptions contributed was +17,200.
- Prepaid subscriptions decreased by 10,300 during the quarter.
- The number of fixed broadband subscriptions decreased by 200 during the quarter.
Key indicators
EUR million | 4Q21 | 4Q20 | Δ % | 2021 | 2020 | Δ % | |
Revenue | 536 | 498 | 7,5 % | 1 998 | 1 895 | 5,5 % | |
EBITDA | 176 | 171 | 2,5 % | 697 | 685 | 1,8 % | |
Comparable EBITDA (1 | 178 | 171 | 4,0 % | 706 | 685 | 3,0 % | |
EBIT | 109 | 97 | 11,7 % | 431 | 409 | 5,3 % | |
Comparable EBIT (1-2 | 111 | 103 | 7,6 % | 439 | 415 | 5,8 % | |
Profit before tax | 105 | 98 | 6,6 % | 418 | 398 | 5,0 % | |
Comparable profit before tax (1-3 | 108 | 99 | 8,7 % | 427 | 399 | 7,0 % | |
EPS, EUR | 0,54 | 0,51 | 4,5 % | 2,15 | 2,05 | 4,7 % | |
Comparable EPS, EUR | 0,55 | 0,51 | 7,8 % | 2,19 | 2,05 | 6,9 % | |
Capital expenditure | 82 | 65 | 24,9 % | 265 | 266 | -0,4 % | |
Net debt | 1 219 | 1 207 | 1,0 % | 1 219 | 1 207 | 1,0 % | |
Net debt / EBITDA (4 | 1,7 | 1,8 | 1,7 | 1,8 | |||
Gearing ratio, % | 101,2 % | 101,9 % | 101,2 % | 101,9 % | |||
Equity ratio, % | 39,9 % | 39,1 % | 39,9 % | 39,1 % | |||
Cash flow | 85 | 53 | 60,3 % | 322 | 300 | 7,2 % | |
Comparable cash flow (5 | 87 | 99 | -11,7 % | 338 | 351 | -3,9 % | |
1) 4Q21 excluding
The Board of Directors proposes to the Annual General Meeting a dividend of
Additional key performance indicators are available at elisa.com/investors (Elisa Operational Data.xlsx).
CEO
Elisa continued its solid development. Revenue increased by 8 per cent to
In 2021, Elisa continued its strong leadership in the development of 5G. During the year, 5G coverage expanded from 2 million to over 4 million Finns in over 150 locations, and the latest independent operator study at the end of the year1) again confirmed that Elisa's network is the most comprehensive. Data usage in our mobile networks grew by 21 per cent, mainly due to growth in 5G usage.
Nearly 90 per cent of mobile phones sold are now 5G devices. We were the first to launch a sustainable 5G subscription in
The Finnish public safety network Virve is transitioning to broadband technology, and the service will use Elisa's nationwide 4G and 5G mobile networks. The authorities will have access to privileged subscriptions and new functions (e.g. speech recognition) that will improve the efficiency of incident management and communication. Elisa is the sole supplier for this Finnish government-owned network.
The international digital services business progressed well during the quarter. Revenues as well as the order backlog grew strongly.
During the fourth quarter, the COVID-19 pandemic intensified, and we focused on providing sustainable and innovative digital solutions to our customers and ensuring a safe working and business environment. We received from RAKLI2) the Vuoden ympäristöteko ("Working Environment Act of the Year") award for our actions in utilising digitalisation to support our personnel in moving to remote and hybrid working, and for the help we have provided to our partners during the pandemic.
We will continue to focus strongly on continuous improvement of the customer experience and quality. Increasing productivity, expanding our digital services internationally and creating value with data, as well as our strong investment capability, continue to lay a solid foundation for competitively creating value in the future.
1) Boftel: Operator comparison
2) RAKLI is a Finnish association of professional property owners, real estate investors, corporate real estate managers and construction clients
Outlook and guidance for 2022
Growth in the Finnish economy is expected to continue. However, there are some uncertainties, such as inflation and changes in the geopolitical environment. Challenges in global supply chains may also result in uncertainties in volumes and prices. Competition in the Finnish telecommunications market remains keen.
Full-year revenue is estimated to be at the same level or slightly higher than in 2021. 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 2021. 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 revenue growth and profitability improvement will derive from growth in the mobile data market, as well as domestic and international digital services.
Profit distribution
According to Elisa's distribution policy, profit distribution is 80-100 per cent of the previous fiscal year's net profit. In addition, any excess capital can be distributed to shareholders. When making the distribution proposal or decision, the Board of Directors will take into consideration the company's financial position, future financial needs and financial targets. Profit distribution includes dividend payment, capital repayment and purchase of treasury shares.
The Board of Directors proposes to the Annual General Meeting a dividend of
Shareholders who are listed in the company's register of shareholders maintained by
The Board of Directors also decided to propose to the General Meeting that the Board of Directors be authorised to acquire a maximum of five 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
Additional information:
Mr.
Mr.
Mr.
Distribution:
Nasdaq
Principal media
elisa.com
https://news.cision.com/elisa-oyj/r/elisa-s-financial-statements-release-2021,c3493331
https://mb.cision.com/Public/18382/3493331/92eeb41082965a62.pdf
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