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    ELISA   FI0009007884

ELISA OYJ

(ELISA)
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Elisa Oyj : Half-Year Financial Report 2021

07/16/2021 | 01:37am EDT

Half-Year Report

2021

16 July 2021

ELISA'S HALF-YEAR REPORT JANUARY-JUNE 2021

Second quarter 2021 financial highlights

  • Revenue increased by EUR 24m to EUR 484m, mainly due to the camLine acquisition, Elisa Viihde Viaplay cooperation and growth in mobile revenue.
  • Mobile service revenue increased by 4.2 per cent to EUR 213m.
  • Comparable EBITDA grew by EUR 4m to EUR 172m.
  • Comparable EBIT increased by EUR 4m to EUR 105m.
  • Comparable cash flow increased by EUR 16m to EUR 101m, mainly due to a positive change in net working capital.
  • In Finland mobile post-paid ARPU increased to EUR 19.9 (19.5 in the previous quarter), and mobile post-paid churn was at the previous quarters level, 18.3 per cent (18.3).
  • During the quarter, the number of post-paid mobile subscriptions increased by 36,700, of which 30,800 were M2M and IoT subscription.
  • Prepaid subscriptions increased by 6,000 during the quarter.
  • The number of fixed broadband subscriptions decreased by 5,100 during the quarter.
  • The guidance for 2021 is unchanged.

Key indicators

EUR million

2Q21

2Q20

%

1H/21

1H/20

%

Revenue

484

461

5.1 %

966

929

4.0 %

EBITDA

166

168

-1.2 %

336

334

0.6 %

Comparable EBITDA 1)

172

168

2.2 %

342

334

2.3 %

EBIT

100

101

-1.3 %

202

200

0.9 %

Comparable EBIT 1)

105

101

4.4 %

207

200

3.8 %

Profit before tax

96

97

-0.1 %

196

192

2.2 %

Comparable profit before tax 1)

102

97

5.9 %

202

192

5.2 %

EPS, EUR

0.49

0.49

0.1 %

1.00

0.98

2.4 %

Comparable EPS, EUR

0.52

0.49

5.9 %

1.03

0.98

5.3 %

Capital expenditure

67

75

-10.3 %

120

126

-4.5 %

Net debt

1,379

1,332

3.5 %

1,379

1,332

3.5 %

Net debt / EBITDA 2)

2.0

2.0

2.0

2.0

Gearing ratio, %

133.8 %

132.6 %

133.8 %

132.6 %

Equity ratio, %

35.8 %

35.9 %

35.8 %

35.9 %

Cash flow

101

83

21.0 %

151

156

-3.2 %

Comparable cash flow 3)

101

85

18.2 %

161

158

1.6 %

  1. Excluding EUR 6m in restructuring costs. 2) (Interest-bearing debt - financial assets) / (four previous quarters' comparable EBITDA). 3) 1H/21 excluding EUR 10m in share investments, 2Q20 excluding EUR 2m and 1H/20 excluding EUR 3m in share investments.

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

2

Elisa | HALF-YEAR REPORT 2021

CEO's review:

A solid quarter in an unchanged environment

Elisa continued its solid development. Revenue increased by 5 per cent from the previous year, to EUR 484 million. Comparable EBITDA improved by 2 per cent, to EUR 172 million, and comparable earnings per share by 6 per cent, to EUR 0.52.

Elisa's continued its leadership in 5G, with the most extensive network in Finland. Elisa offers 5G in over 110 towns and cities, with nationwide population coverage of over 50 per cent, and up to 90 per cent in the largest cities. Customer demand for 5G continued to be good, with an increase of more than EUR 3 in monthly billing for new 5G customers. The majority of mobile phones sold are now 5G devices.

Elisa was the first mobile operator in the Nordics to pilot a standalone 5G network in a commercial network. Elisa has delivered private 5G networks for e.g. the ports of Pori and HaminaKotka. Companies utilising private networks can benefit from more advanced applications for the needs of industry and logistics, among other things.

According to a recent study by Elisa, viewing of streaming video has increased steadily over the past three years, and it has increased by over 40 per cent during the COVID-19 pandemic. Demand from corporate customers for cloud-based IT services has continued to grow. Both trends have contributed positively to revenue from entertaining video and IT services.

We continued to implement our mission: a sustainable future through digitalisation. Elisa is in line to be one of the first Finnish companies to reduce its emissions to meet the target for limiting global warming to 1.5 °C by 2025. Elisa was one of the first 100 organisations to sign the global Climate Pledge and is in the top ten of the Financial Times list of Europe's Climate Leaders 2021. Elisa also joined the Inklusiiv initiative to drive diversity and inclusion, which are becoming increasingly important as already 23 per cent of Elisa personnel work in over 16 countries outside Finland.

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.

Veli-Matti Mattila

CEO

3

Elisa | HALF-YEAR REPORT 2021

HALF-YEAR REPORT JANUARY-JUNE 2021

This interim report has been prepared in accordance with the IAS 34 standard. The information presented in this interim report is unaudited.

Market situation

The competitive environment has been active, especially in 4G subscriptions. During the quarter, the COVID-19 crisis continued to impact the market situation to some extent. Travel is still very limited, and in the corporate business, uncertainty still prevails. On the other hand, the usage of mobile voice and data continued to evolve favourably. Another factor contributing to domestic mobile market growth has been the increased network capacity and demand for higher 4G and 5G speeds. Competition in the fixed broadband market has continued to be intense in multi-dwelling units, and the number and usage of traditional fixed network subscriptions is decreasing.

The markets for IT and IPTV entertainment services have continued to develop favourably, while demand for other digital services is also growing.

Revenue, earnings and financial position

EUR million

2Q21

2Q20

%

1H/21

1H/20

%

Revenue

484

461

5.1 %

966

929

4.0 %

EBITDA

166

168

-1.2 %

336

334

0.6 %

EBITDA-%

34.3 %

36.5 %

34.8 %

36.0 %

Comparable EBITDA 1)

172

168

2.2 %

342

334

2.3 %

Comparable EBITDA-%

35.5 %

36.5 %

35.4 %

36.0 %

EBIT

100

101

-1.3 %

202

200

0.9 %

EBIT-%

20.6 %

21.9 %

20.9 %

21.5 %

Comparable EBIT 1)

105

101

4.4 %

207

200

3.8 %

Comparable EBIT-%

21.8 %

21.9 %

21.5 %

21.5 %

Return on equity, %

29.1 %

28.9 %

29.1 %

28.9 %

  1. Excluding EUR 6m in restructuring costs

Second quarter 2021

Revenue increased by 5 per cent, mostly due to the camLine acquisition and Elisa Viihde Viaplay cooperation, as well as growth in mobile services, domestic digital services and equipment sales. A decrease in usage and subscriptions of traditional fixed (PSTN) telecom services, as well as other fixed services, affected revenue negatively. EBITDA includes EUR 6 million in one-off restructuring costs relating to personnel reductions. Comparable EBITDA increased by 2 per cent, as efficiency improvements and revenue growth impacted EBITDA positively. Comparable EBIT grew by 4 per cent.

Net financial income and expenses decreased to EUR -3 million (-5) due to refinancing in January 2021. Income taxes in the income statement amounted to EUR -17 million (-17). Net profit was EUR 79 million (79), and earnings per share were EUR 0.49 (0.49). Comparable earnings per share were EUR 0.52 (0.49).

January-June 2021

Revenue increased by 4 per cent on the previous year, mainly due to the camLine acquisition and Elisa Viihde Viaplay cooperation, as well as growth in mobile services, domestic digital services and equipment sales. A decrease in usage and subscriptions of traditional fixed telecom services, other fixed services as well as interconnection and roaming affected revenue negatively.

4

Elisa | HALF-YEAR REPORT 2021

EBITDA includes EUR 6 million in one-off restructuring costs relating to personnel reductions. Comparable EBITDA increased by 2 per cent and comparable EBIT by 4 per cent, mainly due to revenue growth and efficiency improvement measures.

Net financial income and expenses decreased to EUR -6 million (-9) due to the refinancing in January. Income taxes in the income statement were EUR -35 million (-35). Net profit was EUR 161 million (157) and earnings per share were EUR 1.00 (0.98). Comparable earnings per share were EUR 1.03 (0.98).

Financial position

EUR million

2Q21

2Q20

%

1H/21

1H/20

%

Net debt

1,379

1,332

3.5 %

1,379

1,332

3.5 %

Net debt / EBITDA1)

2.0

2.0

2.0

2.0

Gearing ratio, %

133.8 %

132.6 %

133.8 %

132.6 %

Equity ratio, %

35.8 %

35.9 %

35.8 %

35.9 %

Cash flow

101

83

21.0 %

151

156

-3.2 %

Comparable cash flow 2)

101

85

18.2 %

161

158

1.6 %

  1. (Interest-bearingdebt - financial assets) / (four previous quarters' comparable EBITDA). 2) 1H21 excluding EUR 10m in share investments, 2Q20 excluding EUR 2m and 1H20 excluding EUR 3m in share investments.

Second quarter 2021

Net debt increased by EUR 47 million to EUR 1,379 million, mainly due to acquisitions and higher dividend payments. Comparable cash flow increased by 18 per cent to EUR 101 million (85), mainly due to a positive change in net working capital.

The financial position and liquidity are strong. Cash and undrawn committed credit lines totalled EUR 384 million at the end of the quarter.

January-June 2021

Comparable cash flow after investments increased by 2 per cent to EUR 161 million (158). Higher EBITDA, the positive change in net working capital and lower net financial expenses affected cash flow positively, while higher taxes paid had a negative effect.

Changes in corporate structure

There were no significant changes in the corporate structure during the reporting period.

5

Elisa | HALF-YEAR REPORT 2021

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Elisa Oyj published this content on 16 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 July 2021 05:36:04 UTC.


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Financials
Sales 2021 1 960 M 2 294 M 2 294 M
Net income 2021 338 M 396 M 396 M
Net Debt 2021 1 175 M 1 375 M 1 375 M
P/E ratio 2021 25,7x
Yield 2021 3,72%
Capitalization 8 567 M 10 024 M 10 027 M
EV / Sales 2021 4,97x
EV / Sales 2022 4,84x
Nbr of Employees 5 478
Free-Float 83,9%
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Elisa Oyj Technical Analysis Chart | ELISA | FI0009007884 | MarketScreener
Technical analysis trends ELISA OYJ
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 21
Last Close Price 54,32 €
Average target price 51,29 €
Spread / Average Target -5,58%
EPS Revisions
Managers and Directors
Veli-Matti Johannes Mattila Chief Executive Officer
Jari Juhani Kinnunen Chief Financial Officer
Anssi Markku Kaleva Vanjoki Chairman
Sami Tapio Ylikortes Executive Vice President-Administration
Seija Kaarina Turunen Independent Director
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