ELISA STOCK EXCHANGE RELEASE 23 APRIL 2010 AT 9.00am
* Revenue was EUR 353 million (351)
* EBITDA was EUR 116 million (115), EBIT EUR 61 million (62)
* EBITDA margin was 33 per cent (33)
* Profit before tax amounted to EUR 10 million (53) and excluding one-off
items EUR 54 million
* Earnings per share was EUR 0.05 (0.26) and excluding one-off items EUR 0.26
* Cash flow after investments was EUR 45 million (46)
* Elisa made a one-off maximum liability provision of EUR 45 million,
affecting the after-tax 2010 net result by EUR 33 million. This relates to a
possible CDO guarantee expense. Final expense may be significantly smaller.
* The number of Elisa's mobile subscriptions increased by 103,000 during the
quarter, attributable in particular to the new 3G and 2G customers, mobile
broadband and prepaid subscriptions
* As a result of strong subscription growth, ARPU in the mobile business
decreased from the previous quarter to EUR 22.0 (22.9)
* Mobile churn was 15.4 per cent (14.7)
* The number of fixed broadband subscriptions decreased by 5,200 on the
previous quarter
* Net debt / EBITDA was 1.7 (1.5 at the end of 2009) and gearing 107 per cent
(80 at the end of 2009)
Key indicators:
EUR million 1-3/2010 1-3/2009 2009
-------------------------------------------------------------------
Revenue 353 351 1,430
EBITDA 116 115 484
EBIT 61 62 267
Profit before tax 10 53 235
Profit before tax excl. one-off items 54
Earnings per share, EUR 0.05 0.26 1.13
Earnings per share excl. one-off items, EUR 0.26
Capital expenditures 39 34 171
-------------------------------------------------------------------
Financial position and cash flow:
EUR million 31.3.2010 31.3.2009 31.12.2009
---------------------------------------------------
Net debt 817 854 719
Net debt / EBITDA 1) 1.7 1.8 1.5
Gearing ratio, % 106.5 103,8 79.8
Equity ratio, % 39.9 41.3 46.1
---------------------------------------------------
EUR million 1-3/2010 1-3/2009 2009
----------------------------------------
Cash flow
after investments 45 46 252
----------------------------------------
1) (interest-bearing debt - financial assets) / (4 previous quarters' EBITDA
exclusive of non-recurring items)
Additional information regarding the Key Performance Indicators is available
onwww.elisa.com/investors <http://www.elisa.com/investors> , in the section:
Financial info, Financial Statements & Interim Reports: Elisa Operational Data.
CEO Veli-Matti Mattila:
"Customers have responded well to our new services
Elisa's revenue developed well in the first quarter of the year despite the
general economic uncertainty. The growth of the mobile business and the demand
for our new services boosted the consumer customer business. The impact of the
general economic situation was seen mostly in the corporate customers business
and in Estonia. Profitability and competitiveness continued on a good level.
Cash flow was strong.
The competitive situation continued to be challenging but remained stable. We
increased our mobile subscription base by more than 100,000 during the first
quarter of the year. The number of fixed network broadband subscriptions
decreased less than in the previous quarters despite the maturing of the market.
The consumer customer business grew by 6% compared with the previous year. For
example our Elisa Viihde IPTV service customers have valued the versatile nature
of the service, the number of features and the meaningful content offered.
Awareness of our Elisa Vahti security service was increased during the first
quarter of the year and was received well among customers.
Finding ways to improve profitability during the challenging economic
environment has become increasingly important to corporate customers. The demand
for our ICT service offering has thus grown, which has balanced the decrease in
demand in traditional telecommunications services. We launched an advanced
virtual service concept to facilitate improved interaction with small and medium
size (SME) business customers. Personnel familiar with SME customers needs can
now serve customers face to face through a video connection across different
parts of Finland.
Elisa was the first in Finland to launch a real-time service map on its website
to help both Elisa and Saunalahti customers monitor the availability and
functioning of their mobile network. Elisa's target is also to develop its
operations in terms of environmental friendliness and energy efficiency. One
significant project is an internationally unique, environmentally friendly
comprehensive energy solution to be implemented for a new server centre located
in Espoo. The heat generated from the servers will be utilized entirely for
district heating in Espoo.
The general economic situation is still characterized by uncertainty despite
signs of recovery. Competition in the Finnish telecommunications market also
remains challenging. We will determinedly continue to develop our operations to
improve customer satisfaction and productivity. In addition to operational
improvement, expanding our service offering and investment capability provide
us with a good basis for the future."
ELISA
Vesa Sahivirta
Director, IR and Financial Communications
tel. +358 50 520 5555
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
50 520 5555
Distribution:
NASDAQ OMX Helsinki
Principal media
www.elisa.com
INTERIM REPORT JANUARY-MARCH 2010
The Interim report has been prepared in accordance with the IFRS recognition and
measurement principles, although all requirements of the IAS 34 standard have
not been followed. The information presented in this interim report is
unaudited.
Market situation
The general economic decline still creates uncertainty for the telecom operator
business, although there have been some positive signs in the market. The
decline has so far had a marginal impact on the telecom operator business. The
impact has been felt mainly in the corporate customer business. Elisa's Estonian
business has also suffered to some extent.
The competitive environment has been keen but stable in Finland. The mobile
subscription base and the use of data services have evolved favourably in
Finland with 3G subscriptions comprising a significant proportion of new
subscriptions. The use of services made available through 3G subscriptions has
also increased. Another factor contributing to the growth has been the use of
multiple terminal devices for different purposes, mobile broadband services and
prepaid subscriptions. Churn in mobile subscriptions has been at a normal level,
and competition has been mainly in services and campaigning.
The number and usage of traditional fixed network subscriptions decreased at the
same pace as in the previous quarters. The fixed broadband market has matured,
while the strong subscription growth in mobile broadband continued.
Revenue, earnings and financial position
Revenue and earnings:
EUR million 1-3/2010 1-3/2009 2009
-----------------------------------
Revenue 353 351 1,430
EBITDA 116 115 484
EBITDA-% 32.8 32.7 33.8
EBIT 61 62 267
EBIT-% 17.4 17.6 18.7
-----------------------------------
Elisa's revenue increased slightly on the previous year. Revenue grew in the
Consumer Customers' mobile services and equipment sales, as well as in Corporate
Customers' ICT services. Consumer Customers' online services also contributed
positively to revenue growth. Development of Corporate Customer mobile and
traditional fixed telecom services in both segments affected revenue negatively.
EBITDA remained at the previous year's level. The increase in personnel costs
was compensated by efficiency measures in other operating expenses.
Financial position:
EUR million 31.3.2010 31.3.2009 31.12.2009
---------------------------------------------------
Net debt 817 854 719
Net debt / EBITDA 1) 1.7 1.8 1.5
Gearing ratio, % 106.5 103.8 79.8
Equity ratio, % 39.9 41.3 46.1
---------------------------------------------------
EUR million 1-3/2010 1-3/2009 2009
--------------------------------------------------
Cash flow after investments 45 46 252
--------------------------------------------------
1) (interest-bearing debt - financial assets) / (4 previous quarters' EBITDA
exclusive of non-recurring items)
The financial position and liquidity are good. Cash and undrawn committed credit
lines totalled EUR 301 million at the end of the quarter and there are no major
refinancing needs expected before September 2011. During the first quarter, net
debt increased to EUR 817 million mainly due to capital repayment of EUR 143
million in March 2010.
Cash flow after investments was at the previous year's level, EUR 45 million
(46).
Changes in corporate structure
There were no changes in the corporate structure during the first quarter of
2010.
Consumer Customer business
EUR million 1-3/2010 1-3/2009 2009
----------------------------------
Revenue 214 202 848
EBITDA 73 64 284
EBITDA-% 34.2 31.6 33.5
EBIT 42 33 161
CAPEX 24 18 92
----------------------------------
The Consumer Customer business revenue increased by 6 per cent and EBITDA by 15
per cent. Revenue growth was strong in mobile services as a result of good
growth in subscriptions and equipment sales. There was also growth in online
services. Revenue development was negative in the fixed network services. EBITDA
was positively affected by revenue growth and efficiency measures. Due to the
general economic decline, the Estonian business negatively affected revenue and
EBITDA.
Corporate Customer business
EUR million 1-3/2010 1-3/2009 2009
----------------------------------
Revenue 139 150 583
EBITDA 43 51 200
EBITDA-% 30.6 34.2 34.3
EBIT 19 28 107
CAPEX 15 16 79
----------------------------------
The Corporate Customers business revenue decreased by 7 per cent and EBITDA by
17 per cent. The general economic decline negatively affected mobile and
traditional fixed telecom services' revenue. ICT services, however, experienced
growth. The decrease in EBITDA was attributable to the decline in revenue.
Personnel
In January-March, the average number of personnel at Elisa was 3,374 (3,024).
Personnel by segment at the end of period:
31.3.2010 31.3.2009 31.12.2009
--------------------------------------------------
Consumer Customers 2,010 1,558 1,975
Corporate Customers 1,364 1,518 1,356
Total 3,374 3,076 3,331
--------------------------------------------------
Compared to the corresponding period last year, personnel growth mainly occurred
in call centres as a result of an increase in the customer service business. The
call centre headcount varies flexibly according to customer demand and business
activity.
Investments
EUR million 1-3/2010 1-3/2009 1-12/2009
----------------------------------------------------------
Capital expenditures, of which 39 34 171
- Consumer Customers 24 18 92
- Corporate Customers 15 16 79
----------------------------------------------------------
Shares 0 5 6
----------------------------------------------------------
Total 39 39 178
----------------------------------------------------------
The main capital expenditures arose from the capacity and coverage increase of
the 3G network as well as from customer equipment.
Financing arrangements and ratings
Valid financing arrangements:
Maximum amount In use on 31.3.2010
EUR million
----------------------------------------------------------------
Committed credit limits 300 25
Commercial paper programme ¹) 250 118
EMTN programme ²) 1,000 625
----------------------------------------------------------------
1) The programme is not committed.
2) European Medium Term Note programme, not committed.
Long-term credit ratings:
Credit rating agency Rating Outlook
----------------------------------------
Moody's Investor Services Baa2 Stable
Standard & Poor's BBB Stable
----------------------------------------
The Group's cash and undrawn committed credit lines totalled EUR 301 million at
31 March 2010 (EUR 331 million at the end of 2009). There are no major
refinancing needs expected before the year 2011.
In March, Elisa issued a EUR 75 million bond under its EMTN programme. The bond
has a three year maturity and pays 3 per cent interest.
Elisa has made a one-off provision of EUR 45 million which relates to a USD 60
million guarantee given by Elisa to the arranger bank on a CDO portfolio in
2007. Provision has been made to the maximum amount of Elisa's potential
liability based on strict interpretation of IFRS rules, final expence may be
significantly smaller. The extent and scope of Elisa's obligations and liability
to the arranger bank under the guarantee and related transaction documents are
presently in dispute and the subject of contested court proceedings. The final
amount of Elisa's liability will depend on the outcome of the legal proceedings
and developments which impact the CDO portfolio. A tax asset of EUR 12 million
has been allowed for in accordance with the provision and the net negative
effect on the result is therefore EUR 33 million.
The maximum liability of USD 60 million, if realised, would mean net cash
payments after tax credit of approximately USD 25 million in 2011 and USD 20
million in 2012. The guarantee liability was referred to in Elisa's Annual
Report 2009 in note 33.
Share
Trading of shares 1-3/2010 1-3/2009 2009
-------------------------------------------------
Shares traded, millions 38.2 49.2 180.6
Volume, EUR million 603.6 554.3 2,170.0
% of shares 23.0 29.6 116.1
-------------------------------------------------
Shares and market values 31.3.2010 31.3.2009 31.12.2009
----------------------------------------------------------------------
Total number of shares 166,307,586 166,307,586 166,307,586
Treasury shares 10,531,996 10,688,629 10,688,629
Outstanding shares 155,775,590 155,618,957 155,618,957
Closing price, EUR 15.27 10.99 15.96
Market capitalisation, EUR million 2,379 1,710 2,484
Treasury shares, % 6.33 6.43 6.43
----------------------------------------------------------------------
Elisa distributed a capital repayment of EUR 0.92 per share, totalling EUR 143
million, in accordance with the decision of the Annual General Meeting.
Elisa transferred 156,633 Elisa shares to persons involved in the 2009 - 2011
share based incentive plan.
Elisa and Vodafone renewed their partnership and long-term cooperation
agreement. As a part of the new agreement, the clause allowing Vodafone to
participate in potential Elisa share bids, as per the 2002 agreement, was
removed.
The Annual General Meeting
In accordance with the proposal of the Board of Directors, Elisa's Annual
General Meeting decided on a capital repayment of EUR 0.92 per share based on
the adopted financial statements 2009. The capital repayment affects the Elisa
2007 stock options by reducing the strike price of the series 2007A stock
options to EUR 17.12, series 2007B stock options to EUR 9.97 and series 2007C
stock options to EUR 13.07.
The Annual General Meeting adopted the 2009 financial statements. The Board of
Directors and the CEO were discharged from liability for 2009.
The number of members of the Board of Directors was confirmed at seven. Pertti
Korhonen, Ari Lehtoranta, Raimo Lind, Eira Palin-Lehtinen, Risto Siilasmaa and
Ossi Virolainen were re-elected as members and Leena Niemistö (Managing Director
at Medical Center Dextra) as a new member of the Board of Directors. The Board
of Directors elected Risto Siilasmaa as the Chairman of the Board and Mr Ossi
Virolainen as the Deputy Chairman. Risto Siilasmaa (Chairman), Pertti Korhonen
and Ari Lehtoranta were appointed to the Nomination and Compensation Committee.
Raimo Lind (Chairman), Leena Niemistö, Eira Palin-Lehtinen and Ossi Virolainen
were appointed to the Audit Committee.
KPMG Oy Ab, authorised public accountants, was appointed the company's auditor.
APA Pekka Pajamo is the responsible auditor.
The Annual General Meeting accepted the proposal to amend the provision on the
notice of a general meeting in the Articles of Association. The main change is
that the publication date of a notice corresponds to the amended Finnish
Companies Act.
The Board of Directors' authorisations
The Annual General Meeting authorised the Board of Directors to donate a maximum
of EUR 700,000 to support activities of Finnish universities and colleges during
2010.
The Annual General Meeting accepted the proposal of the Board of Directors to
resolve to distribute funds from the unrestricted equity to the maximum amount
of EUR 100 million. The authorisation is effective until the beginning of the
following Annual General Meeting.
The Annual General Meeting decided on the authorisation to repurchase or accept
as pledge the company's own shares. The repurchase may be directed. The amount
of shares under this authorisation is 10 million shares at maximum. The
authorisation is effective until June 30, 2011.
The Annual General Meeting approved the proposal of the Board of Directors on
the issuance of shares as well as the issuance of special rights entitling to
shares. The issue may be directed. The authorisation is effective until June
30, 2014. A maximum aggregate of 15 million of the company's shares can be
issued under the authorisation.
Significant legal issues
The verdict on 28 May 2009 regarding Jippii Group stock exchange disclosures in
2001 became final upon the Supreme Court decision on 10 March 2010 to dismiss
the appeal.
There is an investigation by the Finnish Communications Regulatory Authority
regarding the wholesale pricing of Elisa subscriber lines (local loop) and the
Finnish Competition Authority has commenced investigation on Elisa household
cable pricing.
Substantial risks and uncertainties associated with Elisa's operations
Risk management is part of Elisa's internal control system. It aims to ensure
that risks affecting the company's business are identified, influenced and
monitored. The company classifies risks into strategic, operational, accidental
and financial risks.
Strategic and operational risks:
The telecommunications industry is under intense competition in Elisa's main
market areas, which may have an impact on Elisa's business. The
telecommunications industry is subject to heavy regulation. Elisa and its
businesses are monitored and regulated by several public authorities. This
regulation also affects the price level of some products and services offered by
Elisa.
The rapid developments in telecommunications technology may have a significant
impact on Elisa's business.
Elisa's main market is Finland, where the number of mobile phones per inhabitant
is among the highest in the world, and growth in subscriptions is thus limited.
Furthermore, the volume of phone traffic in Elisa's fixed network has decreased
in the past few years. These factors may limit the opportunities for growth.
The deterioration of the economic environment may impact the demand for Elisa's
services and products, and therefore growth prospects. However, a good demand
for communication services is expected to continue also during a recession.
Accident risks:
The company's core operations are covered by insurance against damage and
interruptions caused by accidents. Accident risks also include litigations and
claims.
Financial risks:
In order to manage interest rate risk, the Group's loans and investments are
diversified in fixed- and variable-rate instruments. Interest rate swaps are
used to manage interest rate risk.
As most of Elisa Group's cash flow is denominated in Euros, the exchange rate
risk is minor. Elisa's Estonian business, which is approximately 6 per cent of
the consolidated revenue is denominated in Estonian crowns.
The objective of liquidity risk management is to ensure the Group's financing in
all circumstances. Elisa has cash reserves, committed credit facilities and a
sustainable cash flow to cover its foreseeable financing needs.
Liquid assets are invested within confirmed limits to investment targets with a
good credit rating. Credit risk concentrations in accounts receivable are minor
as the customer base is wide.
A detailed description of the financial risk management can be found in note 34
of Elisa's 2009 Annual Report.
Events after the financial period
There were no major events after the financial period.
Outlook for 2010
There have been some positive signs in the general economic environment.
However, the uncertainty in the corporate business environment still continues.
Competition in the Finnish telecommunications market remains challenging.
The general economic downturn has mainly impacted Elisa's Estonian business and
the Corporate Customer segment. The main risks still relate to predictability of
the Estonian economy and the Corporate Customer business development.
Outlook for revenue, EBITDA and capital expenditure is reiterated. Full year
revenue is estimated to be at the same level as last year. The use of mobile
communications and mobile broadband products is continuing to rise. Full year
EBITDA, excluding non-recurring items, is expected to be at the same level as
last year. Full-year capital expenditure is expected to be 10 to 12 per cent of
revenue.
The ICT and online service industry is in a dynamic development phase. In
addition to its strong position as a network service provider, Elisa is
transforming itself to be able to provide its customers with exciting and
relevant new services. Among the factors contributing to long-term growth and
profitability improvement is 3G market growth. Elisa continues determinedly to
employ its efficiency measures. Elisa's financial position and liquidity are
good. There are no major refinancing needs expected before the year 2011.
BOARD OF DIRECTORS
BOARD OF DIRECTORS
Elisa Corporation
1.1. - 31.3.2010
Unaudited
CONSOLIDATED INCOME STATEMENT
----------------------------------------------------------
1-3 1-3 1-12
EUR million Note 2010 2009 2009
----------------------------------------------------------
Revenue 1 353,0 351,0 1430,4
Other operating income 0,8 0,9 4,2
Materials and services -140,2 -145,7 -576,3
Employee benefit expenses -54,8 -46,9 -188,8
Other operating expenses -43,1 -44,4 -185,6
----------------------------------------------------------
EBITDA 1 115,7 114,9 483,9
Depreciation and
amortisation -54,4 -53,2 -216,4
----------------------------------------------------------
EBIT 1 61,3 61,7 267,5
Financial income 2,3 3,4 10,5
Financial expense -53,9 -11,7 -43,1
Share of associated
companies' profit 0,0 0,0 0,0
----------------------------------------------------------
Profit before tax 9,7 53,4 234,9
Income taxes -1,4 -12,2 -57,9
----------------------------------------------------------
Profit for the period 8,3 41,2 177,0
Attributable to:
Owners of the parent 8,1 41,0 176,3
Non-controlling interests 0,2 0,2 0,7
----------------------------------------------------------
8,3 41,2 177,0
Earnings per share (EUR)
Basic 0,05 0,26 1,13
Diluted 0,05 0,26 1,13
Average number of
outstanding shares
(1000 shares)
Basic 155 671 155 619 155 619
Diluted 155 947 155 619 155 809
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
----------------------------------------------------------
Profit for the period 8,3 41,2 177,0
Other comprehensive
income, net of tax:
Available-for-sale
investments 1,3 -1,1 1,2
----------------------------------------------------------
Total comprehensive income 9,6 40,1 178,2
Total comprehensive income
attributable to:
Owners of the parent 9,4 39,9 177,5
Non-controlling interests 0,2 0,2 0,7
----------------------------------------------------------
9,6 40,1 178,2
Elisa Corporation
1.1. - 31.3.2010
Unaudited
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
-----------------------------------------------------------
31.3. 31.12.
EUR million 2010 2009
-----------------------------------------------------------
Non-current assets
Property, plant and equipment 609,3 617,9
Goodwill 783,6 782,0
Other intangible assets 133,0 148,2
Investments in associated companies 0,1 0,1
Available-for-sale investments 32,0 30,7
Receivables 17,8 19,4
Deferred tax assets 33,5 25,7
-----------------------------------------------------------
1609,3 1624,0
Current assets
Inventories 27,8 31,2
Trade and other receivables 272,2 278,4
Cash and cash equivalents 26,2 31,0
-----------------------------------------------------------
326,2 340,6
Total assets 1935,5 1964,6
Equity attributable to owners of the parent 766,3 899,2
Non-controlling interests 1,0 0,8
-----------------------------------------------------------
Total equity 767,3 900,0
Non-current liabilities
Deferred tax liabilities 24,0 26,6
Provisions 38,0 4,5
Interest-bearing debt 667,4 592,3
Other non-current liabilities 13,3 13,4
-----------------------------------------------------------
742,7 636,8
Current liabilities
Trade and other payables 230,8 263,3
Tax liabilities 6,5 6,4
Provisions 12,1 0,9
Interest-bearing debt 176,1 157,2
-----------------------------------------------------------
425,5 427,8
Total equity and liabilities 1935,5 1964,6
Elisa Corporation
1.1. - 31.3.2010
Unaudited
CONDENSED CONSOLIDATED STATEMENT OF
CASH FLOWS
----------------------------------------------------------------
1-3 1-3 1-12
EUR million 2010 2009 2009
----------------------------------------------------------------
Cash flow from operating activities
Profit before tax 9,7 53,4 234,9
Adjustments
Depreciation and amortisation 54,4 53,2 216,4
Other adjustments 51,5 8,0 29,5
----------------------------------------------------------------
105,9 61,2 245,9
Change in working capital
Change in trade and other receivables 4,6 12,4 36,3
Change in inventories 3,3 1,6 -9,4
Change in trade and other payables -11,8 -10,1 10,1
----------------------------------------------------------------
-3,9 3,9 37,0
Financial items, net -15,2 -15,1 -29,6
Taxes paid -12,7 -16,9 -57,2
----------------------------------------------------------------
Net cash flow from operating activities 83,8 86,5 431,0
Cash flow from investing activities
Capital expenditure -38,4 -33,6 -170,3
Purchase of shares -0,5 -7,3 -9,7
Proceeds from asset disposal 0,9
----------------------------------------------------------------
Net cash used in investing activities -38,9 -40,9 -179,1
Cash flow before financing activities 44,9 45,6 251,9
Cash flow from financing activities
Proceeds from long-term borrowings 75,0
Repayment of long-term borrowings -50,0 -36,1
Change in short-term borrowings 69,0 40,0 -56,6
Repayment of finance lease liabilities -0,8 -1,1 -4,5
Dividends paid and capital repayment -142,9 -86,3 -156,7
----------------------------------------------------------------
Net cash used in financing activities -49,7 -47,4 -253,9
Change in cash and cash equivalents -4,8 -1,8 -2,0
Cash and cash equivalents at beginning of
period 31,0 33,0 33,0
----------------------------------------------------------------
Cash and cash equivalents at end of period 26,2 31,2 31,0
Elisa
Corporation
1.1. -
31.3.2010
Unaudited
STATEMENT OF CHANGES
IN EQUITY
--------------------------------------------------------------------------------
Reserve
for
invested
non-
Share Treasury Other restricted Retained Minority Total
EUR million capital shares reserves equity earnings interest equity
--------------------------------------------------------------------------------
Balance at
January
1, 2009 83,0 -202,0 393,5 250,8 348,1 1,6 875,0
--------------------------------------------------------------------------------
Dividends -93,4 -0,8 -94,2
Share-based
compensation 1,1 1,1
Total
comprehensive
income -1,1 41,0 0,2 40,1
--------------------------------------------------------------------------------
Balance at
March 31, 2009 83,0 -202,0 392,4 250,8 296,8 1,0 822,0
EUR million
--------------------------------------------------------------------------------
Balance at
January
1, 2010 83,0 -202,0 394,7 188,6 434,9 0,8 900,0
--------------------------------------------------------------------------------
Capital
repayment -143,3 -143,3
Share-based
compensation 3,1 -2,1 1,0
Total
comprehensive
income 1,3 8,1 0,2 9,6
--------------------------------------------------------------------------------
Balance at
March 31, 2010 83,0 -198,9 396,0 45,3 440,9 1,0 767,3
Elisa Corporation
1.1. - 31.3.2010
Unaudited
NOTES
ACCOUNTING PRINCIPLES
The interim report has been prepared in
accordance with the IFRS recognition and
measurement principles, although all
requirements of IAS 34 standard have not
been followed. The information has been
prepared in accordance with International
Financial Reporting Standards (IFRS)
effective at the time of preparation and
adopted for use by European Union. Apart
from the changes in accounting principles
stated below, the accounting principles
applied in the interim report are the same
as in the financial statements at
December 31, 2009.
Changes in the
accounting principles
The Group adopted the following standards,
amendments to standards and interpretations
as from 1 January 2010 onward:
- Revised IFRS 3 Business Combinations. The revision
enables valuation of minority intrest and goodwill at fair
value. The method to be used is selected on a case-by-
case basis. In case of successive acquisitions, the
previously acquired share of ownership is revaluated at
the fair value on the acquisition date, and this influences
the recognized goodwill. Changes in contingent purchase
price and cost related to the acquisition are recognized
through profit or loss.
- Revised IAS 27 Consolidated and Separate Financial
Statements. The manner in which increases and decreases
in the shares of ownership of the Group's subsidiaries are
handled is changed. Losses of the subsidiaries are
allocated as minority interest, including the share exceeding
the investment made by the subsidiary in question.
Following newly adopted standards and interpretations
have not had any effect on interim financial statements:
- Revised IFRS 2 Share-based Payment
- Revised IAS 39 Financian Instruments:
Recognition and Measurement
- IFRIC 17 Distributions of Non-cash Assets
to Owners
- IFRIC 18 Transfers of Assets
from customers
Elisa Corporation
1.1. - 31.3.2010
Unaudited
1. SEGMENT INFORMATION
1-3/2010 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
------------------------------------------------------------------------------
Revenue 214,4 138,6 353,0
EBITDA 73,3 42,4 115,7
Depreciation and amortisation -30,9 -23,5 -54,4
EBIT 42,4 18,9 61,3
Financial income 2,3 2,3
Financial expense -53,9 -53,9
Share of associated companies' profit 0,0 0,0
Profit before tax 9,7
Investments 23,5 15,2 38,7
1-3/2009 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
------------------------------------------------------------------------------
Revenue 201,5 149,5 351,0
EBITDA 63,8 51,1 114,9
Depreciation and amortisation -30,4 -22,8 -53,2
EBIT 33,4 28,3 61,7
Financial income 3,4 3,4
Financial expense -11,7 -11,7
Share of associated companies' profit 0,0 0,0
Profit before tax 53,4
Investments 18,3 15,6 33,9
1-12/2009 Consumer Corporate Unallocated Group
EUR million Customers Customers Items Total
------------------------------------------------------------------------------
Revenue 847,8 582,7 1430,5
EBITDA 283,8 200,1 483,9
Depreciation and amortisation -123,1 -93,3 -216,4
EBIT 160,7 106,8 267,5
Financial income 10,5 10,5
Financial expense -43,1 -43,1
Share of associated companies' profit 0,0 0,0
Profit before tax 234,9
Total assets 1059,5 766,3 138,8 1964,6
Investments 91,9 79,5 171,4
Elisa Corporation
1.1. - 31.3.2010
Unaudited
2. OPERATING LEASE COMMITMENTS
31.3. 31.12.
EUR million 2010 2009
----------------------------------------------------------------------
Due within 1 year 20,1 19,2
Due after 1 year but within 5 years 35,8 34,8
Due after 5 years 12,4 13,5
----------------------------------------------------------------------
Total 68,3 67,5
3. CONTINGENT LIABILITIES
31.3. 31.12.
EUR million 2010 2009
----------------------------------------------------------------------
Pledges given
Pledges given as surety 0,7 0,7
Guarantees given
For others (* 0,6 42,4
----------------------------------------------------------------------
Mortgages, pledges and guarantees total 1,3 43,1
Other commitments
Repurchase commitments 0,0 0,0
*) 31.12.2009 EUR 41.6 million (USD 60.0 million)
was related to the guarantee given on a CDO portfolio.
The quarantee amounting EUR 44,5 mi8llion at 31.3.2010
was posted as a provision to the Balance Sheet.
4. DERIVATIVE INSTRUMENTS
31.3. 31.12.
EUR million 2010 2009
----------------------------------------------------------------------
Interest rate swaps
Nominal value 150,0 150,0
Fair value recognised in the balance sheet 1,4 1,5
Credit default swaps (*
Nominal value 46,6 44,0
----------------------------------------------------------------------
*) CDS is related to hedging of the guarantor bank
in the QTE-arrangement. In 2008 Elisa wrote down
the fair value of the CDS agreement.
Elisa Corporation
1.1. - 31.3.2010
Unaudited
KEY FIGURES
-------------------------------------------------------------------
1-3 1-3 1-12
EUR million 2010 2009 2009
-------------------------------------------------------------------
Shareholders' equity per share, EUR 4,92 5,28 5,78
Interest bearing net debt 817,2 853,6 718,5
Gearing 106,5% 103,8% 79,8%
Equity ratio 39,9% 41,3% 46,1%
Return on investment (ROI) *) 13,5% 15,7% 16,0%
Gross investments in fixed assets 38,7 33,9 171,4
of which finance lease investments 0,3 0,3 1,1
Gross investments as % of revenue 11,0% 9,7% 11,9%
Investments in shares 0,0 5,2 6,3
Average number of employees 3374 3024 3216
*) rolling 12 months profit preceding
the reporting date
Formulae for financial indicators
Gearing %
Interest-bearing debt -
cash and cash equivalents
------------------------------------ x 100
Total equity
Equity ratio %
Total equity
-------------------------------- x 100
Balance sheet total -
advances received
Return on investment % (ROI)
Profit before taxes + interest
and other financial expenses
--------------------------------- x 100
Total equity +
interest bearing liabilities (average)
Net debt
Interest-bearing debt -
cash and cash equivalents
Shareholders' equity per share
Equity attributable to equity holders
of the parent
----------------------------------------------
Number of shares outstanding
at the end of period
Earnings/share
Profit for the period attributable to
equity holders of parent
----------------------------------------------
Average number of
outstanding shares
[HUG#1407259]
