DNA PLC STOCK EXCHANGE RELEASE 20 JULY 2021, 8:30 AM EEST
This is a summary DNA’s Half-Year Financial Report 2021. The complete report is attached to this release and is also available at www.dna.fi/investors.
Due to delisting of DNA’s share from Nasdaq Helsinki on 3 February 2020, DNA is not subject to reporting obligations as an issuer of shares as set out in the Finnish Securities Markets Act. DNA is still subject to reporting obligations as an issuer of senior unsecured fixed rate notes due 2025 (ISIN: FI4000312095) listed in Nasdaq Helsinki stock exchange.
Summary
Unless otherwise stated, the comparison figures in brackets refer to the corresponding period in the previous year (reference period). Figures are unaudited.
January-June 2021
- Total revenues grew 4% and amounted to EUR 476 million (457).
- Mobile revenues grew 2% and amounted to EUR 281 million (275).
- EBITDA increased 13% and was EUR 183 million (162).
- Operating result increased 6% and was EUR 81 million (76).
- Average revenue per user (ARPU)1) for mobile communications increased 1% and was EUR 17.0 (16.8).
- The number of mobile subscriptions increased and was 2,695,000 (2,676,000).
- The number of contract subscriptions2) increased by 21,000.
- The number of prepaid subscriptions decreased by 3,000.
- The number of fixed subscriptions3) increased and came to 899,000 (880,000).
- The number of fixed broadband subscriptions increased by 32,000.
Key figures
The calculation method of the key figures presented in this table differs from that of DNA’s previous key figures. The figures in this table are presented the same way as the figures published by DNA’s parent company Telenor ASA. The main changes concern the reclassification of spectrum acquisitions from intangible assets to right-of-use assets and the corresponding reclassification of spectrum licence liabilities from non-interest-bearing to interest-bearing borrowings, which has an impact on the presentation of net debt and cash flows. In addition, some receivables have been reclassified from non-current to current liabilities. Figures for the reference periods have been adjusted accordingly.
| EUR million | 1-6/2021 | 1-6/2020 | Change, % | 1-12/2020 |
| Total revenues4) | 476 | 457 | 4 | 932 |
| EBITDA4) 5) | 183 | 162 | 13 | 333 |
| - % of total revenues | 38 | 35 | 36 | |
| Depreciation, amortisation and impairments | 102 | 86 | 181 | |
| Operating result | 81 | 76 | 6 | 151 |
| - % of total revenues | 17 | 17 | 16 | |
| Net result before tax | 77 | 72 | 8 | 143 |
| Net result for the period | 60 | 56 | 7 | 115 |
| Return on investment (ROI), % | 12 | 13 | 12 | |
| Return on equity (ROE), % | 17 | 19 | 19 | |
| Capital expenditure6) | 72 | 58 | 26 | 308 |
| Cash flow after investing activities | 72 | 36 | 99 | 105 |
| Net debt | 577 | 562 | 3 | 619 |
| Net debt/EBITDA | 1.6 | 1.7 | 1.9 | |
| Net gearing, % | 80 | 92 | 94 | |
| Equity ratio, % | 46 | 43 | 41 | |
| Earnings per share, basic and diluted, EUR | 0.45 | 0.42 | 0.87 | |
| Personnel at the end of period | 1,662 | 1,639 | 1 | 1,609 |
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CEO’s review
DNA’s business developed positively across the board in the first half of 2021. Our total revenues grew 4% and amounted to EUR 476 million (457). Mobile revenues also grew 2% and amounted to EUR 281 million (275). DNA’s EBITDA developed well in the first six months of the year and increased 13% to EUR 183 million (162), while our operating result increased 6% to EUR 81 million (76).
Our mobile communication subscription base increased by 19,000 from the reference period, despite the decrease in the number of prepaid subscriptions. The number of contract subscriptions increased by 21,000 from the reference period. At the same time, our average revenue per user (ARPU) increased 1% and was EUR 17.0 (16.8). The number of fixed subscriptions was up by 19,000, in particular due to the increase of 32,000 broadband subscriptions.
During the eighteen months of the corona pandemic, we at DNA have seen a significant acceleration in the growth of data traffic. The same is happening all over the world; according to the report published by the international research company Tefficient7), global mobile data traffic grew 38% in 2020. As per the same report, at 34.8 gigabytes per month, DNA’s customers had the highest mobile data usage per subscription in Europe in 2020. During the January–June 2021 period, mobile data usage reached approximately 39.8 gigabytes per month.
The exponential growth in mobile data volumes demonstrates the clear need for new 5G technologies. It would be difficult to meet the needs of growing demand with 4G networks alone, whereas the use of 5G networks allows us to multiply the capacity of our mobile network. DNA’s 5G network construction has progressed rapidly, and our 5G network reached close to 2.4 million people, or 43% of the population, at the end of June. The sales of 5G subscriptions continued briskly, and two thirds of the phones in DNA’s TOP 15 list of most popular phones in were 5G models in June.
At the end of the first half of 2021, more than 95% of DNA’s personnel continued to work remotely. DNA announced on 14 June that they do not need to return to the office, and few intend to do so. According to personnel surveys, approximately 70% of the personnel expect to work at the office only one or two days a week in the future. Most of DNA's personnel have performed their work well and efficiently during continuous remote working.
Jukka Leinonen
CEO
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1) ARPU = Monthly mobile revenues (company’s subscriptions) and traffic revenues + interconnection / average number of subscriptions
2) Postpaid, mobile home phone (“Luuri”) and mobile broadband subscriptions.
3) Telephony, Internet, pay-TV and DNA TV subscriptions.
4) Total revenues and EBITDA before other income and expenses differ from those previously reported for 2020 due to the transition to Telenor's reporting method.
This is a classification difference of EUR 2 million in the comparison period 1–6/2020 and at the same time in the whole of 2020.
5) In the autumn of 2020, DNA reassessed the duration of short-term leases based on the new owner and new long-term forecast.
The effect of the reassessment on EBITDA was EUR 11 million in 1–6/2021.
6) Capital expenditure no longer includes spectrum licence payments. In the future, DNA reports the acquisition cost of a new spectrum licence as an investment
at the time of acquisition.
7) Tefficient Industry Analysis #1 2021. Tefficient is an international telecommunications specialist providing analysis, benchmarking and consulting services. Tefficient’s latest report is available here: https://tefficient.com/mobile-data-operators-fy-2020/
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Additional information:
Jukka Leinonen, CEO, DNA Plc, +358 44 044 1000, jukka.leinonen@dna.fi
Maria Strömberg, CFO, DNA Plc, tel. +358 44 044 3270, maria.stromberg@dna.fi
DNA Corporate Communications, +358 44 044 8000, communications@dna.fi
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DNA is one of the leading telecommunications companies in Finland. We want to make our customers' daily lives less complicated. We offer connections, services and devices for homes and workplaces, contributing to the digitalisation of society. DNA's customers are continuously among the world mobile data usage leaders. DNA has more than 4 million subscriptions in its fixed and mobile communications networks. The company has been awarded numerous times as an excellent employer and family-friendly workplace. In 2020, our total revenue was EUR 934 million and we employ about 1,600 people around Finland. DNA is a part of Telenor Group, a leading telecommunications company across the Nordics. More information: www.dna.fi, Twitter @DNA_fi, Facebook @DNA.fi and LinkedIn @DNA-Oyj.
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