DNA PLC STOCK EXCHANGE RELEASE 2 FEBRUARY 2022, 8:30 AM EET
This is a summary DNA’s Financial Statements Bulletin 2021. The complete report is attached to this release and also available at corporate.dna.fi/general-financial-information.
Summary
Unless otherwise stated, the comparison figures in brackets refer to the corresponding period in the previous year (reference period). Figures are unaudited.
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.
July–December 2021
- Total revenues increased 1% and amounted to EUR 480 million (476).
- Mobile revenues increased 3% and amounted to EUR 284 million (276).
- EBITDA increased 3% and was EUR 175 million (171).
- Operating result decreased 3% and was EUR 74 million (76).
- Average revenue per user (ARPU)1) for mobile communications increased 2% and was EUR 17.1 (16.7).
January–December 2021
- Total revenues increased 3% and amounted to EUR 956 million (932).
- Mobile revenues increased 2% and amounted to EUR 565 million (552).
- EBITDA increased 8% and was EUR 359 million (333).
- Operating result increased 2% and was EUR 154 million (151).
- Average revenue per user (ARPU)1) for mobile communications increased 2% and was EUR 17.1 (16.8).
- The number of mobile subscriptions2) increased and was 2,699,000 (2,694,000).
- The number of fixed subscriptions3) decreased to 892,000 (900,000).
- The number of fixed broadband subscriptions increased by 19,000.
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 license 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 items, and certain items reclassified from current to non-current receivables. Figures for the reference periods have been adjusted accordingly.
| EUR million | 7–12/2021 | 7–12/2020 | Change, % | 1–12/2021 | 1–12/2020 | Change, % |
| Total revenues 4) | 480 | 476 | 1 | 956 | 932 | 3 |
| EBITDA 4) 5) | 175 | 171 | 3 | 359 | 333 | 8 |
| % of total revenues | 37 | 36 | 38 | 36 | ||
| Depreciation, amortisation and impairments | 102 | 96 | 204 | 181 | ||
| Operating result | 74 | 76 | –3 | 154 | 151 | 2 |
| % of total revenues | 15 | 16 | 16 | 16 | ||
| Net result before tax | 70 | 72 | –2 | 147 | 143 | 3 |
| Net result for the period | 58 | 59 | –2 | 118 | 115 | 3 |
| Return on investment (ROI), % | 12 | 12 | 12 | 12 | ||
| Return on equity (ROE), % | 15 | 18 | 17 | 19 | ||
| Capital expenditure 6) | 119 | 250 | –53 | 191 | 308 | –38 |
| Cash flow after investing activities | 102 | 69 | 47 | 174 | 105 | 65 |
| Net debt | 492 | 619 | –21 | 492 | 619 | –21 |
| Net debt/EBITDA | 1.4 | 1.8 | 1.4 | 1.9 | ||
| Net gearing, % | 64 | 94 | 64 | 94 | ||
| Equity ratio, % | 47 | 41 | 47 | 41 | ||
| Earnings per share, basic and diluted, EUR | 0.44 | 0.45 | 0.89 | 0.87 | ||
| Personnel at the end of period | 1,604 | 1,609 | 0 | 1,604 | 1,609 | 0 |
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CEO’s review
Having taken the helm of DNA last autumn, I am happy to have the opportunity to discuss positive and stable growth figures for the whole of 2021. The positive development also signals the critical role DNA plays in the Finnish society as a service provider and enabler of success. The prolonged pandemic has underpinned the importance of our role in a society, which would have come to a halt without secure modern network connections and cloud- based communications solutions.
Our total revenues increased by 3% and amounted to EUR 956 million (932) in 2021. Our mobile revenues were also up by 2% and amounted to EUR 565 million (552). DNA’s EBITDA developed well in 2021, growing 8% to EUR 359 million (333). Our operating result also increased and amounted to EUR 154 million (151), up 2% from 2020.
Our mobile communication subscription base increased by 5,000. At the same time, our average revenue per user (ARPU) increased to EUR 17.1 (16.8). The total number of fixed subscriptions decreased by 9,000. While the number of fixed voice and TV subscriptions decreased, the number of fixed broadband subscription grew by 19,000. As a result of the growth, we announced in May that DNA had become the leader of the fixed-network broadband market, and the lead has since increased7).
Sales of 5G subscriptions gained clear momentum during 2021. This was reflected in the sales of 5G phones, which increased four-fold. This development was driven by the quick construction of our 5G network, which reached approximately 3.5 million Finns at the end of the year. This means that the population coverage almost doubled within a space of a year. DNA’s mobile subscription achieved the highest average mobile download speed measured by Omnitele8) in twelve cities in the Helsinki metropolitan area, the Turku region, and the Tampere region in October– November 2021.
Due to the long-running exceptional circumstances and our responsibility for critical functions in the society, we have developed our own operations further, which is also reflected in our financial success. However, the positive development we have experienced during the exceptional circumstances is not limited to our key figures – we also run our business in a more responsible way, have enhanced our customer experience and are an even more flexible employer. A business cannot succeed without its personnel; individuals who have the skills, motivation, and ability to create value for customers. With skilled personnel, we can maintain our high level of customer satisfaction now and in the future, which will have a positive impact on our sales, total revenues, and operating result.
With the emergence of the new COVID-19 variant towards the end of 2021, most of our personnel went back to full remote working mode. While this is an unfortunate situation, year 2022 marks the 10-year anniversary of the introduction of DNA’s flexible method of working. With such long-running experience in remote working, DNA is well placed to run its business as usual during these exceptional circumstances. Furthermore, we want to demonstrate that a flexible working method makes sense also during more normal times. At DNA, employees will be able to choose freely where and how they will work – now and in the future.
Jussi Tolvanen
CEO
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1) ARPU = Monthly mobile revenues (company’s subscriptions) and traffic revenues + interconnection / average number of subscriptions
2) Postpaid, prepaid, mobile home phone (“Luuri”) and mobile broadband subscriptions.
3) Voice, broadband, 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 whole of 2020.
5) DNA reassessed the duration of short-term leases in the autumn of 2020 based on the new owner and new long-term forecast. The effect of the reassessment on EBITDA was EUR 4 million in 7–12/2021 and EUR 15 million in the whole of 2021.
6) Capex no longer includes frequency payments. In the future, DNA reports the acquisition cost of a new frequency as an investment at the time of acquisition.
7) Source: Fixed broadband subscriptions reported in the interim reports of the largest broadband operators in Finland, Q1/2021 (DNA: 591,000, Elisa 567,000 and Telia 470,000) and Q3/2021 (DNA: 601,000, Elisa: 562,000 and Telia 472,000).
8) Source: Omnitele’s study on data transfer speeds in mobile networks, 11/2021. The study was carried out in the following twelve cities in Finland: Helsinki, Espoo, Vantaa, Turku, Naantali, Raisio, Kaarina, Tampere, Pirkkala, Nokia, Ylöjärvi and Kangasala. DNA’s mobile subscription reached the highest average download speed in all of them. The results are presented as averages for each area. The data transfer speeds and ranking of the operators varied between locations within each area. The study was carried out with the operators’ fastest 5G consumer subscriptions and smartphones with 5G. The full report (in Finnish) is available at: https://www.dna.fi/documents/753910/5166098/mobiiliverkkojen_tiedonsiirtonopeuksien_vertailu+2021.pdf/a0ecaf02-b0d0-75a9-e234-c339de7f19d2
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Additional information:
Jussi Tolvanen, CEO, DNA Plc, +358 44 044 1000, jussi.tolvanen@dna.fi
Maria Strömberg, CFO, DNA Plc, +358 44 044 3270, maria.stromberg@dna.fi
DNA Corporate Communications, tel. +358 (0)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 about 3.6 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 2021, our total revenue was EUR 956 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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