Interim Report January-September 2000 November 8, 2000
Dec 31, 2015
Interim ReportJanuary-September 2000
November 8, 2000
Elisa grew faster than the market
Elisa Communications’ 3Q key figures
Revenue EUR 899 million (EUR 756 million), rising 19 %
EBIT EUR 154 million (EUR 78 million), rising 99 %
Pre-tax profit EUR 136 million (EUR 74 million), rising 84 %
Excluding the profit of sales of Comptel shares
EBIT EUR 96 million, rising 23 %
Pre-tax profit EUR 78 million, rising 5 %
Revenue and EBIT Breakdown 3Q/2000
Revenue breakdown
Mobile48 %
Fixed40 %
Others12 %
Mobile62 %
Fixed30 %
Others**8 %
EBIT breakdown*
* excl. the sales profit of Comptel shares** excl. group costs (EUR 13m)
Radiolinja’s Market Share Growing
Radiolinja Group’s 3Q key figures
Radiolinja Group’s revenues amounted to EUR 455 million, rising 23%
Radiolinja’s subscriptions totalled 1,395,010, including 1,276,970 in Finland and 118,040 in Estonia
Radiolinja’s share of GSM subscriptions in Finland was app. 37% and the share of all mobile subscriptions 36%. For major customer sector, corresponding share was almost 50%
Radiolinja’s market share continued to grow, the share of net additions was about 43%
ARPU was EUR 40/month (38), 1Q/2000 EUR 40/month, 2Q/2000 EUR 41/month, 3Q/2000 EUR 40/month
Churn (annualised) was 12.0% (14.4)
Value added services generated 10% of revenues
Radiolinja Group Jan-Sep
EBITDA, EURm 138% of net sales 30Adjusted EBITDA, EURm* 179% of net sales 39ARPU, EUR/month 40Churn, % 12Call minutes, billion 1.3Call minutes/subscription/month 114
*adj. with leasing payments
ARPU (EUR/month/subscription)
44
42
38 3840
4140
20
30
40
50
1996 1997 1998 1999 1Q/00 2Q/00 3Q/00
Churn (annualised), %
8,07,0
9,0
13,6 13,7
11,6 11,5
0
2
4
6
8
10
12
14
16
1996 1997 1998 1999 1Q/00 2Q/00 3Q/00
Latest in Mobile Services
New SMS based services
Radiolinja and Riot E, a Finnish wireless entertainment company, brought mobile games based on 20th Century Fox movies to Radiolinja’s customers
Leisure time and entertainment services: Forum, Dating, Relationships etc.
A new e-billing service for business customers
Radiolinja and ABB Control Oy introduced eNäpsä!, a new integrated electricity distribution, control and monitoring system for homes
Fixed Network and e-BusinessBroadband and Value-Added Services
By the end of 3Q, the total number of subscriptions was 730,931 (724,714). The number of ISDN subscriptions was up 32%, amounting to 200,741.
New subscription prices and call rates on July 1, 2000
The number of ADSL subscriptions doubled in 3Q, amounting to approx. 2,700
Internet-traffic volume up 46%, share of total traffic 40%
Datatie launched new LanPlus service package; LAN service solution
Kolumbus introduced new ASP services: a Web based document management system and an ADSL based Kolumbus service for SMEs
Kolumbus launched a new portal and the new Kolumbus Surf service exclusive of monthly charges
Kolumbus introduced the new Hotelli Kultakala (Hotel Goldfish) service application (3D chat)
Directory Media business will be incorporated in the beginning of 2001
Fixed Network and e-BusinessBroadband and Value-Added Services
Other OperationsHighlights
Comptel’s net sales continued to grow intensively:
net sales EUR 43 (27) million, up 60%
operating profit EUR 17 million, up 94%
export up 66%, amounting to EUR 29 million
Comptel Chinchilla, a new mediator product, was introduced in September
Mäkitorppa Group’s sales developed favorably
sales of terminal equipment increased in all markets
subscription sales grew strongly on the corresponding figure for last year in the domestic market
subscription sales quadrupled in Estonia
in Germany, subscription sales almost tenfold compared to previous year’s figures
Kama Store Oy, a chain of stores strongly targeted at the youth market, started operations
EPStar Oy acquired Omnitele’s broadband technology
related consulting business
Elisa Research Center founded a competence center in
Tampere. Research there focuses on new technologies
and other new areas of research.
Elisa Research Center implemented a WLAN, which
enables top-speed internet connections from all the hotel’s
premises, at the Seaside Hotel in Helsinki
Other OperationsHighlights
Germany: Elisa’s strategic market
A leading industrial country in the heart of Europe
The German telecom market approx. 15 times that of the Finnish
Germany has 13 cities the size of Helsinki, with over 500,000 inhabitants in each
Elisa’s German operations offer significant growth potential for the whole Group
•1995 1998 1999 2000 2001
Consulting
Project consulting and technical support services
Acquisition of minority interests
Consolidation
An operator providing value-added services
Elisa in Germany
Consulting business (city carriers and MobilCom, amongst others) More market know-how through consulting and technical support
services Acquisition of minority interests in city carriers Consolidation Focused customer segments Expansion from local to national services supported by the national
backbone Provider of added value to customers
Strategic Basis for Business
Building a local multi-brand presence, based on strong customer relations, through city carriers and the Mäkitorppa chain
Creating a high quality national service brand with Elisa’s value-added products and services
.... ....
German Operations Elisa Kommunikation GmbH acquired the entire share capital
of Pulsaar GmbH
Elisa Kommunikation GmbH’s share capital raised to EUR 110 million
Mäkitorppa had 21 stores at the end of 3Q, and the number is estimated to rise to about 40 by the end of the year
Combined net sales of German subsidiaries and associated companies are estimated to reach EUR 135 million in 2000, of which EUR 7 million were consolidated in the Group’s net sales
Elisa Kommunikation sub-group’s effect on January-September operating profit EUR -8 million and on net result EUR -15 million
The loss generated by Elisa Kommunikation GmbH in 2000 is expected to amount to EUR 25 million
Düsseldorf
Berlin
Frankfurt/MainOffenbach
HanauMainz
Essen
Leverkusen
Oberhausen Halle
Jena
PotsdamHannover
Saarbrücken
Dresden
Münster
Wuppertal
Bremen
Bremerhaven
Rostock
Leipzig
Group Income StatementElisa Communications Group
EURm 1-9/ 00 1-9 / 00 adj.* 1-9 / 99** Growth**
Revenue 899 899 756 19 %
EBITDA 286 228 177 29 %
EBITDA margin 32 % 25 % 23 %
Depreciation 109 109 91
Goodwill depreciation 23 23 8
EBIT 154 96 78 23 %
EBIT margin 17 % 11 % 10 %
Pre-tax Profit 136 78 74 5 %
Net Profit ** 71 30 36 -17 %
EPS, EUR 0,57 0,24 0,30 -20 %
CEPS, EUR 1,63 1,30 1,12 16 %
Diluted no. of shares, million 124,5 124,5 120,4
*Excl. Comptel’s sales profit (EUR 58m)** Comparable
Revenue, EURm
756374
430
781
1068
899
0
400
800
1200
1996 1997 1998 1999 1-9/00
Pre Tax Profit, EURm
741932
79
210*
136*
0
50
100
150
200
250
1996 1997 1998 1999 1-9/00
*incl. one-time items
Fixed Asset Investments, EURm
148
99
120
221 222
158
0
50
100
150
200
250
1996 1997 1998 1999 1-9/00
Equity Ratio, %
42
53
605754
0
20
40
60
80
1996 1997 1998 1999 30.9.2000
Post-Fiscal Events
Elisa Communications Corporation’s Extraordinary Meeting on October 20, 2000, decided to offer a bond loan with warrants to Elisa Group’s personnel and to grant authorization to increase the share capital
Radiolinja applied for Lithuania’s third GSM 900 license in October 2000
Radiolinja to cooperate with Nokia in the development and distribution of mCatch positioning system services
Radiolinja launched a new Tilausviesti (Message-on-demand) service (e.g. STT’s news services)
Hotelli Kultakala (Hotel Goldfish), the new Kolumbus portal service application, won the 1st prize in Markkinointi&Mainonta (Marketing&Advertising) magazine’s competition for new media
Elisa Business Line (customer services for SMEs) is expanding its operations to cover all of Finland
www.0100100.com e-directory service introduced a new 0100100 directory assistance service
Future Outlook
Growth prospects better than the average in the sector. Revenues for the year are expected to amount to app. EUR 1.27 billion, an increase about 19%
EBITDA margin is estimated to improve slightly on the comparable figures for the previous year
The company management expects EBIT to amount to about EUR 140 million for 2000, and with profit of sale of Comptel shares close to EUR 200 million
Profitability (EBIT-%) in 4Q is expected to be better than in 3Q
Pre-tax profit is estimated to be lower than last year, owing to increases in depreciation on consolidated goodwill and investments in the German operations in 2Q and 3Q
The growth of the Group is estimated to clearly exceed the industry average in 2001
Appendix
Mobile Revenue EBIT InvestmentsRadiolinja 455 95 230group bookings -23 -24 -156Total 432 71 74share of associated companies -1,0
Fixed Network Revenue EBIT InvestmentsElisa Communications 380 176 71Datatie 76 4 26FinnetCom 11 -1 1group bookings -105 -89 -22Total 362 91 76Sales of Comptel shares 58share of associated companies 6
Others Revenue EBIT InvestmentsComptel 43 17 3Mäkitorppa Group 66 -1 5Heltel 26 2 1Elisa Kommunikation GmbH 7 -8 1Other companies 2 0group bookings* -39 -16 -2Total 105 -6 8share of associated companies -8
Elisa Group 899 154 158Sales of Comptel shares 58share of associated companies -3,0
* Group bookings incl. group costs EUR 13 million
Revenue, EBIT and Investments Breakdown3Q (EURm)
Development of ISDN and ADSL Channels
* sales started November 1,1999
9/00 9/99 Change -%
ISDN channels 200 741 151 658 +32,4 %
ADSLchannels*
2 659 0
PSTN andothers
528 211 573 056 -7,8 %
Total 730 931 724 714 +0,9%
Development of Revenue by Quarters
EURm
171
200224
244 236256 266
313294 299 306
0
50
100
150
200
250
300
350
1Q/98 2Q/98 3Q/98 4Q/98 1Q/99 2Q/99 3Q/99 4Q/99 1Q/00 2Q/00 3Q/00
Personnel
3736 3814
4589
5489
6120
0
2000
4000
6000
8000
1996 1997 1998 1999 1-9/00