Earnings Release • Apr 16, 2015
Earnings Release
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16 April 2015
| 1st Quarter | Full year | ||
|---|---|---|---|
| EUR million | 2015 | 2014 | 2014 |
| Revenue | 381 | 382 | 1,535 |
| EBITDA | 129 | 126 | 520 |
| EBIT | 76 | 72 | 305 |
| Profit before tax | 71 | 64 | 278 |
| Earnings per share, EUR | 0.37 | 0.32 | 1.41 |
| Capital expenditure | 52 | 48 | 191 |
| EUR million | 31.3.2015 | 31.3.2014 | End 2014 |
|---|---|---|---|
| Net debt | 934 | 933 | 1,001 |
| Net debt / EBITDA 1) | 1.8 | 1.8 | 1.9 |
| Gearing ratio, % | 128.5 | 101.9 | 114.0 |
| Equity ratio, % | 32.2 | 41.1 | 39.4 |
Q1 2015 gearing and equity ratio are not comparable with Q1 2014 due to different timing of the dividend decision.
| 1st Quarter | Full year | ||
|---|---|---|---|
| EUR million | 2015 | 2014 | 2014 |
| Cash flow after | |||
| investments | 68 | 39 | 185 |
1) (interest-bearing debt – financial assets) / (four previous quarters' EBITDA exclusive of non-recurring items)
Additional information regarding the Key Performance Indicators is available at: www.elisa.com/investors (Elisa Operational Data.xls)
Despite the continuing uncertainty caused by the general economic situation, Elisa strengthened its competitiveness. In the first quarter, revenue remained at the same level and earnings grew year-on-year. The growth in earnings was particularly driven by growth in the use of mobile data and more productive operations.
Our mobile subscription base fell by 47,000 during the first quarter of the year, primarily due to the removal of passive subscriptions and the diminishing prepaid base. The number of fixednetwork broadband subscriptions fell by 6,900. The good user experience for customers in faster data speeds continued to strengthen, and the demand for 4G subscriptions continued to grow. The first quarter of the year also saw, for the first time, customers using more data in our 4G network than in 2G and 3G networks combined. When new phones are acquired, 75 per cent of people now choose an LTE phone supporting fast connections, as 4G connections are already available to more than 96 per cent of Finns.
We were the first telecom company in Finland to double 4G network speeds in 12 localities. At the same time, we launched a subscription that enables speeds of up to 300 Mbit/s in consumer sales. The new subscription has been well received, as the exponential growth in data use requires new solutions to meet growing demand.
In Finland and Estonia, we launched the Internet of Things (IoT) service package, which enables IoT apps and services to be created rapidly without traditional software development. Elisa IoT is an open cloud platform which allows corporate customers to create new kinds of IoT products and new business, and gain significant competitive advantages.
We are investing in various areas of corporate responsibility. With the growth in the use of smartphones, we want to support digital parenthood, and we launched a separate service website for this purpose. It provides information on the digitising world, e.g. information about the best games, blocking services, and tips to assist parents. We are also investing in employing young people. Elisa, together with its subsidiaries and employment agencies, will employ 200 young people in summer jobs, participate in the Responsible Summer Job campaign, and be involved in the Work for the Young programme.
We will continue our determined work to improve both customer satisfaction and our operational productivity. Improving our productivity, developing new services for our customers, and maintaining our strong investment ability create a solid foundation for competitive operations in the future.
ELISA CORPORATION
The interim report has been prepared in accordance with the IFRS recognition and measurement principles, although not all requirements of the IAS 34 standard have been followed. The information presented in this interim report is unaudited.
The competitive environment has been stable but intense during the quarter, typically having quite long discount periods in campaigns. The mobile smartphone market grew rapidly and the usage of data services continued to evolve favourably. Approximately 95 per cent of the mobile handsets sold were smartphones. Another factor contributing to mobile market growth has been the increased network coverage of new 4G speeds. The number and usage of traditional fixed network subscriptions is decreasing.
The markets for new visual communications (video conferencing), IT outsourcing and IPTV entertainment services have continued to develop favourably. The demand for other new consumer online services is also growing.
| 1st Quarter | Full year | ||
|---|---|---|---|
| EUR million | 2015 | 2014 | 2014 |
| Revenue | 381 | 382 | 1,535 |
| EBITDA | 129 | 126 | 520 |
| EBITDA-% | 33.9 | 33.0 | 33.8 |
| EBIT | 76 | 72 | 305 |
| EBIT-% | 20.0 | 18.8 | 19.9 |
| Return on equity, % 1) | 28.1 | 26.0 | 25.6 |
| 1) |
Rolling 12-month profit preceding the reporting date
Revenue was at the last year's level. Revenue was positively affected by growth in mobile services and equipment sales, as well as Consumer Customers' online services. Lower interconnection prices, divestment of non-core business, lower Corporate Customers' ICT revenue, as well as a decrease in usage and subscriptions of traditional fixed telecom services in both segments affected revenue negatively.
EBITDA increased by 2 per cent from EUR 126 million to EUR 129 million, mainly due to growth in mobile service and Consumer Customers' online service revenue. Also, productivity improvement measures affected EBITDA positively.
Net financial income and expenses improved to EUR -6 million (-8), mainly due to lower interest rates. Income taxes in the income statement amounted to EUR -12 million (-13). Elisa's net profit was EUR 59 million (51). The Group's earnings per share increased by 14 per cent to EUR 0.37 (0.32).
| Financial position | |||
|---|---|---|---|
| EUR million | 31.3.2015 | 31.3.2014 | End 2014 |
| Net debt | 934 | 933 | 1,001 |
| Net debt / EBITDA 1) | 1.8 | 1.8 | 1.9 |
| Gearing ratio, % | 128.5 | 101.9 | 114.0 |
| Equity ratio, % | 32.2 | 41.1 | 39.4 |
| 1st Quarter | Full year | ||
|---|---|---|---|
| EUR million | 2015 | 2014 | 2014 |
| Cash flow after | |||
| investments | 68 | 39 | 185 |
1) (interest-bearing debt – financial assets) / (four previous quarters' EBITDA exclusive of non-recurring items)
Cash flow after investments was EUR 68 million (39). The increase was mainly due to the positive change in net working capital, higher EBITDA and lower financial expenses.
There were no material changes in the corporate structure during the quarter.
| 1st Quarter | Full year | ||
|---|---|---|---|
| EUR million | 2015 | 2014 | 2014 |
| Revenue | 236 | 233 | 954 |
| EBITDA | 82 | 76 | 327 |
| EBITDA-% | 34.8 | 32.7 | 34.3 |
| EBIT | 52 | 46 | 204 |
| CAPEX | 29 | 25 | 105 |
Revenue increased by 1 per cent. Growth in equipment sales, mobile services and online services contributed positively to revenue. Lower mobile termination rate and the decrease in fixed network usage and subscriptions also affected revenue negatively.
EBITDA increased by 8 per cent, mainly due to increased mobile and online service revenue as well as productivity improvement measures.
| 1st Quarter | ||||
|---|---|---|---|---|
| EUR million | 2015 | 2014 | Full year 2014 |
|
| Revenue | 145 | 149 | 581 | |
| EBITDA | 47 | 50 | 193 | |
| EBITDA-% | 32.4 | 33.4 | 33.2 | |
| EBIT | 24 | 27 | 101 | |
| CAPEX | 22 | 23 | 87 |
Revenue decreased by 3 per cent. Divestment of non-core business, lower ICT service revenue, a decline in usage and subscriptions in traditional fixed telecom services and lower mobile termination rates, as well as decreased roaming revenue.
EBITDA decreased by 6 per cent, mainly due to decreased revenue.
In January–March, the average number of personnel at Elisa was 4,108 (4,181). Employee expenses totalled EUR 67 million (65). Personnel by segment at the end of the period:
| 31.3.2015 | 31.3.2014 | End 2014 | |
|---|---|---|---|
| Consumer Customers | 2,370 | 2,365 | 2,338 |
| Corporate Customers | 1,762 | 1,759 | 1,751 |
| Total | 4,132 | 4,124 | 4,089 |
Total personnel increased by 1 per cent during the quarter, mainly due to an increase in telesales.
| 1st Quarter | Full year | ||
|---|---|---|---|
| EUR million | 2015 | 2014 | 2014 |
| Capital expenditures, of which | 52 | 48 | 191 |
| - Consumer Customers | 29 | 25 | 105 |
| - Corporate Customers | 22 | 23 | 87 |
| Shares | 1 | 0 | 43 |
| Total | 52 | 48 | 235 |
The main capital expenditures related to the capacity and coverage increase of the 4G networks, as well as to other network and IT investments.
| In use on | ||
|---|---|---|
| EUR million | Maximum amount | 31.3.2015 |
| Committed credit limits | 300 | 0 |
| Commercial paper programme ¹) | 250 | 168.5 |
| EMTN programme ²) | 1,000 | 600 |
1) The programme is not committed 2) European Medium Term Note programme, not committed
| Credit rating agency | Rating | Outlook |
|---|---|---|
| Moody's Investor Services | Baa2 | Stable |
| Standard & Poor's | BBB+ | Stable |
Standard & Poors upgraded Elisa's rating to 'BBB+' and affirmed the outlook as stable on 18 March 2015.
Share trading volumes and closing prices are based on trades made on the Nasdaq Helsinki.
| 1st Quarter | Full year | ||
|---|---|---|---|
| Trading of shares | 2015 | 2014 | 2014 |
| Shares traded, millions | 28.4 | 32.6 | 112.7 |
| Volume, EUR million | 682.5 | 649.7 | 2,359.4 |
| % of shares | 17.0 | 19.5 | 67.4 |
| Shares and market values | 31.3.2015 | 31.3.2014 | 31.12.2014 |
|---|---|---|---|
| Total number of shares | 167,335,073 | 167,335,073 | 167,335,073 |
| Treasury shares | 7,852,846 | 7,986,043 | 7,986,043 |
| Outstanding shares | 159,482,227 | 159,349,030 | 159,349,030 |
| Closing price, EUR | 23,40 | 20.89 | 22.61 |
| Market capitalisation, EUR million | 3,732 | 3,329 | 3,611 |
| Treasury shares, % | 4,69 | 4.77 | 4.77 |
Elisa shares are also traded in alternative marketplaces. According to the Fidessa Fragmentation Index, the trading volumes in these markets during the first quarter were approximately 156 per cent (92) of the Nasdaq Helsinki. The total trading volume in all marketplaces represents approximately 43 per cent (37) of outstanding shares.
| Number of shares | Total number of shares |
Treasury shares | Outstanding shares |
|---|---|---|---|
| Shares at 31.12.2014 | 167,335,073 | 7,986,043 | 159,349,030 |
| Share incentive plan 4.2.20151) | -133,197 | ||
| Shares at 31.3.2015 | 167,335,073 | 7,852,846 | 159,482,227 |
1) Stock exchange bulletin 5.2.2015
On 4 February 2015, Elisa transferred 133,197 treasury shares to persons involved in the 2012–2014 share incentive program.
On 15 January 2015, the Finnish telecoms regulator FICORA released draft decisions of an obligation of a maximum price level of 1.25 cents per minute for mobile termination rate (MTR) to Elisa and other Finnish mobile network operators. The European Commission has opened an in-depth investigation into FICORA's proposal for the new rules on MTRs. The MTR price reduction lowers both Elisa's revenue and costs, and thus has no material impact on profitability.
On 12 March 2015, FICORA released draft decisions on price levels of copper and fibre access lines. According to the draft decisions, Elisa and other major Finnish fixed line operators have to apply monthly maximum rental prices of EUR 10.70 in copper access lines and EUR 75 in fibre access lines.
On 13 March 2015, Helsinki District Court dismissed Visual Data Oy's claim demanding EUR 3.5 million damages from Elisa and several other telecommunication companies under the Competition Act (relates to publishing of subscribers' contact information). Visual Data has lodged an appeal.
Amendments have been made to the Copyright Act. The copyright societies have been given the right to license nPVR (network personal video recording). This will impose a license fee and some other changes to nPVR. The amendment also added a right for the collective societies to receive a copyright fee on the transfer of the must-carry channels.
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, hazard 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. Regulation may also require investments which have long payback times.
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 on Elisa's fixed network has decreased during the last few years. These factors may limit opportunities for growth.
The company's core operations are covered by insurance against damage and interruptions caused by accidents and disasters. Accident risks also include litigation and claims.
In order to manage the interest rate risk, the Group's loans and investments are diversified into fixed- and variable-rate instruments. Interest rate swaps can be used to manage the interest rate risk.
As most of Elisa's operations and cash flow are denominated in euros, the exchange rate risk is minor.
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 in financially solid banks, domestic companies and institutions. Credit risk concentrations in accounts receivable are minor as the customer base is broad.
A detailed description of financial risk management can be found in Note 34 to the Annual Report 2014.
On 26 March 2015, Elisa's Annual General Meeting decided to pay a dividend of EUR 1.32 per share based on the adopted financial statements for 2014. The dividend was paid on 8 April 2015.
The Annual General Meeting adopted the financial statements for 2014. The members of the Board of Directors and the CEO were discharged from liability for 2014.
The number of the members of the Board of Directors was confirmed at six (6). Raimo Lind, Petteri Koponen, Leena Niemistö, Seija Turunen, Jaakko Uotila and Mika Vehviläinen were reelected as members of the Board of Directors.
KPMG Oy Ab, authorised public accountants, was appointed the company's auditor. APA Esa Kailiala is the responsible auditor.
Mr Raimo Lind was elected as the Chairman of the Board and Mr Mika Vehviläinen as the Deputy Chairman. Mr Raimo Lind (Chair), Ms Leena Niemistö and Mr Mika Vehviläinen were
appointed to the Compensation & Nomination Committee. Ms Seija Turunen (Chair), Mr Petteri Koponen and Mr Jaakko Uotila were appointed to the Audit Committee.
The Annual General Meeting decided to authorise the Board of Directors to resolve to repurchase or accept as pledge the company's own shares. The repurchase may be directed. The amount of shares under this authorisation is 5 million shares at maximum. The authorisation is effective until 30 June 2016.
On 2 April 2014, the Annual General Meeting decided to authorise the Board of Directors to pass a resolution concerning the share issue, the right of assignment of treasury shares and/or the granting of special rights entitling to shares. A maximum aggregate of 15 million of the company's shares can be issued under the authorisation. The authorisation is effective until 30 June 2016.
On 8 April 2015, according to the Finnish Competition Act, the Finnish Competition and Consumer Authority (FCCA) approved the transaction in which Elisa gains control over Anvia. Elisa's ownership of Anvia is 26.8 per cent, and Elisa is the biggest shareholder of Anvia.
On 15 April 2015, Elisa announced a tender offer to all shareholders of Anvia at a price of EUR 2,000 per share. The offer began on 15 April 2015 and will end on 8 May 2015.
The macroeconomic environment in Finland is still expected to be weak in 2015. Competition in the Finnish telecommunications market also remains challenging.
Full-year revenue is estimated to be at the same level as in 2014. Mobile data, ICT and new online services are expected to increase revenue. Full-year EBITDA, excluding non-recurring items, is anticipated to be at the same level as in 2014. Full-year capital expenditure is expected to be a maximum of 12 per cent of revenue. Elisa's financial position and liquidity are good.
Elisa is continuing its productivity improvement measures, for example by streamlining the product portfolio and IT systems and operations. Additionally, Elisa is continuing to increase customer service and sales efficiency, as well as to reduce general administrative costs.
Elisa's transformation into a provider of exciting, new and relevant services for its customers is continuing. Long-term growth and profitability improvement will derive from mobile data market growth, as well as new online and ICT services.
BOARD OF DIRECTORS
| 1-3 | 1-3 | 1-12 | ||
|---|---|---|---|---|
| EUR million | Note | 2015 | 2014 | 2014 |
| Revenue | 1 | 380,7 | 382,3 | 1 535,2 |
| Other operating income | 0,5 | 1,0 | 8,2 | |
| Materials and services | -144,4 | -150,0 | -606,1 | |
| Employee expenses | -66,9 | -65,2 | -247,7 | |
| Other operating expenses | -40,8 | -41,9 | -170,0 | |
| EBITDA | 1 | 129,1 | 126,2 | 519,7 |
| Depreciation and amortisation | -53,0 | -54,1 | -214,7 | |
| EBIT | 1 | 76,0 | 72,0 | 305,0 |
| Financial income | 1,2 | 1,9 | 4,7 | |
| Financial expenses | -6,8 | -10,2 | -31,9 | |
| Share of associated companies' profit | 0,7 | 0,0 | -0,1 | |
| Profit before tax | 71,2 | 63,7 | 277,7 | |
| Income taxes | -12,3 | -12,6 | -54,7 | |
| Profit for the period | 58,9 | 51,1 | 222,9 | |
| Attributable to: | ||||
| Equity holders of the parent | 58,8 | 51,6 | 224,9 | |
| Non-controlling interests | 0,1 58,9 |
-0,5 51,1 |
-1,9 222,9 |
|
| Earnings per share (EUR) | ||||
| Basic | 0,369 | 0,324 | 1,41 | |
| Diluted | 0,37 | 0,32 | 1,41 | |
| Average number of outstanding shares (1,000 shares) | ||||
| Basic | 159 430 | 159 349 | 159 349 | |
| Diluted | 159 430 | 159 349 | 159 349 | |
| Consolidated Statement of Comprehensive Income | ||||
| Profit for the period | 58,9 | 51,1 | 222,9 | |
| Other comprehensive income, net of tax | ||||
| Items which may be reclassified subsequently to profit or loss: | ||||
| Financial assets available-for-sale | -0,1 | 0,7 | 7,3 | |
| Cash flow hedge | -0,2 | -0,1 | -0,1 | |
| Translation differences | -0,1 | 0,2 | 0,2 | |
| -0,4 | 0,9 | 7,3 | ||
| Items which are not reclassified subsequently to profit or loss: | ||||
| Remeasurements of the net defined benefit liability | -3,6 | |||
| Total comprehensive income | 58,5 | 52,0 | 226,7 | |
| Total comprehensive income attributable to: Equity holders of the parent |
58,4 | 52,5 | 228,6 | |
| Non-controlling interests | 0,1 | -0,5 | -1,9 | |
| 58,5 | 52,0 | 226,7 |
| 31.3. | 31.12. | |
|---|---|---|
| EUR million | 2015 | 2014 |
| Non-current assets | ||
| Property, plant and equipment | 690,5 | 692,0 |
| Goodwill | 834,6 | 831,5 |
| Other intangible assets | 137,0 | 137,0 |
| Investments in associated companies | 50,4 | 48,8 |
| Financial assets available-for-sale | 20,2 | 20,4 |
| Deferred tax assets | 14,4 | 13,5 |
| Other receivables | 72,1 | 72,4 |
| 1 819,2 | 1 815,5 | |
| Current assets | ||
| Inventories | 47,7 | 53,2 |
| Trade and other receivables | 336,6 | 330,4 |
| Tax receivables | 3,0 | 2,9 |
| Cash and cash equivalents | 61,5 | 41,3 |
| 448,8 | 427,8 | |
| Total assets | 2 267,9 | 2 243,4 |
| Equity attributable to equity holders of the parent | 726,3 | 878,0 |
| Non-controlling interests | 0,7 | 0,6 |
| Total shareholders' equity | 727,0 | 878,6 |
| Non-current liabilities | ||
| Deferred tax liabilities | 19,7 | 21,0 |
| Pension obligations | 18,2 | 18,2 |
| Provisions | 3,3 | 3,1 |
| Financial liabilities | 811,6 | 818,0 |
| Other liabilities | 29,6 | 28,2 |
| 882,5 | 888,5 | |
| Current liabilities | ||
| Trade and other payables | 467,6 | 246,0 |
| Tax liabilities | 4,0 | 1,7 |
| Provisions | 2,9 | 3,8 |
| Financial liabilities | 183,9 | 224,9 |
| 658,4 | 476,3 | |
| Total equity and liabilities | 2 267,9 | 2 243,4 |
| 1-3 | 1-3 | 1-12 | |
|---|---|---|---|
| EUR million | 2015 | 2014 | 2014 |
| Cash flow from operating activities | |||
| Profit before tax | 71,2 | 63,7 | 277,7 |
| Adjustments | |||
| Depreciation and amortisation | 53,0 | 54,1 | 214,7 |
| Other adjustments | 3,4 | 1,6 | 14,5 |
| 56,5 | 55,7 | 229,2 | |
| Change in working capital | |||
| Increase (-) / decrease (+) in trade and other receivables | -4,7 | 0,4 | -4,8 |
| Increase (-) / decrease (+) in inventories | 5,2 | 1,5 | -1,6 |
| Increase (+) / decrease (-) in trade and other payables | 12,1 | -7,9 | -14,1 |
| 12,6 | -5,9 | -20,5 | |
| Financial items, net | -9,4 | -11,7 | -24,2 |
| Taxes paid | -12,2 | -13,0 | -50,1 |
| Net cash flow from operating activities | 118,7 | 88,8 | 412,1 |
| Cash flow from investing activities | |||
| Capital expenditure | -49,7 | -49,8 | -197,8 |
| Investments in shares | -0,8 | -0,8 | -38,7 |
| Repayment of loan assets | 0,3 | ||
| Proceeds from asset disposal | 0,0 | 0,8 | 9,2 |
| Net cash used in investing activities | -50,5 | -49,8 | -227,0 |
| Cash flow before financing activities | 68,2 | 39,1 | 185,0 |
| Cash flow from financing activities | |||
| Proceeds from long-term borrowings | 0,1 | 0,1 | |
| Repayment of long-term borrowings | -5,4 | -167,0 | -172,7 |
| Increase (+) / decrease (-) in short-term borrowings | -41,5 | 50,1 | 108,1 |
| Repayment of finance lease liabilities | -1,2 | -1,2 | -4,6 |
| Proceeds from increase in reserve for invested non-restricted equity | |||
| Proceeds from the sale of treasury shares | |||
| Acquisition of non-controlling interests | 0,0 | -5,6 | |
| Dividends paid | 0,0 | 0,0 | -206,7 |
| Net cash used in financing activities | -48,1 | -118,0 | -281,5 |
| Change in cash and cash equivalents | 20,1 | -78,9 | -96,4 |
| Cash and cash equivalents at the beginning of the period | 41,3 | 137,8 | 137,8 |
| Cash and cash equivalents at the end of the period | 61,5 | 58,9 | 41,3 |
| Reserve for | |||||||
|---|---|---|---|---|---|---|---|
| invested | Total | ||||||
| non- | Non- | share | |||||
| Share | Treasury | Other | restricted | Retained | controlling | holders | |
| EUR million | capital | shares | reserves | equity | earnings | interests | equity |
| Balance at 1 January 2014 | 83,0 | -148,2 | 381,2 | 90,9 | 453,4 | 1,9 | 862,2 |
| Profit for the period | 51,6 | -0,5 | 51,1 | ||||
| Translation differences | 0,2 | 0,0 | 0,2 | ||||
| Financial assets available-for-sale | 0,7 | 0,7 | |||||
| Cash flow hedge | -0,1 | -0,1 | |||||
| Total comprehensive income | 0,7 | 51,8 | -0,5 | 52,0 | |||
| Share-based compensation | 1,0 | 1,0 | |||||
| Acquisition of non-controlling interests | -0,1 | 0,1 | 0,0 | ||||
| Balance at 31 Mar 2014 | 83,0 | -148,2 | 381,9 | 90,9 | 506,1 | 1,5 | 915,1 |
| EUR million | |||||||
|---|---|---|---|---|---|---|---|
| Balance at 1 January 2015 | 83,0 | -148,2 | 384,8 | 90,9 | 467,5 | 0,6 | 878,6 |
| Profit for the period | 58,8 | 0,1 | 58,9 | ||||
| Translation differences | -0,1 | -0,1 | |||||
| Financial assets available-for-sale | -0,1 | -0,1 | |||||
| Cash flow hedge | -0,2 | -0,2 | |||||
| Total comprehensive income | -0,3 | 58,7 | 0,1 | 58,5 | |||
| Dividends | -210,5 | -210,5 | |||||
| Share-based compensation | 2,7 | 0,5 | 3,1 | ||||
| Other changes | -2,7 | -2,7 | |||||
| Balance at 31 Mar 2015 | 83,0 | -145,6 | 384,4 | 90,9 | 313,5 | 0,7 | 727,0 |
The Interim report has been prepared in accordance with the IFRS recognition and measurement principles, although all requirements of IAS 34 Interim Financial Reporting 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 31 December 2014.
The Group adopted the following standards, amendments to standards and interpretations effective 1 January 2015:
| 1-3/2015 | Consumer | Corporate Unallocated | Group | |
|---|---|---|---|---|
| EUR million | Customers Customers | Items | Total | |
| Revenue | 235,5 | 145,1 | 380,7 | |
| EBITDA | 82,1 | 47,1 | 129,1 | |
| Depreciation and amortisation | -29,6 | -23,4 | -53,0 | |
| EBIT | 52,4 | 23,6 | 76,0 | |
| Financial income | 1,2 | 1,2 | ||
| Financial expenses | -6,8 | -6,8 | ||
| Share of associated companies' profit | 0,7 | 0,7 | ||
| Profit before tax | 71,2 | |||
| Investments | 29,2 | 22,4 | 51,6 | |
| 1-3/2014 | Consumer | Corporate Unallocated | Group | |
| EUR million | Customers Customers | Items | Total | |
| Revenue | 233,3 | 148,9 | 382,3 | |
| EBITDA | 76,3 | 49,8 | 126,2 | |
| Depreciation and amortisation | -30,8 | -23,3 | -54,1 | |
| EBIT | 45,5 | 26,5 | 72,0 | |
| Financial income | 1,9 | 1,9 | ||
| Financial expenses | -10,2 | -10,2 | ||
| Share of associated companies' profit | 0,0 | 0,0 | ||
| Profit before tax | 63,7 | |||
| Investments | 25,5 | 22,9 | 48,4 | |
| 1-12/2014 | Consumer | Corporate Unallocated | Group | |
| EUR million | Customers Customers | Items | Total | |
| Revenue | 954,1 | 581,1 | 1 535,2 | |
| EBITDA | 326,9 | 192,8 | 519,7 | |
| Depreciation and amortisation | -122,7 | -92,0 | -214,7 | |
| EBIT | 204,2 | 100,7 | 305,0 | |
| Financial income | 4,7 | 4,7 | ||
| Financial expenses | -31,9 | -31,9 | ||
| Share of associated companies' profit | -0,1 | -0,1 | ||
| Profit before tax | 277,7 | |||
| Investments | 104,9 | 86,6 | 191,5 | |
| Total assets | 1 248,2 | 868,1 | 127,1 | 2 243,4 |
The future minimum lease payments under non-cancellable operating leases:
| 31.3. | 31.12. | |
|---|---|---|
| EUR million | 2015 | 2014 |
| Not later than one year | 28,3 | 28,1 |
| Later than one year not later than five years | 43,8 | 27,9 |
| Later than five years | 26,6 | 6,5 |
| 98,8 | 62,5 |
| 31.3. | 31.12. | |
|---|---|---|
| EUR million | 2015 | 2014 |
| For our own commitments | ||
| Mortgages | 1,5 | 1,5 |
| Pledged securities | 0,1 | 0,1 |
| Deposits | 0,8 | 0,9 |
| Guarantees | 1,1 | 1,1 |
| On behalf of others | ||
| Guarantees | 0,5 | 0,6 |
| Other | 0,0 | |
| 4,1 | 4,3 | |
| Other contractual obligations | ||
| Repurchase obligations | 0,0 | 0,0 |
| Letter of credit | 0,1 | 0,1 |
| Capital loan's unrecognised interest payable | 0,0 | 0,0 |
| 4. Derivative Instruments | ||
| 31.3. | 31.12. | |
| EUR million | 2015 | 2014 |
| Nominal values of derivatives | ||
| Currency swap | 2,3 | 3,0 |
| Electricity derivatives 1) | 8,9 | 7,4 |
| Fair values of derivatives | ||
|---|---|---|
| Currency swap | -0,1 | -0,2 |
| Electricity derivatives | -0,6 | -0,3 |
| -0,7 | -0,4 |
1) Elisa has started hedge electricity purchases by derivatives during 2014. Earlier the company bought electricity by advance contracts.
11,1 10,4
| 1-3 | 1-3 | 1-12 | |
|---|---|---|---|
| EUR million | 2015 | 2014 | 2014 |
| Shareholders' equity per share, EUR | 4,55 | 5,73 | 5,51 |
| Interest bearing net debt | 934,0 | 932,9 | 1 001,5 |
| Gearing, % | 128,5 | 101,9 | 114,0 |
| Equity ratio, % | 32,2 | 41,1 | 39,4 |
| Return on investment (ROI), % *) | 17,2 | 16,9 | 15,7 |
| Gross investments in fixed assets | 51,6 | 48,4 | 191,5 |
| of which finance lease investments | 0,5 | 0,1 | 1,0 |
| Gross investments as % of revenue | 13,5 | 12,7 | 12,5 |
| Investments in shares | 0,8 | 0,0 | 43,5 |
| Average number of employees | 4 108 | 4 181 | 4 138 |
* ) rolling 12 months profit preceding the reporting date
| Second quarter 2015 | 16 July 2015 |
|---|---|
| Third quarter 2015 | 16 October 2015 |
Investor Relations: [email protected]
Press: [email protected]
Elisa website: www.elisa.com
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