Elisa Oyj — Earnings Release 2024

Jan 31, 2025

Elisa's Financial Statements Release 2024

Elisa's Financial Statements Release 2024

ELISA FINANCIAL STATEMENT RELEASE 31 JANUARY 2025 AT 8:30 AM

Fourth quarter 2024 financial highlights

· Revenue increased by EUR 16m to EUR 580m, mainly due to growth in
international digital services and mobile services.
· Mobile service revenue increased by 4.1 per cent to EUR 255m.
· Comparable EBITDA grew by EUR 6m to EUR 198m.
· Comparable EBIT increased by EUR 1m to EUR 125m.
· Comparable cash flow decreased by EUR 7m to EUR 66m.
· In Finland, mobile post-paid ARPU increased to EUR 23.6 (23.2 in the
previous quarter), and mobile post-paid churn increased to 20.2 per cent (16.8).
· During the quarter, the number of post-paid mobile subscriptions increased
by 12,400.
· The M2M and IoT subscription base grew by 38,000.
· Prepaid subscriptions decreased by 16,800 during the quarter.
· The number of fixed broadband subscriptions increased by 1,300 during the
quarter.

Key indicators

[][][][][][][][][]
EUR million 4Q24 4Q23 Δ % 2024 2023 Δ %
Revenue 580 563 2,9 % 2 191 2 180 0,5 %
EBITDA 191 191 0,0 % 767 756 1,4 %
Comparable EBITDA 198 191 3,3 % 783 756 3,6 %
[(1]
EBIT 119 118 0,6 % 488 482 1,2 %
Comparable EBIT [(1 125 123 1,1 % 504 487 3,4 %
(3]
Profit before tax 105 111 -5,3 % 448 458 -2,2 %
Comparable profit 116 116 -0,2 % 469 464 1,2 %
before tax [(2]
[(3]
EPS, EUR 0,51 0,58 -11,7 % 2,23 2,34 -4,6 %
Comparable EPS, EUR 0,58 0,61 -5,5 % 2,35 2,37 -0,9 %
[(2 (3]
Capital expenditure 80 91 -12,4 % 295 284 4,0 %
[(7]
Net debt 1 473 1 304 12,9 % 1 473 1 304 12,9 %
Net debt / EBITDA 1,9 1,7 1,9 1,7
[(4]
Gearing ratio, % 113,9 % 100,8 % 113,9 % 100,8 %
Equity ratio, % 38,7 % 41,6 % 38,7 % 41,6 %
Cash flow [(5] 23 61 -62,1 % 256 347 -26,2 %
Comparable cash 66 73 -9,4 % 357 361 -1,0 %
flow [(6]

[1)]Q4/2024 excluding EUR 6m and 2024 excluding EUR 17m in restructuring costs.
[2)] Q4/2024 excluding EUR 6m in restructuring costs and EUR 5m impairment of
loan receivables, and 2024 excluding EUR 17m in restructuring costs and EUR 5m
impairment of loan receivables. [3)] Q4/2023 and 2023 excluding EUR 6m
impairment. [4)] (Interest-bearing debt - financial assets) / (four previous
quarters' comparable EBITDA). [5)] Cash flow before financing activities. [6)]
Q4/2024 excluding EUR 43m and 2024 excluding EUR 101m in share and business
investments and loans granted. Q4/2023 excluding EUR 12m and 2023 EUR 14m in
share and business investments and sales. [7)] Excluding leases, licenses,
shares and business acquisitions.

The Board of Directors proposes to the Annual General Meeting a dividend of
EUR 2.35 per share. The Board of Directors proposes that the dividend be paid in
two instalments (see “Profit distribution”). The Board of Directors decided to
propose an authorisation to acquire a maximum of 5 million own shares, which
corresponds to 3 per cent of the total number of shares.

Additional key performance indicators are available at elisa.com/investors
(Elisa Operational Data.xlsx).

CEO Topi Manner: Strong result in a difficult environment

In the fourth quarter, Elisa continued its good performance, despite the soft
macroeconomic environment and geopolitical challenges. Revenue grew by
EUR 16 million to EUR 580 million, and comparable EBITDA improved by 3 per cent
to EUR 198 million. Also, the year 2024 was strong: revenue increased by
1 per cent to EUR 2.2 billion, despite net business disposals, acquisitions and
regulatory changes impacting revenue negatively. Both comparable EBITDA and EBIT
were the best ever, at EUR 783 million (756) and EUR 504 million (487),
respectively.

We continued expanding our standalone 5G and fiber networks and pioneering
technologies to benefit our customers. Our Net Promoter Score, measuring
customer satisfaction, rose to a record level of 31.1 (28.1 in 2023).

During the fourth quarter, Elisa and Nokia became the first companies in Europe
to trial 100 Gbps speeds in a production fiber network as well as opening the
first 5G cloud radio access network (Cloud RAN), marking a significant step
towards the era of 6G. We were also the first operator in the world to deploy
800 Gbps coherent technology within our backbone network.

Elisa plays a key role in safeguarding cyber security and critical
infrastructure in Finland and Estonia. In addition to providing reliable, high
-speed connections, we secure the digital environment in many ways. As a
demonstration of Elisa's resilience, damage to two submarine data cables in the
Gulf of Finland around Christmas did not interfere with Elisa's
telecommunications services, and the damaged cables were quickly repaired.

Our international digital services business grew strongly in the fourth quarter,
and we achieved double-digit organic growth for the full year 2024. Supported by
acquisitions, the year-on-year growth in the fourth quarter was as high as
77 per cent, of which organic growth accounted for 27 per cent. This
demonstrates that we have a high-growth business in our portfolio. During the
quarter, we completed the acquisition of Italy-based sedApta, strengthening our
software offering in industrial automation and Elisa's foothold in the global
manufacturing customer base.

At Elisa, sustainability means responsible value creation for people, the
environment and society, and we take particular responsibility for the digital
safety and wellbeing of children and young people. We were the first company in
Finland to introduce an age recommendation that smartphones should not be
purchased for children under nine. In cooperation with the Mannerheim League for
Child Welfare, we organised Finland's largest digital school, attended by a
large number of Finnish lower secondary school students, a total of more than
70,000 students.

Our performance during the quarter clearly demonstrates our strong commitment to
profitable growth, creating customer value by being a frontrunner in technology,
and continuously improving our productivity and quality.

Outlook and guidance for 2025

The development in the general economy includes many uncertainties. Growth in
the Finnish economy is expected to stall. In particular, there is continuing
uncertainty relating to Russia's war in Ukraine and other conflicts. Challenges
in global supply chains may also result in uncertainties in volumes and prices.
Competition in the Finnish telecommunications market remains keen.

Full-year revenue is estimated to be at the same level as or slightly higher
than in 2024. Mobile data and digital services are expected to increase revenue.
Full-year comparable EBITDA is anticipated to be at the same level as or
slightly higher than in 2024. Capital expenditure is expected to be a maximum of
12 per cent of revenue.

Elisa continues to improve productivity, for example by increasing automation
and data analytics in different processes, such as customer interaction, network
operations and delivery. Additionally, Elisa's continuous quality improvement
measures will increase customer satisfaction and efficiency, and reduce costs.

Elisa's transformation into a provider of exciting, new and relevant services
for its customers is continuing. Long-term revenue growth and profitability
improvement will derive from growth in the mobile data market, as well as
domestic and international digital services.

Profit distribution

According to Elisa's distribution policy, profit distribution is 80-100 per cent
of the previous fiscal year's net profit. In addition, any excess capital can be
distributed to shareholders. When making the distribution proposal or decision,
the Board of Directors will take into consideration the company's financial
position, future financial needs and financial targets. Profit distribution
includes dividend payment, capital repayment and share buybacks.

The Board of Directors proposes to the Annual General Meeting a dividend of
EUR 2.35 per share. The dividend payment corresponds to 100 per cent of the
comparable net profit for the financial period. The Board of Directors also
proposes that the dividend be paid in two instalments.

It is proposed that the first instalment of the dividend, EUR 1.18, be paid to
shareholders who are listed in the company's shareholder register maintained by
Euroclear Finland Ltd on 4 April 2025. The Board of Directors proposes that the
payment date be 11 April 2025. It is also proposed that the second instalment of
the dividend, EUR 1.17, be paid to shareholders who are listed in the company's
shareholder register on 17 October 2025, and the Board of Directors proposes
that the payment date be 24 October 2025. The profit for the period will be
added to retained earnings.

The Board of Directors also decided to propose to the General Meeting that the
Board of Directors be authorised to acquire a maximum of five million treasury
shares, which corresponds to 3 per cent of the total number of shares.

ELISA CORPORATION

Additional information:

Mr Topi Manner, CEO, tel. +358 10 265 1200
Mr Jari Kinnunen, CFO, tel. +358 10 262 9510
Mr Vesa Sahivirta, IR Director, tel. +358 50 520 5555

Distribution:

Nasdaq Helsinki
Principal media
elisa.com

Attachments: