Elisa’s cost cutting helps push net profit up 12%

21 Mar 2006

Finnish telco Elisa Corporation has posted a 12% rise in net profit for 2005 after it implemented a raft of cost cutting measures across its business. Annual revenues fell to EUR1.337 billion, from EUR1.356 billion in 2004, and EBITDA shrunk from EUR455 million to EUR446 million, but net profit rose from EUR159 million to EUR178 million. The bulk of Elisa’s growth came from its mobile businesses in Finland and Estonia, including recently acquired domestic operator Saunalahti. At the end of 2005 Elisa had 2.228 million mobile subscribers across all of its wireless businesses, up from 1.609 million a year earlier. It also posted strong growth in its domestic broadband business, as its customer base leapt by 68% to end the year with 420,465 subscribers.

Last month Elisa announced plans to lay off 200 staff, or 4% of its workforce, in a bid to cut costs. The move followed 500 redundancies in 2005, and the company has warned that it may have to axe more jobs later this year. Most of the redundancies will be in the corporate services sector. The telco sold a number of its non-core businesses in 2005 and has restructured its businesses into four units: Consumer and Small Enterprise Customers, Business Customers, Production and Support Services.

Finland, Elisa Corporation