Welho acquisition boosts DNA’s third quarter results

3 Nov 2010

Reporting its first results since the consolidation of Finnish cableco SWelcom Television (Welho), quad-play provider DNA posted an 8.4% year-on-year increase in turnover in its third fiscal quarter of 2010. For the three months ended 30 September 2010 DNA generated revenues of EUR181 million (USD252.75 million), up from EUR167 million a year earlier, while earnings before interest, tax, depreciation and amortisation (EBITDA) were up just over 2% against 3Q09 at EUR48 million. Net profit, however, slipped slightly to EUR12 million, down from EUR13 million in the corresponding period a year earlier. DNA forecast that group revenue in 2010 will grow by more than 5%, while gross margin and EBIT excluding non-recurring items in the final quarter of the year are expected to be lower than in 4Q09.

As previously reported by CommsUpdate, DNA completed the acquisition of Welho from the Sanoma Group in June 2010. With the deal having been approved by the Finnish Competition Authority, Welho was incorporated into DNA from 1 July 2010, making DNA the country’s largest cable TV operator by subscribers with an estimated market share of around 43%. Commenting on the impact of the transaction DNA CEO Riitta Tiuraniemi noted: ‘The Welho acquisition has also made DNA into a leading TV operator. In the future, we will focus on the development of the TV business, improving both cable TV services and the antenna network. This will strengthen our position as a leading national TV operator.’

As at end-September 2010 including subscribers from Welho, DNA reported that its fixed network subscriptions totalled 1.059 million, of which 289,000 were broadband accesses, up from 186,000 at 30 September 2009, and 596,000, were cable TV subscriptions (267,000); the increase in both sectors was directly a result of the Welho acquisition. Fixed voice customer numbers meanwhile continued to decline, with DNA reporting 174,000 at end-3Q 2010, while mobile subscribers rose to 2.078 million.

Finland, DNA Finland, SWelcom Television (Welho)