Mobile voice and equipment sale offset decline in fixed line revenue for Elisa in 2Q 2011

19 Jul 2011

Finland’s Elisa Corporation has released its financial results for the three months ended 30 June 2011, posting revenues of EUR378 million (USD531.9 million), a 3.8% year-on-year increase. The company pointed to higher turnover from equipment sales and consumer mobile services as having helped to offset continued decline in the fixed line sector, while lower mobile termination rates also exerted downward pressure on revenue. Earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile stood at EUR121 million in the operator’s second fiscal quarter of 2011, up 1.7% against EUR119 million a year earlier. Capital expenditure in 2Q 2011 was EUR54 million, of which the bulk was related to the capacity and coverage increase of the operator’s 3G network, representing a 14.9% y-o-y increase.

In operational terms, at the end of June 2011 Elisa’s Finnish mobile subscribers totalled 3.528 million, up from 3.479 million a year earlier, with the bulk of those (76%) consumer connections, and the remainder business. Fixed line voice accesses continued to decline however, standing at 372,800 at the end of the first half of the year, down from 426,900 at end-June 2010, while broadband subscribers increased by 2.7% year-on-year to reach 474,500 at the end the second quarter. Elisa’s mobile operations in Estonia meanwhile counted 462,700 subscribers, up more than 22% against the 377,800 it had a year earlier.

Finland, Elisa Corporation, Elisa Estonia (incl. Starman)