Elisa reports flat revenues in 2Q13

15 Jul 2013

Finland-based Elisa Corporation has published its financial results for the three months ended 30 June 2013, with the company reporting flat turnover against the same period of 2012. In the quarter under review, Elisa generated revenues of EUR390 million, up marginally from the EUR389 million recorded in 2Q 2013. In the year-to-date, meanwhile, Elisa saw turnover of EUR751 million in the first six months of 2013, representing a 2.6% year-on-year decline against the first half of 2012. Commenting on the drop, the company noted that sales had been dented by lower mobile interconnection rates in both Finland and Estonia, as well as reduced usage and campaign prices in the mobile business. EBITDA in 2Q13 stood at EUR122 million, unchanged from the same period in 2012, while in the first half of the year it totalled EUR231 million, down from EUR243 million in H1 2012. Profit before tax in the second quarter of 2013 meanwhile was EUR63 million, down from EUR66 million in 2Q12.

In operational terms, Elisa highlighted the benefits of its recent acquisition of the telecoms and IT businesses of fixed network operator Osuuskunta PPO, including 100% of PPO-Yhtiot Oy, and PPO’s ownership stakes in Kymen Puhelin Oy (46%) and Telekarelia Oy (67%); as a result of the purchase the company’s domestic fixed network broadband subscriptions rose by more than 58,300 to reach 567,000. Meanwhile, mobile accesses in Finland also increased to 3.918 million, up 3.1% year-on-year, while the company’s Estonian subsidiary saw wireless subscriber numbers rise to 571,500 up from 535,200 a year earlier.

Commenting on the results, Elisa’s CEO Veli-Matti Mattila said: ‘Elisa’s result and revenue continued at the same level even though the competitive situation remained intense during the second quarter of the year. Insecurity regarding the general economic situation was reflected in the cautiousness of companies and consumers. However, the demand for new services continued strong. Revenue was negatively affected by the drop in the interconnection fees.’

Finland, Elisa Corporation