DNA improves profitability in first quarter of 2016

22 Apr 2016

Finnish multi-service operator DNA has published its financial results for the first quarter of 2016, revealing a notable increase in profit, despite roughly flat revenues.

For the three months ended 31 March 2016 DNA reported net sales of EUR202.0 million (USD223 million), representing an increase of just 0.6% against the EUR200.8 million it generated a year earlier. Turnover was bolstered in particular by increased sales of both mobile subscriptions and devices, along with higher revenues from mobile data thanks to the increased demand for 4G subscriptions. Such factors, DNA said, helped to compensate for the drop in the revenue from voice calls, though net sales were also burdened by lower interconnection earnings as well as weaker pay-TV service sales.

EBITDA in 1Q 2016 increased by 8.6% to EUR60.1 million, while operating profit stood at EUR25.1 million, representing a 74.4% year-on-year increase, and net profit totalled EUR18.2, double the EUR9.1 recorded in the corresponding quarter of 2015.

In operational terms, at the end of March 2016 DNA had a total of 2.632 million mobile subscribers on its books, up 4.6% from 2.516 million a year earlier, with 2.628 million being direct customers and the remainder those signed up to MVNOs using the cellco’s infrastructure. Fixed broadband accesses were also up year-on-year at 432,000, though this was down from the peak of 436,000 reported at end-December 2015. Fixed voice subscribers continued to decline, falling to 74,000 at the end of the latest reporting period, from 93,000 at 31 March 2015.

Finland, DNA Finland