ELISA FINANCIAL STATEMENT RELEASE 31 JANUARY 2025 AT 8:30 AM
Fourth quarter 2024 financial highlights
- Revenue increased by EUR 16m to EUR 580m, mainly due to growth in international digital services and mobile services.
- Mobile service revenue increased by 4.1 per cent to EUR 255m.
- Comparable EBITDA grew by EUR 6m to EUR 198m.
- Comparable EBIT increased by EUR 1m to EUR 125m.
- Comparable cash flow decreased by EUR 7m to EUR 66m.
- In Finland, mobile post-paid ARPU increased to EUR 23.6 (23.2 in the previous quarter), and mobile post-paid churn increased to 20.2 per cent (16.8).
- During the quarter, the number of post-paid mobile subscriptions increased by 12,400.
- The M2M and IoT subscription base grew by 38,000.
- Prepaid subscriptions decreased by 16,800 during the quarter.
- The number of fixed broadband subscriptions increased by 1,300 during the quarter.
Key indicators
| EUR million | 4Q24 | 4Q23 | Δ % | 2024 | 2023 | Δ % | |
| Revenue | 580 | 563 | 2,9 % | 2 191 | 2 180 | 0,5 % | |
| EBITDA | 191 | 191 | 0,0 % | 767 | 756 | 1,4 % | |
| Comparable EBITDA (1 | 198 | 191 | 3,3 % | 783 | 756 | 3,6 % | |
| EBIT | 119 | 118 | 0,6 % | 488 | 482 | 1,2 % | |
| Comparable EBIT (1 (3 | 125 | 123 | 1,1 % | 504 | 487 | 3,4 % | |
| Profit before tax | 105 | 111 | -5,3 % | 448 | 458 | -2,2 % | |
| Comparable profit before tax (2 (3 | 116 | 116 | -0,2 % | 469 | 464 | 1,2 % | |
| EPS, EUR | 0,51 | 0,58 | -11,7 % | 2,23 | 2,34 | -4,6 % | |
| Comparable EPS, EUR (2 (3 | 0,58 | 0,61 | -5,5 % | 2,35 | 2,37 | -0,9 % | |
| Capital expenditure (7 | 80 | 91 | -12,4 % | 295 | 284 | 4,0 % | |
| Net debt | 1 473 | 1 304 | 12,9 % | 1 473 | 1 304 | 12,9 % | |
| Net debt / EBITDA (4 | 1,9 | 1,7 | 1,9 | 1,7 | |||
| Gearing ratio, % | 113,9 % | 100,8 % | 113,9 % | 100,8 % | |||
| Equity ratio, % | 38,7 % | 41,6 % | 38,7 % | 41,6 % | |||
| Cash flow (5 | 23 | 61 | -62,1 % | 256 | 347 | -26,2 % | |
| Comparable cash flow (6 | 66 | 73 | -9,4 % | 357 | 361 | -1,0 % | |
1)Q4/2024 excluding EUR 6m and 2024 excluding EUR 17m in restructuring costs. 2) Q4/2024 excluding EUR 6m in restructuring costs and EUR 5m impairment of loan receivables, and 2024 excluding EUR 17m in restructuring costs and EUR 5m impairment of loan receivables. 3) Q4/2023 and 2023 excluding EUR 6m impairment. 4) (Interest-bearing debt - financial assets) / (four previous quarters' comparable EBITDA). 5) Cash flow before financing activities. 6) Q4/2024 excluding EUR 43m and 2024 excluding EUR 101m in share and business investments and loans granted. Q4/2023 excluding EUR 12m and 2023 EUR 14m in share and business investments and sales. 7) Excluding leases, licenses, shares and business acquisitions.
The Board of Directors proposes to the Annual General Meeting a dividend of EUR 2.35 per share. The Board of Directors proposes that the dividend be paid in two instalments (see "Profit distribution"). The Board of Directors decided to propose an authorisation to acquire a maximum of 5 million own shares, which corresponds to 3 per cent of the total number of shares.
Additional key performance indicators are available at elisa.com/investors (Elisa Operational Data.xlsx).
CEO Topi Manner: Strong result in a difficult environment
In the fourth quarter, Elisa continued its good performance, despite the soft macroeconomic environment and geopolitical challenges. Revenue grew by EUR 16 million to EUR 580 million, and comparable EBITDA improved by 3 per cent to EUR 198 million. Also, the year 2024 was strong: revenue increased by 1 per cent to EUR 2.2 billion, despite net business disposals, acquisitions and regulatory changes impacting revenue negatively. Both comparable EBITDA and EBIT were the best ever, at EUR 783 million (756) and EUR 504 million (487), respectively.
We continued expanding our standalone 5G and fiber networks and pioneering technologies to benefit our customers. Our Net Promoter Score, measuring customer satisfaction, rose to a record level of 31.1 (28.1 in 2023).
During the fourth quarter, Elisa and Nokia became the first companies in Europe to trial 100 Gbps speeds in a production fiber network as well as opening the first 5G cloud radio access network (Cloud RAN), marking a significant step towards the era of 6G. We were also the first operator in the world to deploy 800 Gbps coherent technology within our backbone network.
Elisa plays a key role in safeguarding cyber security and critical infrastructure in Finland and Estonia. In addition to providing reliable, high-speed connections, we secure the digital environment in many ways. As a demonstration of Elisa's resilience, damage to two submarine data cables in the Gulf of Finland around Christmas did not interfere with Elisa's telecommunications services, and the damaged cables were quickly repaired.
Our international digital services business grew strongly in the fourth quarter, and we achieved double-digit organic growth for the full year 2024. Supported by acquisitions, the year-on-year growth in the fourth quarter was as high as 77 per cent, of which organic growth accounted for 27 per cent. This demonstrates that we have a high-growth business in our portfolio. During the quarter, we completed the acquisition of Italy-based sedApta, strengthening our software offering in industrial automation and Elisa's foothold in the global manufacturing customer base.
At Elisa, sustainability means responsible value creation for people, the environment and society, and we take particular responsibility for the digital safety and wellbeing of children and young people. We were the first company in Finland to introduce an age recommendation that smartphones should not be purchased for children under nine. In cooperation with the Mannerheim League for Child Welfare, we organised Finland's largest digital school, attended by a large number of Finnish lower secondary school students, a total of more than 70,000 students.
Our performance during the quarter clearly demonstrates our strong commitment to profitable growth, creating customer value by being a frontrunner in technology, and continuously improving our productivity and quality.
Outlook and guidance for 2025
The development in the general economy includes many uncertainties. Growth in the Finnish economy is expected to stall. In particular, there is continuing uncertainty relating to Russia's war in Ukraine and other conflicts. Challenges in global supply chains may also result in uncertainties in volumes and prices. Competition in the Finnish telecommunications market remains keen.
Full-year revenue is estimated to be at the same level as or slightly higher than in 2024. Mobile data and digital services are expected to increase revenue. Full-year comparable EBITDA is anticipated to be at the same level as or slightly higher than in 2024. Capital expenditure is expected to be a maximum of 12 per cent of revenue.
Elisa continues to improve productivity, for example by increasing automation and data analytics in different processes, such as customer interaction, network operations and delivery. Additionally, Elisa's continuous quality improvement measures will increase customer satisfaction and efficiency, and reduce costs.
Elisa's transformation into a provider of exciting, new and relevant services for its customers is continuing. Long-term revenue growth and profitability improvement will derive from growth in the mobile data market, as well as domestic and international digital services.
Profit distribution
According to Elisa's distribution policy, profit distribution is 80-100 per cent of the previous fiscal year's net profit. In addition, any excess capital can be distributed to shareholders. When making the distribution proposal or decision, the Board of Directors will take into consideration the company's financial position, future financial needs and financial targets. Profit distribution includes dividend payment, capital repayment and share buybacks.
The Board of Directors proposes to the Annual General Meeting a dividend of EUR 2.35 per share. The dividend payment corresponds to 100 per cent of the comparable net profit for the financial period. The Board of Directors also proposes that the dividend be paid in two instalments.
It is proposed that the first instalment of the dividend, EUR 1.18, be paid to shareholders who are listed in the company's shareholder register maintained by Euroclear Finland Ltd on 4 April 2025. The Board of Directors proposes that the payment date be 11 April 2025. It is also proposed that the second instalment of the dividend, EUR 1.17, be paid to shareholders who are listed in the company's shareholder register on 17 October 2025, and the Board of Directors proposes that the payment date be 24 October 2025. The profit for the period will be added to retained earnings.
The Board of Directors also decided to propose to the General Meeting that the Board of Directors be authorised to acquire a maximum of five million treasury shares, which corresponds to 3 per cent of the total number of shares.
ELISA CORPORATION
Additional information:
Mr Topi Manner, CEO, tel. +358 10 265 1200
Mr Jari Kinnunen, CFO, tel. +358 10 262 9510
Mr Vesa Sahivirta, IR Director, tel. +358 50 520 5555
Distribution:
Nasdaq Helsinki
Principal media
elisa.com
