Press release 4 May 2010
DNA posted excellent results for Q1
Key figures
|
EUR million
|
1–3/2010
|
1–3/2009
|
1–12/2009
|
|
Net sales
|
161
|
159
|
652
|
|
EBITDA
|
47
|
29
|
167
|
|
EBITDA, per cent
|
29.2
|
18.0
|
25.6
|
|
EBITDA excluding nonrecurring items
|
47
|
43
|
179
|
|
EBITDA, per cent excluding nonrecurring items
|
29.2
|
26.9
|
27.5
|
|
EBIT
|
20
|
3
|
–44
|
|
EBIT, per cent
|
12.4
|
1.7
|
–6.7
|
|
Profit before taxes
|
18
|
0
|
–43
|
|
Profit for the financial period
|
13
|
0
|
–57
|
|
Capital expenditure
|
8
|
19
|
88
|
|
Cash flow from operations
|
36
|
23
|
126
|
|
EUR million
|
31.3.2010
|
31.3.2009
|
31.12.2009
|
|
Net debt
|
119
|
203
|
147
|
|
Net debt/EBITDA
|
0.63
|
1.78
|
0.88
|
|
Gearing, per cent
|
29.5
|
39.7
|
34.5
|
|
Equity ratio, per cent
|
53.9
|
56.1
|
55.3
|
|
Personnel at end of period
|
819
|
962
|
818
|
Figures are unaudited.
Summary of the first quarter
• DNA's net sales amounted to EUR 161 million (1–3/2009: EUR 159 million), a 2 per cent increase year-on-year.
• EBITDA for January to March amounted to EUR 47 million, accounting for 29.2 per cent of net sales (1–3/2009: 29 million, 18.0 per cent).
• EBIT amounted to EUR 20 million, accounting for 12 per cent of net sales (1–3/2009: EUR 3 million, 1.7 per cent).
• Profit before taxes was EUR 18 million (1–3/2009: 0 million).
• The DNA mobile communication subscription base (including mobile broadband) grew in Q1 by 44,000 subscriptions, reaching 1,991,000 in total (3/2009: 1,745,000; 12/2009: 1,947,000).
• Revenue per user for mobile communications amounted to EUR 21.1 (1−3/2009: 22.8; 10−12/2009: 21.9).
• The subscription turnover rate (churn) was 20.4 per cent (1–3/2009: 16.9; 10-12/2009: 14.8).
• At the end of March, DNA’s fixed-line network had 638,000 telephone, broadband and cable TV subscriptions (3/2009: 677,000; 12/2009: 647,000).
Riitta Tiuraniemi, President and CEO:
“Our profitability and result rose to excellent levels. The efficiency-boosting measures of past years have begun to show results.”
We are very satisfied with the development of DNA’s profitability during the first quarter of 2010. Our EBITDA rose to close to nearly 30 per cent and the result to 12 per cent. These excellent levels are based on the increase in mobile communication customers and the efficiency improvements carried out in 2009. Compared with the equivalent period last year, DNA has 246,000 additional mobile subscriptions, creating a significant net sales and positive cash flow as fixed costs are reduced.
DNA’s mobile communication subscription base grew by 44,000 subscriptions from January to March, reaching 1,991,000 in total. Compared with previous quarters, growth was moderate. Unlike our competitors, we have not engaged in aggressive price competition. Instead, we focus on enhancing our profitability and building long-lasting customer satisfaction. We achieved an important milestone after the review period in April, as the total number of mobile communication subscriptions reached two million.
Our objective for the year 2010 is to achieve growth, in particular in the mobile broadband market. We continue to invest in the coverage, capacity and quality of our 3G network. In Q1, we introduced a national mobile broadband product with a maximum speed of 21 Mbps, to provide our customers with a completely new kind of mobile broadband experience. The quickly evolving smartphone market and new and affordable 3G phones are increasing the customer base for mobile broadband, which provides strong growth potential for operators.
In terms of fixed-line broadband, we continue to invest in cable modem products. During 2010, 100 per cent of DNA’s cable network customers can access speeds of up to 110 Mbps. We successfully piloted high-definition TV broadcasts in terrestrial TV antenna networks in Q1 and aim to begin commercial HDTV-based TV and network operator services by the end of 2010.
DNA’s year-end outlook is cautiously optimistic. The recession seems to be abating and traffic volumes are reaching slightly higher levels than previously predicted.
Interim report January - March 2010 (pdf) >>
Further information:
Riitta Tiuraniemi, President and CEO, tel. +358 290 996 201, riitta.tiuraniemi@dna.fi
Ilkka Pitkänen, CFO, tel. +358 44 044 4001, ilkka.pitkanen@dna.fi
Marjut Salmela, Communications Manager, tel. +358 44 313 4403, marjut.salmela@dna.fi