ELISA CORPORATION INTERIM REPORT RELEASE 23 OCTOBER 2025 AT 8:30 AM
Third quarter 2025 financial highlights
· Revenue increased by 5 per cent, or EUR 25m, to EUR 561m.
· Mobile service revenue increased by 3.3 per cent, or EUR 9m, to EUR 263m.
· Comparable EBITDA grew by 4 per cent, or EUR 8m, to EUR 214m.
· Comparable EBIT increased by 2 per cent, or EUR 3m, to EUR 139m.
· Comparable cash flow increased by 12 per cent, or EUR 13m, to EUR 125m.
· In Finland, mobile post-paid ARPU increased to EUR 24.3 (24.1 in the
previous quarter), and mobile post-paid churn increased to 22.3 per cent (17.1).
· During the quarter, the number of post-paid mobile subscriptions decreased
by 20,400, of which M2M and IoT subscriptions share was 5,700.
· Prepaid subscriptions increased by 9,000 during the quarter.
· The number of fixed broadband subscriptions increased by 4,800 during the
quarter.
After Q3, Elisa has decided to launch a transformation programme to simplify its
operations and to increase productivity in line with the strategy communicated
at the Capital Markets Day in March 2025.
Key indicators
[][][][][][][][]
EUR million 3Q25 3Q24 Δ % 1Q-3Q25 1Q-3Q24 Δ %
Revenue 561 536 4.6% 1 669 1 612 3.5%
EBITDA 214 206 3.7% 604 576 5.0%
Comparable 214 206 3.7% 610 586 4.2%
EBITDA [(1]
EBIT 139 136 1.9% 382 369 3.6%
Comparable EBIT 139 136 1.9% 389 379 2.4%
[(1]
Profit before 128 126 2.0% 351 343 2.4%
tax
Comparable 128 126 2.0% 358 353 1.2%
profit before
tax [(1]
EPS, EUR 0.64 0.63 2.3% 1,77 1,72 2.8%
Comparable EPS, 0.64 0.63 2.3% 1,80 1,77 1.5%
EUR [(1]
Capital 65 77 -160% 205 215 -4.7%
expenditure [(2]
Net debt 1 390 1 298 7.0% 1 390 1 298 7.0%
Net debt / 1.7 1.7 1.7 1.7
EBITDA [(3]
Gearing ratio, % 116.4% 107.5% 116.4% 107.5%
Equity ratio, % 35.7% 38.1% 35.7% 38.1%
Cash flow [(4] 122 95 28.4% 312 233 33.8%
Comparable cash 125 111 12.1% 320 291 10.0%
flow [(5]
[1) ]1Q-3Q/2025 excluding EUR 6m in restructuring costs. 1Q-3Q2024 excluding EUR
10m in restructuring costs.[ 2) ]Excluding leases, licences, shares and business
acquisitions.[ 3) ](Interest-bearing debt - financial assets) / (four previous
quarters' comparable EBITDA).[ 4) ]Cash flow before financing activities. [5)]
3Q2025 excluding EUR 2m and 1Q-3Q/2025 excluding EUR 9m in share investments and
sales. 3Q2024 excluding EUR 16m and 1Q-3Q2024 excluding EUR 58m in share and
business investments and loans granted.
Additional key performance indicators are available at elisa.com/investors
(Elisa Operational Data.xlsx).
CEO Topi Manner: Solid financial results, strategy implementation to be
accelerated with transformation programme
In the third quarter, revenue grew by 5 per cent to EUR 561 million. EBITDA
improved by 4 per cent to EUR 214 million, driven by mobile and international
software service revenue as well as fixed service revenue, which turned to
growth during the quarter. Comparable cash flow grew by 12 per cent, driven by
growing EBITDA, a positive change in net working capital and strict CAPEX
discipline.
As we announced today, we have decided to launch a transformation programme to
simplify our operations and to increase our productivity in line with the
strategy of faster profitable growth presented at the Capital Markets Day in
March 2025. The transformation programme is designed to accelerate the execution
of our strategy. At the same time, we are taking swift action to improve our
competitiveness in the current market environment.
During the quarter, competition in the Finnish consumer mobile market became
more intense most notably in lower-speed-tier 4G subscriptions, resulting in
elevated churn. However, mobile service revenue growth was solid at
3.3 per cent, supported by 5G upselling and the updated security features
offering. The growth in fixed service revenue was driven by improved demand for
enterprise network services and the continued strong growth of fiber broadband.
In the International Software Services segment, we saw growth boosted by mergers
and acquisitions, even though tariff-related uncertainties have resulted in some
delays in customer projects.
Around 600,000 customers are already using our updated consumer customer voice
subscriptions with additional security features. These changes in our offering
have improved mobile security in Finland overall. For example, the number of
people using Mobile ID has increased by 70 per cent in the last 12 months. We
also introduced a new feature allowing customers to block suspicious incoming
calls from foreign numbers, which is already making scammers' methods less
effective.
Strong demand for cybersecurity services is continuing among corporate
customers. Kesko, one of the biggest trading sector operators in Northern
Europe, chose Elisa as its provider for cybersecurity services and resilience in
Finland, the Nordics and Baltics, and Poland.
We have also continued our long-term work to promote digital wellbeing among
children and young people. In October, more than 95,000 middle school students
participated in our Super Digischool. This year's topics were digital scams in
the age of AI, online bullying and digital safety for young people.
We are strongly committed to our strategy of faster profitable growth, creating
customer value by being a frontrunner in technology, and continuously improving
our competitiveness, 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 be weak. In particular, there is continuing
uncertainty relating to Russia's war in Ukraine and other geopolitical
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, digital and software 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 interactions,
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 digital and international software services.
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