DNA Oyj

DNA Plc’s Business review for January-March 2020

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DNA’s year 2020 off to a good start - mobile revenues grew 6%.

Summary of DNA’s key figures for January-March 2020

Unless otherwise stated, the comparison figures in brackets refer to the corresponding period in the previous year (reference period). Figures are unaudited.

  • Mobile revenue grew 6% and amounted to EUR 138 million (130).
  • Total revenue increased 1% year-on-year and came to EUR 232 million (230).
  • EBITDA increased 7% and was EUR 82 million (76).
  • Operating profit increased 14% and was EUR 40 million (35).
  • Revenue per user (ARPU) for mobile communications increased 5% and was EUR 17 (16).
  • The number of mobile subscriptions decreased and was 2,690,000 (2,694,000). The number of postpaid (contract) subscriptions grew by 10,000 and the number of prepaid subscriptions decreased by 14,000.
  • The number of fixed subscriptions (telephony, Internet and TV) grew 2% and was 877,000 (858,000).


CEO’s review

The first quarter of 2020 closed under exceptional circumstances. The spread of coronavirus from China and the resulting global pandemic changed the world in a flash, also Finland and DNA’s market and operating environment. At the end of the quarter, the effect of the crisis was quickly apparent in areas such as higher volume of customer service and a slowdown in mobile device sales at DNA Stores. As people stayed at home to work and study, the data volumes in DNA’s network increased significantly. 

Communication networks gain importance under exceptional circumstances like these. To ensure sufficient network capacity also under these special circumstances, we maintain and build our 5G and 4G network infrastructure continuously. To safeguard operational reliability, our network management is decentralized.

DNA fared well under these challenging and exceptional market conditions. Total revenues for the January-March period increased slightly year-on-year and amounted to EUR 232 million (230). The positive development was fuelled in particular by our mobile revenues, which grew 6% from the reference period. Growth was mostly due to the positive development of customer billing and our postpaid subscription base. EBITDA developed strongly in the first quarter. The favourable development was due to e.g. increased mobile service revenue and operational efficiency. EBITDA increased 7% from the reference period and was EUR 82 million. Operating profit increased by 14% to EUR 40 million (35).

Our mobile communication subscription base decreased by 4,000 in the January-March period, due to a decrease in prepaid subscriptions. Our postpaid (contract) subscription base increased by 11,000.  Revenue per user (ARPU) for mobile communications increased more than 5% year-on-year and was EUR 17 (16). Our fixed-network subscription base grew by 19,000, boosted by new Internet connections in particular.

DNA has launched the sales of 5G subscriptions for both consumer and corporate customers. Mobile device manufacturers are expected to provide new 5G models to lower price points as the year progresses, and demand for subscriptions is expected to pick up once these are available. We launched the sales of our 5G Fixed Wireless Access service at the end of 2019. During the first part of 2020, DNA’s 5G network service has been made available to almost 15 residential areas. During the second quarter, our 5G network will be expanded to approximately 10 new locations, including Lahti, Jyväskylä, Oulu and Kuopio. The benefits of 5G and its positive impact on customer experience will become more evident as customers use increasingly rich content, higher resolution videos, and services such as online gaming, where low latency is critical. We will continue to improve and expand our 4G network parallel to the 5G investments.

Jukka Leinonen
CEO

Key figures 

The calculation method of the key figures presented in this table differs from that of DNA’s previous key figures. The figures in this table are presented the same way as the key figures published by DNA’s parent company Telenor ASA except for the figures for total revenues and EBITDA. The difference in total revenues and EBITDA is due to differences in the classification of certain items. An appendix to this review contains the quarterly figures for 2019 according to the new calculation method.

EUR million

1-3/2020

1-3/2019

Change, %

1-12/2019

Subscription and traffic 1)

125

118

6 %

486

Interconnect revenues and inbound roaming

10

10

4 %

40

Mobile revenues company's subscriptions

135

128

6 %

525

Other mobile revenues 

3

2

36 %

10

Total mobile revenues

138

130

6 %

535

Non-mobile revenues 4)

41

43

-5 %

182

Total revenues mobile operation

178

173

3 %

717

 

 

 

 

 

Telephony

4

5

-17 %

18

Internet and TV 3)

36

36

0 %

145

Data services

-  

-  

-  

Other revenues 6)

9

12

-24 %

50

Total fixed retail revenues

50

53

-7 %

214

Wholesale revenues 5)

4

4

-2 %

15

Total Revenues fixed operation

53

57

-7 %

229

Total revenues2)

232

230

1 %

946

   Of which internal revenues

-  

-  

-

 

EBITDA before other income and expenses

82

76

7 %

306

Other income and expenses

-  

-

-   

-

EBITDA 2)

82

76

7 %

306

Depreciation and amortisation

 (42)

(41)

2 %

 (172)

Impairment losses

-  

-  

-  

Operating profit

40

35

14 %

134

 

EBITDA before other income and expenses/ Total revenues (%)

35

33

7 %

32

EBITDA/Total revenues (%)

35

33

7 %

32

Operating profit/Total revenues (%)

17

15

13 %

14

 

Capex

28

32

-14 %

159

Capex excl. licences and spectrum

17

18

-7 %

140

 

Mobile

 

No. of mobile subscriptions (in thousands)

2 690

2 694

0 %

2 696

   of which prepaid 7)

229

243

-6 %

225

Average traffic minutes per subscription per month (AMPU) in the quarter

-  

-  

-

Average revenue per subscription per month (ARPU) in the quarter 9)

17

16

5 %

16

   of which contract (postpaid)

18

17

4 %

17

   of which prepaid

7

6

13 %

7

 

Fixed

 

No. of subscriptions retail market (in thousands):

 

- Telephony

34

38

-10 %

36

- Internet

550

485

14 %

542

- TV  8)

293

335

-13 %

330

 

ARPU in the quarter - Telephony

40

45

-11 %

43

ARPU in the quarter - Internet

16

17

-7 %

17

ARPU in the quarter - TV

6

6

-7 %

6

1) Subscription and traffic revenues consist of revenue from mobile subscriptions and traffic.

2) The difference in the total revenues and EBITDA figures published by DNA and Telenor is due to some differences in classification.

3) TV = revenue from the following services: cable pay-TV and DNA TV.

4) Other revenue from fixed services; Terrestrial TV / Digita, maintenance, WLAN/LAN, data security, special services (for professionals) etc.

5) Wholesale revenues = Access & Capacity services, fixed voice interconnection etc.

6) Non-mobile revenues = device sales and sales from non-mobile business

7) Prepaid subscriptions used or loaded within the past three months.

8) Cable pay-TV and DNA TV subscriptions 

9) ARPU = Monthly mobile revenues (company’s subscriptions) and traffic revenues + interconnection / average number of subscriptions

Additional information:

Jukka Leinonen, CEO, DNA Plc, +358 44 044 1000, jukka.leinonen@dna.fi

Timo Karppinen, CFO, DNA Plc, +358 44 044 5007, timo.karppinen@dna.fi

DNA Corporate Communications, +358 44 044 8000, viestinta@dna.fi
 

DNA’s financial reporting

Half-year financial report 2020 (January-June) will be published on 16 July 2020.

***

Attachment 1:

Quarterly figures for 2019 according to the new calculation method:

EUR Million

1-3/2019

4-6/2019

7-9/2019

10-12/2019

Subscription and traffic 1)

118

120

124

124

Interconnect revenues and inbound roaming

10

10

10

10

Mobile revenues company's subscriptions

128

130

134

133

Other mobile revenues 

2

2

3

3

Total mobile revenues

130

133

136

136

Non-mobile revenues 4)

43

43

46

50

Total revenues mobile operation

173

176

182

187

 

 

 

 

 

Telephony

5

5

4

4

Internet and TV 3)

36

36

37

36

Data services

-  

-  

-  

-  

Other revenues 6)

12

13

12

13

Total fixed retail revenues

53

53

54

53

Wholesale revenues 5)

4

4

4

4

Total Revenues fixed operation

57

57

58

57

Total revenues2)

230

233

240

243

   Of which internal revenues

-  

-  

-  

-  

EBITDA before other income and expenses

76

78

79

73

Other income and expenses

 (0)

0

0

 (0)

EBITDA 2)

76

78

79

72

Depreciation and amortisation

 (41)

 (42)

 (42)

 (46)

Impairment losses

-  

-  

-  

Operating profit

35

36

37

26

EBITDA before other income and expenses/ Total revenues (%)

33

33

33

30

EBITDA/Total revenues (%)

33

33

33

30

Operating profit/Total revenues (%)

15

15

15

11

Capex

32

25

27

74

Capex excl. licences and spectrum

18

24

26

72

Mobile

No. of mobile subscriptions (in thousands)

2 694

2 698

2 708

2 696

   of which prepaid 7)

243

233

237

225

Average traffic minutes per subscription per month (AMPU) in the quarter

-  

-  

-  

-  

Average revenue per subscription per month (ARPU) in the quarter 9)

16

16

16

16

   of which contract (postpaid)

17

17

17

17

   of which prepaid

6

6

7

8

Fixed

No. of subscriptions retail market (in thousands):

- Telephony

38

36

34

36

- Internet

485

530

535

542

- TV  8)

335

327

330

330

ARPU in the quarter - Telephony

45

43

42

40

ARPU in the quarter - Internet

17

17

17

16

ARPU in the quarter - TV

6

6

6

6

1) Subscription and traffic revenues consist of revenue from mobile subscriptions and traffic.

2) The difference in the total revenues and EBITDA figures published by DNA and Telenor is due to some differences in classification.

3) TV = revenue from the following services: cable pay-TV and DNA TV.

4) Other revenue from fixed services; Terrestrial TV / Digita, maintenance, WLAN/LAN, data security, special services (for professionals) etc.

5) Wholesale revenues = Access & Capacity services, fixed voice interconnection etc.

6) Non-mobile revenues = device sales and sales from non-mobile business

7) Prepaid subscriptions used or loaded within the past three months.

8) Cable pay-TV and DNA TV subscriptions 

9) ARPU = Monthly mobile revenues (company’s subscriptions) and traffic revenues + interconnection / average number of subscriptions

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About DNA Oyj

DNA Oyj
DNA Oyj
PL 10
01044 DNA

http://www.dna.fi

DNA is one of the leading telecommunications companies in Finland. We want to make our customers' daily lives less complicated. We offer connections, services and devices for homes and workplaces, contributing to the digitalisation of society. DNA's customers are continuously among the world mobile data usage leaders. We are Finland's largest cable TV operator. DNA has more than 4 million subscriptions in its fixed and mobile communications networks. The company was ranked the best employer in Finland in the large companies category of the 2019 Great Place to Work survey. In 2019, our net sales were EUR 942 million and we employ about 1,600 people around Finland. DNA is a part of Telenor Group, a leading telecommunications company across the Nordics. More information: www.dna.fi, Twitter @DNA_fi, Facebook @DNA.fi and LinkedIn @DNA-Oyj.

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