DNA Oyj

DNA Plc's Business review for January-March 2021: EBITDA and operating result improved – DNA is now the market leader in the fixed broadband market

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Despite the exceptional circumstances of the society, DNA fared well in the January-March 2021 period. DNA’s mobile revenues remain on a growth path and the same is true for DNA’s EBITDA, operating profit and postpaid subscription base. Total revenues are also increasing again.

Image: DNA
Image: DNA

Summary of DNA’s key figures for January-March 2021 

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

  • Mobile revenues grew 1% and amounted to EUR 140 million (138).
  • Total revenues grew 3% and amounted to EUR 236 million (230).
  • EBITDA increased 14% and was EUR 93 million (82).
  • Operating profit increased 7% and was EUR 42 million (40).
  • Average revenue per user (ARPU) for mobile communications increased 1.5% and was EUR 17.0 (16.7).
  • The number of mobile subscriptions8) decreased and was 2,683,000 (2,690,000).
    • The number of contract subscriptions (postpaid, mobile broadband and the “Luuri” mobile home phone) increased by 22,000.
    • The number of prepaid subscriptions decreased by 29,000.
  • The number of fixed subscriptions (telephony, Internet and TV) increased 3% and was 904,000 (877,000).
    • The number of fixed broadband subscriptions increased by 40,000.

CEO’s review 

DNA’s business development remained steady in the first quarter of 2021. Our total revenues grew 3% and amounted to EUR 236 million (230). Our mobile revenues were also up, by 1%, and amounted to EUR 140 million (138). DNA’s EBITDA developed strongly in the first quarter, growing 14% to EUR 93 million (82), and our operating profit improved by 7% and was EUR 42 million (40).

Our mobile communication subscription base decreased by 7,000 from the reference period, again exclusively due to the decrease in prepaid subscriptions. On the other hand, the number of contract subscriptions increased by 22,000. At the same time, our average revenue per user (ARPU) increased 1.5% and was EUR 17.0 (16.7).

The number of fixed subscriptions was up by 27,000, in particular due to the increase of 40,000 broadband subscriptions. As a result, DNA became the number one in the fixed broadband market measured by the number of customers*. The achievement is the result of long-term work that DNA has done for years to increase market share and improve the customer experience.

The corona pandemic has passed the one-year milestone, and we at DNA have seen an exceptional growth of data traffic. The same is happening all over the world; according to the report published by the international research company Tefficient in April, global mobile data traffic grew 38% in 2020. As per the same report, at 34.8 gigabytes per month, DNA’s customers had the highest mobile data usage per subscription in Europe. 

The exponential growth in mobile data volumes demonstrates the clear need for new 5G technologies. It would be difficult to meet the needs of growing demand with 4G networks alone, whereas the use of 5G networks allows us to multiply the capacity of our mobile network. DNA’s 5G network construction has progressed rapidly, and our 5G network reached more than 2 million people at the end of the first quarter. In March, Suomen Yhteisverkko Oy (Finnish Shared Network), which is jointly owned by DNA and Telia, began the construction of a new 5G network in Northern and Eastern Finland in cooperation with Nokia.

The sales of 5G subscriptions continued briskly, and two thirds of the phones in DNA’s TOP 15 list of most popular phones were 5G models. Installations of DNA’s 5G Fixed Wireless Access service have also continued at a good pace, and an increasing number of households is interested in the service.

At the end of the first quarter, more than 95% of DNA’s personnel continued to work remotely. According to our personnel survey, remote working has gone smoothly throughout the pandemic, and DNA has placed special emphasis on immediately addressing any concerns over employee well-being. 

Jukka Leinonen
CEO

*) Source: Number of subscriptions reported by the largest broadband operators in their interim reports Q1/2021 (DNA: 591,000, Elisa 567,000 and Telia 470,000).

Key figures 

EUR million

1-3/2021

1-3/2020

Change, %

1-12/2020

Subscription and traffic

 127

125

2

 500

Interconnect revenues and inbound roaming

 10

10

-2

 41

Mobile revenues company's subscriptions

 137

135

1

 541

Other mobile revenues

 3

3

1

 11

Total mobile revenues

 140

138

1

 552

Non-mobile revenues 1)

 44

41

7

 172

Total revenues mobile operation

 183

178

3

 723

 

 

 

 

 

Telephony

 4

4

4

         17

Internet and TV 2)

 38

36

6

      147

Data services

 -  

           -  

 

          -  

Other revenues 3)

 7

7

-9

         29

Total fixed retail revenues

 49

47

4

      193

Wholesale revenues 4)

 4

4

0

         16

Total Revenues fixed operation

53

53

-1

      211

Total revenues5)

236

230

3

      932

 Of which internal revenues

-

           -  

 

-

         

EBITDA before other income and expenses

 93

80

17

 330

Other income and expenses

 -0

          2  

-108

 2

EBITDA 5),6)

 93

82

14

 333

Depreciation and amortisation

 -51

-42

20

-181

Impairment losses

 -  

           -  

-

 -  

Operating profit

 42

40

7

 151

         

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

39

35

14

35

EBITDA/Total revenues (%)

39

36

11

36

Operating profit/Total revenues (%)

18

17

5

16

         

Capex 7)

 30

19

56

308

Capex excl. licences and spectrum and IFRS16

21

17

24

171

         

Mobile

       

No. of mobile subscriptions (in thousands) 8)

 2,683

2,690

0

 2,694

 of which prepaid 9)

 200

229

-13

 209

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

 -  

           -  

-

 

Average revenue per subscription per month (ARPU) in the quarter 10)

 17.0

16.7

1.5

 16.8

 of which contract (postpaid)

 17.7

17.6

0.8

 17.5

 of which prepaid

 7.8

7.2

9.5

 7.9

         

Fixed

       

No. of subscriptions retail market (in thousands):

       

- Telephony

 30

34

-12

 31

- Internet

 591

550

7

 584

- TV 2)

 283

293

-3

 285

         

ARPU in the quarter - Telephony

 47.2

40.3

17

 42.1

ARPU in the quarter - Internet

 16.0

16.1

-1

 16.3

ARPU in the quarter - TV

 7.0

5.8

21

 5.9

1) Device sales and sales from non-mobile business

2) TV = cable pay-TV and DNA TV

3) Digita, maintenance, WLAN/LAN, data security, special services (for professionals) etc.

4) Access & Capacity services, fixed voice interconnection etc.

5) Net sales and EBITDA before other operating income and expenses for 2020 differ from those previously reported due to the transition to Telenor's reporting method. This is a classification difference of EUR 2 million in the comparison period 1–3/2020 and at the same time in the whole of 2020.

6) DNA reassessed the duration of short-term leases based on the new owner and new long-term forecast. The effect of the reassessment on EBITDA was EUR 6 million in Q1/2021.

7) Capex no longer includes frequency payments. In the future, DNA reports the acquisition cost of a new frequency as an investment at the time of acquisition.

8) Postpaid, prepaid, mobile home phone (“Luuri”) and mobile broadband subscriptions.

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

10) 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

Maria Strömberg, CFO, DNA Plc, +358 44 044 3270, maria.stromberg@dna.fi

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

DNA’s financial reporting

Half-year review for 2021 will be published on 20 July 2021.

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Image: DNA
Image: DNA
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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. DNA has about 3.6 million subscriptions in its fixed and mobile communications networks. The company has been awarded numerous times as an excellent employer and family-friendly workplace. In 2020, our total revenue was EUR 934 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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