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

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.