DNA Plc’s Business Review for January-March 2022: Total revenues as well as mobile network and fixed broadband subscription volumes increased

Summary of DNA’s key figures for January-March 2022

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

• Total revenues grew 1% and amounted to EUR 240 million (236).
• EBITDA decreased 1% and was EUR 92 million (93).
• Operating result decreased 5% and was EUR 41 million (42).
• Average revenue per user (ARPU):
  • ARPU for mobile communications grew 1% and was EUR 17.1 (17.0).
  • ARPU for fixed broadband grew 3% and was EUR 16.4 (16.0).
  • ARPU for TV subscriptions²⁾ grew 7% and was EUR 7.5 (7.0).
• Number of subscriptions:
  • The number of mobile subscriptions⁵⁾ increased and was 2,688,000 (2,683,000).
  • The number of fixed broadband subscriptions increased and came to 615,000 (591,000).
  • The number of TV subscriptions²⁾ decreased and came to 250,000 (283,000).

CEO’s review

As the first quarter of 2022 closed, we were facing a significantly changed environment. The war in Ukraine launched by Russia has caused widespread global uncertainty, clouding the economic outlook. At the same time, accelerating inflation is eroding the purchasing power of consumers and the long-running zero interest rate policy is expected to come to an end. Due to the exceptional situation, the Bank of Finland also revised down its forecast for economic development in 2022. All of this may also impact DNA’s economic outlook.

Nevertheless, the January-March 2022 figures show that DNA’s business has developed steadily despite the situation. Our total revenues grew 1% year-on-year and amounted to EUR 240 million (236). However, our EBITDA and operating result fell slightly from the comparison period. EBITDA decreased 1% to EUR 92 million (93), while operating result decreased 5% and came to EUR 41 million (42). The decrease is attributable to, for example, higher costs in sales, 5G construction and Group services in the first quarter of 2022.

The number of mobile subscriptions increased by 5,000 year-on-year, and their ARPU increased to EUR 17.1 (17.0). The number of fixed broadband subscriptions increased by 24,000 from the comparison period, and their ARPU increased to EUR 16.4 (16.0). The number of fixed telephony and TV subscriptions²⁾ fell as expected.

The demand for 5G subscriptions remained strong, and most phone models sold in March 2022 were 5G-capable. The demand for 5G products was also driven by our expanding 5G network, which reached as much as 66% of the population at the end the first quarter. The significant boost to mobile data speeds made possible by 5G was clearly visible in the latest measurement by Omnitele^8).  In some cases, download speeds in DNA’s network have increased by tenfold over the past four years.

The incidence of infections caused by the coronavirus was at a very high level in Finland in March. Nevertheless, the restrictions have mostly been lifted. The expiry of the national remote working recommendation was also visible at DNA and the share of employees working remotely fell under 95% for the first time in two years. DNA’s employees can continue to choose freely where and how they work and have typically visited the office only 0 to 2 times a week after the restrictions were lifted. During the pandemic, we have seen that giving the employees the freedom to choose how and where they work can be very productive and also increases job satisfaction. DNA plans to increase and enhance this flexibility even further in the second quarter of 2022.

Jussi Tolvanen
CEO

 

Key figures

 

EUR million	1–3/2022	1–3/2021	Change, %	1–12/2021
Subscription and traffic	130	127	2	512
Interconnect revenues and inbound roaming	8	10	-15	39
Mobile revenues company's subscriptions	138	137	1	552
Other mobile revenues	2	3	-14	13
Total mobile revenues	141	140	1	565
Non-mobile revenues 1)	46	44	6	176
Total revenues mobile operation	187	183	2	741
Telephony	4	4	-15	16
Internet and TV 2)	39	38	3	157
Other revenues 3)	6	7	-13	26
Total fixed retail revenues	49	49	0	200
Wholesale revenues 4)	4	4	2	15
Total Revenues fixed operation	53	53	0	215
Total revenues	240	236	1	956
EBITDA before other income and expenses	92	93	-1	359
Other income and expenses	-	-0	0	-0
EBITDA	92	93	-1	359
Depreciation and amortisation	-51	-51	1	-204
Operating result	41	42	-5	154
EBITDA before other income and expenses/Total revenues (%)	38	39		38
EBITDA/Total revenues (%)	38	39		38
Operating result/Total revenues (%)	17	18		16
Capex	28	30	-6	191
Capex excl. licences and spectrum and IFRS16	22	21	5	160
Mobile:
No. of mobile subscriptions (in thousands) 5)	2,688	2,683	0	2,699
of which prepaid 6)	204	200	2	213
Average revenue per subscription per month (ARPU)7) in the quarter	17.1	17.0	1	17.1
of which contract (postpaid)	17.9	17.7	1	17.8
of which prepaid	8.4	7.8	7	8.2
Fixed:
No. of subscriptions retail market (in thousands)
- Telephony	25	30	-17	27
- Internet	615	591	4	603
- TV 2)	250	283	-12	262
ARPU 7) in the quarter - Telephony	40.2	47.2	-15	44.0
ARPU 7) in the quarter - Internet	16.4	16.0	3	16.3
ARPU 7) in the quarter - TV	7.5	7.0	7	7.5

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. Postpaid, prepaid, mobile home phone (“Luuri”) and mobile broadband subscriptions.
6. Prepaid subscriptions used or loaded within the past three months.
7. ARPU = Monthly mobile revenues (company’s subscriptions) and traffic revenues + interconnection / average number of subscriptions.
8. Omnitele’s study on mobile download speeds, 3/2022. The measurements were conducted in 11 regions, covering 19 cities: Helsinki, Espoo, Kauniainen, Vantaa, Kerava, Tuusula, Järvenpää, Turku, Raisio, Naantali, Kaarina, Tampere, Pirkkala, Nokia, Ylöjärvi, Kangasala, Jyväskylä, Lahti and Pori. The data transfer speeds varied between areas. The results are presented as averages for each area. The data transfer speeds and ranking of the operators also varied between locations within each area. Further information in Finnish: https://corporate.dna.fi/lehdistotiedotteet?type=stt2&id=69937838

Additional information:

Jussi Tolvanen, CEO, DNA Plc, +358 44 044 1000, jussi.tolvanen@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