DNA Oyj

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

Share

DNA's business developed steadily in the first quarter of 2022. Total revenues as well as mobile network and fixed broadband subscription volumes increased. However, EBITDA and operating result fell slightly from the comparison period.

Image: DNA
Image: DNA

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 Omnitele8).  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

Images

Image: DNA
Image: DNA
Download

Links

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 2021, our total revenue was EUR 956 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.

Subscribe to releases from DNA Oyj

Subscribe to all the latest releases from DNA Oyj by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from DNA Oyj

How are network connections protected against influence attempts? Several measures help maintain technical capabilities in exceptional situations10.5.2022 10:30:00 EEST | Press release

GPS signal jamming, cyberattacks and sabotage are examples of hybrid influencing aimed at weakening the ability of individuals and businesses in the targeted area to function. Concerns have recently arisen about attempts to influence Finland, which leads to the question: how well are network connections protected in Finland? Ville Virtanen, Senior Vice President, Technology at DNA, says that the operator's efforts to secure the continuity of Finnish network operations are multilayered.

Miten verkkoyhteydet on suojattu vaikuttamisyrityksiltä? Toimia teknisen kyvykkyyden säilyttämiseksi poikkeustilanteissa on useita10.5.2022 10:30:00 EEST | Tiedote

GPS-signaalien häirintä, kyberhyökkäykset ja sabotaasi ovat esimerkkejä hybridivaikuttamisesta, jolla pyritään heikentämään kohteena olevan alueen yksilöiden ja yritysten toimintakykyä. Viime aikoina uutisiin on noussut huoli Suomeen kohdistuvista vaikuttamisyrityksistä, mikä saa kysymään: kuinka hyvin verkkoyhteydet on suojattu Suomessa? DNA:n tekninen johtaja Ville Virtanen kertoo, että operaattorin toimet suomalaisen verkkotoiminnan jatkuvuuden varmentamiseksi ovat monikerroksisia.

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom