DNA Plc’s Business Review for January-September 2021: Positive development in total revenues and EBITDA, popularity of 5G products continues to grow

Summary of DNA’s key figures for January-September 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 2% and amounted to EUR 422 million (413).
• Total revenues grew 2% and amounted to EUR 705 million (690).
• EBITDA increased 8% and was EUR 271 million (250).
• Operating result decreased 1% and was EUR 117 million (119).
• Average revenue per user (ARPU) for mobile communications increased 2% and was EUR 17.0 (16.7).
• The number of mobile subscriptions⁹⁾ increased and was 2,707,000 (2,706,000).
• The number of fixed subscriptions (telephony, Internet and TV) grew 1% and was 902,000 (895,000).
  • The number of fixed broadband subscriptions increased by 28,000.
    
    

CEO’s review

Having taken the helm of DNA on Monday 11 October, I am happy to have the opportunity to discuss very positive growth figures in what is my very first CEO’s review. Furthermore, the positive development we have experienced during the exceptional circumstances is not limited to financial success – we also run our business in a more responsible way, have enhanced our customer experience and are a more flexible employer. At DNA, we live and breathe our values every day. 

According to DNA’s key figures, our business development remained steady in January-September 2021. Our total revenues grew 2% from the reference period and amounted to EUR 705 million (690). Our mobile revenues were also up, by 2%, and amounted to EUR 422 million (413). DNA’s EBITDA has developed well in 2021, growing 8% to EUR 271 million (250). Our operating result also remained steady at EUR 117 million (119), down 1% from the reference period.

Our mobile communication subscription base increased by 1,000 from the reference period. At the same time, our average revenue per user (ARPU) increased to EUR 17.0 (16.7). The number of fixed subscriptions was up by 7,000. While the number of fixed voice and TV subscriptions decreased, the number of fixed broadband subscription grew by 28,000.

Sales of 5G subscriptions have clearly gained momentum during 2021. This is reflected in the sales of 5G phones, and 70% of the phones sold this year are 5G models. This development is driven by the quick construction of our 5G network, which already reaches more than half of the population. Quickly expanding 5G coverage has also boosted the sales of DNA’s 5G Fixed Wireless Access subscriptions.

At the end of the third quarter, the large majority of DNA’s personnel continued to work remotely. DNA’s remote working recommendation expired in mid-October at the same with the national remote working recommendation, immediately increasing the utilisation rate of our premises. While I am glad to see our employees returning to our modern facilities, I am equally pleased with the fact that they can continue to choose freely where and how they work. It’s not either-or, it's both.

Jussi Tolvanen
CEO

Key figures

EUR million	1-9/2021	1-9/2020	Change, %	1-12/2020
Subscription and traffic	383	375	2	500
Interconnect revenues and inbound roaming	29	31	-4	41
Mobile revenues company's subscriptions	413	405	2	541
Other mobile revenues	9	8	16	11
Total mobile revenues	422	413	2	552
Non-mobile revenues 1),2)	123	121	2	172
Total revenues mobile operation 2)	545	534	2	723
Telephony	12	12	-1	17
Internet and TV 3)	117	109	7	147
Data services	-	-	-	-
Other revenues 4)	19	22	-12	29
Total fixed retail revenues	148	144	3	193
Wholesale revenues 5)	12	12	-2	16
Total Revenues fixed operation	160	155	3	211
Total revenues 6)	705	690	2	932
Of which internal revenues	-	-		-
EBITDA before other income and expenses 2)	271	248	9	330
Other income and expenses	(0)	2	-108	2
EBITDA 2),6),7)	271	250	8	333
Depreciation and amortisation	(153)	(131)	17	-181
Impairment losses	-	-	-	-
Operating result 2)	117	119	-1	151
EBITDA before other income and expenses/Total revenues (%)	38	36	7	35
EBITDA/Total revenues (%)	38	36	6	36
Operating result/Total revenues (%)	17	17	-4	16
Capex 8)	117	224	-48	308
Capex excl. licences and spectrum and IFRS16	92	96	-4	171
Mobile:
No. of mobile subscriptions (in thousands) 9)	2,707	2,706	0	2,694
of which prepaid 10)	219	218	1	209
Average traffic minutes per subscription per month (AMPU) in the quarter	-	-	0
Average revenue per subscription per month (ARPU) in the quarter 11)	17.0	16.7	2	16.8
of which contract (postpaid)	17.7	17.4	2	17.5
of which prepaid	8.3	8.3	0	7.9
Fixed:
No. of subscriptions retail market (in thousands)
- Telephony	28	33	-14	31
- Internet	601	573	5	584
- TV 3)	273	289	-6	285
ARPU in the quarter - Telephony	39.3	37.2	6	42.1
ARPU in the quarter - Internet	16.4	16.3	0	16.3
ARPU in the quarter - TV	7.5	6.2	21	5.9

1. Device sales and sales from non-mobile business.
2. A one-time correction has been made to handset revenue and cost (non-mobile revenue) for the previously reported quarters of 2021. The correction has a negative impact on EBITDA in the third quarter of 2021 but has no material impact on the year-to-date figures by the end of September.
3. TV = cable pay-TV and DNA TV.
4. Digita, maintenance, WLAN/LAN, data security, special services (for professionals) etc.
5. Access & Capacity services, fixed voice interconnection etc.
6. Total revenues and EBITDA before other income and expenses differ from those previously reported for 2020 due to the transition to Telenor's reporting method. This is a classification difference of EUR 2 million in the comparison period 1–9/2020 and at the same time in the whole of 2020.
7. DNA reassessed the duration of short-term leases in 2020 based on the new owner and new long-term forecast. The effect of the reassessment on EBITDA was EUR 15 million in January-August 2021.
8. 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.
9. Postpaid, prepaid, mobile home phone (“Luuri”) and mobile broadband subscriptions.
10. Prepaid subscriptions used or loaded within the past three months.
11. ARPU = Monthly mobile revenues (company’s subscriptions) and traffic revenues + interconnection / average number of subscriptions.
    
    

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