DNA’s mobile revenue, EBITDA and operating result increased – device sales continued to be impacted

Summary of DNA’s key figures for July-September 2020

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

• Mobile revenue grew 1% and amounted to EUR 138 million (136).
• Total revenue decreased 3% and came to EUR 233 million (240).
• EBITDA increased 11% and was EUR 88 million (79).
• Comparable EBITDA¹⁾increased 6% and was EUR 88 million (84).
• Operating profit increased 16% and was EUR 43 million (37).
• Comparable operating profit²⁾increased 4% and was EUR 43 million (41).
• Revenue per user (ARPU) for mobile communications increased1% and was EUR 16.7 (16.5).
• The number of mobile subscriptions decreased and was 2,706,000 (2,708,000). The number of billing subscriptions (postpaid, Luuri and mobile broadband subscriptions) grew by 17,000 and the number of prepaid subscriptions decreased by 19,000.
• The number of fixed subscriptions (telephony, Internet and TV) decreased 1% and was 895,000 (900,000). The number of fixed broadband subscriptions increased by 38,000.

CEO’s review 

DNA's business has continued to develop steadily during the third quarter of 2020. Even though total revenue decreased 3% from the reference period and came to EUR 233 million (240), our mobile revenue increased 1% and came to EUR 138 million (136). The decrease in total revenue was mainly due to the selling of terrestrial pay-TV network business at the turn of the year, as well as the slowdown in mobile device sales continuing from the spring, caused by the exceptional measures brought on by the coronavirus. DNA’s comparable EBITDA developed favourably in the third quarter, increasing 6% to EUR 88 million (84). Comparable operating profit also increased by 4% and was EUR 43 million (41). 

Our mobile communication subscription base decreased by 2,000 from the reference period, exclusively due to the decrease in prepaid subscriptions. Our billing subscription base increased by 17,000 from the reference period. At the same time, revenue per user (ARPU) for mobile communications increased 1% year-on-year and was EUR 16.7 (16.5). Our fixed-network subscription base decreased by 5,000, but the number of fixed broadband subscriptions increased by 38,000.

DNA’s role as the provider of fast and secure connections has been more relevant during the pandemic than ever. As meetings in person have been significantly reduced, the use of video-based services has increased. This has been reflected in the significant jump in data volumes and an increasing demand for fast connections. According to the latest report published by the international research company Tefficient in September, DNA’s customers again had the highest mobile data usage per subscription in the world. During the first half of 2020, the exceptional circumstances boosted data usage per subscription to as much as 33.1 gigabytes per month (25.3).

Mobile data volumes will increase further as 5G becomes more prevalent. The sales of 5G subscriptions have continued vigorously, and DNA’s TOP 15 list of most popular phones already featured four 5G models in September. Installations of DNA’s 5G Fixed Wireless Access service have also continued, and feedback from customers has been positive.

DNA has made considerable efforts to rapidly expand its 5G network range. The construction has proceeded as planned despite the exceptional circumstances brought on by the coronavirus, and the network is already available for more than 1.2 million people in 25 municipalities. In addition, DNA’s 5G network reaches up to 33 other municipalities with a more local coverage. DNA plans to reach more than 1.5 million people by the end of 2020.

The pandemic is worsening again, and under such exceptional circumstances, it is difficult to foresee the outlook for DNA’s operating environment and market. The pandemic is likely to slow down the economic growth in Finland too, which can have a negative impact on the demand for DNA’s services. On the other hand, the use of telecommunication services is likely to remain high.

At the end of the third quarter, more than 95% of DNA’s personnel continued to work remotely. We continue to follow the development of the pandemic closely and will make decisions on appropriate action based on current situation. According to our personnel survey, remote working has gone smoothly.

Jukka Leinonen

CEO

Key figures

The calculation method of the key figures presented in this table differs from that of DNA’s previous key figures. The figures in this table are presented the same way as the key figures published by DNA’s parent company Telenor ASA except for the figures for total revenues and EBITDA. The difference in total revenues and EBITDA is due to differences in the classification of certain items. The comparability of the figures and the vocabulary have been described in a press release issued on 28 April 2020, which is available on DNA's website: https://corporate.dna.fi/press-releases?type=stt1&id=69879917

 

EUR million	7-9/2020	7-9/2019	Change, %	1–9/2020	1-9/2019	Change, %	1-12/2019
Subscription and traffic 3)	125	124	1	375	362	4	486
Interconnect revenues and inbound roaming	10	10	1	31	30	3	40
Mobile revenues company's subscriptions	135	134	1	405	392	3	525
Other mobile revenues	3	3	1	8	7	13	10
Total mobile revenues	138	136	1	413	399	4	535
Non-mobile revenues 4)	43	46	-5	121	132	-8	182
Total revenues mobile operation	181	182	-1	534	531	1	717
Telephony	4	4	-15	12	14	-11	18
Internet and TV 5)	37	37	0	109	109	0	145
Data services	-	-		-	-		-
Other revenues 6)	7	12	-43	24	37	-35	50
Total fixed retail revenues	48	54	-11	146	161	-9	214
Wholesale revenues 7)	4	4	11	12	11	5	15
Total Revenues fixed operation	52	58	-10	158	172	-8	229
Total revenues8)	233	240	-3	692	702	-1	946
Of which internal revenues	-	-		-	-		-
EBITDA before other income and expenses	88	79	11	250	233	7	306
Other income and expenses	(0)	0	-	(0)	0	-	-
EBITDA 8),9)	88	79	11	250	233	7	306
Comparable EBITDA 1)	88	84	6	250	238	5	310
Depreciation and amortisation	(45)	(42)	7	(131)	(126)	4	(172)
Impairment losses	-	-	-	-	-		-
Operating profit	43	37	16	119	108	11	134
Comparable operating profit 2)	43	41	4	119	112	6	141
EBITDA before other income and expenses/Total revenues (%)	38	33	15	36	33	9	32
EBITDA/Total revenues (%)	38	33	15	36	33	9	32
Operating profit/Total revenues (%)	19	15	19	17	15	12	14
Capex 10)	174	27	540	240	85	184	159
Capex excl. licences and spectrum and IFRS16	44	26	67	96	68	40	140
Mobile
No. of mobile subscriptions (in thousands) 11)	2 706	2 708	0	2 706	2 708	0	2 696
of which prepaid 12)	218	237	-8	218	237	-8	225
Average traffic minutes per subscription per month (AMPU) in the quarter	-	-	-	-	-		-
Average revenue per subscription per month (ARPU) in the quarter 13)	16.7	16.5	1.4	16.8	16.2	3,6	16.3
of which contract (postpaid)	17.4	17.4	0,5	17.6	17.1	2,7	17.2
of which prepaid	8.3	7.2	15.3	7,7	6,7	16,1	6.9
Fixed
No. of subscriptions retail market (in thousands):
- Telephony	33	34	-5	33	34	-5	36
- Internet	573	535	7	573	535	7	542
- TV 14)	289	330	-12	289	330	-12	330
ARPU in the quarter - Telephony	37	42	-11	41	43	-5	42
ARPU in the quarter - Internet	16	17	-1	16	17	-4	17
ARPU in the quarter - TV	6	6	0	6	6	-10	6

¹⁾ The comparability of the 2019 EBITDA was affected by non-recurring expense items of EUR 4 million in relation to business restructuring. 1–9/2020 there are no items affecting comparability.

²⁾ The comparability of the 2019 operating result was affected by non-recurring items of EUR 7 million, of which EUR 4 million were in connection to business restructuring and EUR 3 million in relation to the sale of DNA’s VHF frequency-based terrestrial network business. 1–9/2020 there are no items affecting comparability.

³⁾ Subscription and traffic revenues consist of revenue from mobile subscriptions and traffic.

⁴⁾ Non-mobile revenues = device sales and sales from non-mobile business

⁵⁾ TV = revenue from the following services: cable pay-TV and DNA TV.

⁶⁾ Other revenue from fixed services; Terrestrial TV / Digita, maintenance, WLAN/LAN, data security, special services (for professionals) etc.

⁷⁾ Wholesale revenues = Access & Capacity services, fixed voice interconnection etc.

⁸⁾ The difference in the total revenues and EBITDA figures published by DNA and Telenor is due to some differences in classification.

⁹⁾ Based on the new owner and the new long-term forecast, DNA re-evaluated the duration of the short-term leases. The effect of the reassessment on EBITDA was EUR 2 million.

¹⁰⁾ Based on the new owner and the new long-term forecast, DNA re-evaluated the duration of the short-term leases. The effect of the reassessment on Capex was EUR 121 million.

¹¹⁾ The number of mobile subscriptions includes postpaid, prepaid, Luuri and mobile broadband subscriptions.

¹²⁾ Prepaid subscriptions used or loaded within the past three months.

¹³⁾ ARPU = Monthly mobile revenues (company’s subscriptions) and traffic revenues + interconnection / average number of subscriptions

¹⁴⁾ Cable pay-TV and DNA TV subscriptions

 

Additional information:

Jukka Leinonen, CEO, DNA Plc, +358 44 044 1000, jukka.leinonen@dna.fi

Timo Karppinen, CFO, DNA Plc, +358 44 044 5007, timo.karppinen@dna.fi

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