DNA Plc’s Business Review for January-September 2022: Total revenues, EBITDA and result increased despite uncertainty in the market environment

Summary of DNA’s key figures for January-September 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 4% and amounted to EUR 734 million (705).
• EBITDA increased 3% and was EUR 279 million (271).
• Operating result increased 8% and was EUR 126 million (117).
• Average revenue per user (ARPU)¹⁾:
  • ARPU for mobile communications²⁾ grew 2% and was EUR 17.3 (17.0).
  • ARPU for fixed broadband grew 1% and was EUR 16.4 (16.2).
  • ARPU for TV subscriptions³⁾ grew 14% and was EUR 8.3 (7.3).

• Number of subscriptions:
  • The number of mobile subscriptions²⁾ increased and was 2,746,000 (2,707,000).
  • The number of fixed broadband subscriptions increased and was 636,000 (601,000).
  • The number of TV subscriptions³⁾ decreased and was 237,000 (273,000).

CEO’s review

The end of the third quarter was marked by general uncertainty in the markets and the world around them. Russia’s war against Ukraine has caused widespread global uncertainty, which also affects the economic outlook in Finland. Inflation has remained exceptionally high in comparison to past few years, and both the most widely used reference interest rates and energy prices have increased rapidly. In September, Statistics Finland reported that consumer confidence was at its weakest during its entire measuring history since 1995. All of this may also impact DNA’s economic outlook.

Nevertheless, DNA’s January-September 2022 figures show that our business has developed steadily despite the uncertain market environment. Our total revenues grew 4% year-on-year and amounted to EUR 734 million (705), EBITDA increased 3% and was 279 million (271) and operating result increased 8% to EUR 126 million (117). The number of mobile subscriptions²⁾ increased by 38,000 year-on-year, and their ARPU increased to EUR 17.3 (17.0). The number of fixed broadband subscriptions increased by 35,000 from the comparison period, and their ARPU increased to EUR 16.4 (16.2). The number of fixed telephony and TV subscriptions fell as expected.

The demand for 5G subscriptions increased notably in the July-September period, and most phone models sold in September were 5G-capable. The sales of laptops with SIM card slots have also increased. We have expanded our 5G network to keep up with the demand, and it reached as much as 76% of the population at the end the third quarter. According to Tefficient’s latest report⁴⁾, DNA’s customers used the Europe’s largest amount of mobile data per subscription in the first half of the year, which emphasises the need for a robust network. As regards the speed of our mobile network, the highest average 5G download speed in the latest measurement by Omnitele⁵⁾ in eight cities in Finland was achieved with DNA’s subscription.

As an employer, DNA took another step forward in terms of freedom, responsibility and trust by launching a pilot of fully location-independent recruitment and working model in our technology and IT departments. In practice, this means that new employees can choose to work in any of our many locations around Finland. And this is in addition to our already flexible freedom to work remotely. We also introduced other improvements to our personnel policies, such as extending the possibility of remote working from abroad to four weeks a year. The reforms are based on DNA’s new employer promise to be a human and one-of-a-kind workplace for all DNA employees. It is also our response to the nationwide IT and technology skills shortage.

Jussi Tolvanen
CEO

 

Key figures

EUR million	1–9/2022	1–9/2021	Change, %	1–12/2021
Subscription and traffic	397	383	3	512
Interconnect revenues and inbound roaming	25	29	-15	39
Mobile revenues company's subscriptions	422	413	2	552
Other mobile revenues	13	9	32	13
Total mobile revenues	434	422	3	565
Non-mobile revenues6) 7)	140	123	14	176
Total revenues mobile operation7)	574	545	5	741
Telephony	10	12	-15	16
Internet and TV3)	121	117	4	157
Other revenues8)	18	19	-7	26
Total fixed retail revenues	150	148	1	200
Wholesale revenues9)	10	12	-16	15
Total Revenues fixed operation	159	160	-1	215
Total revenues	734	705	4	956
EBITDA before other income and expenses	279	271	3	359
Other income and expenses	-	-0	0	-0
EBITDA 7)	279	271	3	359
Depreciation and amortisation	-153	-153	0	-204
Operating result7)	126	117	8	154
EBITDA before other income and expenses/Total revenues (%)	38	38		38
EBITDA/Total revenues (%)	38	38		38
Operating result/Total revenues (%)	17	17		16
Capex	114	117	-3	191
Capex excl. licences and spectrum and IFRS16	95	92	3	160
Mobile:
No. of mobile subscriptions (in thousands)2)	2,746	2,707	1	2,699
of which prepaid10)	234	219	7	213
Average revenue per subscription per month (ARPU)1), EUR	17.3	17.0	2	17.1
of which contract (postpaid), EUR	18.0	17.8	2	17.8
of which prepaid, EUR	8.6	8.1	7	8.2
Fixed:
No. of subscriptions retail market (in thousands)
- Telephony	21	28	-25	27
- Internet	636	601	6	603
- TV3)	237	273	-13	262
ARPU1) – Telephony, EUR	40.6	44.6	-9	44.0
ARPU1) – Internet, EUR	16.4	16.2	1	16.3
ARPU1) – TV, EUR	8.3	7.3	14	7.5

1. ARPU = Monthly mobile revenues (company’s subscriptions) and traffic revenues + interconnection / average number of subscriptions.
2. Postpaid, prepaid, mobile home phone (“Luuri”) and mobile broadband subscriptions.
3. TV = cable pay-TV and DNA TV.
4. Tefficient Industry Analysis #2 2022. Further information: https://corporate.dna.fi/press-releases?type=stt1&id=69950368
5. Omnitele’s study on mobile download speeds, 7/2022. The measurements were conducted in eight cities: Helsinki, Espoo, Vantaa, Tampere, Turku, Jyväskylä, Lahti and Pori. DNA’s subscription reached the highest average download speed in seven of the eight cities. The data transfer speeds varied between areas. The results are presented as averages for each area as well as an overall average for all measurements. 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=69947826
6. Device sales and sales from non-mobile business.
7. In January-September 2021, a one-time correction was made to handset revenue (non-mobile revenues) for the previously reported quarters of 2021. The correction has a negative impact on EBITDA in the third quarter of 2021 but had no material impact on the figures for 2021.
8. Digita, maintenance, WLAN/LAN, data security, special services (for professionals) etc.
9. Access & Capacity services, fixed voice interconnection etc.
10. Prepaid subscriptions used or loaded within the past three months.

Additional information:

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

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