DNA Plc’s Business Review for January-September 2023: Total revenues, EBITDA, and operating result increased

Summary of DNA’s key figures for January-September 2023

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

• Total revenues grew 7% and amounted to EUR 784 million (734).
• EBITDA increased 5% and was EUR 293 million (279).
• Operating result increased 19% and was EUR 150 million (126).
• Average revenue per user (ARPU)¹⁾:
  • ARPU for mobile communications²⁾ grew 4% and was EUR 18.0 (17.3).
  • ARPU for fixed broadband remained stable and was EUR 16.5 (16.4).
  • ARPU for TV subscriptions³⁾ grew 17% and was EUR 9.7 (8.3).

• Number of subscriptions:
  • The number of mobile subscriptions²⁾ increased and was 2,769,000 (2,746,000).
  • The number of fixed broadband subscriptions increased and was 666,000 (636,000).
  • The number of TV subscriptions³⁾ decreased and was 223,000 (237,000).

CEO’s review

DNA’s January–September 2023 figures show that our business continued to develop favourably. Our total revenues grew 7% year-on-year and amounted to EUR 784 million (734), EBITDA increased 5% and was EUR 293 million (279) and our operating result increased 19% to EUR 150 million (126). The number of mobile subscriptions increased by 23,000 year-on-year, and their ARPU increased to EUR 18.0 (17.3). The number of fixed broadband subscriptions increased by 30,000 from the comparison period, and their ARPU remained stable at EUR 16.5 (16.4). The number of fixed telephony and TV subscriptions fell as expected.

DNA’s growth as the fixed broadband market leader has also continued, and the demand for 5G services has developed favourably. Demand has been driven by our expanding 5G network, which reached 92% of the population, or more than 5 million people, at the end of September. According to Tefficient’s September report⁴⁾, DNA customers had the highest average mobile data usage per subscription in Europe during the first six months of 2023, which emphasises the need for a robust network.

Despite the rise in data usage, energy consumption has remained reasonable thanks to the added energy efficiency of the 5G network. In early July, we announced that DNA had made a significant investment in the domestic production of green energy by signing a ten-year purchase agreement for Finnish wind power. This purchase agreement will help us reach our ambitious net-zero emissions target in accordance with the Science Based Targets framework.

In July, DNA was proud to receive a 5-star rating in an independent EFQM assessment. The comprehensive quality assessment examined DNA’s operational quality and performance across all its business activities. The assessment was carried out by EFQM’s national partner Excellence Finland following an extensive examination of DNA’s operations through documentation and interviews. I was especially proud of the fact that DNA’s customer-centric approach received special attention from the assessment team. The ability to translate strategy from the top into practical objectives and day-to-day operations, as well as DNA's value-based management, were also praised.

One of our strategic objectives is to be the best place to work and learn. DNA’s work culture is based on freedom, responsibility and trust, and our employees are free to choose independently where and how they work. However, they have also highlighted a need to strengthen their sense of community. To support community spirit and well-being at work, we are introducing a new working space strategy and moving to a new head office in the summer of 2024. The planning and design of the new office space, Ilmalanlinna, that is constructed in Ilmala, Helsinki, has been in full swing in the autumn, and a large number of personnel representatives from different parts of DNA are naturally involved. We are designing our new head office together, to be used – and enjoyed – together.

In spite of DNA’s favourable result and overall positive development, it should be noted that the year 2023 continues to be overshadowed by higher prices and interest rates, as well as general market uncertainty. According to the Bank of Finland’s September 2023 interim forecast⁵⁾, Finland’s economic recovery will be delayed and the Finnish economy will be in mild recession in 2023. While domestic inflation is slowing, the economic recovery will take longer than previously estimated. The Bank of Finland expects that the economy will slowly start to recover from the recession only in 2024, and recession may have an impact on DNA’s business.

Jussi Tolvanen
CEO

Key figures

EUR million	1–9/2023	1–9/2022	Change, %	1–12/2022
Subscription and traffic	424	397	7	533
Interconnect revenues and inbound roaming	22	25	-14	33
Mobile revenues company's subscriptions	445	422	6	567
Other mobile revenues	17	13	36	17
Total mobile revenues	462	434	6	584
Non-mobile revenues6)	160	140	14	198
Total revenues mobile operation	622	574	8	782
Telephony	9	10	-12	14
Internet and TV3)	127	121	5	163
Other revenues7)	18	18	1	25
Total fixed retail revenues	154	150	3	202
Wholesale revenues8)	7	10	-23	13
Total Revenues fixed operation	162	159	1	215
Total revenues	784	734	7	997
EBITDA before other income and expenses	294	279	5	364
Other income and expenses	-1	-		-0
EBITDA	293	279	5	364
Depreciation and amortisation	-143	-153	-6	-204
Operating result	150	126	19	160
EBITDA before other income and expenses/Total revenues (%)	38	38		37
EBITDA/Total revenues (%)	37	38		37
Operating result/Total revenues (%)	19	17		16
Capex	154	114	35	167
Capex excl. licences and spectrum and IFRS16	102	95	7	137
Mobile:
No. of mobile subscriptions (in thousands)2)	2,769	2,746	1	2,750
of which prepaid9)	244	234	4	239
Average revenue per subscription per month (ARPU)1), EUR	18.0	17.3	4	17.4
of which contract (postpaid), EUR	18.8	18.0	4	18.1
of which prepaid, EUR	9.2	8.6	7	8.6
Fixed:
No. of subscriptions retail market (in thousands)
- Telephony	11	21	-47	19
- Internet	666	636	5	642
- TV3)	223	237	-6	229
ARPU1) – Telephony, EUR	60.5	40.6	49	41.7
ARPU1) – Internet, EUR	16.5	16.4	0	16.4
ARPU1) – TV, EUR	9.7	8.3	17	8.5

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's report, Industry analysis #3 2023. DNA sponsored the creation of the report. Tefficient is an independent international analysis, comparison and consulting company in the telecommunications sector, whose report can be downloaded at: https://tefficient.com/mobile-data-operators-1h-2023/
5. Bank of Finland 15 September 2023: Bank of Finland’s interim forecast: economic recovery will be delayed. Read more: https://www.suomenpankki.fi/en/media-and-publications/releases/2023/bank-of-finlands-interim-forecast-economic-recovery-will-be-delayed/
6. Device sales and sales from non-mobile business.
7. Digita, maintenance, WLAN/LAN, data security, special services (for professionals) etc.
8. Access & Capacity services, fixed voice interconnection etc.
9. 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

Timo Kipinoinen, CFO, DNA Plc, tel. +358 44 044 8131, timo.kipinoinen@dna.fi

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