DNA Plc’s Business Review for January-March 2024: Total revenues, result and EBITDA increased

Summary of DNA’s key figures for January-March 2024

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

• Total revenues grew 6% and amounted to EUR 269 million (253).
• EBITDA increased by 14% to EUR 107 million (94).
• Operating result increased by 25% and was EUR 58 million (46).
• Average revenue per user (ARPU)¹⁾:
  • ARPU for mobile communications²⁾ grew 7% and was EUR 19.0 (17.7).
  • ARPU for fixed broadband grew by 2% and was EUR 16.6 (16.3).
  • ARPU for TV subscriptions³⁾ grew 7% and was EUR 10.0 (9.4).

• Number of subscriptions:
  • The number of mobile subscriptions²⁾ increased to 2,762,000 (2,729,000).
  • The number of fixed broadband subscriptions increased to 680,000 (651,000).
  • The number of TV subscriptions³⁾ decreased and was 211,000 (225,000).
    
    

CEO’s review

DNA’s financial figures for January–March 2024 indicate that our business has developed favourably. Our total revenues grew 6% year-on-year and amounted to EUR 269 million (253). EBITDA increased by 14% to EUR 107 million (94), and the operating result rose by 25% to EUR 58 million (46). The number of mobile network subscriptions increased from the comparison period and stood at 2,762,000 subscriptions (2,729,000), while their ARPU increased to EUR 19.0 (17.7). The number of fixed broadband subscriptions also increased from the comparison period and stood at 680,000 subscriptions (651,000), while their ARPU increased to EUR 16.6 (16.3). The number of fixed telephony and TV subscriptions fell as expected.

DNA’s 3G network was shut down permanently in January. The 3G network of the Finnish Shared Network that we use in Northern and Eastern Finland will be deactivated during this year when the 5G network in these regions is completed. The 3G shutdown simplifies our network architecture, frees up frequencies for 4G technology and lowers the relative electricity consumption thanks to the use of modern technology. Our 5G already covers over 96% of the Finnish population. Omnitele’s survey of mobile data service quality⁴⁾ in February found that DNA’s mobile service quality is excellent in the ten largest cities in Finland where the survey was conducted.

With regard to our operating environment, it is important to note that the Finnish economy was still in recession during January-March. In its forecast in March, the Bank of Finland stated⁵) that the higher price and interest levels will reduce private consumption and investments. This may have negative impacts on DNA’s business. However, the Bank of Finland predicts that the economy will start to recover towards the end of the year.

DNA has also prepared itself for changes in the geopolitical situation as well as a rise in influence operations, data breaches and sabotage attempts fuelled by growing unrest. We have been engaging in systematic long-term efforts to secure our domestic and international connections, for example through multiple verifications. . We have also raised our preparedness level through both technical and administrative means. A strong level of data security and protection is at the heart of everything we do — we have bolstered our Nordic cooperation to further improve our capabilities.

We also seek to improve our customers’ own data security skills, and have carried out extensive campaigns on this issue in different media at the beginning of the year. However, there is still work to be done on the corporate customer side, too, as a recent study⁶⁾ by DNA’s parent company Telenor shows that Finnish companies are inadequately prepared for cyber threats – only one company in three has a contingency plan for cyberattacks. At DNA, we see improving the cyber-resilience of Finns as a challenge — we want to support all of our customers in tackling it.

Jussi Tolvanen
CEO
 

Key figures

 

EUR million	1–3/2024	1–3/2023	Change, %	1–12/2023
Subscription and traffic	152	138	11	572
Interconnect revenues and inbound roaming	5	7	-33	29
Mobile revenues company's subscriptions	157	145	8	601
Other mobile revenues	6	5	29	24
Total mobile revenues	163	150	9	625
Non-mobile revenues7)	52	51	2	225
Total revenues mobile operation	215	201	7	850
Telephony	1	3	-68	12
Internet and TV3)	42	42	2	171
Other revenues8)	6	6	1	24
Total fixed retail revenues	49	51	-3	206
Wholesale revenues9)	5	2	140	11
Total Revenues fixed operation	54	53	3	217
Total revenues	269	253	6	1,067
EBITDA	107	94	14	390
Depreciation and amortisation	-49	-48	3	-190
Operating result	58	46	25	200
EBITDA/Total revenues (%)	40	37		37
Operating result/Total revenues (%)	21	18		19
Capex	45	53	-15	199
Capex excl. licences and spectrum and IFRS16	30	34	-11	145
Mobile:
No. of mobile subscriptions (in thousands)2)	2,762	2,729	1	2,758
of which prepaid10)	238	215	10	235
Average revenue per subscription per month (ARPU)1), EUR	19.0	17.7	7	18.2
of which contract (postpaid), EUR	19.9	18.5	7	19.0
of which prepaid, EUR	9.3	8.4	11	9.3
Fixed:
No. of subscriptions retail market (in thousands)
- Telephony	8	13	-43	8
- Internet	680	651	4	674
- TV3)	211	225	-6	216
ARPU1) – Telephony, EUR	66.5	53.8	24	60.7
ARPU1) – Internet, EUR	16.6	16.3	2	16.5
ARPU1) – TV, EUR	10.0	9.4	7	9.8

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)    Omnitele Oy: Mobile service quality survey, February 2024. Available in Finnish at: https://corporate.dna.fi/lehdistotiedotteet?type=stt2&id=70100078 
5)    Bank of Finland, 15 March 2024: Bank of Finland’s interim forecast: From significant recession towards growth. Available at: https://www.suomenpankki.fi/en/media-and-publications/releases/2024/bank-of-finlands-interim-forecast-from-significant-recession-towards-growth/
6)    Telenor Group: Nordic Security Survey, Business Leaders November 2023. Available at: https://corporate.dna.fi/press-releases?type=stt1&id=70120504
7)    Device sales and sales from non-mobile business.
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

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