Elisa Oyj: Elisa's Interim Report Q1 2025

ELISA CORPORATION INTERIM REPORT RELEASE 17 APRIL 2025 AT 8:30 AM

First quarter 2025 financial highlights

• Revenue increased by EUR 21m to EUR 556m, mainly due to growth in international software services and mobile services.
• Mobile service revenue increased by 2.6 per cent to EUR 255m.
• Comparable EBITDA grew by EUR 9m to EUR 199m.
• Comparable EBIT increased by EUR 4m to EUR 126m.
• Comparable cash flow decreased by EUR 3m to EUR 82m.
• In Finland, mobile post-paid ARPU increased to EUR 23.9 (23.6 in the previous quarter), and mobile post-paid churn decreased to 18.6 per cent (20.2).
• During the quarter, the number of post-paid mobile subscriptions decreased by 17,100, of which M2M and IoT subscriptions totalled 6,100.
• Prepaid subscriptions decreased by 14,800 during the quarter.
• The number of fixed broadband subscriptions increased by 7,900 during the quarter.
• International Software Services are reported in their own segment

Key indicators

EUR million	1Q25	1Q24	Δ %		2024
Revenue	556	535	4,0 %		2 191
EBITDA	195	180	8,3 %		767
Comparable EBITDA (1	199	190	4,6 %		783
EBIT	122	112	8,9 %		488
Comparable EBIT (1	126	122	3,1 %		504
Profit before tax	112	104	7,5 %		448
Comparable profit before tax (1 (2	116	114	1,4 %		469
EPS, EUR	0,56	0,52	8,5 %		2,23
Comparable EPS, EUR (1 (2	0,58	0,57	2,3 %		2,35
Capital expenditure (3	65	58	11,9 %		295
Net debt	1 409	1 260	11,9 %		1 473
Net debt / EBITDA (4	1,8	1,7			1,9
Gearing ratio, %	102,3 %	92,0 %			113,9 %
Equity ratio, %	41,6 %	43,8 %			38,7 %
Cash flow (5	77	62	25,4 %		256
Comparable cash flow (6	82	86	-4,1 %		357

¹⁾ 1Q2025 excluding EUR 4m in restructuring costs. 1Q2024 excluding EUR 10m and 2024 excluding EUR 17m in restructuring costs. ²⁾ 2024 excluding EUR 17m in restructuring costs and EUR 5m in impairment of loan receivables. ³⁾ Excluding leases, licences, shares and business acquisitions. ⁴⁾ (Interest-bearing debt - financial assets) / (four previous quarters' comparable EBITDA). ⁵⁾ Cash flow before financing activities. ⁶⁾ 1Q2025 excluding EUR 5m in share investments. 1Q2024 excluding EUR 24m and 2024 excluding EUR 101m in share and business investments and loans granted.

Additional key performance indicators are available at elisa.com/investors (Elisa Operational Data.xlsx).

CEO Topi Manner: Strong result, in line with our ambitions

In the first quarter, Elisa continued its good performance despite the soft macroeconomic environment and geopolitical turmoil. Revenue grew by 4 per cent to EUR 556 million, and comparable EBITDA improved by 5 per cent to EUR 199 million, boosted by continuous improvement in efficiency. Elisa's business will remain stable even in uncertain geopolitical times, and possible tariffs will have only a minor direct impact. However, we are not immune to indirect impacts resulting from economic uncertainty.

We have introduced our updated strategy, and we are taking the next steps towards faster profitable growth. We are now reporting International Software Services as a third financial reporting segment. The business was formerly known as International Digital Services and now operates under the brand name Elisa Industriq. During the first quarter, we delivered positive EBITDA. We expect double-digit organic revenue growth and positive EBITDA for the full year 2025 in International Software Services.

We introduced 10 Gbit/s speeds in our fiber network, which is expanding to nearly 200 new locations this year. We are further accelerating the construction of the fiber network in our current network areas in Finland with a joint venture with MPY Telecom established in April. The arrangement is part of the previously announced EUR 200 million fiber construction programme.

We have made changes to our mobile product offering to meet increased demand for digital security services such as mobile ID. These value-added services have been well received, and we will expand the service offering to a wider range of customers. As the 5G market leader, we opened our 5.5G network in February, and our consumer customers became the first in the world to use 5.5G for their home internet connections. This new technology will become more broadly available later. Elisa also launched the first standalone 5G network in Estonia.

Our new home services offering is expanding. Elisa's residential energy storage solution, Elisa Kotiakku, is now available to nearly half of Finnish houses (SDUs) and has gained significant customer interest with high NPS. Our customers in Finland value Elisa as a reliable Finnish company. In the Sustainable Brand Index 2025, Finnish consumers again perceived Elisa as the most sustainable brand in the industry, for the sixth consecutive year.

Our performance during the first quarter clearly demonstrates our strong commitment to faster profitable growth, creating customer value by being a frontrunner in technology, and continuously improving our productivity and quality.

Outlook and guidance for 2025

The development in the general economy includes many uncertainties. Growth in the Finnish economy is expected to be weak. In particular, there is continuing uncertainty relating to Russia's war in Ukraine and other geopolitical conflicts. Challenges in global supply chains may also result in uncertainties in volumes and prices. Competition in the Finnish telecommunications market remains keen.

Full-year revenue is estimated to be at the same level as or slightly higher than in 2024. Mobile data and digital services are expected to increase revenue. Full-year comparable EBITDA is anticipated to be at the same level as or slightly higher than in 2024. Capital expenditure is expected to be a maximum of 12 per cent of revenue.

Elisa continues to improve productivity, for example by increasing automation and data analytics in different processes, such as customer interaction, network operations and delivery. Additionally, Elisa's continuous quality improvement measures will increase customer satisfaction and efficiency, and reduce costs.

Elisa's transformation into a provider of exciting, new and relevant services for its customers is continuing. Long-term revenue growth and profitability improvement will derive from growth in the mobile data market, as well as domestic digital and international software services.

ELISA CORPORATION

Additional information:

Mr Topi Manner, CEO, tel. [phone]
Mr Jari Kinnunen, CFO, tel. [phone]
Mr Vesa Sahivirta, IR Director, tel. [phone]

Distribution:

Nasdaq Helsinki
Principal media
elisa.com