Elisa Oyj: Elisa's Half-Year Financial Report January-June 2025

ELISA CORPORATION HALF-YEAR FINANCIAL REPORT RELEASE 15 JULY 2025 AT 8:30 AM

Second quarter 2025 financial highlights

• Revenue increased by 2 per cent, or EUR 11m, to EUR 552m.
• Mobile service revenue increased by 3.4 per cent, or EUR 9m, to EUR 260m.
• Comparable EBITDA grew by 4 per cent, or EUR 8m, to EUR 198m.
• Comparable EBIT increased by 2 per cent, or EUR 3m, to EUR 124m.
• Comparable cash flow increased by 20 per cent, or EUR 19m, to EUR 113m.
• In Finland, mobile post-paid ARPU increased to EUR 24.1 (23.9 in the previous quarter), and mobile post-paid churn decreased to 17.1 per cent (18.6).
• During the quarter, the number of post-paid mobile subscriptions increased by 42,800, of which M2M and IoT subscriptions grew by 14,100.
• Prepaid subscriptions increased by 2,700 during the quarter.
• The number of fixed broadband subscriptions increased by 4,400 during the quarter.

Key indicators

EUR million	2Q25	2Q24	Δ %		1H/25	1H/24	Δ %
Revenue	552	541	2,0 %		1 108	1 076	3,0 %
EBITDA	196	190	3,2 %		391	370	5,6 %
Comparable EBITDA (1	198	190	4,3 %		397	380	4,4 %
EBIT	122	121	0,7 %		244	233	4,6 %
Comparable EBIT (1	124	121	2,4 %		250	243	2,7 %
Profit before tax	112	114	-1,8 %		223	218	2,6 %
Comparable profit before tax (1	114	114	0,1 %		230	228	0,7 %
EPS, EUR	0,56	0,57	-1,9 %		1,12	1,09	3,0 %
Comparable EPS, EUR (1	0,57	0,57	-0,1 %		1,15	1,14	1,1 %
Capital expenditure (2	76	81	-6,0 %		141	139	1,5 %
Net debt	1 495	1 383	8,1 %		1 495	1 383	8,1 %
Net debt / EBITDA (3	1,9	1,8			1,9	1,8
Gearing ratio, %	137,0 %	125,2 %			137,0 %	125,2 %
Equity ratio, %	32,7 %	34,8 %			32,7 %	34,8 %
Cash flow (4	112	76	47,3 %		189	138	37,5 %
Comparable cash flow (5	113	94	20,4 %		196	180	8,7 %

¹⁾ 2Q2025 excluding EUR 2m in restructuring costs, and 1H2025 excluding EUR 6m in restructuring costs. 1H2024 excluding EUR 10m in restructuring costs. ²⁾ Excluding leases, licences, shares and business acquisitions. ³⁾ (Interest-bearing debt - financial assets) / (four previous quarters' comparable EBITDA). ⁴⁾ Cash flow before financing activities. ⁵⁾ 2Q2025 excluding EUR 1m and 1H2025 excluding EUR 7m in share investments. 2Q2024 excluding EUR 18m and 1H2024 excluding EUR 43m in share investments and loans granted.

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

CEO Topi Manner: Strong growth in EBITDA and cash flow

In the second quarter, revenue grew by 2 per cent to EUR 552 million. The growth in revenue was affected by a EUR 12 million decrease in low-margin equipment sales, including a one-off, EUR 7 million deal in Estonia in the comparison quarter. Comparable EBITDA improved by 4 per cent to EUR 198 million, boosted by continuous improvements in efficiency. Comparable cash flow grew by 20 per cent, driven by growing EBITDA, positive net working capital change and strict CAPEX discipline. Relative to many other industries, Elisa's business will remain stable in uncertain geopolitical times, even though we are not immune to all customer impacts.

During the second quarter, we launched a significant upgrade to our consumer voice subscriptions, which now include a suite of security features: mobile ID, scam site blocking and data leakage monitoring. This upgrade was well received by customers, as witnessed by the decreasing overall churn rate, and resulted in an improved growth rate in mobile service revenue. We will continue the rollout of the upgraded offering during the remainder of the year and beyond.

We became the first operator in the world to offer customers mobile subscriptions using 5.5G (5G Advanced) technology. We announced an agreement with Nokia on the extension of the 5.5G networks in Finland and Estonia.

We were also the first operator in Europe to achieve download speeds of up to 8 Gbps with carrier aggregation in the 5G Standalone network in Finland, together with Ericsson and MediaTek. In Estonia, Ookla rated Elisa's 5G network as the fastest.

To further enhance efficiency, resilience and customer experience, we announced expanded collaboration with Google Cloud to enable the implementation of AI-driven autonomous network operations.

In the Corporate Customers business, we gained significant new customer wins. In IT services, the number of workstations covered by Elisa's AI-enhanced service will increase by 40 per cent during 2025, strengthening our position among the top four IT service companies in Finland. For our B2B customers, we launched Moontalk AIRI, an AI-assisted service for companies that provides automatic note-taking and call summaries for phone calls.

In International Software Services, we had several customer wins, especially in the telecom industry. As a result, comparable organic growth for the quarter was 10 per cent. The launch of Elisa Industriq brand continued during the quarter.

Elisa's long-term sustainability work continued to gain international recognition. In the latest report from Time Magazine and Statista, Elisa ranked as the 55^th most sustainable company in the world. We were also included in the Financial Times and Statista Europe's Best Employers ranking.

Our performance during the second 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, digital and software 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