• Revenue was at the previous year's level, EUR 563m, due to divestments and lower equipment sales.
• Mobile service revenue increased by 4.4 per cent to EUR 244m.
• EBITDA grew by EUR 6m to EUR 191m.
• Comparable EBIT increased by EUR 4m to EUR 123m.
• Capital expenditure was EUR 91m*. In 2022 to 2023, average capital expenditure was 12 per cent of revenue for those years, and the medium-term target of a maximum of 12 per cent remains intact.
• Comparable cash flow decreased by EUR 13m to EUR 73m mainly due to a change in NWC.
• In Finland, mobile post-paid ARPU increased to EUR 22.4 (22.1 in the previous quarter), and mobile post-paid churn increased to 15.4 per cent (14.4).
• During the quarter, the net increase in post-paid mobile subscriptions was 23,900. The contribution of M2M and IoT subscriptions was +45,000.
• Prepaid subscriptions decreased by 14,600 during the quarter.
• The number of fixed broadband subscriptions increased by 1,300 during the quarter.

* Excluding leases, licenses, shares and business acquisitions

Key indicators

[][][][][][][][]
EUR million 4Q23 4Q22 Δ % 2023 2022 Δ %
Revenue 563 563 0.1 % 2,180 2,130 2.4 %
EBITDA 191.3 185 3.4 % 756 733 3.1 %
Comparable EBITDA 191 185 3.4 % 756 735 2.8 %
[(1]
EBIT 118 119 -1.0 % 482 470 2.5 %
Comparable EBIT [(1 123 119 3.7 % 487 472 3.3 %
(2]
Profit before tax 111 115 -4.1 % 458 456 0.5 %
Comparable profit 116 115 0.8 % 464 458 1.2 %
before tax [(1]
[(2]
EPS, EUR 0.58 0.60 -2.7 % 2.34 2.33 0.2 %
Comparable EPS, EUR 0.61 0.60 2.0 % 2.37 2.34 1.0 %
[(1 (2]
Capital expenditure 109 97 11.9 % 321 290 11.0 %
Net debt 1,304 1,276 2.2 % 1,304 1,276 2.2 %
Net debt / EBITDA 1.7 1.7 1.7 1.7
[(3]
Gearing ratio, % 100.8 % 101.9 % 100.8 % 101.9 %
Equity ratio, % 41.6 % 40.6 % 41.6 % 40.6 %
Cash flow [(4] 61 86 -28.8 % 347 300 15.7 %
Comparable cash 73 86 -15.1 % 361 321 12.4 %
flow [(5]

[1)][ ]2022 excluding EUR 2m in restructuring costs. [2)] Q4/2023 and 2023 excluding EUR 6m impairment.  [3)] (Interest-bearing debt - financial assets) / (four previous quarters' comparable EBITDA). [4)] Cash flow before financing activities. [5)] Q4/2023 excluding EUR 12m and 2023 EUR 14m in share and business investments and sales. 2022 excluding EUR 21m in share investments.

The Board of Directors proposes to the Annual General Meeting a dividend of EUR 2.25 per share. The Board of Directors also proposes that the dividend be paid in two instalments (see "Profit distribution"). The Board of Directors decided to propose an authorisation to acquire a maximum of 5 million own shares, which corresponds to 3 per cent of the total number of shares.

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

CEO Veli-Matti Mattila: Best ever result driven by our solid strategy

In the fourth quarter, Elisa continued its good performance. Revenue was at the previous year's level: EUR 563 million. EBITDA improved by 3 per cent to EUR 191 million, and comparable earnings per share was EUR 0.61. Elisa's performance has continued to improve despite inflation and geopolitical challenges.

During the fourth quarter, we further strengthened our position as the mobile and fixed network market leader in Finland. The population coverage of our 5G network reached over 92 per cent in Finland and 75 per cent in Estonia. Elisa's 5G standalone network is now available for consumers in Finland's capital area, and we successfully completed the first calls in Europe over the cloud-based 5G network using Nokia technology. In December, we were the first operator in Finland to finish ramping down the 3G network.

During the second half of 2023, we expanded our fibre network in nearly 40 locations. Additionally, we acquired the fibre network constructed by Elenia in Finland. Elisa's fibre-optic or cable modem-based high-speed connections are already available to more than one million households and commercial premises in Finland, and the fibre network will expand to over 450 new areas in the coming years.

Demand for cybersecurity solutions continued to increase. Elisa was the first operator in Finland to start blocking scam calls to its customers. In October, a nationwide regulation to block scam calls came into effect in Finland using a technical solution originally developed and patented by Elisa. Since deploying the solution, Elisa has prevented over 20 million scam calls.

Elisa Polystar announced three major contracts to provide solutions in data management, analytics and automation to three European operators. Elisa IndustrIQ announced a contract to modernise a European manufacturing customer's operations in its forklift truck factory.

Elisa's Distributed Energy Storage (DES) solution is expanding in the Finnish electricity reserve market. This award-winning solution has already been operating as part of the Automatic Frequency Restoration Reserve (aFRR), and it has now also been approved by the grid operator Fingrid for the Frequency Containment Reserve for Disturbances (FCR-D).

Elisa's long-term sustainability work is also reflected in international assessments. In December, MSCI, which assesses corporate responsibility globally, upgraded Elisa's ESG rating to the highest level: AAA. Elisa was also included in the Financial Times European Diversity Leaders 2024 ranking. In January, Elisa was ranked among the 100 most responsible companies in the world in the Corporate Knights 2024 Global 100 list and included in Sustainalytics' 2024 ESG Top-Rated Companies list.

Elisa's unique strategy generates sustainable profit and growth. Our competitiveness is based on continuously increasing our productivity and quality, our strong investment capability, and the growth opportunities from our innovative digital services globally. Elisa and its entire personnel are engaged in creating value for our customers and a positive impact on society to ensure solid financial performance for shareholders.

Outlook and guidance for 2024

Development in the general economy includes many uncertainties. Growth in the Finnish economy is expected to stall. In particular, uncertainty relating to Russia's war in Ukraine and other conflicts, such as in inflation and energy prices, is continuing. 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 same level or slightly higher than in 2023. Mobile data and digital services are expected to increase revenue. Full-year comparable EBITDA is anticipated to be same level or slightly higher than in 2023. Capital expenditure is expected to be 12-13 per cent of revenue.

Elisa is continuing to develop 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 and international digital services.

Profit distribution

According to Elisa's distribution policy, profit distribution is 80-100 per cent of the previous fiscal year's net profit. In addition, any excess capital can be distributed to shareholders. When making the distribution proposal or decision, the Board of Directors will take into consideration the company's financial position, future financial needs and financial targets. Profit distribution includes dividend payment, capital repayment and purchase of treasury shares.

The Board of Directors proposes to the Annual General Meeting a dividend of EUR 2.25 per share. The dividend payment corresponds to 95 per cent of the comparable net profit for the financial period. The Board of Directors also proposes that the dividend be paid in two instalments.

It is proposed that the first instalment of the dividend, EUR 1.13, be paid to shareholders who are listed in the company's shareholder register maintained by Euroclear Finland Ltd on 16 April 2024. The Board of Directors proposes that the payment date be 23 April 2024. It is also proposed that the second instalment of the dividend, EUR 1.12, be paid to shareholders who are listed in the company's shareholder register on 23 October 2024, and the Board of Directors proposes that the payment date be 30 October 2024. The profit for the period will be added to retained earnings.

The Board of Directors also decided to propose to the General Meeting that the Board of Directors be authorised to acquire a maximum of five million treasury shares, which corresponds to 3 per cent of the total number of shares.

ELISA CORPORATION

Additional information:

Mr. Veli-Matti Mattila, CEO, tel. +358 10 262 2635
Mr. Jari Kinnunen, CFO, tel. +358 10 262 9510
Mr. Vesa Sahivirta, IR Director, tel. +358 50 520 5555

Distribution:
Nasdaq Helsinki
Principal media
elisa.com