DNA Plc 2022 half-year financial report: total revenue,
PLC DNA EXCHANGE RELEASE JULY 19, 2022, 8:30 a.m. EEST
Unless otherwise indicated, the comparative figures in parentheses relate to the corresponding period of the previous year (reference period). Figures are unaudited.
- Total turnover increased by 1% and amounted to 483 million euros (476).
- EBITDA remained stable and amounted to 184 million euros (183).
- The operating result increased by 1% and amounted to 82 million euros (81).
- Average revenue per user (ARPU)1):
- Mobile communications ARPU increased by 1% to EUR 17.2 (17.0).
- Fixed broadband ARPU increased by 2% to EUR 16.5 (16.1).
- ARPU for TV subscriptions increased by 13% and stood at EUR 8.2 (7.2).
- Number of subscriptions:
- The number of mobile subscriptions2) increased and was 2,719,000 (2,695,000).
- The number of fixed broadband subscriptions increased to 625,000 (595,000).
- The number of TV subscriptions decreased and stood at 240,000 (275,000).
|millions of euros||1─6/2022||1─6/2021||To change, %||1─12/2021|
|% of total revenue||38||38||38|
|Amortization and depreciation||102||102||204|
|Operating result, EBIT||82||81||1||154|
|% of total revenue||17||17||16|
|Net income before tax||79||77||2||147|
|Net income for the period||62||60||4||118|
|Return on investment (ROI), %||13||12||12|
|Return on equity (ROE), %||18||17||17|
|Cash flow after investing activities||47||72||-35||174|
|Net gear, %||106||80||64|
|Equity ratio, %||40||46||47|
|Earnings per share, basic and diluted, EUR||0.47||0.45||0.89|
|Staff at the end of the period||1,779||1,662||seven||1,604|
The opinion of the CEO
By the end of the first half of 2022, the operating environment had become more unstable. Russia’s war on Ukraine has caused global uncertainty since February, also clouding the economic outlook in Finland. Inflation has accelerated and is already weighing on consumers’ purchasing power, and benchmark rates for the most common loans have started to rise sharply. In June, the Bank of Finland estimated that the war in Ukraine would slow economic growth in Finland, weaken the outlook and increase uncertainty in the global economy. All of this may also have an impact on the economic prospects of DNA.
DNA’s financial key figures for the period January-June 2022 indicate that our business has nevertheless continued to develop steadily. Total revenue increased by 1% year-on-year and amounted to €483 million (476), EBITDA remained stable at €184 million euros (183) and operating income increased by 1% to 82 million euros (81). The slowdown in growth is explained by a year-on-year increase in the costs of sales, 5G construction, Group services and energy.
The number of mobile subscriptions increased by 24,000 over one year and their ARPU rose to EUR 17.2 (17.0). The number of fixed broadband subscriptions increased by 30,000 compared to the comparison period and their ARPU increased to EUR 16.5 (16.1). DNA continued to grow as a market leader in fixed networks.
Demand for 5G services remained strong. In the first half of the year, nearly 80% of all phones sold by DNA were already 5G-capable, up from just over 50% in January-June 2021. Demand was also driven by our 5G network in expansion, which reached up to 70% of the population at the end of the period. The significant increase in mobile data speeds made possible by 5G was clearly visible in the Omnitele measurement3) published in April. In some cases, DNA’s mobile network download speeds have increased tenfold over the past four years.
Finland ended almost all of its coronavirus restrictions in January-June. The lifting of the national remote work recommendation earlier this year has also boosted DNA office utilization, though it remains well below pre-pandemic figures. Going forward, DNA employees can continue to freely choose where and how they work, and in the spring and early summer they typically only come to the office 0-2 times a week. DNA has found that giving employees the freedom to choose how and where they work leads to high productivity and greater job satisfaction. In the near future, DNA intends to further increase and improve work flexibility.
Attachment: Half-year financial report, DNA Plc (PDF)
1) ARPU = Monthly mobile revenues (company subscriptions) and traffic revenues + interconnection / average number of subscriptions.
2) Postpaid, prepaid, residential mobile (“Luuri”) and mobile broadband subscriptions.
3) Omnitele Mobile Download Speed Study, 3/2022. Measurements were made in 11 regions, covering 19 cities: Helsinki, Espoo, Kauniainen, Vantaa, Kerava, Tuusula, Järvenpää, Turku, Raisio, Naantali, Kaarina, Tampere, Pirkkala, Nokia, Ylöjärvi, Kangasala, Jyväskylä, Lahti and Pori . Data transfer speeds varied from area to area. The results are presented as averages for each domain. Data transfer speeds and operator rankings also varied between locations within each area. More information in Finnish: https://corporate.dna.fi/lehdistotiedotteet?type=stt2&id=69937838
Jussi Tolvanen, CEO, DNA Plc, +358 44 044 1000, email@example.com
Maria Strömberg, Chief Financial Officer, DNA Plc, +358 44 044 3720, firstname.lastname@example.org
DNA Corporate Communications, +358 44 044 8000, email@example.com
DNA is one of the leading telecommunications companies in Finland. We want to simplify the daily life of our customers. We offer connections, services and devices for homes and workplaces, contributing to the digitization of society. DNA’s customers are consistently among the world leaders in mobile data usage. DNA has approximately 3.6 million subscriptions in its fixed and mobile communications networks. The company has been repeatedly awarded as an excellent employer and family-friendly place to work. In 2021, our total turnover was 956 million euros and we employ around 1,600 people in Finland. DNA is part of Telenor Group, a leading telecommunications company in the Nordic countries. More information: www.dna.fi, Twitter @DNA_fi, Facebook @DNA.fi and LinkedIn @DNA-Oyj.