DNA Plc’s Half-Year Financial Report 2024: Total revenues, EBITDA, and operating result continued to improve
July 18 2024 - 12:30AM
UK Regulatory
DNA Plc’s Half-Year Financial Report 2024: Total revenues, EBITDA,
and operating result continued to improve
DNA PLC STOCK EXCHANGE RELEASE 18 JULY 2024, 8:30 am EEST
Summary
Unless otherwise stated, the comparison figures in brackets
refer to the corresponding period in the previous year (reference
period). Figures are unaudited.
January–June 2024
- Total revenues grew by 5% and amounted to EUR 539 million
(513).
- EBITDA increased by 11% to EUR 209 million (189).
- The operating result increased by 18% and was EUR 109 million
(93).
- Average revenue per user (ARPU)1):
- ARPU for mobile communications grew by 7% and was EUR 19.1
(17.8).
- ARPU for fixed broadband grew by 2% and was EUR 16.6
(16.3).
- ARPU for TV subscriptions increased by 14% and was EUR 10.8
(9.5).
- Number of subscriptions:
- The number of mobile subscriptions2) increased to
2,788,000 (2,742,000).
- The number of fixed broadband subscriptions increased to
688,000 (659,000).
- The number of TV subscriptions decreased to 209,000
(218,000).
Key figures
EUR million |
1–6/2024 |
1–6/2023 |
Change, % |
1–12/2023 |
Total revenues |
539 |
513 |
5 |
1,067 |
EBITDA |
209 |
189 |
11 |
390 |
% of total revenues |
39 |
37 |
|
37 |
Depreciation, amortisation and impairment |
100 |
96 |
|
190 |
Operating result, EBIT |
109 |
93 |
18 |
200 |
% of total revenues |
20 |
18 |
|
19 |
Net result before tax |
99 |
86 |
16 |
183 |
Net result for the period |
78 |
68 |
15 |
146 |
Return on investment (ROI), % |
15 |
12 |
|
15 |
Return on equity (ROE), % |
19 |
21 |
|
22 |
Capital expenditure |
93 |
92 |
1 |
199 |
Cash flow after investing activities |
149 |
90 |
67 |
163 |
Net debt |
635 |
625 |
2 |
670 |
Net debt/EBITDA |
1.5 |
1.7 |
|
1.7 |
Net gearing, % |
96 |
99 |
|
104 |
Equity ratio, % |
42 |
38 |
|
37 |
Earnings per share, basic and diluted, EUR |
0.59 |
0.51 |
|
1.11 |
Personnel at the end of period |
1,719 |
1,749 |
-2 |
1,718 |
CEO’s review
DNA’s financial figures for the period indicate
that our business has developed favourably. Our total revenues grew
by 5% year-on-year and amounted to EUR 539 million (513). EBITDA
increased by 11% to EUR 209 million (189). The operating result
increased by 18% and was EUR 109 million (93). The number of mobile
network subscriptions increased on the comparison period and stood
at 2,788,000 subscriptions (2,742,000), while their ARPU rose to
EUR 19.1 (17.8). The number of fixed broadband subscriptions also
increased on the comparison period and stood at 688,000
subscriptions (659,000), while their ARPU rose to EUR 16.6 (16.3).
The number of TV subscriptions decreased as expected.
At the end of June, DNA’s 5G network had a
population coverage of almost 98%. Long-term efforts to upgrade our
network are also reflected in increased data speeds on 4G services.
However, mobile network developments are increasingly focused on 5G
technology, and the first 5.5G-based services will soon be coming
onto the market. DNA already piloted 5.5G technology for the
media at the end of last year, reaching data speeds of up to 10
gigabits per second in its commercial network. In the spring,
DNA was also the first operator in Finland to launch two gigabit
broadband subscriptions in the fixed broadband network, cable
broadband and Ethernet technology. There is a need for speed, as
the amount of data being used is constantly increasing.
Finns still need to brush up on their
information security skills. According to a recent survey that we
commissioned3), only 54% of Finns feel that
they are sufficiently knowledgable about data security threats.
Another survey4) shows that Finnish companies
are also inadequately prepared for cyber threats. At DNA, we
consider improving cyber resilience to be a common challenge for
everyone in Finland. Our parent company, Telenor, announced the
establishment of a new Nordic company, Telenor Cyberdefence, in
June. This will create opportunities to further expand our
cybersecurity offering.
We have also been actively revising our brand
strategy in 2024. DNA is an attitude brand that dares to challenge,
experiment and care. A strong brand also makes us stand out from
our competitors – a strong brand’s most important task is to make
it easier to decide what to buy. I am sure that our brand’s key
message, dare, will be visible to our customers in many ways
during the course of the year.
In May and June, DNA has also been highlighting
a topic that is personally important to me: humane leadership. In
podcasts on this topic, I invited leading experts from a number of
fields to share their insights and ideas. The goal was to spark off
public debate and promote more human leadership at all
organisational levels. The podcast project is also an excellent
reflection of DNA’s corporate culture, which is centred on our
employer promise of a humane and one-of-a-kind workplace.
When it comes to DNA’s operating environment, it
is important to note that the Finnish economy is still in
recession, even though the Bank of Finland’s June forecast
predicted that a slow recovery is on the horizon5⁾.
Inflation has clearly slowed down, and the resulting improvement in
household purchasing power will help private consumption to
recover. However, the wars in Ukraine and Gaza continue to cause
global uncertainty that is also being reflected in Finland. DNA has
prepared for both changes in the geopolitical situation and a rise
in influence operations, data breaches and sabotage attempts
fuelled by growing unrest.
Jussi Tolvanen
CEO
- ARPU = Monthly mobile revenues (company’s subscriptions) and
traffic revenues + interconnection / average number of
subscriptions.
- Postpaid, prepaid, mobile home phone (“Luuri”) and mobile
broadband subscriptions
- A press release about the survey is available at:
https://corporate.dna.fi/press-releases?type=stt1&id=70352342
- A press release about the survey is available at:
https://corporate.dna.fi/press-releases?type=stt1&id=70120504
- Bank of Finland, 11 June 2024: Finland’s economy gradually
moving out of recession. Available here:
https://www.suomenpankki.fi/en/media-and-publications/releases/2024/finlands-economy-gradually-moving-out-of-recession/
Additional information:
Jussi Tolvanen, CEO, DNA Plc, +358 44 044 1000,
jussi.tolvanen@dna.fi
Timo Kipinoinen, CFO, DNA Plc, +358 44 044 8131,
timo.kipinoinen@dna.fi
DNA Corporate Communications, tel. +358 44 044 8000,
communications@dna.fi
Attachment: Half-Year Financial Report 2024, DNA Plc
(PDF)
DNA is one of the leading telecommunications companies in
Finland. Our purpose is to connect you to what matters most. We
offer connections, services and devices for homes and workplaces,
contributing to the digitalisation of society. Already for years,
DNA customers have been among the world leaders in mobile data
usage. DNA has about 3.7 million subscriptions in its fixed and
mobile communications networks. The company has been awarded
numerous times as an excellent employer and family-friendly
workplace. In 2023, our total revenue was EUR 1,067 million and we
employ about 1,700 people around Finland. DNA is a part of Telenor
Group, a leading telecommunications company across the Nordics.
More information: www.dna.fi, X @DNA_fi, Facebook @DNA.fi and
LinkedIn @DNA-Oyj.
- DNA_Half-Year_Financial_Report_2024