Telecomunicazioni
DNA Plc's Financial Statements Bulletin 2018: DNA's net sales and operating result reach record levels in 2018
DNA PLC STOCK EXCHANGE RELEASE 1 FEBRUARY 2019, 8:30 AM EET
www.dna.fi/investors
Unless otherwise stated, the comparison figures in brackets refer to the corresponding period in the previous year (reference period). Figures are unaudited.
For 2018, as required by the IFRS standards, the financial tables contain figures reported according to the IFRS 15 and IFRS 9 standards adopted on 1 January 2018. As required by IFRS 15, figures adjusted are disclosed as if they were prepared under 2017 revenue guidance. The comparative analysis between periods in the report section uses comparable figures, where the 2018 figures are disclosed as if they were prepared under 2017 revenue guidance.
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.70 per share be paid for the financial period ending 31 December 2018. The Board also proposes that an extra dividend of EUR 0.40 per share be distributed. In total, the Board's proposal is to distribute EUR 1.10 per share.
DNA's net sales in 2019, is expected to remain at the same level as in 2018, and EBITDA in 2019 is expected to increase substantially from 2018. DNA's financial position and liquidity are expected to remain at a healthy level.
DNA's guidance for 2019 is disclosed with consideration to the impact of the adoption of IFRS 16. The adoption of IFRS 16 from the beginning of 2019, is estimated to have a positive impact of approximately 17 million euros in EBITDA in 2019. The impact of IFRS 16 on operating result (EBIT) is insignificant.
Figures are unaudited.
* Adjusted figures are disclosed as prepared under 2017 revenue guidance and do not currently incorporate the impact from the adoption of IFRS 15 as of 1 January 2018.
**Group key figures
2018 was a record-breaking year for DNA. We achieved our strategic objectives very well: our customer satisfaction developed favourably, our net sales and profitability were at the highest level in the history of DNA and our personnel satisfaction improved yet again. This put us in a good position to start the year 2019.
In 2018, our net sales increased 3.1% to EUR 913.5 million. Our comparable operating result grew 5.7% and, like our net sales, reached a record level: EUR 133.8 million. Comparable operating result as a percentage of net sales increased and was 14.6%. Net sales were driven by the growth of mobile service revenue, which was boosted in particular by the positive development of our mobile subscription base and increased share of high-value 4G subscriptions. Mobile device sales were also at a high level during the year.
Our profitability in the last quarter was affected by higher sales and marketing costs. As a result, our comparable operating result decreased 16.1% and amounted to EUR 25.1 million in the last quarter. Our efforts to secure our current customer base bore fruit and CHURN was at a low level of 14.8% in October-December.
Our mobile network subscription volumes were up 66,000 year-on-year and totalled 2,877,000 at the end of the year, despite intense competition. Our fixed-network broadband subscription base grew in total by 23,000 subscriptions and our cable television subscription base by 11,000 subscriptions in 2018. Our subscription base exceeded four million in the third quarter. During the summer, we increased our share of the fixed broadband market to 28% and became the second-largest fixed broadband service provider in Finland.
Our revenue per user (ARPU) for mobile communications amounted to EUR 18.8 in 2018, while in 2017, it was EUR 18.4. Our ARPU was strengthened in particular by our customers switching to faster 4G subscriptions. Our CHURN rate developed favourably and decreased from 18.3% in 2017 to 16.2%. While competition remained intense, we have been able to maintain a low level of CHURN thanks to high customer satisfaction and our ability to react quickly to competitors' campaigns.
5G is an important step forward for mobile data services and we have been systematically preparing our mobile network for 5G with the introduction of 5G-capable technology and increased network capacity. At the turn of the year, we launched a 5G network in Helsinki. Initially, the network will cover the very centre of the city, but will be expanded once 5G-capable mobile devices become widely available. We are also in the process of piloting 5G Fixed Wireless Access (FWA) technology in the city of Vantaa. First to benefit from the 5G network are detached-home residents and businesses without access to a fibre optic connection.
DNA will continue to improve its 4G network in parallel to the 5G investments. In our view, 4G will remain the primary mobile communication network technology for a long time still.
Our focus on improving our working environment was again recognised in November as we received the Great Place to Work® certificate for the second consecutive year. Our personnel satisfaction improved for the fourth consecutive year.
We will continue to develop our business in 2019 according to our strategic objectives, focusing on customer experience, personnel satisfaction and profitable growth. In 2019, we expect DNA's net sales to remain at the same level as in 2018, and EBITDA, including the impact of IFRS 16 standard, is expected to increase substantially from 2018. The Group's financial position and liquidity are expected to remain at a healthy level.
Jukka Leinonen
President and CEO
communications@dna.fi
https://www.dna.fi/result-conferences
www.dna.fi/investors
Jukka Leinonen, CEO, DNA Plc, tel. +358 44 044 1000, jukka.leinonen(at)dna.fi
Timo Karppinen, CFO, DNA Plc, tel. +358 44 044 5007, timo.karppinen(at)dna.fi
Marja Mäkinen, Head of IR, DNA Plc, tel. +358 44 044 1262, marja.makinen(at)dna.fi
DNA Corporate Communications, tel. +358 44 044 8000, viestinta(at)dna.fi
2321 Rosecrans Avenue. Suite 2200
90245 El Segundo Stati Uniti