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DNA Plc's Interim Report January-March 2017: DNA's year started strongly - net sales and operating result grew in the first quarter

DNA PLC STOCK EXCHANGE RELEASE 21 April 2017 at 8:00 AM EET Unless otherwise stated, the comparison figures in brackets refer to the corresponding period in the previous year (reference period). Figures are unaudited. January-March 2017Net sales increased 5.7% and amounted to EUR 213...
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DNA PLC STOCK EXCHANGE RELEASE 21 April 2017 at 8:00 AM EET 

Unless otherwise stated, the comparison figures in brackets refer to the corresponding period in the previous year (reference period). Figures are unaudited.

DNA's net sales are expected to remain at the same level and the comparable operating result is expected to improve somewhat in 2017 compared to 2016. The Group's financial position and liquidity is expected to remain at a healthy level.

*Group key figures

DNA's year 2017 is off to a strong start as expected. Our net sales increased 5.7% to EUR 213.4 million. Strong growth of service revenue (net sales less sales of devices and interconnection charges) continued, and good development of mobile device sales also had a positive effect on net sales. Service revenue was boosted in particular by the positive development of the mobile subscription base and growing use of mobile data as 4G subscriptions become more common. Our profitability improved and our operating result grew 14.9% and was EUR 28.9 million, or 13.5% of net sales (12.4%).

Mobile communication network subscription volumes were up 100,000 from the reference period. There was a clear improvement in DNA's revenue per user (ARPU) for mobile communications from the comparison period. Price increases in certain older DNA subscription types increased DNA's subscription turnover rate (CHURN) in the first quarter. Our fixed-network subscription base (fixed voice, fixed broadband and cable television) increased by 8,000 subscriptions from the reference period, even though our customers kept moving away from using of fixed-voice subscriptions. At the same time, fixed-network broadband and cable television subscriptions increased in total by 20,000.

In 2017, the focus of our network investments has shifted from network coverage expansion to capacity expansion. At the end of 2016, our 4G network reached 99.6 per cent of the population in mainland Finland as the shared network was completed in Eastern and Northern Finland. Due to the improved coverage, DNA has gained new consumer and corporate customers in the area. For example, the University of Lapland selected DNA as its mobile service provider. The agreement between DNA and the University of Lapland covers mobile voice and data connections for hundreds of users. When selecting the service provider, the University of Lapland placed emphasis on coverage.

The DNA Valokuitu Plus (DNA Fibre Optic Plus) network enables broadband speeds of a Gigabit class per second without any changes to the housing company's internal network. In the first quarter, the Gigabit class speed became available to all 600,000 households in the DNA Valokuitu Plus network across Finland. DNA is among the first operators globally that is capable of providing Gigabit class broadband speeds in the entire network.

In the first quarter, we tested the potential of the new 5G radio technology with Ericsson. A transmission speed of some 25 Gbps and a delay of less than 3 ms were achieved in the radio connection in the 5G test, which is a strong demonstration of the progress of 5G development. There are three important targets for 5G in the future: to enable a large-scale Internet of Things, to support highly reliable delay-critical connections, and to further increase the speed and efficiency of mobile broadband connections.

In the first quarter, we became the first company in Finland to introduce grandparental leave, entitling grandparents to a one week's paid leave.

Competition is expected to remain intense for the rest of the year and our outlook for 2017 remains unchanged. According to our strategy, we will continue measures to improve our customer experience further, and we will also continue to focus on employee well-being and professional development.

Jukka Leinonen
President and CEO

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, communications(at)dna.fi

Nasdaq Helsinki
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www.dna.fi

 



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