DNA Plc Interim Report January-September 2017: DNA's net sales and profitability increased in the January-September period

DNA PLC STOCK EXCHANGE RELEASE 20 OCTOBER 2017 AT 8:30 AM EEST DNA arranges two news conferences today. News conference for media and analysts is held at 10:00 am Finnish time at DNA House. Conference call for analysts and institutional investors is at 2:00 pm Finnish time. Details of the events...

London, 20/10/2017 (informazione.it - comunicati stampa - telecomunicazioni)

DNA PLC STOCK EXCHANGE RELEASE 20 OCTOBER 2017 AT 8:30 AM EEST

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

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

Previous guidance for 2017 (published on 31 January 2017):

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.

Figures are unaudited.

*Group key figures

DNA had a strong January-September period, and both our net sales and our profitability improved. Our net sales increased 2.8% to EUR 651.5 million, fuelled by the growth in service revenue, which was boosted in particular by the growth of our mobile subscription base and increased share of 4G subscriptions. Our comparable operating result for the January-September period grew 18.9% and was EUR 96.6 million, or 14.8% of net sales (12.8%).

Our results continued to develop favourably also in the third quarter, despite intensifying competition. While our net sales decreased slightly, our comparable operating result increased 10.1% and was EUR 37.3 million. Our service revenue grew slightly, but mobile device sales fell short of the strong reference period a year earlier. The result was fuelled by the improved cost-efficiency of our modern network platforms. We expect our operative capital expenditure to increase during the last quarter of 2017 but remain at a somewhat lower level than in 2016.

Our mobile communication network subscription volumes were up 59,000 from the reference period. DNA's corporate mobile subscription base in particular has grown strongly throughout 2017. DNA's revenue per user (ARPU) improved and was EUR 18.2 in the third quarter, compared to EUR 17.0 a year ago. Competition has remained intense throughout 2017, affecting our CHURN rate. Our broadband and cable television subscriptions increased in total by 26,000 subscriptions, adding 15,000 new subscriptions to our fixed-network subscription base (fixed voice, fixed-network broadband and cable television) compared to last year.

Finns are watching more TV content than before, and in more versatile ways. According to the survey* we commissioned in the summer, the increase is particularly noticeable among young people (those aged 15 to 24): up to 42% of them said they had increased their consumption of TV content. The increase is mostly due to content viewed online. We responded by launching a new Android TV device, called "DNA TV-hubi" in the third quarter. The device combines a set-top box, online applications, games and music to one, easy-to-use entertainment system which also has a smart phone-style app store. Sales of the hub took off well, giving a clear signal that Finns are welcoming the new way of watching TV.

We revised upwards our guidance for 2017 regarding profitability. DNA's net sales are expected to remain at the same level and the comparable operating result is expected to improve substantially in 2017 compared to 2016. The Group's financial position and liquidity is expected to remain at a healthy level. DNA's business has developed favourably for the beginning of the year. Especially the first half was strong. The demand for mobile communications services has been good throughout the year and profitability was fuelled by the growth in service revenue and the improved cost-efficiency of modern network platforms. Intense competition might affect DNA's CHURN rate during rest of the year.

We will continue to serve our customers with our strategic objectives in mind.

Jukka Leinonen
President and CEO

 

communications@dna.fi www.dna.fi/investors

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Jukka Leinonen, CEO, DNA Plc, +358 44 044 1000, jukka.leinonen(at)dna.fi
Timo Karppinen, CFO, DNA Plc, +358 44 044 5007, timo.karppinen(at)dna.fi
Marja Mäkinen, Head of IR, DNA Plc, +358 44 044 1262, marja.makinen(at)dna.fi
DNA Corporate Communications, +358 44 044 8000, viestinta(at)dna.fi

www.dna.fi