Telecomunicazioni
DNA Plc's Half Year Financial Report 1-6/2017: DNA had a strong first half - net sales and profitability increased also in the second quarter
DNA PLC STOCK EXCHANGE RELEASE 18 JULY 2017 AT 8:30 AM EEST
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.
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 had a strong first half of 2017. Our net sales increased 5% to EUR 432.7 million. 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 growth in the amount of mobile subscriptions and increased share of 4G subscriptions. In January-June, our profitability continued to improve and our operating result grew 25.2% and was EUR 59.4 million, or 13.7% (11.5%) of net sales.
Our results continued to develop favourably in the second quarter. Our EBITDA increased 15.5% and was EUR 67.6 million and our operating result grew 36.8% to EUR 30.5 million. The result of the second quarter was also fuelled by the improved cost-efficiency of our modern network platforms. While we expect operative capital expenditure to increase during the second half of the 2017, it will remain at a lower level than in 2016.
Demand for mobile communications services developed favourably in the second quarter. Mobile communication network subscription volumes were up 86,000 from the reference period. DNA's revenue per user (ARPU) improved and was EUR 18.5 in the second quarter. The subscription turnover rate (CHURN), which increased in the first quarter due to changes in the price and product design of certain subscription types, returned back to its normal level during the second quarter. Our broadband and cable television subscriptions increased in total by 21,000 subscriptions, adding 9,000 new subscriptions to our fixed-network subscription base (fixed voice, fixed broadband and cable television).
The new EU roaming regulation entered into force on 15 June 2017. Since then, our customers have paid the domestic rate for roaming calls and messages in the EU, and the unit price of data used in the EU fell by more than 90%. The new EU pricing scheme is valid within fair usage limits and for periodic roaming. We also launched new subscriptions in June that include an EU data package in the monthly fee.
After the new "roam like at home" rules came into force, our customers' use of mobile data abroad has multiplied. Similarly, foreign travellers now use more mobile communications services while visiting Finland. Our customers' phone calls and text messages in EU countries have also increased by dozens of percentages. Our roaming costs are compensated by the EU-baseline tariff of old subscriptions and the higher price of the new subscriptions with an EU data package.
We took another important step toward 5G by testing data transfer at 1 Gbps speed in our mobile communications network.
Competition is expected to remain intense for the rest of the year and our outlook for 2017 remains unchanged. We will continue to serve our customers with our strategic objectives in mind.
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
communications@dna.fi www.dna.fi/investors
www.dna.fi/investors www.dna.fi/investors
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