DNA Plc's Interim Report January-March 2018: DNA's year 2018 off to a strong start; record-high mobile service revenue

DNA PLC STOCK EXCHANGE RELEASE 19 APRIL 2018, 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 can...

London, 19/04/2018 (informazione.it - comunicati stampa - telecomunicazioni)

DNA PLC STOCK EXCHANGE RELEASE 19 APRIL 2018, 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. 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 and, as required by IFRS 15, figures adjusted and disclosed as if they were prepared under 2017 revenue guidance. The comparative analysis in the report section is disclosed as if the figures were prepared under 2017 revenue guidance. More information: Note 11.

DNA's net sales and comparable operating result are expected in 2018 to remain at the same level as in 2017. The Group's financial position and liquidity is expected to remain at a healthy level.

DNA's guidance for 2018 is disclosed as it was prepared under 2017 revenue guidance and does not currently incorporate the potential impact from the adoption of IFRS 15 as of 1 January 2018.

Figures are unaudited.

*Adjusted figures are presented according to the revenue standard applied in 2017 excluding the impact of the IFRS 15 standard applicable as of 1 January 2018.
**Group key figures

DNA's year 2018 is off to a strong start. Our net sales increased 4.2% to EUR 222.3 million, and our operating result 23.3% to EUR 35.6 million. The positive development was 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. Mobile device sales were also at a good level. Typically, operative capital expenditure remained low in the first quarter, and also slightly lower year-on-year.

Our mobile communication network subscription volumes were up 79,000 from the reference period. DNA's revenue per user (ARPU) for mobile communications improved and was EUR 19.0 in the first quarter, compared to 17.8 a year ago. Among other things, our ARPU was strengthened by 3G subscribers switching to high-speed 4G subscriptions. Competition remained intense also in the first quarter of 2018. Our mobile communication subscription turnover rate (CHURN) was lower than in the reference period, but slightly higher than at the end of 2017. Our fixed-network broadband and cable television subscription base increased by 29,000 from the reference period.

In the first quarter, our fibre optic connections became available to housing companies and corporate customers in the city of Jyväskylä. Demand for higher connection speeds keeps increasing as the number of connected devices grows in Finnish households.

In addition to providing excellent customer experience and achieving profitable and faster than average market growth, our key strategic objectives include being a great place to work. Satisfied and motivated employees are a crucial foundation for our ability to provide an excellent customer experience now and in the future. Our consistent work to improve employee satisfaction received external recognition in February 2018: the survey conducted by the Great Place to Work Institute ranked DNA second in the category of large organisations.

We expect both DNA's net sales and comparable operating result in 2018 to remain at the same level as in 2017. The Group's financial position and liquidity is expected to remain at a healthy level. Our measures to improve customer experience will continue in 2018, with the aim of further developing and diversifying the competence of our personnel.

Jukka Leinonen
President and CEO

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

www.dna.fi/investors

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