DNA Plc’s Half-Year Financial Report 2024: Total revenues, EBITDA, and operating result continued to improve

DNA PLC STOCK EXCHANGE RELEASE 18 JULY 2024, 8:30 am EEST

Summary

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

January–June 2024

• Total revenues grew by 5% and amounted to EUR 539 million (513).
• EBITDA increased by 11% to EUR 209 million (189).
• The operating result increased by 18% and was EUR 109 million (93).
• Average revenue per user (ARPU)¹⁾:
  • ARPU for mobile communications grew by 7% and was EUR 19.1 (17.8).
  • ARPU for fixed broadband grew by 2% and was EUR 16.6 (16.3).
  • ARPU for TV subscriptions increased by 14% and was EUR 10.8 (9.5).
• Number of subscriptions:
  • The number of mobile subscriptions²⁾ increased to 2,788,000 (2,742,000).
  • The number of fixed broadband subscriptions increased to 688,000 (659,000).
  • The number of TV subscriptions decreased to 209,000 (218,000).

Key figures

EUR million	1–6/2024	1–6/2023	Change, %	1–12/2023
Total revenues	539	513	5	1,067
EBITDA	209	189	11	390
% of total revenues	39	37		37
Depreciation, amortisation and impairment	100	96		190
Operating result, EBIT	109	93	18	200
% of total revenues	20	18		19
Net result before tax	99	86	16	183
Net result for the period	78	68	15	146
Return on investment (ROI), %	15	12		15
Return on equity (ROE), %	19	21		22
Capital expenditure	93	92	1	199
Cash flow after investing activities	149	90	67	163
Net debt	635	625	2	670
Net debt/EBITDA	1.5	1.7		1.7
Net gearing, %	96	99		104
Equity ratio, %	42	38		37
Earnings per share, basic and diluted, EUR	0.59	0.51		1.11
Personnel at the end of period	1,719	1,749	-2	1,718

CEO’s review

DNA’s financial figures for the period indicate that our business has developed favourably. Our total revenues grew by 5% year-on-year and amounted to EUR 539 million (513). EBITDA increased by 11% to EUR 209 million (189). The operating result increased by 18% and was EUR 109 million (93). The number of mobile network subscriptions increased on the comparison period and stood at 2,788,000 subscriptions (2,742,000), while their ARPU rose to EUR 19.1 (17.8). The number of fixed broadband subscriptions also increased on the comparison period and stood at 688,000 subscriptions (659,000), while their ARPU rose to EUR 16.6 (16.3). The number of TV subscriptions decreased as expected.

At the end of June, DNA’s 5G network had a population coverage of almost 98%. Long-term efforts to upgrade our network are also reflected in increased data speeds on 4G services. However, mobile network developments are increasingly focused on 5G technology, and the first 5.5G-based services will soon be coming onto the market.  DNA already piloted 5.5G technology for the media at the end of last year, reaching data speeds of up to 10 gigabits per second in its commercial network.  In the spring, DNA was also the first operator in Finland to launch two gigabit broadband subscriptions in the fixed broadband network, cable broadband and Ethernet technology. There is a need for speed, as the amount of data being used is constantly increasing.

Finns still need to brush up on their information security skills. According to a recent survey that we commissioned³⁾, only 54% of Finns feel that they are sufficiently knowledgable about data security threats. Another survey⁴⁾ shows that Finnish companies are also inadequately prepared for cyber threats. At DNA, we consider improving cyber resilience to be a common challenge for everyone in Finland. Our parent company, Telenor, announced the establishment of a new Nordic company, Telenor Cyberdefence, in June. This will create opportunities to further expand our cybersecurity offering.

We have also been actively revising our brand strategy in 2024. DNA is an attitude brand that dares to challenge, experiment and care. A strong brand also makes us stand out from our competitors – a strong brand’s most important task is to make it easier to decide what to buy. I am sure that our brand’s key message, dare, will be visible to our customers in many ways during the course of the year.

In May and June, DNA has also been highlighting a topic that is personally important to me: humane leadership. In podcasts on this topic, I invited leading experts from a number of fields to share their insights and ideas. The goal was to spark off public debate and promote more human leadership at all organisational levels. The podcast project is also an excellent reflection of DNA’s corporate culture, which is centred on our employer promise of a humane and one-of-a-kind workplace.

When it comes to DNA’s operating environment, it is important to note that the Finnish economy is still in recession, even though the Bank of Finland’s June forecast predicted that a slow recovery is on the horizon⁵⁾. Inflation has clearly slowed down, and the resulting improvement in household purchasing power will help private consumption to recover. However, the wars in Ukraine and Gaza continue to cause global uncertainty that is also being reflected in Finland. DNA has prepared for both changes in the geopolitical situation and a rise in influence operations, data breaches and sabotage attempts fuelled by growing unrest.

Jussi Tolvanen
CEO

1. ARPU = Monthly mobile revenues (company’s subscriptions) and traffic revenues + interconnection / average number of subscriptions.
2. Postpaid, prepaid, mobile home phone (“Luuri”) and mobile broadband subscriptions
3. A press release about the survey is available at: https://corporate.dna.fi/press-releases?type=stt1&id=70352342
4. A press release about the survey is available at: https://corporate.dna.fi/press-releases?type=stt1&id=70120504
5. Bank of Finland, 11 June 2024: Finland’s economy gradually moving out of recession. Available here: https://www.suomenpankki.fi/en/media-and-publications/releases/2024/finlands-economy-gradually-moving-out-of-recession/

Additional information:
Jussi Tolvanen, CEO, DNA Plc, +358 44 044 1000, jussi.tolvanen@dna.fi
Timo Kipinoinen, CFO, DNA Plc, +358 44 044 8131, timo.kipinoinen@dna.fi
DNA Corporate Communications, tel. +358 44 044 8000, communications@dna.fi

Attachment: Half-Year Financial Report 2024, DNA Plc (PDF)

DNA is one of the leading telecommunications companies in Finland. Our purpose is to connect you to what matters most. We offer connections, services and devices for homes and workplaces, contributing to the digitalisation of society. Already for years, DNA customers have been among the world leaders in mobile data usage. DNA has about 3.7 million subscriptions in its fixed and mobile communications networks. The company has been awarded numerous times as an excellent employer and family-friendly workplace. In 2023, our total revenue was EUR 1,067 million and we employ about 1,700 people around Finland. DNA is a part of Telenor Group, a leading telecommunications company across the Nordics. More information: www.dna.fi, X @DNA_fi, Facebook @DNA.fi and LinkedIn @DNA-Oyj.

Attachment

• DNA_Half-Year_Financial_Report_2024