CEO's review

CEO Veli-Matti Mattila:
Strong result again and excellent increase in revenue

(From Q2 2017 Interim Report)

In the second quarter of the year, our revenue and earnings grew again year-on-year. The earnings growth was due to an increase in mobile revenue, the improvement of Elisa's operations, and to recent acquisitions. The strengthening of Elisa’s competitiveness continued through the continuous improvement of quality and operations.

The popularity of fast mobile broadband subscriptions among consumers, corporate customers and organisations is growing as smartphones are becoming increasingly integrated in people’s everyday lives. The mobile subscription base increased by 29,900 subscriptions during the quarter, while the fixed network broadband subscription base increased by 97,800. The base increased mainly due to the Starman acquisition and to growth in Finland. The usage of the unlimited mobile data subscriptions provided by Elisa will continue thanks to the wise Finnish implementation of new roaming regulation. Using mobile phones within the EU has now become considerably cheaper. The new subscription types offer unlimited data usage in the Nordic and Baltic countries and ample data usage in the other EU and EEA countries as well. The new subscription types have been well received, and data usage abroad has increased considerably.

Consumers have access to a more extensive offering of Elisa Viihde services. We recently announced the production of Arctic Circle, to date the largest original series by Elisa Viihde. This international production will be available on Elisa Viihde at the end of 2018. In addition, a novelty on Elisa Viihde is the original series Pää edellä. We also introduced the new Elisa Ohjaaja service, which enables consumers to use one number on several phones.

We are pursuing even better customer experience and testing new technologies in both our mobile and fixed networks. With Nokia, we were the first in Europe to test 5G technology on the 3.5 GHz bandwidth. The data speeds achieved in the tests were multiple times faster than those of the current commercial 4G networks. We were also the first in Finland to test a fibre optic network for households, which enables broadband speeds of up to 10 Gbps.

Elisa’s open development and service platform Elisa IoT intelligent factory solution was chosen for the European 4.0 Transformation Center project in Germany. The solution is used for developing production at the e.GO electric car factory by means of artificial intelligence and 3D visualisation.

Elisa was the only Finnish company to rank among the top ten companies in a recent survey conducted by Equileap to assess equality in the workplace. The survey covered management, career advancement, work-life balance and family leave, among other areas. Moreover, Elisa established a foundation with the goal of supporting music theatre activities that highlight diversity among children and youth.

We will continue our determined work to improve both customer satisfaction and our operational productivity. Improving our productivity, developing new services for our customers, and maintaining our strong investment ability will create a solid foundation for competitive operations in the future as well.