CEO's review

(From Half-Year Report 2018)

Earnings continued to grow thanks to improved competitiveness

In the second quarter of the year, our revenue and earnings grew year-on-year. The period was the best second quarter in our history. The result improved mainly due to the growth in mobile service revenue and digital services as well as Elisa’s improved operational productivity.

Finland is leading the way of a mobile life, in which mobile data is affordable and easy to use. Finnish people are clear pioneers in the use of mobile data. Elisa will enable this to continue by making the world’s first 5G video call between two countries with commercial 5G network equipment and devices.  In addition to Tampere, 5G-ready networks have already been built in Turku and its surroundings. The construction of a 5G-ready network in Jyväskylä began in June. A 5G-era subscription is available for 25 per cent of the population with maximum speed of 600 Mbit/s.

Fast mobile broadband subscriptions continue to grow in popularity among consumers, corporate customers and organisations.  The post-paid mobile subscription base grew by 8,300 subscriptions during the quarter, while the prepaid subscription base reduced by 1,400 subscriptions. The fixed-network broadband subscription base grew by 1,000 subscriptions.

The Finnish Communications Regulatory Authority (FICORA) has made a statistic on the number of the most significant network disturbances of operators in 2017. Elisa’s share of the total network disturbances of all operators is notably small and clearly smaller than Elisa’s market share. The long-term development of customer experience and quality, by artificial intelligence, for example, has resulted in a significant reduction of Elisa’s network disturbances and given the company a clear lead in FICORA’s statistics. 

The selection of Elisa Viihde continued to expand. The EU regulation which took effect at the beginning of April guarantees that the Elisa Viihde service is available in all 28 EU countries. The filming of a new original series, the crime drama Kaikki synnit, began during the quarter. The filming of the second season of the popular comedy series Kolmistaan is also underway.

Finland’s first nationwide NB-IoT (Narrowband Internet of Things) readiness enabled the new technology’s testing with more than fifty companies. The NB-IoT allows data collection from different devices, for example from sensors. These NB-IoT applications will be able to take advantage of the 5G network’s growing capacity in the future.

We opened the Elisa AI Co-Creation Challenge for world-class artificial intelligence teams. The teams are developing business by exploiting Elisa’s data. The challenge will culminate at Slush in December, when awards will be given to the winners.

The continuous improvement of the customer experience and quality are an integral part of our corporate culture, and we will continue to keep a strong focus on them. Increasing productivity, internationalising our digital services, creating value with data, and our strong investment capability will continue to create a solid foundation for the creation of competitive value in the future.