CEO's review

CEO Veli-Matti Mattila:
Excellent demand for Elisa’s Premium subscriptions with unlimited data use in the Nordic and Baltic* countries

(From Financial Statements Release 2017)

Revenue and result grew markedly

Elisa’s competitiveness and result have continued to grow. Competitiveness has strengthened further thanks to the continuous improvement of customer experience and quality. The revenue and earnings in 2017 were the best ever. Earnings has grown, for instance, due to an increase in mobile service revenue and investments in the productivity of Elisa’s operations, as well as recent acquisitions.

Elisa’s unique model in the pricing of unlimited data, the increasing use of video services, and investments in the expansion of the 4G network have made Elisa a clear pioneer in the use of mobile data. Elisa’s network carries the fifth most mobile data in Europe1). The number of post-paid mobile subscriptions grew by 19,100 during the year. The total decline in the number of mobile subscriptions was 15,400, affected by a decline in the number of prepaid subscriptions of 34,500. The number of fixed-network subscriptions grew by 97,400, influenced by the acquisition of Starman.

We have increased the amount of original series content for consumers. In 2017, Elisa Viihde released four original series. For 2018, Elisa Viihde has already revealed the release of five new original series, including the international drama series Arctic Circle and Bullets. Elisa Kirja, Finland’s largest reseller of e-books, grew during the year. In addition to the popular Premium subscriptions, we launched Elisa Reissunetti, which is an inexpensive, one-gigabyte (1 GB) data package for travellers to far-away destinations.

Demand for integrated IT and telecommunication solutions continued to grow, and we strengthened our pioneering role with the Santa Monica Networks acquisition, for example. The number of orders received for the services in question grew significantly.

We are pursuing an even better customer experience and testing new technologies in both our mobile and fixed networks. We were the first operator to introduce 5G readiness to the mobile network in Finland. Construction of the network has begun in Tampere, the first city in which the new network will be implemented on such a large scale. Once complete, the new network will provide the area with faster, up to 1 Gbit/s, and more reliable internet connections.

Elisa was rewarded as one of Finland’s best workplaces and is the largest listed company ever in the category of Great Place to Work Finland's large companies, in which it achieved third place. We offered young people an opportunity to get to know working life and, together with our subsidiaries and temporary agency employees, hired 250 young people for summer jobs. Our digital schools have already attracted more than a thousand children. Elisa established the ShedHelsinki foundation, which emphasizes diversity among young people and produces year-round club activities and musical theatre performances. We also encouraged an increase in interaction between parents and teenagers in the “Pidetään yhtä” (“Stay Connected”) project. Elisa employees participated in voluntary work by being present in the everyday lives of young people.

The continuous improvement of customer experiences and quality are essential cornerstones of our culture, and we will continue to keep a strong focus on them. Increasing productivity, internationalising our digital services, delivering value with data connectivity, and our strong investment capability will continue to create a solid foundation for creating competitive value in the future.

1) Source: tefficient industry analysis 4 2017 mobile data usage and revenue per operator Q3 2017