CEO's review

(From Interim Report Q4 2019)

Elisa’s revenue and EBITDA grew; 5G already available in thirteen cities

Continuous improvement of quality and customer experience strengthened again Elisa’s ability to succeed, as competition remained intense. Both revenue and comparable EBITDA increased in 2019. EBITDA was improved by the IFRS 16 change, increase in revenue and improved profitability of operational activities.

The mobile postpaid subscription base increased by 36,800 subscriptions during the quarter, while the prepaid subscription base decreased by 10,800 subscriptions. Elisa continued to serve customers as a 5G forerunner by introducing the 5G Fixed Wireless Access (FWA) service, during the quarter. The 5G FWA service is an excellent way to have a high-speed, stable and reasonably priced internet connection for the home if no optical fibre connection is feasible. The number of fixed broadband subscriptions decreased by 8,300 during the quarter, and excluding clean-up of non-revenue-generating-unit subscriptions, increased by 4,700. In 2019, Elisa was the first Finnish operator to launch sales of 5G devices and subscriptions. And for corporate customers, 5G has opened new avenues for utilising the Internet of Things.

During the fourth quarter, Elisa launched the original series Duke of Sipoo II and The Man in Room 301 in the Elisa Viihde entertainment service. Elisa’s original series have been successful internationally and were nominated for a total of 13 Venla awards (the “Finnish Oscars”). We expanded the Elisa Viihde service with a smart TV app and introduced a new service, Elisa Viihde Premium. In 2019, we launched altogether six original series, of which Bullets, Arctic Circle and All the Sins have been sold to more than 30 countries.

In 2019, Elisa’s consistent work to improve quality was recognised with Finland’s quality award, Suomen laatupalkinto. We made the Great Place to Work Finland list again, being the largest company on the list for the third consecutive year. This year, we were also listed among the best places to work in Europe for the first time.

The continuous improvement of the customer experience and quality are integral parts of our corporate culture, and we will continue to focus on them strongly. Increasing productivity, expanding our digital services internationally and creating value with data, as well as our strong investment capability, will continue to lay a solid foundation for creating value competitively in the future.

Veli-Matti Mattila