DNA PLC STOCK EXCHANGE RELEASED FEBRUARY 2, 2022, 8:30 a.m. EET
This is a summary of DNA’s 2021 Financial Statement Bulletin. The full report is attached to this release and also available at corporate.dna.fi/general-financial-information.
Unless otherwise indicated, the comparative figures in parentheses relate to the corresponding period of the previous year (reference period). Figures are unaudited.
Due to the delisting of DNA’s share from Nasdaq Helsinki on February 3, 2020, DNA is not subject to the reporting obligations as an issuer of shares as defined in the Finnish Securities Markets Act . DNA is still subject to reporting obligations as an issuer of senior unsecured fixed rate notes due 2025 (ISIN: FI4000312095) listed on the Nasdaq Helsinki stock exchange.
- Total revenue increased by 1% and amounted to €480 million (476).
- Mobile telephony revenues increased by 3% and amounted to 284 million euros (276).
- EBITDA increased by 3% and amounted to 175 million euros (171).
- The operating result decreased by 3% and amounted to 74 million euros (76).
- Average revenue per user (ARPU)1) for mobile communications increased by 2% and amounted to EUR 17.1 (16.7).
- Total turnover increased by 3% and amounted to 956 million euros (932).
- Mobile telephony revenues increased by 2% and amounted to 565 million euros (552).
- EBITDA increased by 8% and amounted to 359 million euros (333).
- The operating result increased by 2% and amounted to 154 million euros (151).
- Average revenue per user (ARPU)1) for mobile communications increased by 2% and amounted to EUR 17.1 (16.8).
- The number of mobile subscriptions2) increased and was 2,699,000 (2,694,000).
- The number of fixed subscriptions3) decreased to 892,000 (900,000).
- The number of fixed broadband subscriptions increased by 19,000.
The method of calculating the key figures presented in this table differs from that of previous DNA key figures. The figures in this table are presented in the same way as figures published by DNA’s parent company, Telenor ASA. The main changes relate to the reclassification of spectrum acquisitions from intangible assets to right-of-use assets and the corresponding reclassification of spectrum license liabilities from non-interest-bearing borrowings to interest-bearing borrowings, which impacts the presentation of net debt and cash flow. In addition, certain receivables have been reclassified from non-current to current and certain items have been reclassified from current to non-current. Reference period figures have been adjusted accordingly.
|millions of euros||7–12/2021||7–12/2020||Change, %||1–12/2021||1–12/2020||Change, %|
|% of total revenue||37||36||38||36|
|Amortization and depreciation||102||96||204||181|
|% of total revenue||15||16||16||16|
|Net income before tax||70||72||–2||147||143||3|
|Net income for the period||58||59||–2||118||115||3|
|Return on investment (ROI), %||12||12||12||12|
|Return on equity (ROE), %||15||18||17||19|
|Cash flow after investing activities||102||69||47||174||105||65|
|Net gear, %||64||94||64||94|
|Equity ratio, %||47||41||47||41|
|Earnings per share, basic and diluted, EUR||0.44||0.45||0.89||0.87|
|Staff at the end of the period||1,604||1,609||0||1,604||1,609||0|
The opinion of the CEO
Having taken over the leadership of DNA last fall, I am pleased to have the opportunity to discuss the positive and stable growth figures for all of 2021. This positive development also signals the essential role that DNA plays in the company. Finnish as a service provider and enabler of Success. The protracted pandemic has underscored the importance of our role in a society, which would have come to a halt without secure modern network connections and cloud-based communication solutions.
Our total revenues increased by 3% and amounted to €956 million (932) in 2021. Our mobile revenues also increased by 2% and amounted to €565 million (552). DNA’s EBITDA evolved well in 2021, increasing by 8% to reach 359 million euros (333). Our operating result also increased and amounted to 154 million euros (151), up 2% compared to 2020.
Our mobile communication subscription base increased by 5,000. At the same time, our average revenue per user (ARPU) increased to EUR 17.1 (16.8). The total number of fixed subscriptions decreased by 9,000. While the number of fixed voice and television subscriptions decreased, the number of fixed broadband subscriptions increased by 19,000. Following this growth , we announced in May that DNA had become the market leader in landline broadband, and that lead has grown ever since.seven).
Sales of 5G subscriptions saw strong momentum in 2021. This was reflected in sales of 5G phones, which quadrupled. This development was driven by the rapid construction of our 5G network, which reached around 3.5 million Finns by the end of the year. This means that population coverage has almost doubled within a year. DNA’s mobile subscription achieved the highest average mobile download speed measured by Omnitele8) in twelve cities in the Helsinki metropolitan area, the Turku region and the Tampere region in October-November 2021.
Due to the longstanding exceptional circumstances and our responsibility in critical functions of the company, we have further developed our own activities, which is also reflected in our financial success. However, the positive development we have experienced during the exceptional circumstances is not limited to our key figures – we are also running our business more responsibly, improving our customer experience and being an even more flexible employer. A company cannot succeed without its staff; people who have the skills, motivation and ability to create value for customers. With qualified personnel, we can maintain our high level of customer satisfaction now and in the future, which will have a positive impact on our sales, total revenues and operating results.
With the emergence of the new COVID-19 variant towards the end of 2021, most of our staff have returned to full remote working mode. Although an unfortunate situation, the year 2022 marks the 10th anniversary of the introduction of DNA’s flexible way of working. With such a long history of working remotely, DNA is well positioned to run its business as usual in these exceptional circumstances. Furthermore, we want to demonstrate that a flexible working method also makes sense in more normal times. At DNA, employees will be free to choose where and how they work – now and in the future.
1) ARPU = Monthly mobile revenues (company subscriptions) and traffic revenues + interconnection / average number of subscriptions
2) Postpaid, prepaid, residential mobile (“Luuri”) and mobile broadband subscriptions.
3) Voice, broadband, pay-TV and DNA TV subscriptions.
4) Total revenues and EBITDA before other income and expenses differ from those previously reported for 2020 due to the transition to Telenor’s reporting method. This is a ranking difference of 2 million euros over the whole of 2020.
5) DNA has reassessed the duration of short-term leases in the fall of 2020 based on the new owner and new long-term forecasts. The effect of the revaluation on EBITDA was €4 million from 7 to 12/2021 and €15 million for the whole of 2021.
6) Capex no longer includes frequency payments. Going forward, DNA reports the cost of acquiring a new frequency as an investment at the time of acquisition.
7) Source: Fixed broadband subscriptions reported in the interim reports of the largest broadband operators in Finland, Q1/2021 (DNA: 591,000, Elisa 567,000 and Telia 470,000) and Q3/2021 (DNA: 601,000, Elisa : 562,000 and Telia 472,000).
8) Source: Omnitele study on data transfer speeds in mobile networks, 11/2021. The study was conducted in the following twelve Finnish cities: Helsinki, Espoo, Vantaa, Turku, Naantali, Raisio, Kaarina, Tampere, Pirkkala, Nokia, Ylöjärvi and Kangasala. DNA’s mobile subscription achieved the highest average download speed of all. The results are presented as averages for each domain. Data transfer speeds and carrier rankings varied between locations in each area. The study was conducted with carriers’ fastest 5G consumer subscriptions and smartphones with 5G. The full report (in Finnish) is available at: https://www.dna.fi/documents/753910/5166098/mobiiliverkkojen_tiedonsiirtonopeuksien_vertailu+2021.pdf/a0ecaf02-b0d0-75a9-e234-c339de7f19d2
Jussi Tolvanen, CEO, DNA Plc, +358 44 044 1000, [email protected]
Maria Strömberg, Chief Financial Officer, DNA Plc, +358 44 044 3270, [email protected]
DNA Corporate Communications, tel. +358 (0)44 044 8000, [email protected]
DNA is one of the leading telecommunications companies in Finland. We want to simplify the daily life of our customers. We offer connections, services and devices for homes and workplaces, contributing to the digitization of society. DNA’s customers are consistently among the world leaders in mobile data usage. DNA has approximately 3.6 million subscriptions in its fixed and mobile communications networks. The company has been repeatedly awarded as an excellent employer and family-friendly place to work. In 2021, our total turnover was 956 million euros and we employ around 1,600 people in Finland. DNA is part of Telenor Group, a leading telecommunications company in the Nordic countries. More information: www.dna.fi, Twitter @DNA_fi, Facebook @DNA.fi and LinkedIn @DNA-Oyj.