DNA sales slip on lower interconnection rates and few device sales

22 Jul 2013

Finnish multi-service operator DNA Finland has published its financial results for the three months ended 30 June 2013, revealing a 4.2% year-on-year decline in turnover, which the company attributed to the reduction in interconnection rates and a fall in sale of terminal devices. In the quarter under review DNA generated revenues of EUR 183.5 million (USD239.6 million), down from EUR191.5 million in the same period a year earlier, while sale in the first six months of 2013 totalled EUR369.5 million, down 2.3% from EUR378.1 million in H1 2012.

EBITDA in the second quarter of 2013 also declined, falling 4.3% to EUR47.4 million from the EUR49.6 million recorded in 2Q12, affected by additions to recognised credit losses. However, in the first six months of the year EBITDA actually increased, rising 7.9% to EUR95.1 million (EUR88.2 million in H1 2012), with the growth said to have been ‘fuelled by the increased operational efficiency due to the restructuring of operations’. Operating profit meanwhile slumped by 34.3% to EUR11.3 million in 2Q13 as a result of the EBITDA decrease and an increase in depreciations, while in H1 2013 it stood at EUR23.5 million, representing a 4.5% y-o-y decline.

In operational terms, at the end of June 2013 DNA’s mobile subscriber base totalled 2.426 million, representing a 2.1% increase compared to a year earlier. Average revenue per user (ARPU), however, fell to EUR18.4 per month, down from EUR20.1 in the corresponding quarter of 2012, while churn was 16.9%, up from 14.6%. In the fixed line arena the telco reported 309,000 broadband subscribers, up marginally from the 307,000 it had a year earlier, but down on the 311,000 reported for end-December 2012. Meanwhile, fixed voice accesses continued to decline, falling to 112,000 at end-June 2013 against the 130,000 it had at end-June 2012.

Finland, DNA Finland,

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