Elisa (ELISA) Q2 2024 earnings summary

Executive summary

• Revenue grew 2% year-over-year in Q2 2024 to €541m, with EBITDA up 4% to €190m, driven by mobile service growth, B2B momentum, and efficiency gains.

• International digital services revenue surged 21% year-over-year, supported by acquisitions and 7% organic growth.

• 5G network covers over 94% of Finland's population and 76% in Estonia; standalone 5G launched for all new subscriptions, a first in Europe.

• Strategic acquisitions included Leanware Oy, Romaric Automation Design Inc., Moontalk Oy, and fibre networks, strengthening digital and industrial software capabilities.

• Recognized for sustainability, ranked as the most sustainable Finnish company and 66th globally by TIME Magazine.

Financial highlights

• Q2 2024 revenue: €541m (+2% year-over-year); EBITDA: €190m (+4%), margin 35.1%; EBIT: €121m (+5%), margin 22.4%.

• EPS up 2.4% to €0.57; net profit €91m in Q2.

• CapEx in Q2 was €84m (15% of revenue); H1 CapEx €152m (+13% year-over-year), focused on 5G, fibre, and IT.

• Comparable cash flow for Q2 was €94m, down 13% year-over-year due to higher CapEx.

• Net debt/EBITDA at 1.8x; net debt €1,383m; equity ratio at 35%.

Outlook and guidance

• Full-year 2024 revenue and EBITDA expected at or slightly above 2023 levels.

• CapEx guidance for the full year remains at 12%-13% of revenue.

• IDS targets double-digit organic growth for the full year, with growth expected to be backloaded.

• Economic and geopolitical uncertainties persist, including inflation and energy prices.