Elisa (ELISA) Q2 2024 earnings summary

Executive summary

• Revenue grew 2% year-over-year in Q2 2024 to €541.4m, with EBITDA up 4% to €190m and net profit rising 2.2% to €91.4m, driven by mobile service growth, 5G upselling, and B2B momentum.

• Mobile service revenue increased 4.7%, with post-paid ARPU up 5.5% to €23.1 and strong growth in post-paid, M2M, and IoT subscriptions.

• International digital services (IDS) revenue grew 21% year-over-year, with organic IDS growth at 7% and strong order intake.

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

• Sustainability leadership recognized globally, with inclusion in TIME's World's Most Sustainable Companies list, ranked 66th, and significant improvements in energy efficiency and network coverage.

Financial highlights

• EBITDA reached €190m in Q2 2024 (+4% year-over-year), with margin improving to 35.1%; EBIT margin at 22.4%.

• EPS increased 2.4% to €0.57; Q2 net profit was €91.4m.

• Comparable cash flow for Q2 was €94m, down 13% year-over-year due to higher capex and working capital changes.

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

• Return on equity at 29.7%-30.7%, return on investments at 18.7%.

Outlook and guidance

• Full-year 2024 revenue and comparable 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 2024, with growth expected to be backloaded.

• Productivity improvements and digital service growth remain strategic priorities.

• Economic and geopolitical uncertainty persists, impacting outlook.