Elisa Q2 cash flow up 20%, revenue rises 2% on mobile and software growth

Published 15/07/2025, 06:54
© Reuters.

Investing.com -- Elisa (HE:ELISA) on Tuesday reported a 20.4% year-over-year jump  in comparable cash flow in the second quarter of 2025, reaching €113 million. 

The rise was attributed to stronger EBITDA, working capital gains and lower capital expenditure.

Revenue for the quarter rose 2% to €552 million. Comparable EBITDA increased 4.3% to €198 million, while comparable EBIT rose 2.4% to €124 million. 

Net profit declined to €90.1 million from €91.4 million a year earlier. Earnings per share fell to €0.56 from €0.57, with comparable earnings per share unchanged at €0.57.

Mobile service revenue rose 3.4% to €260 million. The number of post-paid mobile subscriptions grew by 42,800, including 14,100 machine-to-machine and IoT subscriptions. 

Prepaid subscriptions increased by 2,700, and fixed broadband subscriptions rose by 4,400.

In Finland, mobile post-paid average revenue per user increased to €24.1 from €23.9 in the previous quarter. Churn declined to 17.1% from 18.6%.

In the Consumer Customers segment, revenue increased 2.4% to €331.1 million, supported by growth in mobile, fixed, interconnection and roaming services. Comparable EBITDA rose 3.6% to €139 million.

The Corporate Customers segment reported a 6.4% decline in revenue to €183.4 million. 

The decrease was attributed to reduced fixed services and equipment sales, as well as the absence of a €7 million one-off deal included in the previous year’s figures. Comparable EBITDA remained steady at €61 million.

International Software (ETR:SOWGn) Services revenue increased 70.8% to €37.9 million, supported by acquisitions and recurring service growth. 

Comparable EBITDA improved significantly, reducing its deficit to €2 million from €6 million. Similarly, Comparable EBIT saw its deficit narrow to €4 million from €7 million.

Capital expenditure for the quarter was €89 million. Excluding leases, licenses, shares and business acquisitions, it totaled €76 million, a 6% decrease from a year earlier. Investments focused on expanding 5G and fiber networks and IT infrastructure.

Net debt increased 8.1% to €1.5 billion. The gearing ratio rose to 137% from 125.2%, and the equity ratio declined to 32.7% from 34.8%. 

Elisa reported €403 million in cash and undrawn committed credit lines at the end of June.

In May, Elisa issued a €300 million bond maturing in 2030 and repurchased €115 million in bonds due February 2026. 

It extended a €170 million sustainability-linked revolving credit facility to 2030 and raised a non-committed credit line with Landesbank Baden-Württemberg to €125 million.

For the first half of 2025, group revenue rose 3% to €1.11 billion. Comparable EBITDA increased 4.4% to €397 million. Net profit rose to €180 million from €174 million.

Elisa reiterated its full-year 2025 guidance, projecting revenue and comparable EBITDA at or slightly above 2024 levels. Capital expenditure is expected to remain below 12% of revenue.

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