Elisa sees higher Q1 profit; stock falls on cash flow, debt load

Published 17/04/2025, 09:54
© Reuters.

Investing.com -- Elisa posted higher earnings and revenue for the first quarter, but its shares dropped over 2% as cash flow declined and net debt increased on Thursday.

Revenue rose 4% from a year earlier to €556 million, supported by growth in international software and mobile services. 

Mobile service revenue reached €255 million, up 2.6%. Comparable EBITDA rose 4.6% to €199 million, while comparable EBIT increased to €126 million from €122 million.

Net profit was €90 million, up from €83 million in the same quarter last year. Earnings per share rose to €0.56 from €0.52. Comparable earnings per share rose to €0.58 from €0.57.

International Software (ETR:SOWGn) Services revenue grew 57% to €40 million, mainly due to acquisitions and recurring service growth. 

The segment reported a positive EBITDA of €2 million, compared to a loss in the prior-year quarter.

Comparable cash flow after investments fell 4% to €82 million. Total (EPA:TTEF) cash flow before financing rose to €77 million. 

Net debt increased 12% to €1.41 billion. The net debt-to-EBITDA ratio was 1.8, up from 1.7. Capital expenditure rose to €65 million from €58 million, primarily for network capacity, fiber, and IT.

Consumer business revenue rose nearly 2% to €329 million, with growth in mobile and fixed services. Corporate business revenue was flat at €187 million. International software contributed €40 million to revenue, up from €25 million.

A dividend of €2.35 per share was approved for 2024, split into two installments. The first instalment of €1.18 was paid in April, with the second instalment of €1.17 scheduled for October. The board also received authorisation to repurchase up to 5 million shares within 18 months.

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

“We expect double-digit organic revenue growth and positive EBITDA for the full year 2025 in International Software Services.,” said CEO Topi Manner.

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