Finnish telecom Elisa's Q1 profit plunges 18 per cent to euro40 million on falling sales
Elisa Corp, Finland's second-largest telecommunications operator, saw an 18 percent drop in first-quarter profit, caused mainly by billing problems and cheaper tariffs.
By Agencies |
HELSINKI: Elisa Corp, Finland's second-largest telecommunications operator, saw an 18 percent drop in first-quarter profit, caused mainly by billing problems and cheaper tariffs.
Net profit from January through March was euro40 million (US$63 million), down from euro49 million a year earlier, Elisa said Friday. Net sales also fell, by 3 percent, to euro367 million.
Earlier this week, the company said revenue would be hit by euro21 million (US$ million) because of lower mobile connection tariffs and revenue adjustments caused by delayed customer billing.
Elisa gave a positive outlook, saying that its mobile subscriptions had increased by 22,000 in the period to a total of 2.7 million, with fastest growth in third-generation, or 3G, connections.
``The 3G market continues to grow strongly and Elisa still dominates half of it,'' Elisa said. ``Over 1.1 million Finnish 3G customers can utilize mobile access (and) we estimate that by the end of the year there will be up to 1.4 million people using 3G services.''
Elisa said it continues to be the market leader in broadband subscriptions with an increase of 13,000 in the period, or 2.5 percent more than a year ago.
``Competition in the Finnish telecommunications market remains challenging, while the focus is increasingly on services,'' the Helsinki-based company said. ``Elisa's aim is to further reinforce its position as the service leader.''
In 2003, Elisa formerly known as the Helsinki Telephone Co began a cost-cutting program that more than halved its work force in five years. At the end of March it had 3,000 employees 400 fewer than a year earlier.
Net profit from January through March was euro40 million (US$63 million), down from euro49 million a year earlier, Elisa said Friday. Net sales also fell, by 3 percent, to euro367 million.
Earlier this week, the company said revenue would be hit by euro21 million (US$ million) because of lower mobile connection tariffs and revenue adjustments caused by delayed customer billing.
Elisa gave a positive outlook, saying that its mobile subscriptions had increased by 22,000 in the period to a total of 2.7 million, with fastest growth in third-generation, or 3G, connections.
``The 3G market continues to grow strongly and Elisa still dominates half of it,'' Elisa said. ``Over 1.1 million Finnish 3G customers can utilize mobile access (and) we estimate that by the end of the year there will be up to 1.4 million people using 3G services.''
Elisa said it continues to be the market leader in broadband subscriptions with an increase of 13,000 in the period, or 2.5 percent more than a year ago.
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``Competition in the Finnish telecommunications market remains challenging, while the focus is increasingly on services,'' the Helsinki-based company said. ``Elisa's aim is to further reinforce its position as the service leader.''
In 2003, Elisa formerly known as the Helsinki Telephone Co began a cost-cutting program that more than halved its work force in five years. At the end of March it had 3,000 employees 400 fewer than a year earlier.
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