CEO's review
The CEO´s review has been published in DNA Plc’s Business Review for January–September 2024, which was released on 30 October 2024.
DNA’s January–September 2024 figures show that our business continued to develop favourably. Our total revenues grew by 4% year-on-year and amounted to EUR 806 million (773). EBITDA increased by 9% to EUR 322 million (295) and our operating result increased by 13% to EUR 179 million (158). The number of mobile subscriptions increased by 45,000 year-on-year, and their ARPU rose to EUR 19.1 (18.0). The number of fixed broadband subscriptions was up by 28,000 on the comparison period, and their ARPU remained stable at EUR 16.5 (16.5). The number of fixed telephony and TV subscriptions fell as expected.
DNA’s growth as the fixed broadband market leader has also continued, and the demand for 5G services has further accelerated. Demand has been driven by our expanding 5G network, which already covered 98% of Finland’s population – more than 5 million people – at the end of September. According to Tefficient’s report in early October1), DNA customers had the highest average mobile data usage per subscription in Europe from January 2023 to June 2024, which underlines the need for a robust network. For example, data usage in DNA’s corporate subscriptions has increased by more than 25 percent over the course of the year. However, although data volumes have grown, the network’s energy consumption has not increased significantly, as the 5G network is more energy efficient than its predecessors.
In July, DNA was awarded the internationally esteemed ISO 27001 data security certificate. This enables us to show proof that customers’ ICT solutions are secure, that we handle their data in accordance with information security guidelines, and that we are committed to the continuous development of information security within our organisation.
In early August, we moved into new headquarters in the Ilmala district of Helsinki. Our personnel were involved in planning the premises, as our intention was to create an inspiring place to work that ensures well-being and forges a sense of community. The first few months indicate that DNA personnel have begun actively visiting our new location. Use of DNA’s headquarters has increased by 20%, and feedback from personnel has been very positive. However, DNA has no plans to renounce its Genuine method of working, which facilitates flexible remote work.
DNA’s own 3G network was shut down in January. The 3G network that we use in Northern and Eastern Finland in the Finnish Shared Network will also be deactivated during 2024 when the 5G network is completed in these regions. The 3G shutdown will simplify our network architecture, free up frequencies for 4G technology and lower the relative electricity consumption thanks to the use of modern technology. As part of our technological development work, in August we also announced that our remaining consumer landline services in the copper-based network will be terminated by the end of 2024.
After the review period, on 20 October, DNA hosted Disconnect Day for the third time. We need smart devices and networks to make everyday life as easy and straightforward as possible. However, the amount of time we spend on smart devices and the effects of their excessive use have been the subject of protracted public debate. According to DNA’s annual Digital Life survey2), as many as 44 per cent of Finns feel that they spend too much time using devices, and almost one in three people find it difficult to disconnect from smart devices. With Disconnect Day, we want to encourage everyone to pay attention to how they use smart devices – and not just for one day, but all year round.
In terms of our operating environment, it is important to take into account the challenging nature of the current economic situation in Finland. According to the Bank of Finland’s September 2024 interim forecast, Finland’s GDP will further contract this year. This may have negative impacts on DNA’s business.
Jussi Tolvanen
CEO
1) Tefficient report: https://tefficient.com/mobile-data-operators-1h-2024/
2) DNA’s Digital Life survey 2024: https://corporate.dna.fi/digitaalinen-el%C3%A4m%C3%A4-2024