CEO's review
The CEO´s review has been published in DNA Plc's Business Review for January-March 2024 , which was released on 30 April 2024.
DNA’s financial figures for January–March 2024 indicate that our business has developed favourably. Our total revenues grew 6% year-on-year and amounted to EUR 269 million (253). EBITDA increased by 14% to EUR 107 million (94), and the operating result rose by 25% to EUR 58 million (46). The number of mobile network subscriptions increased from the comparison period and stood at 2,762,000 subscriptions (2,729,000), while their ARPU increased to EUR 19.0 (17.7). The number of fixed broadband subscriptions also increased from the comparison period and stood at 680,000 subscriptions (651,000), while their ARPU increased to EUR 16.6 (16.3). The number of fixed telephony and TV subscriptions fell as expected.
DNA’s 3G network was shut down permanently in January. The 3G network of the Finnish Shared Network that we use in Northern and Eastern Finland will be deactivated during this year when the 5G network in these regions is completed. The 3G shutdown simplifies our network architecture, frees up frequencies for 4G technology and lowers the relative electricity consumption thanks to the use of modern technology. Our 5G already covers over 96% of the Finnish population. Omnitele’s survey of mobile data service quality in February found that DNA’s mobile service quality is excellent in the ten largest cities in Finland where the survey was conducted.
At DNA, we believe a workplace that is humane and people-centric enables employees to be more committed and creative and to perform at peak levels. As a people-centric approach must begin during the job application stage, we decided to recruit all of our approximately 100 summer employees without requesting a traditional CV or application letter. As a responsible employer, we wanted to reduce the already high workload faced by summer jobseekers. At the same time, we aim to improve the applicant experience and improve equality in jobseeking. Thanks to this straightforward application process, we received a record number of summer job applications.
With regard to our operating environment, it is important to note that the Finnish economy was still in recession during January-March. In its forecast in March, the Bank of Finland stated1) that the higher price and interest levels will reduce private consumption and investments. This may have negative impacts on DNA’s business. However, the Bank of Finland predicts that the economy will start to recover towards the end of the year.
DNA has also prepared itself for changes in the geopolitical situation as well as a rise in influence operations, data breaches and sabotage attempts fuelled by growing unrest. We have been engaging in systematic long-term efforts to secure our domestic and international connections. To ensure redundancy, we use several submarine and underground cables, and satellite links if necessary. We have also raised our preparedness level through both technical and administrative means. A strong level of data security and protection is at the heart of everything we do — we have bolstered our Nordic cooperation to further improve our capabilities.
We also seek to improve our customers’ own data security skills, and have carried out extensive campaigns on this issue in different media at the beginning of the year. However, there is still work to be done on the corporate customer side, too, as a recent study by DNA’s parent company Telenor shows that Finnish companies are inadequately prepared for cyber threats – only one company in three has a contingency plan for cyberattacks. At DNA, we see improving the cyber-resilience of Finns as a challenge — we want to support all of our customers in tackling it.
Jussi Tolvanen
CEO
1) Bank of Finland 19 December 2023: The Finnish economy is in recession with no clear signs of recovery. Available at: https://www.suomenpankki.fi/en/media-and-publications/releases/2023/finlands-economy-is-in-recession-and-the-recovery-will-be-slow/