Financials

In 2016 DNA's net sales increased to EUR 858.9 million and profitability improved significantly.

Key figures

With the tool below, DNA's key financial figures can be analyzed. Information from the tool can be downloaded in .csv, .pdf or .png format.

DNA revised upwards its guidance for 2017

DNA revised upwards its guidance for 2017 regarding profitability on 13 October, 2017. DNA's net sales are expected to remain at the same level and the comparable operating result is expected to improve substantially in 2017 compared to 2016. The Group's financial position and liquidity is expected to remain at a healthy level.

Previous guidance for 2017 (published on 31 January 2017):
DNA's net sales are expected to remain at the same level and the comparable operating result is expected to improve somewhat in 2017 compared to 2016. The Group's financial position and liquidity is expected to remain at a healthy level.

DNA's business has developed favourably for the beginning of the year. Especially the first half was strong. The demand for mobile communications services has been good throughout the year and profitability was fuelled by the growth in service revenue and the improved cost-efficiency of modern network platforms. Intense competition might affect DNA's CHURN rate during rest of the year.

DNA’s guidance on future outlook

DNA issues guidance on its net sales and profitability (operating result). Their development is assessed by means of verbal description in comparison to the reference period. The guidance on the financial outlook is based on the full-year forecast, which takes into account the prevailing business and market situation. Statements and estimates provided are based on the management’s view of the development of the Group and its business operations.

DNA’s has set the following mid-term financial targets:

  • Revenue growth faster than average market growth;
  • EBITDA margin of at least 30 per cent;
  • Operative capital expenditure less than 15 per cent of net sales (excluding potential fees for spectrum licenses);
  • Net debt to EBITDA less than 2.0, which can be temporarily exceeded in case of potential attractive bolt-on in-market M&A opportunities.

Financing

Key figures on September 30, 2017

Net debt, MEUR  302.0
Net debt/EBITDA  1.10 (12 month adjusted)
Net gearing, %  51.9 
Equity ratio, %  48.6 
Average interest of the loan portfolio, %  2.15

 

At present, DNA does not have a credit rating.

You can find more information about the management of credit risks from note 3 of Financial statements which is part of DNA's annual report.

Primary sources of financing, 30 September 2017

EUR 70 million Danske, Nordea, Pohjola, SHB & SEB
EUR 100 million Bond I, coupon rate 2.625%
EUR 150 million Bond II, coupon rate 2.875%
EUR 23 million EIB
EUR 30 million Commercial papers

Financing reserves, 30 September 2017

Amount Utilised
Revolving credit facility of EUR 150 million Fully undrawn
Commercial paper programme of EUR 150 million EUR 30 million drawn

DNA’s financial covenants

Equity ratio:
30 September, 2017: 48.6 %
Limit: 35.0 %

Net debt / EBITDA (rolling 12 months):
30 September, 2016: 1.10
Limit: 3.50

Formulas for calculating key figures

 
Equity per share (EUR) = Equity attributable to equity holders of the parent company
Outstanding shares at the end of the period
 
Interest bearing net debt (EUR) = Long-term and short-term borrowings – liquid assets
 
Net gearing, % = Long-term and short-term borrowings – liquid assets
Total equity
 
Equity ratio, % = Equity
Total assets – advances received
 
EBITDA (EUR) = Operating result + depreciation and impairment charges
 
Return on investment (ROI), %* = Profit before tax + interest and other financial expenses
Total equity + long-term and short-term borrowings
 

Return on equity (ROE), %

= Profit for the financial period
Total equity (average during the year)
 
Interest bearing net debt/EBITDA* = Interest bearing net debt
Operating result + depreciation and impairment charges
 
Comparable EBITDA (EUR) = EBITDA excluding items affecting comparability
 
Comparable operating result, EBIT (EUR) = Operating result, EBIT excluding items affecting comparability
 
Items affecting comparability = Items affecting comparability being material items outside ordinary course of business such as net gain or losses from business disposals, direct transaction costs related to business acquisitions, write-off of non-current assets, costs for closure of business operations and restructurings, fines or other similar payments, damages as well as costs related to a one time study on the Company's strategic alternatives to grow its shareholder base and costs related to the strategic assessment work of the Board of Directors.
 
Cashflow after investing activities (EUR) = Net cash generated from operating activities + net cash used in investing activities
 
Capital expenditure (EUR) = Capital expenditure comprise additions to property, plant and equipment and intangible assets excluding business acquisitions, gross acquisition cost of spectrum license and additions through finance leases and asset retirement obligations and including annual cash instalments for the spectrum license.
 
Free Cash Flow to Equity (FCFE) = Comparable EBITDA – total capital expenditure excluding the annual cash instalment for spectrum licenses - change in net working capital including an adjustment between operative capex and cash-based capex in order to present FCFE on a cash basis, however excluding cash instalments for spectrum licenses and adjusted with the items affecting comparability - net interest paid - income taxes paid - change in provisions
     

*Adjusted to 12 months