CEO´s review has been published in DNA's Business Review January-September 2020 on 21 Oct 2020
DNA's business has continued to develop steadily during the third quarter of 2020. Even though total revenue decreased 3% from the reference period and came to EUR 233 million (240), our mobile revenue increased 1% and came to EUR 138 million (136). The decrease in total revenue was mainly due to the selling of terrestrial pay-TV network business at the turn of the year, as well as the slowdown in mobile device sales continuing from the spring, caused by the exceptional measures brought on by the coronavirus. DNA’s comparable EBITDA developed favourably in the third quarter, increasing 6% to EUR 88 million (84). Comparable operating profit also increased by 4% and was EUR 43 million (41).
Our mobile communication subscription base decreased by 2,000 from the reference period, exclusively due to the decrease in prepaid subscriptions. Our billing subscription base increased by 17,000 from the reference period. At the same time, revenue per user (ARPU) for mobile communications increased 1% year-on-year and was EUR 16.7 (16.5). Our fixed-network subscription base decreased by 5,000, but the number of fixed broadband subscriptions increased by 38,000.
DNA’s role as the provider of fast and secure connections has been more relevant during the pandemic than ever. As meetings in person have been significantly reduced, the use of video-based services has increased. This has been reflected in the significant jump in data volumes and an increasing demand for fast connections. According to the latest report published by the international research company Tefficient in September, DNA’s customers again had the highest mobile data usage per subscription in the world. During the first half of 2020, the exceptional circumstances boosted data usage per subscription to as much as 33.1 gigabytes per month (25.3).
Mobile data volumes will increase further as 5G becomes more prevalent. The sales of 5G subscriptions have continued vigorously, and DNA’s TOP 15 list of most popular phones already featured four 5G models in September. Installations of DNA’s 5G Fixed Wireless Access service have also continued, and feedback from customers has been positive.
DNA has made considerable efforts to rapidly expand its 5G network range. The construction has proceeded as planned despite the exceptional circumstances brought on by the coronavirus, and the network is already available for more than 1.2 million people in 25 municipalities. In addition, DNA’s 5G network reaches up to 33 other municipalities with a more local coverage. DNA plans to reach more than 1.5 million people by the end of 2020.
The pandemic is worsening again, and under such exceptional circumstances, it is difficult to foresee the outlook for DNA’s operating environment and market. The pandemic is likely to slow down the economic growth in Finland too, which can have a negative impact on the demand for DNA’s services. On the other hand, the use of telecommunication services is likely to remain high.
At the end of the third quarter, more than 95% of DNA’s personnel continued to work remotely. We continue to follow the development of the pandemic closely and will make decisions on appropriate action based on current situation. According to our personnel survey, remote working has gone smoothly.