CEO's review
The CEO´s review has been published in DNA Plc's Half-Year Financial Report 2024, which was released on 18 July 2024.
DNA’s financial figures for the period indicate that our business has developed favourably. Our total revenues grew by 5% year-on-year and amounted to EUR 539 million (513). EBITDA increased by 11% to EUR 209 million (189). The operating result increased by 18% and was EUR 109 million (93). The number of mobile network subscriptions increased on the comparison period and stood at 2,788,000 subscriptions (2,742,000), while their ARPU rose to EUR 19.1 (17.8). The number of fixed broadband subscriptions also increased on the comparison period and stood at 688,000 subscriptions (659,000), while their ARPU rose to EUR 16.6 (16.3). The number of TV subscriptions decreased as expected.
At the end of June, DNA’s 5G network had a population coverage of almost 98%. Long-term efforts to upgrade our network are also reflected in increased data speeds on 4G services. However, mobile network developments are increasingly focused on 5G technology, and the first 5.5G-based services will soon be coming onto the market. DNA already piloted 5.5G technology for the media at the end of last year, reaching data speeds of up to 10 gigabits per second in its commercial network. In the spring, DNA was also the first operator in Finland to launch two gigabit broadband subscriptions in the fixed broadband network, cable broadband and Ethernet technology. There is a need for speed, as the amount of data being used is constantly increasing.
Finns still need to brush up on their information security skills. According to a recent survey that we commissioned1), only 54% of Finns feel that they are sufficiently knowledgable about data security threats. Another survey2) shows that Finnish companies are also inadequately prepared for cyber threats. At DNA, we consider improving cyber resilience to be a common challenge for everyone in Finland. Our parent company, Telenor, announced the establishment of a new Nordic company, Telenor Cyberdefence, in June. This will create opportunities to further expand our cybersecurity offering.
We have also been actively revising our brand strategy in 2024. DNA is an attitude brand that dares to challenge, experiment and care. A strong brand also makes us stand out from our competitors – a strong brand’s most important task is to make it easier to decide what to buy. I am sure that our brand’s key message, dare, will be visible to our customers in many ways during the course of the year.
In May and June, DNA has also been highlighting a topic that is personally important to me: humane leadership. In podcasts on this topic, I invited leading experts from a number of fields to share their insights and ideas. The goal was to spark off public debate and promote more human leadership at all organisational levels. The podcast project is also an excellent reflection of DNA’s corporate culture, which is centred on our employer promise of a humane and one-of-a-kind workplace.
When it comes to DNA’s operating environment, it is important to note that the Finnish economy is still in recession, even though the Bank of Finland’s June forecast predicted that a slow recovery is on the horizon3). Inflation has clearly slowed down, and the resulting improvement in household purchasing power will help private consumption to recover. However, the wars in Ukraine and Gaza continue to cause global uncertainty that is also being reflected in Finland. DNA has prepared for both changes in the geopolitical situation and a rise in influence operations, data breaches and sabotage attempts fuelled by growing unrest.
Jussi Tolvanen
CEO
1) A press release about the survey is available at: https://corporate.dna.fi/press-releases?type=stt1&id=70352342
2) A press release about the survey is available at: https://corporate.dna.fi/press-releases?type=stt1&id=70120504
3) Bank of Finland, 11 June 2024: Finland’s economy gradually moving out of recession. Available here: https://www.suomenpankki.fi/en/media-and-publications/releases/2024/finlands-economy-gradually-moving-out-of-recession/