The CEO´s review has been published in DNA Plc's Business Review for January-March 2022, which was released in May 2022.
As the first quarter of 2022 closed, we were facing a significantly changed environment. The war in Ukraine launched by Russia has caused widespread global uncertainty, clouding the economic outlook. At the same time, accelerating inflation is eroding the purchasing power of consumers and the long-running zero interest rate policy is expected to come to an end. Due to the exceptional situation, the Bank of Finland also revised down its forecast for economic development in 2022. All of this may also impact DNA’s economic outlook.
Nevertheless, the January-March 2022 figures show that DNA’s business has developed steadily despite the situation. Our total revenues grew 1% year-on-year and amounted to EUR 240 million (236). However, our EBITDA and operating result fell slightly from the comparison period. EBITDA decreased 1% to EUR 92 million (93), while operating result decreased 5% and came to EUR 41 million (42). The decrease is attributable to, for example, higher costs in sales, 5G construction and Group services in the first quarter of 2022.
The number of mobile subscriptions increased by 5,000 year-on-year, and their ARPU increased to EUR 17.1 (17.0). The number of fixed broadband subscriptions increased by 24,000 from the comparison period, and their ARPU increased to EUR 16.4 (16.0). The number of fixed telephony and TV subscriptions fell as expected.
The demand for 5G subscriptions remained strong, and most phone models sold in March 2022 were 5G-capable. The demand for 5G products was also driven by our expanding 5G network, which reached as much as 66% of the population at the end the first quarter. The significant boost to mobile data speeds made possible by 5G was clearly visible in the latest measurement by Omnitele*. In some cases, download speeds in DNA’s network have increased by tenfold over the past four years.
The incidence of infections caused by the coronavirus was at a very high level in Finland in March. Nevertheless, the restrictions have mostly been lifted. The expiry of the national remote working recommendation was also visible at DNA and the share of employees working remotely fell under 95% for the first time in two years. DNA’s employees can continue to choose freely where and how they work and have typically visited the office only 0 to 2 times a week after the restrictions were lifted. During the pandemic, we have seen that giving the employees the freedom to choose how and where they work can be very productive and also increases job satisfaction. DNA plans to increase and enhance this flexibility even further in the second quarter of 2022.
*) Source: Omnitele’s study on mobile download speeds, 3/2022. The measurements were conducted in 11 regions, covering 19 cities: Helsinki, Espoo, Kauniainen, Vantaa, Kerava, Tuusula, Järvenpää, Turku, Raisio, Naantali, Kaarina, Tampere, Pirkkala, Nokia, Ylöjärvi, Kangasala, Jyväskylä, Lahti and Pori. The data transfer speeds varied between areas. The results are presented as averages for each area. The data transfer speeds and ranking of the operators also varied between locations within each area. Further information in Finnish: https://corporate.dna.fi/lehdistotiedotteet?type=stt2&id=69937838