Elisa Oyj

XMUN:EIA

Revenue flat: Q2 revenue was essentially unchanged at EUR 551 million, as weakness in mobile services and a few portfolio changes were offset by growth in fixed services and equipment sales.

Profitability improved: Comparable EBITDA rose to EUR 201 million and the EBITDA margin improved to 36.5%, helped mainly by cost savings and the transformation program.

Mobile normalizing: Management said Finnish mobile market conditions have normalized, with churn back to normal levels and postpaid net adds improving, but the revenue benefit will show up with a lag, especially in Q4.

Guidance unchanged: Full-year revenue guidance was left unchanged, while comparable EBITDA guidance stayed at EUR 815 million to EUR 845 million; telecom service revenue is now expected to grow 0% to 2%.

Data centers start: Elisa signed its first large-scale data center connectivity deals and said the business could become a meaningful long-term profit and cash flow driver, though it is still early days.

ISS still soft: International software services grew only 0.6% organically, held back by delayed customer decisions, but management said it does not see lost deals or an AI-related demand problem.

Cash flow strong but lower: Q2 cash flow was EUR 71 million, down from EUR 130 million a year ago, mainly because of higher interest costs and less favorable working capital.

Dividend and balance sheet: The board approved a second quarterly dividend installment of EUR 0.60, and leverage remained comfortable at 1.8x net debt to EBITDA.