Elisa Oyj Non-GAAP EPS of Є0.57, revenue of Є552M

Elisa Oyj reported a Non-GAAP EPS of €0.57 and revenue of €552 million in Q2, marking a 2.0% year-over-year increase, with a 4% rise in Comparable EBITDA driven by mobile services and operational efficiencies.

The company anticipates sluggish growth in the Finnish economy due to geopolitical tensions and global supply chain challenges, which may impact pricing stability and volume availability.

Elisa expects full-year revenue for 2025 to match or slightly exceed 2024 levels, with mobile, digital, and software services identified as primary growth drivers, along with Comparable EBITDA remaining consistent with or slightly above 2024 figures.

Capital expenditures are projected to be capped at 12% of total revenue, indicating a conservative investment approach amidst economic uncertainties.

Recommendation Rating: Strong Hold

Elisa Oyj (OTCPK: ELMUF) has released its financial results for the second quarter, reporting a Non-GAAP Earnings Per Share (EPS) of €0.57. The company's revenue reached €552 million, representing a year-over-year increase of 2.0%.

Key performance indicators for the quarter show a 4% rise in Comparable EBITDA, primarily driven by growth in mobile services, international software offerings, and operational efficiencies. Additionally, Comparable EBIT experienced a 2% growth.

Looking ahead, Elisa provides guidance for 2025 amidst a backdrop of economic uncertainty. The Finnish economy is anticipated to experience sluggish growth, influenced by ongoing concerns stemming from Russia's conflict in Ukraine and other geopolitical tensions. Additionally, challenges in global supply chains pose risks regarding volume availability and pricing stability.

The competitive landscape within the Finnish telecommunications sector remains intense. Elisa predicts that full-year revenue for 2025 will likely match or slightly exceed the levels recorded in 2024. The company expects mobile, digital, and software services to be the key drivers of this revenue growth. Furthermore, it forecasts that full-year Comparable EBITDA will remain consistent with or slightly above the 2024 figures.

In terms of investment, capital expenditures are projected to be capped at 12% of total revenue.