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Elisa Q3 profits flat as lack of travel drains telcom's roaming fees

The firm said that the Covid crisis would slow economic growth and create uncertainty.

Elisa logo.
Elisa logo signage. Image: Henrietta Hassinen / Yle

Finnish telecom firm Elisa's share prices took a slight hit on Friday after the company announced only marginal profits in its third quarter report.

The company, which had seen a long period of growth, said that its profits rose by only one percent during July-September, year-on-year.

Elisa also reported a 0.5 percent decline in revenue. The firm said coronavirus-related travel restrictions were behind its roaming revenue losses.

"The competitive environment has been active. However, during the quarter, the COVID-19 crisis continued to impact the market situation to some extent. Mobile service revenue has been negatively impacted, as travel is still non-existent in practice. In the corporate business, uncertainty has increased," the company stated in its Q3 report.

The firm said it anticipated its revenues and EBITDA (earnings before interest, tax, depreciation and amortisation) would be the same or slightly higher than 2019, and that its business had not been particularly impacted by the coronavirus crisis.

"The impact of Covid-19 on Elisa’s business has been limited. Operations have continued as planned and all supply chains have operated normally. Elisa has continued its way of working mainly as remote work. The financial effects have been seen mainly in lower roaming revenue due to the reduced amount of travel and decreased sports pay-TV content," the firm said.

However, the company said it expected the pandemic to slow down economic growth and create macroeconomic uncertainty.

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