Citi upgrades Finland's Elisa on mobile service revenue boost

Elisa Oyj

24/06/2025 12:58

** Citigroup upgrades Finnish telecom operator Elisa ELISA.HE to "neutral" from "sell", citing "much needed mobile service revenue (MSR) boost" from higher tariffs due to extra security features

** Citi says Elisa's new features and price increases could yield around EUR 60 million ($69.63 million) annualised uplift in MSR once fully implemented starting from Q2 2025

** Brokerage expects the MSR growth to improve to about 4.3% this quarter from 2.6% in Q1, sustaining this level until end-2026

** However, beyond near-term supports, competitive dynamics such as increased listing prices and lowered promotional prices to manage customer churn in Finland continue to look unfavourable to Elisa, says Citi

** As majority of fibre build now in Finland is via Altnets, Elisa, with its strong market share in mobile broadband, is facing market share fragmentation in the mid-to-long term, Citi says

($1 = 0.8617 euros)

 (Reporting by Vera Dvorakova)

 ((vera.dvorakova@thomsonreuters.com))