Elisa slumps on unexpected Q3 revenue fall, churn rate increase

Elisa Oyj

18/10/2024 09:20

** Elisa  ELISA.HE  shares fall almost 6% as the Finnish
telecom's Q3 revenue misses expectations, while the churn rate
increase in Finland worries 
    ** Elisa's Q3 net sales fell 1.6% to EUR 536 mln and missed
consensus cited by J.P.Morgan by 3.2%
        ** Kepler Cheuvreux analyst Kristoffer Carleskar says
the revenue miss is the key driver for the share fall today, but
that the revenue drop also goes hand in hand with slow EBITDA
growth 
  
        ** The market expected an uptick on EBITDA growth
sequentially, Carleskar adds
  
    ** Inderes analyst Joni Gronqvist says the fall in turnover
is unexpected, in otherwise in-line earnings
        ** Another worrying factor, Carleskar says, is the churn
rate increase in Finland, as it is back at levels not seen in 2
years - the mobile post-paid churn increased to 16.8% in Q3
  
    ** Elisa revised its FY EBITDA guidance to "slightly higher
than in 2023" from "same level or slightly higher", which the
Inderes and JPM analysts say was expected and priced into the
consensus 
    ** If losses hold, the shares are on track for their worst
day in a year

 (Reporting by Agata Rybska)
 ((gdansk.newsroom@thomsonreuters.com;))