rewrite this title and make it good for SEOElisa posts higher Q1 profit as cost cuts offset equipment slump By Investing.com

Investing.com — Finnish telecoms operator reported higher first-quarter profit on Tuesday as operating cost savings offset a decline in revenue driven by weaker equipment sales.

Comparable earnings before interest, taxes, depreciation and amortisation rose 2.2% to €203 million in the three months to March 31, while revenue fell 1.3% to €548 million, hurt by lower device sales amid a challenging economic environment and rising component costs.

“Comparable cash flow again grew strongly, rising by 16 per cent to EUR 95 million, positively impacted by drivers across the board,” chief executive Topi Manner said.

Materials and services costs fell to €178 million from €189 million a year earlier, while employee expenses declined to €115 million from €120 million, providing the primary support for margin improvement. 

Other operating expenses, however, rose to €58 million from €54 million. Elisa said it remains on track to deliver €40 million in planned cost savings for the full year, with first-quarter focus on reductions in outsourced services including IT consultancy and improvements in procurement efficiency.

Telecom service revenue, which Elisa considers a core performance measure, edged up 0.5% to €345 million.

Net profit rose to €91 million from €90 million a year earlier. Basic earnings per share were €0.57 against €0.56 in the first quarter of 2025. Capital expenditure fell 5.4% to €61 million, excluding leases, share investments and business acquisitions.

Comparable cash flow increased €13 million to €95 million, supported by higher EBITDA, a positive shift in net working capital, lower financial expenses and reduced capital spending. Net debt edged up 1.3% to €1.428 billion. Cash and undrawn committed credit lines totalled €434 million at the end of the quarter.

In Finland, mobile post-paid average revenue per user was €23.9, down from €24.3 the prior quarter, while post-paid churn fell to 17.2% from 23%. 

Post-paid mobile subscriptions decreased by 2,700 during the quarter. The machine-to-machine and internet-of-things subscription base grew by 20,000. Fixed broadband subscriptions increased by 14,000, while prepaid subscriptions fell by 21,700.

Consumer Customers revenue fell 1.7% to €324 million, weighed by lower equipment sales, the divestment of Epic TV and a decline in mobile broadband and digital services. Comparable EBITDA rose 1.4% to €137 million.

Corporate Customers revenue declined 2.5% to €182 million, hurt by equipment sales, traditional fixed-line services and interconnection and roaming, partially offset by mobile services growth. Comparable EBITDA rose 2.1% to €63 million.

International Software Services revenue grew 6.9% to €43 million, driven by services and recurring revenue growth. Comparable EBITDA rose to €3 million from €2 million.

Elisa kept its full-year guidance unchanged. The company expects 2026 revenue at the same level as or slightly higher than 2025’s €2.257 billion, with comparable EBITDA of €815 million to €845 million. Capital expenditure is forecast at 12% of revenue.

Elisa flagged geopolitical uncertainties, including the war in Iran, as a potential source of indirect risk through higher inflation and interest rates, while noting it has no direct exposure to the conflict.