Finnish telecom Elisa raises 2021 core profit guidance

Finnish telecom operator Elisa raised its full-year outlook on Wednesday citing an improved economic environment in Finland but warned supply chain challenges could create uncertainties in volumes and prices.

Adds CEO, analyst comments, details, background

Oct 20 (Reuters) - Finnish telecom operator Elisa ELISA.HE raised its full-year outlook on Wednesday citing an improved economic environment in Finland but warned supply chain challenges could create uncertainties in volumes and prices.

Elisa now expects 2021 earnings before interest, tax, depreciation and amortisation (EBITDA) to be slightly higher than in 2020, versus an earlier forecast for results at the same level or slightly higher than last year.

"Elisa's leadership in 5G coverage strengthened during the quarter," Chief Executive Officer Veli-Matti Mattila said in a statement.

Mattila added the latest independent study of operators had confirmed Elisa's 5G network was the most comprehensive in Finland.

Elisa competes in the Finnish market with Sweden's Telia TELIA.ST and Norway's Telenor TEL.OL which recently took over local competitor DNA.

Its July-September EBITDA rose 3% to 186 million euros ($217 million), in line with the 185.8 million euro mean estimate of 10 analysts polled by Refinitiv.

"The guidance always looked conservative and it is fairly normal for Elisa to revisit typically conservative guidance with the Q3s", Credit Suisse analysts said in a note to clients.

Elisa reiterated its capital expenditure target of up to 12% of its revenue to increase its mobile and digital services.

($1 = 0.8587 euros)

(Reporting by Boleslaw Lasocki in Gdansk; editing by Christian Schmollinger and Jason Neely)

((boleslaw.lasocki@tr.com; +48 58 769 66 00;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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