Notes to the financial statements

Notes to the financial statements

1. Operating Segments
The Group's reportable segments are based on the internal reporting provided to management. Elisa's internal organisational and management structure is based on a customer-oriented operating model. The Group's reportable operating segments are Consumer Customers and Corporate Customers.
The Consumer Customers segment provides consumers and households with telecommunications services, such as voice and data services. The Corporate Customers segment provides to the corporate and community customers voice and data services, ICT solutions and contact centre services.
The segments are controlled by the segment-specific performance reporting that includes external revenue, EBITDA, EBIT and investments. Financial items, share of associated companies’ profit and income taxes are not allocated to operating segments. The costs of production and support functions are allocated to operating segments on the matching principle. Operations in Estonia are divided into the Consumer Customers and Corporate Customers operating segments on the basis of customer accounts.
Segment assets consist of intangible and tangible assets, inventories, trade and other non-interest bearing receivables. Deferred taxes, investments in associated companies, financial assets available-for-sale, interest-bearing receivables, financial items and income tax receivables are not included in segment assets. Liabilities are not allocated to operating segments.
The accounting principles of the segments are the same as those used in the preparation of the financial statements.
The reported geographical areas are Finland, Rest of Europe and Other Countries. Revenues are presented on the basis of the customer location. Assets are presented on the basis of location.
Operating Segments
2016          
EUR million   Consumer
Customers
Corporate
Customers
Unallocated
items
Group
total
Revenue   1,029.3 606.4   1,635.7
EBITDA   369.4 193.6   563.0
Depreciation, amortisation and impairment -128.7 -95.1   -223.8
EBIT   240.7 98.6   339.3
Financial income       6.8 6.8
Financial expenses       -24.6 -24.6
Share of associated companies’ profit     -1.4 -1.4
Profit before tax         320.0
           
Investments   125.7 100.2   226.0
Assets   1,365.9 886.0 281.1 2,533.0
           
2015          
EUR million   Consumer
Customers
Corporate
Customers
Unallocated
items
Group
total
Revenue   983.2 586.3   1,569.5
EBITDA   347.7 184.8   532.5
Depreciation, amortisation and impairment -126.3 -94.2   -220.4
EBIT   221.5 90.6   312.1
Financial income       3.6 3.6
Financial expense       -27.4 -27.4
Share of associated companies’ profit     2.3 2.3
Profit before tax         290.6
           
Investments   110.6 85.2   195.8
Assets   1,271.6 832.1 143.0 2,246.6
           
Product and service information
2016          
EUR million     Mobile
communications
Fixed network
and other
Group
total
Revenue     1,021.3 614.4 1,635.7
           
2015          
EUR million     Mobile
communications
Fixed network
and other
Group
total
Revenue     988.4 581.1 1,569.5
Geographical information
2016          
EUR million Finland Rest of
Europe
Other
countries
Eliminations Group
total
Revenue 1,507.1 133.7 4.6 -9.7 1,635.7
Assets 2,447.5 84.0 1.5   2,533.0
 
2015          
EUR million Finland Rest of
Europe
Other
countries
Eliminations Group
total
Revenue 1,437.7 133.9 5.1 -7.2 1,569.5
Assets 2,164.5 80.7 1.4   2,246.6

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