In the third quarter, EBITDA was EUR 147 million (808), which includes EUR 36 million negative of non-recurring items (EUR 692 million positive). Comparable EBITDA excluding non-recurring items was EUR 183 million (July-September 2000: EUR 116 million, and April-June 2001: EUR 122 million). Operating expenses were at the level of the corresponding period in 2000. Compared with the second quarter, the expenses decreased by 10%, primarily due to seasonal variation and effects from cost cutting. Operating profit amounted to EUR 63 million (730) and comparable operating profit was EUR 99 million (38).

Equity income in associated companies was EUR 41 million negative (EUR 45 million positive) in the third quarter. Equity income in associated companies was weakened by the net losses of Turkcell, Fintur and Group 3G. Net financial expenses were EUR 8 million (net financial income of EUR 6 million).

In the third quarter, loss before extraordinary items and taxes totaled EUR 352 million (profit of EUR 781 million), primarily due to the EUR 366 million decrease in the market value of Deutsche Telekom shares from the second quarter. At the end of September, the value of Deutsche Telekom shares in Sonera’s balance sheet was EUR 665 million. Excluding non-recurring items, comparable profit before extraordinary items and taxes was EUR 50 million (89). Earnings per share were EUR 0.44 negative (EUR 1.00 positive), and comparable earnings per share were EUR 0.07 positive (0.08).

Cash provided by operating activities was EUR 84 million (86) during the third quarter. Despite higher interest expenses than last year, the improved comparable EBITDA helped to maintain the cash flow from operating activities at a good level.

Significant share sales in the nine-month period January-September

Consolidated revenues for January-September 2001 amounted to EUR 1,631 million (EUR 1,497 million in January-September 2000), showing a rise of 9% from the corresponding nine-month period in the previous year. The growth in comparable revenues was 10%, taking into account the businesses sold and acquired.

EBITDA for the nine-month period was EUR 1,241 million (1,963). The reported EBITDA includes a total of EUR 834 million (1,553) of non-recurring items. Excluding non-recurring items, comparable EBITDA was EUR 407 million (410). Operating profit was EUR 989 million (1,739) and comparable operating profit was EUR 155 million (186). The combined profitability of Mobile Communications Finland and Sonera Telecom improved on the previous year. The EBITDA reported by Service Businesses was EUR 217 million negative (EUR 176 million negative), and the operating loss of the business segment was EUR 253 million (204), which were higher than in the previous year.

In January-September, equity income in associated companies was EUR 135 million negative (EUR 103 million positive), and net financial expenses amounted to EUR 35 million (6). Profit before extraordinary items and taxes was EUR 453 million (1,836) in the nine-month period, while earnings per share where EUR 0.47 (1.96). The effective tax rate in January-September was 22% (20%).

Excluding non-recurring items, loss before extraordinary items and taxes was EUR 15 million (profit of EUR 283 million) in the nine-month period, and earnings per share were EUR 0.01 negative (EUR 0.25 positive). The difference is mainly due to the equity loss in Sonera’s associated companies during the nine-month period.

In the nine-month period, capital expenditures on fixed assets totaled EUR 266 million (260). Investments in shares and shareholder loans were EUR 497 million (4,493), which was clearly lower than in the previous year. The significant proceeds from the sale of shares, EUR 1,943 million (775), were used to repay current debt. At the end of September, net debt was down to EUR 3,829 million (December 31, 2000: EUR 5,641 million), when the market value of the remaining Deutsche Telekom shares, EUR 665 million, is included in the calculation. At the end of September, the equity-to-assets ratio was 39.1% (December 31, 2000: 33.4%) and the net debt-to-equity ratio was down to 107.1% (December 31, 2000: 173.6%).

In January-September, the Group’s average payroll was 10,904 (10,189). At the end of September, the number of employees was 10,928, showing a decrease of 3% from the end of 2000.