Elisa Oyj Ord A

Good morning, everyone, and welcome to ELISA's second quarter 2025 conference call and analyst meeting. We have a very familiar team here again. I'm Vesa Sahivirta, head of investor relations, and we have here also CEO Topi Manner and CFO Jari Kinnunen. We follow normal practice in this event. Before we start, I would like to say on behalf of our whole team, to our group treasurer Juha Kervinen. Thank you for your incredible work at ELISA. Juha will retire now after these summer holidays. And Juha has also been working with IR since the company was listed. So Juha has even more interim reports behind him than I have. And that's pretty much. So thank you, Johan. It has been a pleasure and privilege working with you. So, but now we are going to the agenda of the day and we start with the presentation and I give a word to Topi, please go ahead.

Thank you. Thank you, Vesa, and good day, everybody. Welcome to this ELISA Q2 earnings call. And first of all, I would just like to echo what Vesa said about Juha and your contribution to the company over the years. I mean, there will be many speeches coming your way soon, but thank you for all of your work during the many, many years. So, When we look at our Q2, I think a good quarter for us in many ways. Strong EBITDA development fully in line with our mid-term targets being above 4%. New mobile offering introduced to the market and being well received by our customers. And then when we look at our cash flow, the cash flow development was strong. Actually, it was an all-time high quarter in terms of cash flow for us. Looking into the highlights of the quarter, the revenue increased by 2%, very much driven by international software services and the increase in mobile service revenue. When analyzing the revenue development, it is worthwhile to note that the equipment sales decreased 12 million euros in comparison to same quarter last year. And here in the comparison quarter last year, we had a one time deal of seven million euros in Estonia. The mobile service revenue increased 3.4 percent, and it is good to see that in terms of the growth rate of MSR, we are now back on an improving trend following the new offering that we introduced to the market in May. International Software Services revenue increased with 70% supported by the Bolton acquisitions. If we look at the organic growth piece of that, that organic growth amounted to 9.6% to be exact. very much in line with our ambitions of achieving 10% or more organic growth for the year on a quarterly basis. Comparable EBITDA stated was up 4.3 percent, comparable cash flow grew with dimension plus 20 percent. In terms of net ads, the postpaid subscriptions increased by 43,000 approximately, and this was basically on the back of improving net ad trends in consumer business and also customer wins in corporate business, for example, in public sector. The competitive intensity has been relatively tight in 4G market. During the quarter, we took a step toward right direction and the churn decreased to 17%. And I think that this is noteworthy because during the quarter, we also introduced this new offering. increasing the prices respectively, and clearly the churn development goes to show that the offering introduction to the market has been successful and the value provided by the offering has been well received by customers. On fixed broadband side, the subscriptions increased with 4,400. So the number of subscriptions both on mobile side and on fixed side are on an improving trend. Then, looking into the numbers a little bit more deeply, the revenue landed at 552 million euros, as mentioned. EBITDA was 198 million euros. If we compare the EBITDA percentage to the comparison quarter last year, we took a step up in the EBITDA percentage. Epita is pretty much driven by the mobile services, also the international software services, cybersecurity services, and then we start to see an increase in revenue coming from fiber business. And clearly, the efficiency improvements, the continuous improvement in terms of efficiency is contributing positively to the EBITDA and to the operating leverage. In terms of MSR development, I think that the most important development is really that we are back on an improving trend with respect to MSR on the back of the offering changes that we introduced on the market. And when we look forward, I think that the offering changes will be offering clear support to the MSR development going into the second half of the year and then further into 26. So our expectation for the full calendar year in terms of MSR is that we will be we will be seeing mid single digit growth. So we reiterate that guidance. RPU improved during the quarter and as stated churn decreased to 17.1%. The market with respect to 5G is competitive, but as stated, customers are also tuned to the value that we are creating with the 5G Plus offering. In 5G Plus, we see that customers are more satisfied with the 5G plus subscriptions that they are with the sort of traditional 5G subscriptions. And then also the security features are clearly valuable to customers. In the 4G space, we see some tight competition still out there in the marketplace. When we look at our business segment by segment, I think consumer business is fully robust at this point of time. Revenue plus 2.4%, EBITDA plus 3.6%. In corporate customers, the revenue decreased a bit, but here we need to adjust for the seven million one time deal in Estonia during the comparison quarter. Having said that, it is clear that the macro environment is creating some challenges to the corporate business. Customers have delayed their decision making related to IT services and cyber. Also in fixed services, in equipment sales, the macro situation is somewhat visible. At the same time, we do see improving trends in corporate segment toward the end of the year. not that much driven by macro, but driven by micro developments, namely us winning new customers during the course of the spring. And clearly, those customer wins are showcases of our competitiveness. In this challenging market related to IT services and cyber related to corporate networks, we are clearly competitive. We are winning market share. We are winning new customers. And once we get those new customers and their services fully transferred to us, we will see support in revenue and we will be seeing support in profitability toward the end of the year in corporate segment. International software services revenue increased with 71 percent supported by acquisitions. And as stated, the comparable growth, the organic growth amounted to 10 percent. EBITDA still slightly negative for the quarter, but here we will need to remember that typically Q2 in software business is the weakest quarter. So when we look at the full year in terms of international software services, we do expect double digit organic growth for that business. And we do expect that business to be in positive territory in terms of full year EBITDA. Back in March, we communicated our new strategy, updated strategy in the Capital Markets Day in London, and they stated in terms of EBITDA, we are now fully in line with the midterm targets going for faster, profitable growth. the four growth areas of our strategy being 5G and fiber, home services, corporate IT and cyber, and international software services. And in all of these, we have been making steady progress during the quarter. So when we look into The mobile business and the fiber business, as stated, the clear success for the quarter was the new mobile offering. And the whole upsell to 5G continues intact, as shown on the orange trend line on the right-hand side of the page. What is also worthwhile to know is that while the new security features and embedding those to our mobile offering will be offering support to mobile service revenue development during the remainder of this year and during the next year, We also do see the next chapter of mobile service revenue growth coming with 5.5G development, as we communicated in our capital markets day presentations. And to create that competitive advantage in terms of our network capabilities, in terms of our commercial capabilities, we have now signed a deal with Nokia to extend our 5.5G network during the coming period in Finland and in Estonia. In Estonia also, it is worthwhile to note that our 5G network with Nokia equipment has now been rated the fastest on the market, and that certainly is already visible in our customer satisfaction numbers. During the quarter, an intriguing development was related to Moontalk. Moontalk Airi was launched and Moontalk Airi is effectively an AI agent, an app that enables customers to make summaries of their calls, list the action points out of the calls, and with APIs, those action points are possible to be transported to the CRM systems of customers. you know, improving the quality, for example, of sales personnel and improving the productivity of sales personnel. And these kinds of solutions are examples of what we could use to leverage in other parts of our customer base going forward with AI type solutions and with that strengthen our offering and provide more value for larger parts of our customer base. We also enjoy good momentum in fiber business, clearly strong revenue growth there, accelerated network construction, and also a new offering for multi-dwelling units, improving our competitiveness. So when we look at the rest of our growth areas in terms of strategy in home services during the quarter, we launched new Elisa Kotiturva, new home security solutions in collaboration with Evarn Security, a Finnish provider of security. security services. And now, as per our strategy, we have been launching the home energy solutions, home battery to the market, home security solution, and we'll start gradually to penetrate the market with these solutions, providing good value for our customers. In corporate and IT and cyber, as mentioned, several large customer wins, typically with some AI enhanced service angle in those competitive biddings. And for example, our digital workplace solutions are quite competitive in the marketplace at this point of time. During the course of this year, the number of workstations that we are managing with our AI-enhanced service will increase by 40%. So clearly an indication of the value that that service brings to our customers. Strong growth, strong demand for our cybersecurity services continues. In ISS, as stated, we do expect double-digit organic growth for the full year. And especially in the telco vertical, that being a stable, somewhat defensive sector, we are making good strides and have now signed several sizable multi-year contracts with our customers. Of course, this part of the business is not immune to the global geopolitical uncertainties and to the tariff related uncertainties. And we see some impact of that in the form of slower decision making with customers in certain verticals of that business. for example, in the semi-convertible of our industry business. Then one of the highlights for the quarter really was that the Time magazine, once again, together with Stadista, listed the most sustainable companies in the world. And this was now the second time around. Last year, we were the number 66 in the world, and now we improved our position and ranking to number 55. So good progress in in that one and definitely great to get this kind of an acknowledgement. We also were selected to the Financial Times list of best employers in Europe. So important acknowledgement related to our employee brand and the well-being of employees in the company. And this brings me to the end of the presentation. So we are reiterating our outlook and guidance for the full year. So revenue we expect to stay on the same level or slightly higher, and EBITDA likewise at same level or slightly higher than in 2024. CAPEX will be max 12% of revenue, and we are heading towards that number for the full year. So I think that that completes my presentation of Q2, and now I will hand over to Jari. Thank you.

Yes, thank you, and I will start continuing and echoing Vesku and Topi. Big thanks to Juha for excellent years and high contribution to the company over the years. I think the whole team really appreciates your professional work, but also appreciate you as a very valued colleague, and definitely you will be missed after you retire, but all the best for that when that time comes. Now, second quarter continued good development after Q1, especially Epida growth. more than 4%, so in line with the medium-term targets as well. But let's first look at the revenue change. 11 million increased 2% compared to last year. There was negative impact from equipment sales, 12 million, and that includes this 7 million one time deal in comparison year. International software services strong growth, 16 million. Acquisition first consolidation impact is approximately 3 million. Comparable organic growth at 9.6%. Domestic digital services growth was one million. Corporate IT services growing in fixed services. Inside that, minus two million, there are different... trends, voice, traditional voice continuing to decline. Also, corporate network services were declining compared to previous year. However, fixed broadband services are growing very much driven by fiber. Mobile service revenue growth trend improved from Q1, from 2.6 to 3.4%, and in euros, 9 million increase. Total service revenue growth altogether was at 5%. And that together with continuing cost efficiency and productivity improvement measures led to EPIDA. 4.3 percent growth, 198 million. Also, margin improved, 0.7 percent points to 35.8 percent. In EBIT, growth was somewhat lower than EBITDA, impacted by depreciation increase, 5 million. compared to last year, the same change was also in Q1. Now, going to second half of the year, depreciation change, year-on-year depreciation change will be less negative, so there will be improvement in that sense for that line. A bit... margin was 22.5%. Financial expenses net, including also share of associated company profits, change was negative 2.9 million. Now, this comparison includes Comparison year, temporary good share of associated company profit, and therefore, year on year, negative change, 1.8 million, which again, going to the second half, is something that is not going to repeat. So, net interest expense change in Q2 was approximately one million. Then moving to Estonia. In revenue, already a couple of times mentioned one time deal. In comparison, year impacted to revenue, excluding the seven million, revenue increase was two percent. Mobile service revenue was developing and continuing to... Developing positively and continued to grow. And together with MSR growth and cost efficiency measures, EPIDA increased 4%. In subscription base in Estonia, positive postpaid increased 3,800. Prepaid was negative 4,100. Churn reduced from previous quarter to 8.6%. CapEx in Q2 was reported CapEx 89 million, guided CapEx excluding licenses, lease agreements and acquisitions 76 million, so that is 5 million lower than a year ago. All in all, guidance for the full year, 12% from revenues, is unchanged and intact. Main investments continue in mobile networks, 5G coverage increase in fixed-site fiber and other networks and IT investments. Q2 cash flow was strong, comparable cash flow, 130 million, 20% increase against previous year, positive contribution from higher EPIDA and lower CAPEX, as well as networking capital change, which was... more positive than a year ago, and accounts payable contributing as well as continuous improvement in inventory efficiencies. Negative change, slight negative change in paid interest as well as paid taxes. First half, comparable cash flow is 196 million, 16 million higher than a year ago, and 9% increase against last year, and higher EBITDA and net working capital change contributing negative impact from financial expenses, interest expenses, and capex. Operating cash flow, EBITDA operating cash flow conversion, was improving from last year was 62%. Then looking at the balance sheet and capital structure, solid capital structure continuing in line regarding net debt to EBITDA in line with targets 1.9 times equity ratio, slightly below the medium term target at 32.7%. Both of these are impacted by by the dividend in the second quarter, and going forward, net debt will reduce as well as equity ratio will increase. Return ratios, continue at a good level, return on equity 30.4 percent, and return on investments 18.7 percent. The second quarter, we did liability management transaction issues, 300 million five-year bond. order book was more than three times subscribed, and you were able to reach good terms, coupon to 0.875% for the loan. As part of the transaction, we also purchased back part of 300 million debt due next year. 115 million out of that was purchased back. And average interest for the interest-bearing debt currently, also after this transaction, is 2.5%. And now, I will give a word to Vesa, please.

Thank you, Jari. And now we move on to Q&A part. Do we have a question from audience? Yes, we have. Artem, please.

Yes, Artem Leski from SEB. Actually, three questions from my side. So the first one is really relating to new offering in consumer mobile. And could you maybe provide some color how much of migration has been done by the end of Q2? And will it be basically completed by the year end of this year? The second question is relating to ISS, and could you maybe provide some further color on earnings seasonality? So you mentioned that Q2 is clearly the weakest one of the year. Is it fair to assume that we will see some improvement in Q3 and Q4 is clearly the best quarter in terms of profitability? And maybe just around the business, if you could also comment on order intake and backlog situation, what you are seeing right now for this area. And the last one is... actually to Jari, housekeeping question, what comes to working capital? So you have made quite big progress in H1, so the impact has been more than 30 million. Positive, is there something more structural happening or is it just some type of seasonality or quarterly seasonality what we are seeing there?

Thank you. Thank you, Artem. So if I start with the mobile offering question. So during the quarter, we introduced new mobile offering, which means that we embedded mobile ID, scam site protection and data leakage monitoring to our mobile plans. And we have now introduced that to our new sales. And a big part of our new sales is going into the new offerings, including the security features. And then we have started to make back book changes. And we have carried out the back book changes to a few hundreds of thousands of customers. What is noteworthy is that those offering changes for the back book came into force in cohorts during Q2. First cohort came into force in May, second cohort came into force in June. And that means that already these will be providing quite a bit of support to MSR development in Q3 and onwards. And now we will continue to roll out the new offering cohort by cohort to all of our consumer customers during the remainder of this year. but that will go well into the next year as well. So basically, we are looking at the rollout being conducted in the timeframe of 18 months or so. And this means that the security features will be offering support to our MSR development in this timeframe. And then, after that comes the 5.5G. So, as stated coming back to our Capital Markets Day presentation, the short- and the mid-term outlook for MSR development basically follows that plan that we communicated at the CMD. And then the ISS-related development, yes, Q2 typically is the weakest quarter, The profile during the year in the ISS business typically is that Q4 is the strongest. Q1 is also pretty strong, typically. So there is this kind of a yearly seasonality within that business. And with that, we reiterate our expectation that we will be seeing double-digit organic revenue growth in ISS for the full calendar year. And we also expect to be in positive numbers in terms of EBITDA for the full calendar year. And then specifically to the question of the order book, The order book is quite good at this point of time. We have some visibility to the second half in terms of delivering the orders that we have already received. In terms of order intake, Clearly, the telco vertical that we are serving as a stable industry is pretty much unaffected by the global uncertainties. In some of the other verticals, like the Semicon vertical, we see some slowness in customer decision making on the back of the uncertainties, also impacting the order intake a bit.

And if I continue with the net working capital, so there are, well, some seasonalities, typically second and fourth quarter are better in terms of accounts payable, sorry, accounts receivable, somewhat better. But we continue... also improving efficiency of networking capital, especially with inventories. We have been reducing inventory levels now some time, and there is still work to do, so there is potential also going forward.

Okay, that's very clear. Thank you very much, and Juha, I wish you all the best.

Okay, thank you, Artem, and any other questions from audience? No, we don't have. So please, first question from conference call lines.

If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Andrew Lee from Goldman Sachs. Please go ahead.

Good afternoon, everyone. I had two questions, one on the mobile service revenue growth phasing and the more for more commentary that you've given so far, and then a second just on the EBITDA growth of clarification. On the mobile service revenue growth and the more for more commentary, price rises you've been putting through. I want you to just comment on how well you think those have been going, given we've seen a reduction on SHERM. But more specifically, I know you mentioned around the cohort by cohort adoption of the price plans. Could you give us a bit more, Carla, please, in terms of how many customers actually went live with the higher pricing in May or June, because what a lot of people have observed is that in the second quarter we didn't see a rise in ARPU. So just trying to get an understanding of how much of an acceleration of mobile service revenue growth and inflection of ARPU we should be thinking about into Q3. Anything around that would be really helpful. And then just secondly, on the EBITDA growth, you mentioned on the call that your EBITDA growth this quarter is in line with your midterm guide. But I think you highlighted commented at the Capital Markets Day that your EBITDA growth guide is an organic guide as well. And I think your organic EBITDA growth delivery this quarter was sub 4%. So just wanted to check that we're right in thinking that EBITDA growth should be organically above 4% and how you'd think about that for the rest of the year. Thank you.

Yeah, thank you, Andrew. If I start with the latter one just briefly. Yes, the EBITDA guide from the CMD is an organic EBITDA growth target, so you are absolutely right on that one. And also applying that definition, we are in line with mid-term targets in terms of EBITDA growth. So I hope that that addresses the latter question. And then related to the mobile offerings. So first of all, I think that you mentioned an important thing, and that is related to churn. So I'm actually quite happy in terms of how we have carried out the new offering and how that has been received by customers. So clearly, the value that we are providing to customers is concrete, and the customers perceive that even with the price increase, they get good value and that is clearly witnessed in the journey number the journey number decreased to 17 17 even though we do see some campaigning uh going on uh in in the 4g 4g space so being able to conduct this kind of an offering change a more for more change as you alluded to while decreasing churn in a situation where we have campaigning going on in the marketplace. I think that that is a showcase of a successful offering change that clearly brings value to customers. And of course, that is a great platform and effectively a springboard to continued favourable MSR development during the second half of the year. So with this offering change, we do reiterate our view that during the full calendar year, we will be experiencing mid-single-digit mobile service revenue growth. And clearly the confidence level has increased on that note. So far during the Q2, we rolled out the new offering to few hundreds of thousands of customers. in cohorts, first one in May, second one in June. And now we have already rolled out further customers into the offering during the course of July, and we will be going to do so cohort by cohort during the remainder of the year and going into 2026. So, as stated, this is strengthening the prospect of the MSR development going forward.

Thanks, Topi. I just want one or two clarifications. One, in terms of that process of rolling out to the cohorts, what exactly is the process? Our understanding is that you tell the customer that their price is going to go up, and then the price goes up a month or two later. So just trying to understand that to understand whether the churn this quarter is a better guide to how customers are weathering the price rises versus Yahoo, which is obviously not going up this quarter. And then just on that EBITDA question, isn't SEDAPTA a €1 million to €2 million contribution to EBITDA? So if you strip that out of your EBITDA, actually, the EBITDA growth is less than 4%, and it's not in line with your mid-term guidance. Am I getting something wrong there? Thank you.

Yeah. I mean, Jari, if you take the latter question related to SEDAPTA, but on the first one, the way we are rolling out the new offering in mobile is that... Of course, we are slicing and dicing our customer base in granular fashion. We have several different types of contracts with customers related to their mobile subscriptions. Some of them are of continuous nature, some of them are fixed term contracts, and various contracts and their terms and conditions allow for various types of price changes. So this is something that we will need to factor in to our rollout schedule and to our rollout plan, and then we are moving forward with that one. So that hopefully gives you a bit of idea of how the sort of cohort by cohort rollout plan is being put together. Then in terms of the churn development, as stated, our first experiences with few hundreds of thousands of customers during Q2 in terms of churn are good. And clearly the sample size starts to be already quite significant. So that gives us confidence that customers do see and experience the value, and then thereby we enhance our competitiveness on the market when moving forward with the rollout.

And to Epida growth, so the acquisition, first consolidation impacts to Epida are very minor, so organic Epida growth is above 4%.

Okay, thanks very much. Thank you.

The next question comes from Andreas Jolson from DNB Carnegie. Please go ahead.

Thanks a lot and good afternoon, everyone. I would like to turn to the corporate segment and just to follow up on your comment, Tapio, that you see you taking market share and that profitability should improve going forward. Can you give some more color on those comments? And then secondly, on the price increases again and the value added services that you add, is there a difference in profitability on that type of revenue, so to say, versus the rest of the mobile business? Thanks.

Yeah, if I start with the last one, the difference in terms of profitability. The cross margin of these security features that we have been embedding to our mobile subscription plans is effectively the same than with the rest of the mobile connectivity services. So cross-margin profile, the same in that respect. And then coming back to your first question related to B2B. So yeah, I stated the B2B market somewhat challenging on the back of the macro for all players on the market. We are clearly competitive. We are winning market share. We are growing faster than the market. And now during the course of last three months, we have been winning several large customer deals with large publicly listed Finnish companies. companies and with also some large public sector entities. Some of them are public references and some of them are not public references and they typically are sort of full suite competitive biddings, including elements of corporate networks, including elements of IT services like hybrid cloud, digital workplace solutions, even some AI services, and then certainly also including cybersecurity, where we are competitive. And given the magnitude of these competitive biddings and given the size of these customers, you know, the transfer process of these services from old service provider to us typically takes several months. And that means that toward the end of the year, we will be seeing support from these customer wins to our revenue and with that to our profitability.

Perfect. Very good. Thank you.

The next question comes from Paul Sidney from Burenberg. Please go ahead.

Thank you very much for taking my question. I have two questions, please. Firstly, on free cash flow, clearly free cash flow growth was extremely strong in the quarter. You've given mid-term targets around EBITDA growth. You've commented on worker capital already on the call. But putting it all together, what do you think is a sustainable level of free cash flow growth over the next few years for Alisa? And the second question, just coming back to mobile service revenue growth, given the rollout plan is taking place over the next 18 months, does that mean that we can do mid-single-digit growth in both 26 and 27? given the staggered pace of the rollout?

Thank you. If I take the first one. So, free cash flow. As we have in our medium-term targets, we have an EBITDA growth target. We have... capital allocation policies and CAPEX at 12%. We have interest rate changes priced in our debt, so there's no major negative changes there. Taking all those together, so growing EBITDA, maintaining 12% capex, maintaining less negative changes in interest compared to last year, Outlook for growing cash flow and outlook for growing free cash flow is good.

And then related to your question about... the mobile service revenue development during the next couple of years. I mean, to start with, let me once again reiterate the comment that we are very happy in terms of how the new mobile offering has been received by customers, and that certainly gives confidence for MSR development going forward. We are not giving specific MSR guidance for next couple of years, so let me be clear on that. But I would phrase myself so that we, coming back to our CMD presentation, we do see a path forward for favorable MSR development along the lines that we expect to see this year, also during the coming years. And that comes back to us rolling out the new offering with the security features during the next 18 months, cohort by cohort. And then soon enough, in 18 months or so, we would expect to see tangible support to MSR development coming from the 5.5G developments. And this is fully in line with the communication that we presented in our Capital Markets Day in London.

That's very clear. Thank you. Yari, could I just push a little bit harder on the free cash flow, just mechanically? Could it be sort of high single digit, maybe even double digit? Sorry, just in terms of just mechanically working through all the moving parts.

Well... we do not have a specific guidance for cash flow but what I tried to elaborate and what we also as asset in the capital markets they tried to elaborate that there is accelerated increased growth ambition both in revenue and and epida and We are maintaining the capital allocation policies, capex to sales. We are maintaining our acquisition policies. in place, there is less negative impacts to cash flow from interest rates and interest expenses change compared to what the situation was last year. So, taking all that together, I'm repeating myself. So, outlook is good for the cash flow, but unfortunately, we don't give any specific percentages for that. But this should be the ingredients for you to make your adjustment. Thank you.

The next question comes from Ulrik Rath from Bernstein. Please go ahead.

Thanks very much. I have two questions, please. The first one is on the macro environment. I mean, you're referring several times to the difficult macro environment. But in Finland, as you have looked it up, the GDP is now in growth. It has exited recession two quarters ago. And you're still talking about very difficult macro, pretty much in the same language that you used while your whole market was in recession. So I'm just wondering, what do you need in terms of a macro environment for not talking about that as a... you know, negative item in the corporate segment. My second question is on the ISS business. You have talked in the past about bolt-on acquisitions. Will there be or is there likely bolt-on acquisitions in the second half of this year or is this year essentially sort of a quieter one while you're adjusting the relatively large acquisition you made last year? Thank you.

Okay, so when it comes to the first question, I mean, you are right that there is some small growth in terms of GDP and now taking place from one quarter to another in our home market. We do see some impact of that. I mean, some small impact of that, especially in our consumer business. The consumer confidence in the market is still sluggish, but some sort of cautious improvement in that one. The challenges on the macro that I refer to related to B2B business are more related to the general uncertainty. I mean, geopolitical uncertainties and tariff uncertainties that clearly have had the impact that some companies, especially in the cyclical industries, are safeguarding their cash flow. And that is impacting the B2B business, especially when we talk about the large and medium accounts. And then the second question was related to Bolton, do you want to?

Yes, sorry. Yeah, again, if comparing to previous year, so we had approximately 100 million last year in acquisitions. And again, like we said in capital markets data, the outlook is that this year there will be less and overall, Bolton acquisitions is something what we are looking also in ISS going forward. But for this year, the expectation is lower level compared to last year.

Thank you very much.

The next question comes from Sami Sakamis from Danske Bank Markets. Please go ahead.

Hi, I have three questions. The first one is on positive net ads development in Finland. You've been losing postpaid customers for the past three quarters, just trying to understand what has changed. You mentioned several large corporate and public deals that you have been winning lately. Do those explain the change? Secondly, on corporate EBITDA growth, this has been discussed during the call, but just wanted to check if you still expect muted growth in the third quarter and then you're seeing growth again going into Q4 next year on the back of deals that you've been winning. And then thirdly, related to one of costs, can you give some guidance on what the number could be for the full year? You had 17 million last year, and you've had 6 million now in the first half of the year.

Thanks. Yeah, thank you, Sami. So if I start with the question related to the net ads. So first of all, I think that it's good to note that related to consumer side of net ads, we do see improving trend. So that's one aspect. I mean, if you take last couple of years in the grand scheme of things, our market share has been stable, and we are certainly very determined to keep it so also going forward. On the B2B side, we have been winning. So, and then when you look at the net ads during the quarter Q2, I mean, then suddenly the customer wins in public sector, including the city of Helsinki contributed to the net ads. So, generally speaking, it's good to see and improving trends. And then related to the B2B business and, you know... How are things looking for Q3 and Q4? I stated on the back of the customer wins that we have now gotten during the last couple of months, we do see some improving trends toward the end of the year. They won't materialize to any large extent in Q3, so it will be more the end of the year. And then, do you want to take the last one?

Oh, yes. One, of course, indeed. So, there has been approximately six million restructuring costs, first half, relating to personal reductions. And compared to last year, which was for the whole year, 16-17 million, So, we are constantly looking for opportunities to build and improve productivity. time to time, it might include also reduction of employees, and that happens as time, as these developments mature, so we we will continue to improve productivity. That might include also employee reductions going forward.

Okay, thanks.

The next question comes from Felix Henriksen from Nordea. Please go ahead.

Hi guys, thanks for taking my questions. I have a couple. The first is a continuation on the mobile net ads. I think in prior quarters when you were still losing net ads, you referred to consumers shifting from mobile broadband to fiber. So looking under the hood in the second quarter, did you see this trend continuing? Just a bit of color on that would be appreciated. And then secondly, We've talked quite a bit about the consumer mobile price hikes that you've implemented, but can you also touch on price increases that you've perhaps implemented in the B2B side of things in mobile and fixed? Because, correct me if I'm wrong, you've also done some actions during the summer on that front. Thank you.

Yeah, thanks Felix. So related to the last one, so indeed, also in the B2B side of the mobile business, we have been conducting some price changes, also introducing introducing some new security features, little bit different security features to the mobile plans on the corporate side. So those have been conducted during the Q2 and the full impact will be seen in MSR from Q3 onwards. And then related to the net ads and to the mobile broadband, yes, I think that the sort of decreasing customer base of mobile broadband customers is something that is impacting the whole market and visible in all All players in the market are experiencing the same. So during the quarter, we did see some shift from mobile broadband to fiber-related connections, but not to the extent that we saw during Q1. So there's a seasonality impact in that one. And typically, during the summertime, people are more on the move And that also means that there's a demand for mobile broadband services during the course of the summer.

Thank you.

There are no more questions at this time, so I hand the conference back to the speakers.

Thank you for all your questions, and before we conclude this event, so just to mention that we are starting our summer holidays now, but Juha and also Juha's successor, our new group treasurer Juho Saarinen, are available this week for your questions and discussions. So maybe with those words, so we wish you a very good reporting season.

Thank you very much for participating. Thank you.