DNA OYJ DNA PLC INVESTOR NEWS, 25 OCTOBER 2018, 11:30 AM EEST
DNA have signed a EUR 50 million finance agreement with the European Investment Bank (EIB). The intent is to subsequently extend the agreement by a further EUR 40 million and to increase the total credit provided by EIB to EUR 90 million.
DNA will use the loan to further expand capacity and implement technological upgrades to its 4G mobile network in Finland towards initial deployment of 5G, to cope with the rapid growth of data traffic.
"We are happy about our long-term cooperation with EIB. DNA has been preparing its mobile network for the 5G era since 2016 and this financing is a concrete step to make 5G reality for our customers starting next year", says DNA's CEO Jukka Leinonen.
DNA's 5G service provision will begin in 2019. During the first phase, DNA will offer high-quality 5G private and corporate broadband connections.
DNA has been systematically developing its mobile network towards 5G. The network has been equipped with 5G-capable technology and network capacity has been increased to meet the demands of 5G. The introduction of 5G technology will begin when the 5G license comes into force on 1st of January 2019, and its broad-ranging introduction will begin when 5G-capable devices become available.
DNA's data transfer volumes per subscription have continued to grow and achieved a new record on a global scale. In terms of overall global mobile data traffic, DNA's customers are using the most mobile data per subscription, according to a report* published by Tefficient in September.
In the third quarter of 2018, 4G traffic volumes in DNA's networks grew 38% from the reference period, and similar growth is expected to continue. For example, an average of 21 gigabytes of mobile data per subscription was used in August 2018. The forthcoming 5G networks and related services will accelerate the use of mobile data and extend its use to new applications.
The loans, which supplement DNA's debt maturity profile, will have average maturities of approximately 7 years after disbursement, which can take place at any time during the next 18 months.
*Tefficient's report: https://tefficient.com/more-data-always-for-more-it-happens
Further enquiries:
Jaakko Happo, Head of Treasury, DNA Plc, +358 44 044 8018, jaakko.happo@dna.fi
Marja Mäkinen, Head of Investor Relations, DNA Plc, +358 44 044 1262, marja.makinen@dna.fi
DNA Corporate Communications, +358 44 044 8000, communications@dna.fi
DNA Plc is a Finnish telecommunications group providing high-quality voice, data and TV services for communication, entertainment and working. DNA is Finland's largest cable operator and the leading pay TV provider in both cable and terrestrial networks. For DNA, the key area for growth in corporate business is the new way of working, independent of time and place, facilitated by smart terminal devices, diverse communications services and rapid connections. In 2017, DNA recorded net sales of EUR 886 million and an operating profit of EUR 124 million. DNA has more than 3.9 million subscriptions in its fixed and mobile communications networks. The Group also includes DNA Store, Finland's largest retail chain selling mobile phones. DNA shares are listed on Nasdaq Helsinki Ltd. For further information, visit www.dna.fi or follow us on Twitter @DNA_fi and Facebook.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: DNA Oyj via Globenewswire