And gentlemen and welcome to Elisa's Fourth Quarter twenty twenty Analyst Call and Analyst Meeting here in our headquarters. My name is Vesa Sahebirtha, I am Head of Investor Relations and here is a very familiar team with me, CEO, Veli Matty Mathula and CFO, Jari Kinnunen. We start this meeting with the presentations followed by Q and A. And first, we take questions from here from our audience and then from the conference call lines. I think we are ready to start this meeting, so I give word to Belimath.
Please.
Thank you, Wessar, and welcome to our interim report results review on my behalf as well. We had a strong fourth quarter, continuing our development good development, revenue growing by 2% and EBITDA also growing by 2%. Mobile service revenue got back on the positive track with 0.7% year on year growth even if we didn't see any roaming revenues for fourth quarter either. Postpaid churn increased to 19.8%. It was a raise from third quarter, but slightly below the fourth quarter in 2019.
But nevertheless, 19.8%, of course, shows that the competition is keen in our market. Postpaid mobile subscription base was increasing by 22,000 and so did also the fixed broadband subscription base by a bit more than 4,000. Five gs momentum continues to build up and towards the end of the year more and more. Our network now covers more than 2,000,000 of PHENs, and our number of subscriptions reached almost 200,000 by the end of the year with five gs. For the whole full year, the revenue growth was 3% and earnings per share 6%.
EBITDA reached €685,000,000 for the full year. Our CapEx was in line with the guidelines. So we have given 12% of revenues, $236,000,000 altogether. The mobile service revenue growth for the full year was 0.5%. We had the roaming revenue decline as a bit of a challenge like all the operators, but of course, the good upselling of higher speeds and also some product changes contributed positively also this year and continue to do going forward.
Number of subscriptions stayed pretty much on the same level, both in mobile side as well as in fixed broadband side. And the mobile data consumption is continuing to increase now, almost 40% increase in the mobile data traffic in our networks. In terms of the revenue, all the services basically contributed to the increase in mobile this revenue side. We, of course, had also inorganic elements with the acquisitions we've done. For mobile service revenue, good upselling of higher speed in four gs continues and has continued.
And so also does the five gs upgrades, they start to contribute to the mobile service revenues positively. We have, of course, made continuous also some product changes for some cohorts of customers. But of course, there was a lot of negative from the roaming for fourth quarter as well. We continue to develop our productivity based on Elisa's culture and our own way Elisa way to continuously improve the operations in all parts of the operations by having better processes, better practices, but also with the use of technologies of automation as well as digitalization tools. And the churn has reached almost the levels that we saw a year ago in the fourth quarter, and we have active competition going on with campaigning, and there is no kind of major change in the competitive landscape.
If we look at the segments then, in the consumer side, we saw nice revenue growth of 4% and EBITDA even growing by 8%. In the corporate customer side, where the roaming has more toll to the revenues as well as to profit, we had, however, flat revenue development in the Corporate Customer segment. And then with the EBITDA, we saw minus 8% result there. We continue to execute our strategy with three focus areas where we see very good potential for value creation for our customers and shareholders in all of these three focus areas going forward. When we look at the mobile site, five gs momentum really has been building up.
And of the phones that we sell at the moment, more than 50% are five gs devices. Also, the upselling, like I said, continues nicely. We see continuously customers moving to higher speed tiers from three gs even to four gs, but within four gs to higher speeds. And then customers already now reaching 200,000, the amount of customers in five gs already. We are with the networks in 64 towns and cities in Finland, and we have more than 55 gs device models.
And the amount is increasing. So really wide set of devices available to customers, which is one element on increasing the momentum for five gs business. We also have made some world's first fastest five gs speeds together with Nokia and Qualcomm with the 26 gigahertz spectrum And the data usage, like I said, has been almost 40% year on year. In the strategy of expanding internationally with Digital Services, we continue step by step to execute our strategy. In the domestic digital services side, Elisa Wiede is IPTV services continue very well.
And now with the cooperation with Viaplay, the integrated streaming service was successfully launched in December, and we see very positive momentum and demand for the joint content that we offer with Elisa Videv Viaplay together with the Nordic Entertainment Group. We also continue to get international interest on Elisa Videof's original series from different countries, from different players like BBC, for example. And also in our domestic IT business, we see solid sales growth there continuing the building momentum for that business line as well in the domestic businesses. In the International Digital Services, we have continued with acquisitions as well. In the end of the year, we acquired Gamline Group, a software solutions provider for manufacturing industry from Germany.
We continue to provide data and AI driven intelligent manufacturing solutions to global customer base, including semiconductor and electronics manufacturers and medical devices industries and the CamLine's global footprint to the customers. Together with CamLine, we can supplement their offering with Elisa Smart Factory capable solutions having more speed to this business. Also on the ELISA Automate business side, we continue with the good cooperation and work with Polystar. But also with ELISA Automate, we signed a deal with T Mobile for their Czech and Slovak companies to deliver virtual network operations center automization solution. And we have many other customers to whom we now, together with Polystar, have projects going on with VirtualNOC and other solutions.
So the momentum building international digital service business, both in the Smart Factory side as well as in ELISA Automate side, continues to grow. And about the outlook and guidance for this year, we see still very much uncertainty how this COVID-nineteen really will be sold. Vaccination, of course, is ongoing, but there's some delays and uncertainties. So that creates still uncertainty for the macroeconomic environment, potentially can have impacts to Elisa. The competition in the Finnish telecommunications market remains keen.
And our revenues, they will be slightly higher than 2020. We have also some, like I said, acquisitions we have done contributing a bit to the growth. Comparable EBITDA will be at the same level or slightly higher than 2020. And our capital expenditures will be maximum 12% of revenue. Now I ask Jari to continue further, please.
Thank you. Let's start with profit and loss. Q4 continued with growth both in revenue and earnings. Revenue growth 2.2% or €10,900,000 And in different revenue streams, of course, COVID impact negatively still in roaming, in practice, nonexistent traveling. And interconnection and visitor roaming, which is part of the total roaming, is negative minus €1,000,000 Equipment sales increasing in both customer segments, totally 5,000,000 Service revenues in Corporate segment were decreasing EUR 2,000,000 and outbound roaming having, of course, a negative impact there.
Mobile Services also negative positive impact in digital services, services growing. In Consumer segment, service revenue growth was good, 9,000,000, mainly mobile services and digital services contributing to that. We had now sort of structural change when we combined services with Nordic Entertainment Group, our streaming services, Beed and Viaplay streaming services. And we had first time total revenue coming through our revenue that had 2,500,000.0 impact in Q4. Comparable EBITDA growth 3.2% revenue, of course, growth contributing to that as well as measures, what we did in cost savings as well.
And margin was 34.4%. In depreciations, there is a €6,000,000 difference to last year. And that comes from goodwill depreciation. So we did EUR 6,000,000 goodwill depreciation, which is visible in the change. EBIT in comparable basis was growing 3.3% to €103,000,000 EBIT margin, slight improvement to 20.8%.
Financial expenses includes €6,000,000 capital gain from sale of Sulacre shares. We had 40% ownership and did sell that in Q4. And EPS, after all this, growth was 3.4% or €02 Then Estonia, revenue was flat in Q4, roaming impact negative. However, EBITDA continued to grow and growth was three percent. Operational KPIs continued to develop positively and postpaid base mobile postpaid base was growing 2,400.
Churn was same as Q3, 9.7%. Then if we look at CapEx in Q4, the guided CapEx, excluding shares, licenses and lease agreements, was EUR 64,000,000. And for the total year, euros $236,000,000, which is in line with guidance 12% of sales. Main CapEx relate to mobile network investments, fixed networks and IT investments. Then moving to cash flow, which was very strong in Q4.
Comparable cash flow did grow from EUR 55,000,000 to EUR 99,000,000, very much driven by network. Net working capital change, also higher EBITDA and lower CapEx affected positively. Net working capital change or of net working capital change, which was a year ago minus 11,000,000 and now 16,000,000 So difference is €27,000,000 and all lines contributing mainly from payables and receivables. And for the whole year, net working capital change was positive €30,000,000 2019, it was negative €5,000,000 And there has been improvement relating to payables, for example, promoting sort of payment times for handset sales or improving billing process speed, which contribute positively to receivables side. For the whole year, comparable cash flow did grow by 9% to 351%.
And EBITDA cash conversion was 63%. Then moving to capital structure and returns, very much in line with targets net debt to EBITDA 1.8% and equity ratio 39%. Return ratios remained at good level. Return on equity, 28%. Return on investments, 16.7%, which is slightly down from last year, but can be explained by repayment of bond, which was due this month.
And we, of course, did have the funds available already at the year end. Should the repayment or should it be in December, then return on investment would have been the same as last year. And relating to bond repayment, January. Well, after that, average interest expense is for the interest bearing debt is up approximately 1%. And the whole maturity situation is so that for the next two point five years, there is no debt or bank loans maturing.
And then moving to dividend. Board of Directors made proposal to AGM for 1.95 dividend per share, which represents a dividend growth 5.4% and is now seventh straight year of increasing distributions. Payout ratio inside distribution policy, which is 80% to 100% now, 95% and dividend yield against the share price end of the year 4.3%. Additionally, is a proposal for €5,000,000 shares buyback authorization to the Board. And again, this is showing strong commitment for continuing with competitive distributions to our shareholders.
And now I give word to Reza, please.
Thank you, Jari. And now we move on to Q and A part, and we ask if there's a first question from audience.
Hi, this is Artem Beretski from SEB. Three questions from my side. So first of all, starting with five gs migration. So you mentioned that you had at the year end 200,000 of five gs customers. Could you maybe talk about implications in terms of your mobile service revenue growth coming from this kind of fairly rapid pace of migration of your new customer base to five gs.
Then if I can ask on M and A front, so you made Camelo an acquisition strengthening your smart factory offering quite extensively. How do you see further M and A opportunities going forward and which are the most interesting areas? And the last one is relating to regulatory change in Finland what comes to maximum duration of fixed term contracts in mobile. Has it really impacted market dynamics around year end also this year end? Do we see it making any big impacts also this year going forward?
Thank you.
All right. Thank you, Arten. The first question regarding the five gs. We see we saw already five gs to contribute to the MSR to some extent. Of course, the number of subscribers, 200,000 that we reached almost in the year end didn't happen all growth in fourth quarter.
Of course, it was a growth during the year. But nevertheless, we saw already some impact to MSR from five gs. In five gs, when we do upgrades from four gs to five gs, we see several euros upgrade in or up increase in ARPU when moving from four gs to five gs at the moment. So clearly, we see customers to get and perceive to get more value while moving to five gs. Also, when we look at our Net Promoter Score, our five gs customers rate higher their satisfaction than four gs customers, even with the customer base where they have already higher speeds in four gs.
So clearly, the assumption that we have said already quite some time that the human impatience is one of the key drivers first for five gs, we have been able to prove that that seems to be the case really. So customers are getting better experience also for their existing applications they are using with the use of five gs, and it is creating momentum. Not to say that, of course, there will be many other new good performance improvements with the five gs technology that will bring additional value to consumer customers or B2B customers. But a bit long answer to you, yes, we start to see contribution also from five gs upgrades to the MSR. In regards to M and A, yes, we see further potential there in growing an acceleration of the growth of our international digital services with M and A, both in ELISA Automate area.
We have the Polystar, but of course, we see that there are kind of very good candidates to kind of strengthen the portfolio and the full offering to create ELISA's automated solutions to operators, really larger and larger business and offering. The same thing with the industrial software, smart factory management side. After CamLine, we see many other opportunities that can bring value. We actually have had a kind of minority shareholder position now that we acquired from an Italian company, Serata, that we announced this January. So there is further to come also on that side on organic development, but also inorganic side.
In terms of the regulation, this fixed term contract part and regulation there didn't have yet any impact last year. But of course, the one of the main things are there, not only that the maximum long term contract from twenty four months to twelve months will be a change, but rather that the customers have to get easily the timing when the contract ends from the operator. There seems to be a bad habit by some players in the market to make it fuzzy for customers and unclear so that customers would kind of be sticky. And that's not the way Elisa wants to increase this customer satisfaction to make customers kind of in the dark when they and now this regulation has been pointed to the same problem. I can say that we have tens of thousands of customers who have been unsatisfied when they have been trying to come from another operator to us.
And then they have met that, oh, I didn't know, I couldn't get very well understanding when my contract ends. So that is now regulated that the customers should have as easy as sending an SMS and getting an SMS response back when the contract ends. And we believe that, that helps the whole market. It helps customers' perceptions of operators overall in the market for customer satisfaction. But of course, since our business model is not trying to kind of in the kind of with different kind of tricks to make customers to stay sticky rather to have a real satisfaction to our services.
And that being the reason for stickiness, we see this change as positive.
Okay. Any other questions from audience? If not, then we'll take first question from the conference call lines, please.
Thank Our first question comes from Nik Lyle from SocGen. Please go ahead.
Yes. Morning, everybody. It was two quick questions on IDS, please, if that's okay. Firstly, can you give us the size of IDS in terms of revenue now, please? And also, what's the underlying growth that you're seeing from that business?
And then secondly, on the Camline acquisition itself, when do you expect that to start contributing? Was that from the announcement date? And what sort of synergies would you expect as well from Camline? And over what period, please? Thank you.
Okay. Thank you for your questions. For the International Digital Service businesses, we haven't yet disclosed the amount of revenues overall, but we can say that currently, we are in the ballpark of EUR50 million to EUR100 million. We will have Capital Markets Day on the March 10, where we will give also further information and understanding of this business. The underlying growth there, we come back to numbers more probably in the Capital Markets Day, but we are aiming at acquiring companies that have a growing business, good companies.
But with the help of our machine learning, artificial intelligence based organically developed solutions, we believe we can accelerate the growth of these companies by building additional capabilities for the service portfolio, but also to have a kind of channel for our own solutions that we develop in house. And of course, the growth is in our mind, but let's come back to the numbers a bit later. In terms of Camline, I would ask Jari to a bit give light to the reporting when that starts to really impact the numbers and so forth. Jari, please.
We start to consolidate beginning of this year. So Camline figures and profit and loss figures are included for the whole year. And as we said in our release, CamLine 2019 figures revenue was approximately €20,000,000 and EBIT was EUR 5,000,000. And the company has a good solid track record of growth, and we aim to continue with the growth.
Can I just ask on the are there any synergies expected from that as well? You've been pretty open about the Polystar and other synergies in the past. So would you expect to add synergies maybe over the next couple of years from Camline on top of any underlying growth?
In terms of cost synergies, they are probably quite limited. We are not buying companies to do restructuring. But really, the growth synergies, we haven't disclosed any numbers for that. But of course, that's the thing that we accelerate the growth of our own organically developed services plus the growth of those companies by having our products to help them. So the synergies are very much of revenue size synergies at the moment that we foresee, and there are kind of several of them.
Our
next question comes from Andrew Lee from Goldman Sachs.
Yes. Hi, everyone. I had a couple of questions. The first was on B2B, which is obviously a bit of a black box for us to understand. So just wondering if you could give us a bit more color on what you're assuming for B2B or corporate trends in 2021.
Can you give us on top of that, can you give us a bull and bear case on B2B? And what your guidance is assuming within that bull and bear range? That will be really helpful. And then secondly, your slide on returns, as always, is very helpful. Shows your returns on investment remain high, but have fallen modestly from their peak in 2018.
And so just wondered on what your outlook for the trajectory of those returns is through 2021. And if longer, that would be great, but I suspect you'd save that for Capital Markets Day. Thank you.
Okay. Thank you. In regards to the B2B question, unfortunately, we are not giving outlook for the segments separately. But of course, some things I can try to elaborate for you, if not bull or bear case, but something our B2B business is very strong, our competitiveness, the portfolio of services. We are the leading five gs solutions provider in Finland.
We have a very good growth also in the B2B side for five gs subscriptions with additional revenue growth from there with the upgrades. We have a very solid IT business, which is also growing. And also with the combination of those, we provide value, and there is a growth opportunity. We had last year one thing, which was the roaming due to COVID because the B2B segment has proportionally more roaming revenues there. Of course, that kind of challenge will, from year to year comparisons, go away during this year.
And some point in time, we believe the traveling will also start. So it will be an additional positive there. We also, let's say, we haven't really been increasing our market share in, let's say, mobile site, but we have also kept very well the market share even though there has been different kind of, let's say, competitive dynamics in the market, our strong performance and especially the high quality and kind of trustworthiness to provide good solutions to customers has really kind of bad results for us. Going forward also and of course, now in the B2B segment, we have IDS numbers and Virera numbers there. So they, of course, have a part of the element.
And for B2B segment, of course, have their own kind of contribution going forward. So unfortunately, this is all I can say at the moment of the development, but we see positively the capabilities to improve both the revenue and the kind of profit side of our B2B business going forward, even if there is a very fierce competition also on that segment. And of course, in the Capital Markets Day, we will elaborate some more. And for the returns question, I ask also, again, Yari to give some light.
Yes. So as I said in the presentation, we had end of the year, we had funds already for the repayment of €174,000,000 bond, which was due in this month. So that had an impact to ratios and return on investments, would have been the same as 2019 if the bond would have been repaid in December. With the CapEx guidance 12% long time and also for this year and the acquisition politics and strategies, which are very much value creation oriented, we will remain with the ratios at a good level. And I believe in comparison to many other players, we are not at all bad in that kind of comparison.
So we intend to maintain good ratios going forward. And with these policies that we have, that is the case also in the future.
You. I think it's a fair point on returns, and thanks for the color on both questions. Can I just ask a quick follow-up? It will be probably a yes or no answer. So the flat EBITDA scenario in your guidance for the group, does that assume no growth or growth in B2B?
Can you say can you give us an answer on that? Or is that
Well, we say flat or slightly higher, to be exact, for the first.
At Second end the of it. Well,
the flat end is overall the uncertainty that we have in the macro. We have to take into account that we are not over with COVID-nineteen yet. That's for the most reason, Thank
you.
You're welcome.
Thank you. Our next question comes from Paul Sidney from Credit Suisse. Please go ahead.
Yes, thank you. I had a couple
of questions as well. The first one really just a follow-up from Andrew's question, but mainly aimed more at the consumer segment. And then the question would be how does Lisa view the balance between consumer subscriber market share and profitability and free cash flow? So for example, would Lisa react to any new push for subs market share by Telia, for example, under their new management? Or would you be prepared to see the subscriber base go slightly backwards just to protect your profitability and free cash flow?
And then just secondly, you've got 200,005 gs subs now. Are five gs users doing anything different in terms of their usage behavior versus the rest of your base? Or is it just sort of more of the same sort of applications that have been driving strong data usage on four gs over the past few years?
All right. Thanks for your questions. Well, in regards to the market share, I just reiterate that I have been maybe reiterating for years already many times that we are not going after volume market share in consumer neither we are doing that in B2B segment, by the way, but we are not tolerating the market share to drop. So we are defending the market share. The value creation we see in the market, as we have now seen also very well starting with five is the creating more value for the existing customer base and then being able to capture part of it.
So but like I said, we have been defending time to time, and we are ready to defend at any position our market share. And at the same time, being able to deliver improved results like now in the fourth quarter, our EBITDA improving at the same time when the churn has been improving increasing. So they are not kind of factors that are going to different directions, but we can have actually both. But of course, the main way for us to create value is continuously provide value more value to customers, have some value capture, but also at the same time fiercely improve our own productivity to be able to kind of invest if needed to protecting our market share. In five gs, if there is any difference, certainly, these five gs customers, they are consuming more data.
So clearly, we see higher data usage by the five gs customers. And it seems that, that bears a toll because we see higher customer satisfaction for five gs customers that much that the five gs customers are paying on average several euros more than the four gs customers.
And just a follow-up. Are there any particular applications, just to sort of add to that, that five gs users are using?
Well, of course, there are emergence of new type of applications continuously. But let's say that the major usage is still with the current applications, very much, of course, different kind of video services, a lot of downloading and so forth. Of course, there's some part of the segment has maybe a bit new application by having fixed wireless access instead of fixed broadband, if you call that a new application maybe. But the main bulk of the use is, of course, with the current applications. The domain of applications is evolving and developing continuously step by step.
And of course, the more new applications there starts to be that are really creating value for customers, We see some three d modeling applications. We see, of course, some augmented reality now starting to already be usage. But I wouldn't say that there has been some great new killer applications. The killer application at the moment still is the human impatience getting better experience overall, which you don't expect necessarily. But once you start to use five gs, you will not go back to four
That's very clear. Thank you very much.
You're welcome.
Our next question comes from Maurice Patrick from Barclays. Please go ahead.
Yes. Morning, guys. Thanks for taking the question. I mean, a question on picking up on the fixed wireless access point you just made. I mean, very helpful thoughts there.
I mean, can you talk a bit about of your five gs base, how many of those are fixed wireless access? Is it a big sort of driver in terms of uptake? Are most of those customers sort of urban, suburban? What kind of usage would be super helpful to get some more color on that? Okay.
The fixed wireless access is quite small proportion of those five gs customers we've taken so far. We believe that it is a nice subsegment of five gs customers going forward, growing somewhat. Don't expect to have kind of a very huge acceleration of that, but it is a good service. And definitely, the customer satisfaction of those five gs customers is tremendously high. So they are really, really satisfied customers.
But you have to remember also that we have mobile broadband as a solution for many, many customers already with four gs technologies. So we certainly will see upgrade of mobile broadband from four gs to five gs, but not necessarily always with fixed wireless access solution with an external antenna at all. It just can't be just the router device inside house. But like I said, no major volumes there, but clear volumes and a nice add on to the total.
And just as a quick follow-up, mean, you talk about the eight gigabit per second speed you're achieving on the 26 gigahertz. I mean, that I mean, that's much harder to get on my fixed line broadband connection here in The U. K, but maybe that's just me. But I mean, can you talk a bit about is that a complementary product to the existing five gs FWA? Is it a different segment?
How to think about how you'll position that? Thank you.
That, of course, was in our commercial network, though, but it was kind of a first time we were able to reach. It is somewhat development ongoing to commercialize that level of speed. But we, of course, want to spearhead also pushing the envelope for new technologies and test in commercial environments that can we have these service levels and which service levels. So we were very happy to be able to do also that record with Nokia and Qualcomm together. Point in time, it will be commercialized to the customers.
That's, of course, with the usage of very high frequencies, which then means that it's probably more used in enterprise domain for the first to provide, for example, enterprise applications demanding very, very high speed or really, really low latency. We start to use it as there. So that's the kind of domains that we see first maybe this kind of solution to get commercialized. For kind of regular home users with fixed wireless access, we can provide, let's say, several hundreds of megabits per second speeds today. And that's much more than many customers can get even from their fixed broadband.
So it is whether it's 300 megabit per second or 600 or one gigabit that we have in our commercial offerings in fixed wireless access, those are already at the moment the ones that are very much kind of helping the customers. I cannot say when this eight gigabits could be a fixed wireless solution for the customers. The high frequency is making it a bit difficult to provide in the rural area. The distances need to be quite short when using that frequency. But with the five gs developing, evolving with the lower frequencies, we can get decent increases in speed.
And like I said, this is continuous improvement, step by step also increase in the revenues. We don't need to offer all the speed at the same time. But of course, we need to push envelope also to show that where the future can go.
Thank you so much. Super helpful.
Our next question comes from Terence Hsu from Morgan Stanley. Please go ahead.
Thank you. I've got a couple of questions, please. Just firstly, on CapEx. Can you just give us an update around what the government authorities are saying on the use of network equipment providers? I think there was some news around in December.
Just wondered if you got any latest updates for 2021 on whether certain equipment providers will be excluded going forward. And then secondly, just following up on B2B, you spoke about some of the upselling opportunities. Just wondered if you can maybe just go a bit more detail on some of the pressure points that you're seeing. I know you highlighted the COVID impact and the roaming impacts, but just wondering what are you seeing in terms of the competitive dynamics and whether you're seeing any impacts from business insolvency so far? Okay.
Thank you. In regards to the CapEx related question, for the first, we are not expecting any major challenges from any regulation that we see in Finland or Estonia to our CapEx whatsoever. But coming back more to the legislation or regulation, in Finland, yes, we do have now new quite large legislation in our business domain, including not only these long term contracts that we discussed earlier, but also some of the network security side. We see it so that even if it has some amendments to the previous legislations, already the previous legislation in Finland has obliged operators to make sure that if there's any device in the network that causes problem, whether they are cyber or any other problems, they need to be taken out and the similar ones need to be taken out from the network. So we have had this obligation and responsibility already quite some years in Finland.
And we, of course, have taken that seriously with our vendors and vendor selections. And for the most by managing our networks ourselves. We are the only operator in Finland who has been managing totally 100% own networks, not buying managed service for the network operations from the others. And additionally, as you know, more than ten years, we have developed our own automation solutions for network operations with virtual network operations center and all that, which has enabled us to be even more capable on kind of managing or even predicting potential problems, if any. So we think that we are very well equipped and capable, of course, continuously developing our capabilities to make sure that our networks are safe, clean and of any cyber or any particular things.
And like I said, the new legislation is not creating any further obstacles or obligations that would impact on our CapEx. In Estonia, the situation is still evolving around five gs. There was the country's government actually was renewed quite quickly. And it's, of course, up to this new government in Estonia now to make the legislation for five gs. We expect that they have a bit more restriction there for usage of vendors of different kinds.
But also from that point of view, our expectation is that from the CapEx point of view, it shouldn't be any kind of topic for issue for us. In terms of the B2B side pressures, of course, the COVID is creating still potentially uncertainty. We don't know yet how the macro environment really will kind of develop throughout the world. And for Finnish and Estonian companies, that's an uncertainty that we have. Roaming is down as long as the traveling is down that we know.
In terms of competitive dynamics, I wouldn't say that there has been anything specific really and we that we have seen already during the years. There is continuously fierce competition on different kind of deals, but that's the reason we are building systematically long term competitiveness with our quality, with our very good portfolio of services, with our capability to provide also AI and machine learning based solutions to the customers, and we are comfortable about our capability to compete in this environment.
Thanks for the color. Appreciate it.
Thank you. Our next question comes from Sai Yee from Citigroup. Please go ahead.
Good morning. Thank you very much for taking my questions. I have a couple, please. And the first one is on your ARPU. I think your postpaid ARPU has now flat year on year in Finland.
I'm just wondering if you can help us to understand what has been the driver for the improvement. And it'd be great if you can give us some breakdowns in terms of the the efforts from the price increases, upselling, etcetera. And my second question is on the five g. You say that you have 200,000 subscribers. And would you mind to tell us how much that is from your consumer segment?
And if possible, can we get an idea on the quarter on quarter development on the five g subscriber sales throughout 2020? Understand that the q four must be much stronger, but it'd be helpful to understand the phasing that you see the five g acceleration. And finally, I have just a a quick clarification. I remember there have been news around your lost public contract to your competitors during summer. Just want to check, has it started to impact your B2B mobile subscription trends yet in Finland?
Thank you very much.
All right. Thank you very much. In terms of the ARPU development quarter on quarter, we had some growth in the ARPU. And of course, the things that have been impacting on ARPU in the past year and fourth quarter, one is, of course, that the roaming on year on year comparison is negative development there. But then our upselling of higher speeds with higher price to customers in four gs, but also lifting up customers to five gs has contributed positively.
Then we have we do time to time some price corrections with the product changes to certain cohorts of customers, which also contributes positively. So there is this positive momentum of upselling continuing. And because we had lack of roaming revenues, the net was a bit negative for two quarters. Now it turned to positive again. In terms of five gs, unfortunately, we are not disclosing the way the growth has been during the different quarters last year.
Apologies for that, but that's the disclosure we have. But we, like I said, reached close to 200,000 at the year end, and the growth rate is relatively good, what we can say. The higher part of proportion of those customers are in the consumer sector, but we have a significant five gs base and growing base in the B2B side as well. In terms of the last question, you if I understood right, you asked about this one public sector contract and that we lost to Telia. And they that contract had very low ARPU customers, quite a few subscriptions.
And we anticipated to have some of those public sector customers, which are individual cities and so forth, that they would have changed. But I guess the buyer organization is quite clear that they want to have those functions and functionalities and capabilities that have been promised. And there has been some, I guess, then delay of having customers to move to from our services to the others. We expect the customers to move some point in this year, first half probably, but there definitely has been delays, which, of course, proves that Elisa's quality is something that customers appreciate and they are not so quick to go with even with the lower prices to some other vendor. But that's approximately the situation.
Like we have said earlier, it's if because it is a frame contract that different cities individually can decide to use or not, even if the all the cities that we have asked customers would use it, it's less than €1,000,000 per quarter impact to us.
That's very clear. Thank you very
much. Next
question is Sami Samarkides from Nordea. Please go ahead.
Hi, thanks for taking my questions. I have three. Firstly, a bit of follow-up on the comments regarding ARPU and mobile sales revenue growth improvements from the third quarter. Did I understand correctly that majority of this improvement was driven by four gs upselling and legacy price changes and less due to five gs migration?
Okay. If we go one by one. Maybe you didn't understand all the things correctly or I phrased that in a bad way. All of these three, what you mentioned, contributed. We are not disclosing exact proportion, but all of them had a very clear impact to our kind of mobile service revenue growth.
Okay. And the second question would be on churn that increased quite materially from the third quarter. I think this came as a bit of a surprise as you haven't flagged any material increase in campaign intensity. Can you talk about the competitive landscape at the moment and share your views on the churn level going forward?
Well, the churn, if we look at the fourth quarter churn, it tends to be higher always because of the many of the campaign periods that we have, Christmas, Signals Day, Black Friday and so forth, which we do have flagged in many discussions after Q3 that we anticipate that we never have any guidance for churn. So of course, it goes up. Particular reasons, I believe, are these campaigning periods that we have seen. It has been an active market. Now going forward, of course, we cannot say what the behavior of competitors is with the intensity of using lower price or any kind of promotions going forward.
We are prepared for that. No problem of that. But nevertheless, the it was from our point of view, it was quite anticipated that this fourth quarter is a bit more intense, but it was less intense than the fourth quarter twenty nineteen.
Okay. And then finally, on the EBITDA guidance, that looks a bit cautious as you will be faced with easy traveling comparables and will benefit from some M and A tailwinds. Did I understand so that you have reservations related to macro development that could then sort of impact business to business part of your revenues, but that's really the only sort of reason for you to be a bit cautious on this front.
Yes. The main concern is really the uncertainty that we have to the macro development, especially due to how COVID will kind of be resolved or when truly. We have really guidance same level or slightly higher for EBITDA, And it is quite early of the year to make a full year guidance. There are many months to see how this COVID will further develop.
Yes. But there's much uncertainty that would be relevant for B2B, but not your sort of B2B side of business.
Yes. The macro developments that we've seen in the past, they have had more impact normally to the B2B side. It has to be a really big macro kind of inflection point, which would shake up the B2B segment.
Okay. Thanks. I don't have any further questions.
All right.
Thank you. Our next question comes from Peter Nielsen from ABG. Please go ahead.
Thank you. I'll do it very briefly. Just one question on the momentum in five gs upselling very much. What behavioral patterns are you seeing among your four gs customers? Are they waiting for five gs, do you think?
Or are they skipping the higher four gs speeds? Anything you can tell us about them, what you're seeing in the market? Or just too early? Thank you.
Thank you, Peter Kruut. There are, of course, a bit different kinds of behaviors. We have, of course, some customers who are very eager to kind of get the newest and greatest in the market and they go for that. Then there are customers who are just coming to a very good kind of momentum for upgrading their speed. Maybe they pass some of the offerings we used to have in the higher speed tiers in four gs and they jump directly to five gs.
Then we have, of course, like I said, these fixed wireless access customers who are maybe replacing some of their fixed broadband solution. So there are different kind of behaviors. And then again, in the corporate side, in the B2B side, there are different reasons why some corporate customers are earlier to be willing to have higher speed for their employees or for their applications. For this, can also give certainly more light in our capital market share.
Thank you. I look forward to Thank
you. Our next question comes from Adam Fox Brumley from HSBC. Please go ahead.
Thank you very much. I was wondering if you could talk about the terms of the agreement with, LUNEA, please. Last week's press release refers to a nationwide fiber network, which makes it sound like quite an ambitious project, but I didn't see any reference to it in the release. Is it fifty-fifty JV? Have you got rights to the assets that are put inside it?
Are you going to put all your fiber spending through that joint venture now? That would be very helpful. Thank you. And then secondly, the remuneration report was published this morning. It reminds us that your long term incentive plan is linked to EPS development of new business operations and other business targets.
It would be really helpful if you could give us any information about what's included in the other business targets and maybe a split of the makeup between those three elements. Thank you.
All right. Thank you. In regards to our joint venture for fiber development, would say that it's, of course, not all the fiber investments at all. It is just to certain regions and geographical areas where we may be normally are so active ourselves. There, we do joint cooperation with them.
And the volumes of these fiber installments are not so high in total. But it is, of course, a good experimentation also to see that which way we can maybe have some customers to be more interested in fiber solution than we have been able to earlier. And like I said earlier also in Finnish market, let's say, in the fiber to home market and in the consumer market for fiber, it is about the lack of demand rather than lack of supply. But we try to see with this joint venture that whether we can better create demand in certain areas, which is kind of a minority of quite a small minority of the total fiber push that we do in the market. In terms of the long term incentive plan, we have the earnings per share as the in the performance based stock plan.
Earnings per share is the over three year period, it's the main and more than and the majority of that performance criteria set. And then the rest is related to our new business development with different kind of meters.
Okay. Thank you very much.
You're welcome.
Thank you. Our next question comes from Florian Harrigniewski from Bank of America. Please go ahead.
Yes, good morning guys. Thanks for taking the question. I also got two. Just the first one very simply. Do you in your acquisitions now you did in the digital service business, do you have any target IRR, any hurdle returns you're going to need to meet in these deals?
Okay. If we go step by step your questions, then the first one, of course, we have internal return targets for the businesses that we acquire. But like I said, we are acquiring good companies having growth. That's very important for us to have growth platforms and platforms that we can further develop together with the acquired company and acquired companies together in the future. So that's, of course, important.
And in that way, we believe that we can create shareholder value with these acquisitions.
Okay. And just a second one. I noticed your sort of growth in Fixed and Digital Services was quite good this quarter, so growing almost 3%. I think Yari mentioned there was sort of a €2,500,000 impact from the, I I think, the new streaming agreement you have with Nant. Is that going to show up in your financials over the next quarters as well?
And does that have any impact on your EBITDA?
Okay. Let me start, and I ask Jari to continue. In the fixed and digital services, of course, there are various kinds of fixed service revenues, which are not only the fixed broadband and the fixed PSTN voice services, but there are also the data networking services to corporates like the software defined wide area networks, which seems to be growing Also, cybersecurity solutions both to consumers as well as to corporate customers, which seems to be also growing service element or revenue stream. And then we have the digital service businesses like the IPTV service where the Nordic Entertainment Group Corporation, of course, has had its impact also. Jari, you could maybe explain a bit about this because it was a structural deal that the revenues from that cooperation runs through us?
Yes. So it will impact now this year. As I said, it started to have an impact in Q4. So we take the total revenue as we have also customer responsibility. And then the share of NENT is shown in the OpEx.
And for this year, it will have a revenue impact approximately 25,000,000
Okay. And the I guess then the EBITDA impact is relatively small if you also take the cost?
That's correct. So EBITDA impact is fairly small.
Okay. And just to double check, in these Q4 numbers, I guess there was no material M and A impact. I mean, I guess most of the acquisitions, they come through in 2021.
Yes. Q4 in the balance sheet, we had Camline, but profit and loss starts beginning of this year.
Okay. That's clear. Thank you.
Thank you. There appears to be no further questions. So I'll hand back to the speakers for any other remarks.
All right. Thank you for the questions and thank you for participating this meeting. We wish you a very good reporting seasons. And thank you and bye bye.
Bye bye.