All right. Welcome, everyone, to Fjorekraft's First Quarter twenty twenty Results Presentation. My name is Mosknoepdal, Head of Controlling and Investor Relations at Fjorekraft, and I will be guiding you through today's presentation. Due to the current corona situation, this presentation will be an audiocast only. So if you have questions, please submit them through the audiocast webpage.
The results presentation will be presented by CEO, Olf Baumann and acting CFO, Ole van Langeenes. And we are starting off with Olf Baumann.
Thank you, Jurgen Morten. Welcome, everyone. It's a pleasure to once again announce strong numbers from fuel costs, 27% increase year on year in net revenue and 31% in EBIT adjusted on group level. We have enjoyed historically low health spot prices during the quarter, which affect our COGS positively. The solid growth in number of mobile subscriptions continues with the net adds this quarter exceeding 10,000.
On the back of the results this quarter, we have revised our outlook slightly. Will come back to that later. Please go to next slide. Do we have the technicians with us? Next slide, please.
Okay. For listeners now, please go to the slide operational and financial impact from COVID nineteen, please. I'm now at the operational and financial impact from COVID nineteen. We'll give you some words on the operational and financial impact from COVID nineteen to start with. When it comes to m and a, our activity level is high as always.
And even though the coronavirus stops from us from traveling, we are able to set up meetings over Skype and phones, so this does not affect us in a big way. We can, of course, not comment specifically on our m and a pipeline even though we understand many of you are curious on the subject. One driver for consolidation that we have previously pointed out and that is now very relevant is the fact that in this low electricity price situation, the power producers earn less than what they normally do. Should the vertically integrated companies that own many of our prospects be in need of money, for instance, to do necessary investments in white grids, the sale of the retail part of their business might be an option as the funding from the production business is limited. Please the technicians, please go to the next slide, the operational financial impact from COVID nineteen.
Thank you very much. Please keep it on that page. Operationally, we maintain a high level of both sales activities as well as marketing activities even though we have adjusted our efforts in accordance with the government government's recommendations in connection with the coronavirus situation. For instance, our sales personnel have to a larger extent than telemarketing sales instead of door to door sales or sales sales. Our sales and telephone service are mainly working from home, but we have a good and flexible IT setup that enable us to view our work without the quality of our services to be compromised.
Further, we have taken measures to ensure close monitoring of the COVID situation with every EVP report in the risk situation within the area of responsibility on a weekly basis. We also monitor our ex accounts receivable closely every day and try to balance risk of losses and corporate social responsibility. Our employee safety and health are our main priorities, so we take necessary measures to ensure this. When it comes to the demand of electricity, we see a slight reduction in consumption in the business segment due to reduced activity following the COVID nineteen restrictions. We also experienced increased voice activity in the mobile segment, and this drives cost of goods sold in this segment and reduce our margin margins.
We will get back to this later in the presentation. So please go to next slide. And I'm now on the slide with the head market development. Please go to market development slide. Market development during the quarter, as you can see from the right picture, the price development in the quarter has been favorable throughout the quarter, reaching a low level at the end of the quarter.
The main driver of this development is mainly the hydrological situation in The Nordics, giving a production surplus we haven't seen for years. The price of oil, gas, and coal has enforced the development of the l spot price curve. When it comes to the demand side, the temperature affects volume consumed negatively as all three months were warmer than last year. Regulator has had some issues with reporting market churn due to the LHUB launch last year. Their statement now is that new steps cannot be compared to steps from before LHUB.
Reported annual churn for 2019 was 21% in the consumer segment and 14% in the business segment. So I will now go to the next slide, segment development, consumer. The number of electricity deliveries in consumer segment decreased by 700 1,717 deliveries in the quarter driven by strong competition. At the end of the first quarter twenty twenty, the segment comprised 542,000 deliveries, which, however, represents a growth of 12,000 deliveries year on year. The volume sold in the first quarter twenty twenty was 2,328 kilowatt hour, which is 1% increase from the first quarter two thousand nineteen, and the increased number of deliveries is a driver for the positive volume development.
Financial performance in the segment is very strong. Julio Han will come back to the details on this later in the presentation. The PureCloud app has been further improved, now also including mobile subscription overview, and owners of solar panels are now able to virtually save excess production for later use. Okay. Let's move on to the next slide, segment development business.
We are now on page number eight. The business segment comprised at the end of the first quarter, 79,000 electricity deliveries, which represents an increase of 973 deliveries during the quarter, all of which organically. The volume sold was 1,820 gigawatt hour, a decrease of 13% compared to first quarter two thousand nineteen. The decrease is driven by a 16% decrease in average volume per delivery due to mild weather, fewer low profit tender customers, and COVID nineteen restrictions. Our new concept, has been well received in the business segment.
This is the concept which includes local energy production from solar panels or heat pumps as well as monitoring services, further expanding our value proposition within the segment. Please go to next slide, new growth initiatives. At the end of first quarter, the number of mobile subscribers was 110,000 subscribers, which represents, as mentioned before, an organic growth for more than 10,000 subscribers during the quarter. Alliance volume in the first quarter of twenty twenty was 1,320 gigawatt hours, which is a 13% year on year decrease as such the voice cost is now included in consumer business segments. One new extended alliance partner was implemented in the quarter, and the of broadband customers were handling the Fjordka factory on behalf of Alliance Partners.
The customer growth in both mobile and extended Alliance develops according to plan. So now I will leave the floor to Oleo Han to present our financials. Please, Ole Johan.
Thank you, Ulf. This is Ole Johan speaking. I'm once again delighted to present the financials for you today, especially given the results we published this morning. Next slide, please. I'm now at Page 11.
off, we'll look at the net revenue adjusted. As Bob said, the first quarter turned out to be a strong start of the year with adjusted net revenue of $481,000,000 on group load. This is up 27% from first quarter twenty nineteen and the growth is driven by margin improvements. As you can see, the consumer segment has the biggest impact. The margin improvements is due to particularly favorable market dynamics in both the L spot market and other commodity markets, positively affecting our cost of goods sold.
Looking at the last twelve months, adjusted net revenue on the right hand side, we see a new all time high of 1,390,000,000.00. This represents an increase of 20% driven by margin improvement. Next slide, Page 12. Moving on to the EBIT adjusted slide, we see an adjusted EBIT improvement of EUR 56,000,000 from first quarter of twenty nineteen. This brings us up to €38,000,000 which represents an improvement of 31%.
As you can see in the chart on the left hand side, the consumer segment is the driver for the increase. The EBIT growth represents an increase in EBIT margin of one percentage point from 48% in first quarter twenty nineteen to 49% in first quarter twenty twenty. The increased OpEx is driven by sales and marketing costs, administrative costs as well as an increase in expected loss on receivables due to COVID-nineteen. Looking at the last twelve months on the right hand side, we see that the adjusted EBIT on group level is up €122,000,000 from $425,000,000 in first quarter twenty nineteen to $547,000,000 in first quarter twenty twenty. This represents an increase of 29%, which takes the LTM adjusted EBIT margin up to 39% from group level, up two percentage points year on year and one percentage point from last quarter.
Next slide, please. Page 13. In this slide, we break the numbers down to the reporting segments. Starting off on the left hand side with the Consumer segment. In the Consumer segment, adjusted net revenue is increasing 36% year on year to a nominal level of all time high €362,000,000 The increase is mainly due to margin improvements and favorable market dynamics.
The all time high nominal EBIT adjusted level of €189,000,000 is an increase of €63,000,000 year on year. This gives an adjusted EBIT margin of 52%, which represents an increase of five percentage points year on year, driven by net revenue growth. Moving on to the business segment, we have a nominal adjusted net revenue of €108,000,000 This represents an increase of 11%, which is driven by improved margins, primarily from POACES, but value added services increases as well. The nominal EBIT adjusted level is stable at CHF59 million, which gives an adjusted EBIT margin of 55%. This is a five percentage points contraction year on year, driven by expected increase in loss on receivables due to COVID-nineteen.
Continuing to the new growth initiatives, on the right hand side, we see a 19% decrease in adjusted net revenue year on year, bringing us down to a nominal level of EUR 11,500,000.0 in the first quarter of twenty twenty. The nominal EBIT adjusted is decreased by EUR 7,500,000.0. The decrease in adjusted net revenue is primarily from reduced margins within mobile in connection with COVID-nineteen. As Al said, we have seen an increased voice activity driving costs of goods sold. Providing unlimited voice activity at a set price in the mobile market, we were on the risk of margin contractions in occasion with change in consumption patterns, just like we see now during COVID-nineteen.
As stated earlier, we've had a solid growth in the mobile segment passing 110,000 subscribers at the end of first quarter twenty twenty. Next slide, please, Page 14, net working capital. A quick look at the net working capital slide tells us that the net working capital is increasing by $251,000,000 from last quarter to a nominal level of NOK $218,000,000. The increase is driven by settlement of health certificates from 2019 and higher volumes. The post payment practice of also benefits has a positive effect on net working capital through throughout the year, meaning that this seasonally increase in net working capital was expected.
The volume increased 4% from last quarter contributing to increased net working capital, but we have also seen a 60% price reduction from fourth quarter twenty nineteen to first quarter twenty twenty, which of course reduces the net working capital. When we have such large price variations as we have seen lately, the comparisons between quarters becomes less relevant. This also concerns the comparison to first quarter in 2019. The reduction of $76,000,000 in net working capital from last year is driven by 65% lower prices and 6% lower volume. That being said, the continuous improvements in the invoicing process is, of course, also contributing positively to the development.
Next slide, please, Page 15. The cash generation is still strong, and the cash EBIT adjusted, as you see inside the frame, is NOK $241,000,000 in this quarter. This is in line with the EBIT adjusted on group level and brings us to a net cash position of EUR $511,000,000 at the end of first quarter of twenty twenty. Next slide, please, Page 16. This is the outlook we presented at the Capital Markets Day back in February.
off, due to the positive development in the consumer segment, we expect that both the net revenue growth and EBIT margin will be somewhat higher than targeted in 2020. In the business segment, we expect that COVID-nineteen will bring the net revenue growth down to a sustainable mid single digit annual growth level in 2020. At the Capital Markets Day, we expect this to take place from 2021. That being said, we still keep our target of an adjusted EBIT margin of 52% to 54% on an organic basis in the business segment. In the new growth initiatives segment, we have we expect a weaker adjusted EBIT than targeted mainly due to COVID-nineteen as explained on the segment slide.
However, we still expect a slight positive development from last year adjusted from the impact of new spin offs. That's all from me for now. Morten will now facilitate the Q and A session. Thank you.
Thank you, Olof, and thank you all. We will give the audience a few seconds if they have any questions to submit. We have not received any questions so far. Okay. Still no questions received.
So I think that, wrap things up, and thank you all for your attention. And should you have any questions, please reach out to me. My contact is on the last page of the presentation. Thank you, everyone.