Profits up for Eesti Telekom in 2002

Eesti Telekom [LSE: EESTq.L], the incumbent provider of telecoms services in Estonia, today released its results for the fourth quarter and full year 2002, revealing strong growth in revenues, EBITDA and net profit. At the end of December 2002 the group’s consolidated revenues reached EUR296 million, an increase of 8% in twelve months, with the majority of growth generated from its mobile unit, EMT. EBITDA rose by 10% to EUR136 million in the same period, with net profit finishing the year at EUR66 million – EUR0.48 a share – an increase of 33% on December 2001. The fixed line division, Eesti Telefon, took its net profit for 2002 to EUR18 million, although consolidated revenues fell by around 9%, mainly due to an increasing number of customers switching from fixed to mobile telephony services. Eesti Telefon’s number of main lines in service dropped by 36,600 in the twelve months to the end of 2002, to 465,121, as residential customers abandoned analogue lines to upgrade to digital. The number of business lines in service increased by 1,200 in the year, and 13,600 new ADSL connections were installed. Mobile subsidiary EMT increased its customer base by 44,800 during 2002 taking it to 427,500, 147,200 of which were pre-paid. Its total revenues grew by 11% to EUR157 million with net profit reaching EUR55 million, up by 11%. EMT, which has shared the market with Radiolinja and Tele2 for five years, now faces the prospect of increased competition with two newcomers – OU Vetrelson Haldus and Citygsm – looking to launch services in 2003.