TEO 1H results drop as telecoms market suffers

20 Jul 2010

Lithuania’s incumbent fixed line operator TEO LT has reported revenue of LTL387 million (USD145 million) for the six months ended 30 June 2010, down from LTL408.9 million in the same period of 2009. Net profit in the first half of 2010 totalled LTL83.6 million, a fall of 9.1% compared to LTL91.9 million in 1H09, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell 16% over the same period from LTL190 million to LTL159.6 million. Meanwhile, in the three months ended 30 June 2010 revenue increased 1.6% quarter-on-quarter to LTL195 million, compared to LTL192 million in 1Q10. In the first half of 2010 TEO invested a total of LTL51 million, of which the vast majority (LTL49 million) went into the expansion of its core network and development of its next generation fibre-optic access network.

TEO’s television service users increased by almost 33% year-on-year to reach 114,097 at 30 June 2010 (of which 60,410 were IPTV customers and the remainder DVB-T users), while broadband access users rose 7.6% to 326,900 (including 85,000 fibre customers). The company’s fixed lines in service at the end of June 2010 totalled 703,100, down from 743,000 a year earlier. ‘During the first quarter of 2010, the Lithuanian electronic communications market contracted by more than 11% and the recession continued. However, TEO managed to increase the number of broadband and TV customers and maintain its high EBITDA level and net profitability,’ commented Arunas Siksta, general manager of TEO, adding: ‘Successful performance will allow the company to continue investments in deployment of its next generation network by allocating for that purpose even more funds than in 2009.’

Lithuania, Telia Lietuva