Bite results suffer amid economic downturn in Lithuania, Latvia

29 Oct 2010

Lithuanian telecoms group Bite, which provides mobile services in Latvia as well as its domestic market, has reported a 7% year-on-year fall in revenue to EUR40.4 million (USD56 million) for the quarter ended 30 September 2010, down from EUR43.4 million in the same period a year earlier. The company attributed the fall to negative economic conditions in both the Lithuanian and Latvian markets, alongside steep interconnection rate reductions in Lithuania from January 2010 and twice in Latvia from April and August 2010. The Bite group’s consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) for the three-month period totalled EUR11.4 million, representing an increase of 13% compared to the EUR10.1 million reported in Q3 2009, while EBITDA margin improved to 28% in the third quarter of 2010, up from 23% a year earlier. Bite’s domestic unit saw its 3Q10 service revenue fall 12% year-on-year to EUR32.1 million, while EBITDA fell from EUR12.6 million to EUR12 million during the same period. Meanwhile, Bite’s Latvian unit generated service revenue of EUR8.6 million in the three months ended 30 September 2010, up from EUR7.2 million twelve months previously, and saw its EBITDA increase from negative EUR1.7 million in 3Q09 to around EUR100,000 a year later. The company has not released subscriber figures for the two subsidiaries, but noted that Bite Lithuania’s customer base grew 11% year-on-year, while its Latvian unit saw customers jump 80% during the period. Fred Hrenchuk, CEO at the Bite group, said: ‘We have had some good progress in both countries although there is much more work to do in each country with respect to improving our market and financial performance.’

Lithuania, Bite Latvia, Bite Lithuania