TEO’s FY 2010 results hit by falling fixed line revenue

3 Feb 2011

TEO LT, Lithuania’s incumbent fixed line operator, has reported revenue of LTL773 million (USD309 million) for the year ended 31 December 2010, down 5.2% compared to the LTL816 million generated in 2009, thanks to a fall in sales from fixed telephony, internet and data services. The operator’s revenue for the fourth quarter of 2010 saw a 2.7% year-on-year drop to LTL192 million. Net profit for full-year 2010 totalled LTL163 million, down from LTL169 million a year earlier, while earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 8.2% from LTL338 million in 2009 to LTL310 million in FY10. However, costs fell by 4.5%, which according to the telco’s general manager Arunas Siksta, helped keep the company’s high profitability and maintain an EBITDA margin of over 40%. Siksta added that TEO achieved good results in comparison to the country’s overall telecommunications market, which saw total turnover fall 11% year-on-year in 9M10.

In terms of customers, TEO’s fibre-optic internet subscribers increased 65% to reach 104,000 at 31 December 2010, accounting for 30% of the company’s total 346,000 broadband users (up from 313,000 a year earlier). Meanwhile, fixed lines in service continued to decline from 722,000 at the end of 2009 to 689,000 a year later. The operator’s television subscriber base increased 28.2% year-on-year to reach 131,200 at the end of 2010, of which 67,909 were IPTV customers. Voice telephony services generated the lion’s share (53.7%) of revenue in 2010, followed by internet and data communications services (33.2%), television services (4.9%), IT services (4.7%) and other services (3.5%). During 2010 capital expenditure (CAPEX) totalled LTL191 million, of which LTL100 million was invested in the fourth quarter. The majority of CAPEX (LTL158 million) was ploughed into the core network and development of the firm’s next generation fibre-optic network.

Lithuania, Telia Lietuva