Latvia’s largest mobile operator by subscribers, Latvijas Mobilais Telefons (LMT), has announced that it generated revenues of almost LVL135 million (USD263 million) in 2010, while it said net profit stood at more than LVL32 million for the twelve-month period to 31 December 2010. Further, it said that as a result of increased efficiency it had been able to reduce operational costs by nearly 30%. Claiming to have invested more than LVL300 million since its inception, LMT also revealed that it aimed to spend around LVL18 million in 2011 in order to spur operations further, with the cellco targeting revenue growth of between 2% and 3% in the coming year.
In operational terms LMT said that its subscriber base had increased by more than 25,000 in 2010 to reach 1.07 million as at end-December 2010, noting particularly stable growth in the post-paid sector. The operator also claimed that around half of its customers had now tried its mobile internet services, while it claimed that at the end of the year 3G subscribers numbered more than 400,000. In 2010, the operator said, it had expanded its 3G coverage to around 75% of the country’s territory as part of a plan to reach 90% of the country.
Commenting on the results, LMT’s president Juris Binde noted: ‘LMT is a positive signal to Latvia’s economy because it indicates that the situation is stabilising and there is a growth potential in the next few years. In the telecommunications sector it means that the prices have evened out and the customers choose the telecommunications operators according to the availability of the network and the quality of service, which suits their individual needs.’