TEO LT reports slide in Q1 2011 revenue, profit

20 Apr 2011

TEO LT, Lithuania’s incumbent fixed line operator, has announced it generated consolidated revenue of LTL185.5 million (USD76.6 million) in the three months ended 31 March 2011, down 3.2% compared to turnover of LTL192 million a year earlier. The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) totaled LTL73.9 million in the first quarter of 2011, compared to LTL81.4 million in Q1 2010, while net profit dropped from LTL43 million to LTL37.7 million during the same period. During the first three months of 2011 the company allocated LTL14.6 million for investments, the majority of which (LTL13.6 million) was ploughed into the expansion of its core and fibre-optic access networks. ‘During the first quarter of 2011, TEO achieved good performance results, the company’s revenue reached the forecasted level’ commented Arunas Siksta, general manager of TEO, adding: ‘We see that the number of business customers already tends to grow, while the number of bad debts is decreasing. These can be regarded as signs of economic recovery that are encouraging for the whole year.’

TEO LT’s voice telephony services accounted for 52.2% of total sales in the first three months of 2011, followed by internet and data services (33.7%), television services (6%), IT services (5%) and other services (3.1%). At 31 March 2010 the number of TEO LT’s broadband internet customers totaled 352,700 (including 113,000 direct fibre customers), an increase of 10.5% year-on-year, while fixed telephony customers fell by 31,600 during the twelve-month period to 678,600. A total of 138,500 subscribers had signed up to the company’s television services as at 31 March 2011 (of which 71,000 were IPTV users), up almost 28% over the same date a year earlier.

Lithuania, Telia Lietuva