TEO Q2 revenue drops 5.6%

20 Jul 2011

Lithuania’s incumbent fixed line operator TEO LT has announced it generated revenue of LTL184 million (USD75.3 million) in the three months ended 30 June 2011, down 5.6% from the LTL195 million reported in the year-ago quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the second quarter of 2011 dropped 1.4% year-on-year to LTL77.08 million, while net profit for the period totalled LTL38.9 million, down from LTL40.5 million in 2Q10. TEO meanwhile said it generated revenue of LTL369.8 million in first half of 2011, compared to LTL387 million in the same period of 2010, while EBITDA totalled LTL151 million, down from LTL159.6 million, and net profit slipped from LTL83.6 million in 1H 2010 to LTL76.6 million. Commenting on the results, Arunas Siksta, general manager of TEO, said: ‘The company maintained good profitability. By effectively reducing operating costs, EBITDA margin remained high and accounted for 40.8% – only 0.4% lower than a year ago.’ During the first six months of 2011 TEO allocated LTL63 million for investments, the majority of which (LTL58 million) went towards the core and next-generation fibre-optic access networks.

TEO said that turnover from voice telephony services accounted for 51.7% of total revenue in the first six months of 2011, while the share of turnover from internet and data communications services was 33.7%, television services 6.1%, IT services 5.5% and other services accounted for 3.2%. At 30 June 2011 the company reported a broadband internet (excluding wireless Wi-Fi) subscriber base of 325,600 (of which 119,000 were FTTx users), an increase of 7.7% year-on-year, while television customers increased 24.9% over the twelve-month period to reach 142,500 (including 73,000 IPTV users). The total number of main telephone lines in service at the end of June 2011 amounted to 671,400.

Lithuania, Telia Lietuva