TEO Q3 net profit slips 2.3% on falling sales

19 Oct 2011

Lithuania’s incumbent fixed line operator TEO LT has announced it generated revenue of LTL184.5 million (USD73.4 million) in the three months ended 30 September 2011, a decrease of 4.8% from LTL193.9 million reported in the year-ago quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the third quarter of 2011 fell 4.1% year-on-year to LTL76.8 million, while net profit for the period totalled LTL40.6 million, down 2.3% from LTL41.6 million in 3Q10. TEO meanwhile said it generated revenue of LTL554.3 million in first nine months of 2011, a decrease of 4.6% compared to LTL580.9 million in the same period of 2010, while EBITDA totalled LTL227.8 million, down from LTL239.6 million, and net profit slipped from LTL125.2 million to LTL117.3 million over the same period. Turnover from voice telephony services accounted for 50.4% of total revenue in the first nine months of 2011, while the share of sales from internet and data communications services was 33.8%, television services 6.2%, IT services 6.0% and other services accounted for 3.6%. Commenting on the results, Arunas Siksta, general manager of TEO, said: ‘This year, TEO revenue was declining much slower compared to the entire Lithuanian telecommunications market. Moreover, this decline was rather moderate compared to the previous year.’ He added that TEO has been in managing its operating expenses, which has helped the company to maintain high profitability.

At 30 September 2011 TEO reported a broadband internet (excluding wireless Wi-Fi) subscriber base of 333,100 (of which 131,000 were FTTx users), an increase of 8% year-on-year, while television customers increased by 15,900 over the twelve-month period to reach 147,100 (including 76,000 IPTV users). The total number of main telephone lines in service at the end of September 2011 amounted to 661,000. At the same date, TEO’s FTTx network passed 689,000 households, representing 57% of the country’s total. During the first nine months of 2011 TEO invested a total of LTL105 million, the majority of which (LTL95 million) went towards the core and next-generation fibre-optic access networks.

Lithuania, Telia Lietuva