TEO LT net profit slips 5.2% in 2011

2 Feb 2012

Lithuania’s incumbent fixed line operator TEO LT has announced it generated revenue of LTL749.8 million (USD284.8 million) in the twelve months ended 31 December 2011, a decrease of 3.1% from LTL773.4 million in full year 2010, while earnings for the fourth quarter of 2011 rose 1.5% year-on-year to LTL195.5 million. The company said that earnings before interest, tax, depreciation and amortisation (EBITDA) for the twelve-month period fell 2.6% year-on-year to LTL302.3 million, but rose 5.2% from LTL70.9 million in Q4 2010 to LTL74.5 million in the corresponding period of 2011. Net profit for the year ended December 2011 totalled LTL154.5 million, down 5.2% from LTL162.9 million in 2010, and slipped 1.5% year-on-year to LTL37.2 million in the last quarter of 2011. TEO invested a total of LTL156 million during 2011, the majority of which (LTL138 million) went towards the core and next-generation fibre-optic access networks. ‘The economic situation in the world, as well as in Lithuania, forces us to pay special attention to increasing the efficiency of processes and reducing operating expenses,’ commented Arunas Siksta, general manager of TEO, adding: ‘The Lithuanian telecommunications market last year continued to be turbulent – over the year it fell by more than 7%. In this context, the results produced by TEO can be considered excellent – its revenue fell by just 3% – while as regards profitability indicators, the company managed to maintain and even improve them.’

According to TEO, voice telephony services accounted for 49.9% of total revenue in 2011, while the share of sales from internet and data communications services was 33.7%, television services 6.3%, IT services 6.3% and other services accounted for 3.6%. At the end of December 2011 TEO reported a broadband internet (excluding wireless Wi-Fi) subscriber base of 338,000 (of which 140,000 were FTTx users), an increase of 6% year-on-year, while television customers increased by 20,000 over the twelve-month period to reach 151,000 (including 80,000 IPTV users). The total number of main telephone lines in service at the end of 2011 amounted to 648,000 (down from 689,000 twelve months previously). At the same date, TEO’s FTTx network passed 705,000 households (end-2010: 556,000), representing 59% of the country’s total.

Lithuania, Telia Lietuva