Bite reports slight drop in Q4 service revenues

27 Feb 2012

Lithuanian telecoms group Bite, which provides mobile services in Latvia as well as its domestic market, has announced it generated service revenue of EUR38.4 million (USD51.6 million) in the three months ended 31 December 2011, down 0.4% from EUR38.6 million in the year-ago quarter, while total revenue increased by EUR7 million over the same period to EUR45.7 million. Bite said that despite a decrease in interconnection charges, consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) rose 26% year-on-year to EUR9.0 million in Q4 2011 and rose 11% in full year 2011 to EUR43.6 million, thanks to growth in the firm’s post-paid subscriber base and cost control. The company said its fourth-quarter consolidated net loss narrowed from EUR5.5 million in 2010 to EUR1.6 million a year later. In Lithuania, Bite generated service revenue of EUR28.5 million in the final quarter of 2011, down 6% compared to EUR30.4 million in the year-ago period due to interconnect rate reductions and pricing pressure in the market, while EBITDA in its domestic market increased marginally from EUR8.7 million to EUR8.8 million. Bite Latvia’s EBITDA grew from –EUR1.2 million in the fourth quarter of 2010 to EUR400,000 twelve months later. Service revenue in Latvia jumped 20% year-on-year to EUR10.2 million in 4Q11.

In early 2011 Bite Latvia won a concession for 2.6MHz spectrum suitable for the provision of Long Term Evolution (LTE) services, while in Lithuania it applied for a 2.6MHz spectrum licence on 15 February 2012; results of the contest are due to be announced on 21 March 2012, the company said.

Lithuania, Bite Latvia, Bite Lithuania