TEO posts 2.5% rise in Q1 revenue

19 Apr 2012

TEO LT, Lithuania’s incumbent fixed line operator, said its revenue for the first three months of 2012 increased 2.5% year-on-year to LTL190.49 million (USD72.3 million). The company said that the growth was mainly driven by a rise in turnover from internet and television services, which grew 4.5% and 23.8% year-on-year respectively, thanks to an increase in customers taking up the firm’s next generation fibre-optic network and IPTV services. In Q1 2012 IT services revenue grew 110% over the year-ago quarter to LTL19.57 million, largely due to the development of the group’s subsidiary Baltic Data Center, which helped to offset a 10.6% decline in fixed voice services from LTL96.96 million in the first quarter of 2011 to LTL86.66 million twelve months later. Earnings before interest, tax, depreciation and amortisation (EBITDA) totalled LTL74.4 million in Q1 2012, an increase of 0.7% compared to the LTL73.9 million reported in the first three months of 2011, while profit for the period amounted to LTL37.1 million, 1.5% lower than LTL37.7 million for the year-ago quarter, due to an increase in income tax expenses. During the first three months of 2012 the company invested LTL23 million, an increase of 57% year-on-year, the majority of which (LTL15.1 million) was spent on the expansion of its core network and the development of its fibre-optic access network.

Voice telephony services accounted for 45.5% of total revenue in the first three months of 2012, while the share of sales from internet services was 21.7%, data communications and network capacity sales 11.7%, IT services 10.3%, television services 7.2%, and other services accounted for 3.7%. At the end of March 2012 TEO reported a broadband internet subscriber base of 373,899 (of which around 147,000 were FTTx users), an increase of 6% year-on-year, while television customers increased by around 15,800 over the twelve-month period to reach 154,246 (including 82,900 IPTV users). The total number of main telephone lines in service at the end of March 2012 amounted to 636,132 (down from 679,562 twelve months previously). At the same date, TEO’s FTTx network passed 714,000 households (end-2010: 556,000), representing 59% of the country’s total.

Lithuania, Telia Lietuva