TEO revenue boosted by rise in fibre internet, TV subs

18 Jul 2012

Lithuania’s incumbent fixed line operator TEO LT has announced it generated revenue of LTL190.2 million (USD67.6 million) in the three months ended 30 June 2012, an increase of 3.4% from the LTL184.0 million reported in the year-ago quarter, with growth mainly driven by internet, television and IT services. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the second quarter of 2012 rose 3.6% year-on-year to LTL79.9 million, while net profit for the period grew 5.7% from LTL38.9 million in Q2 2011 to LTL41.1 million twelve months later. TEO meanwhile posted revenue of LTL380.7 million in the first half of 2012, compared to LTL369.8 million in the same period of 2011, boosted by a 7.5% year-on-year rise in internet sales to LTL84 million, a 23.1% increase in TV services to LTL28 million and a near 60% year-on-year jump in IT services to LTL32 million. EBITDA for the six-month period totalled LTL154.3 million, up 2.2% from LTL150.9 million, while net profit grew 2.1% from LTL76.6 million in 1H 2011 to LTL78.3 million twelve months later. During the first six months of 2012 TEO allocated LTL52 million for investments, the majority of which (LTL41 million) went towards the firm’s core and next-generation fibre-optic access networks. Commenting on the results, Arunas Siksta, general manager of TEO, said: ‘With the economy struggling to take a clear direction for growth and the decreasing telecommunications market, TEO managed to ensure revenue growth, mainly from IT, digital TV and internet services.’

TEO said that turnover from voice telephony services accounted for 47.1% of total revenue in the first six months of 2012 (down from 51.7% a year earlier), while the share of turnover from internet services was 22.2%, data communications and network capacity sales 11.5%, television services 7.2%, IT services 8.5% and other services accounted for 3.5%. At 30 June 2012 the company reported a broadband internet subscriber base of 377,045, an increase of 5.3% from 357,957 customers a year earlier; the total includes 150,887 FTTx users, up 26.3% year-on-year thanks to the expansion of TEO’s fibre-optic network. With a presence in over 100 towns and cities, a total of 732,000 homes were covered by the infrastructure at the end of June 2012 (up from 593,000 a year earlier), representing 61% of the country’s households. Television customers increased 9.7% over the twelve-month period to reach 156,364 (including 85,014 IPTV users – up 17.2% year-on-year), while the total number of main telephone lines in service at the end of June 2012 amounted to 625,671, a decrease of 6.8% from over 671,000 a year earlier.

Lithuania, Telia Lietuva