Bite posts results for ‘difficult’ quarter in Lithuania, Latvia

23 Jul 2013

Lithuanian telecoms group Bite, which provides mobile services in Latvia as well as its domestic market, has announced its financial results for the three months ended 30 June 2013, describing the period as a ‘difficult quarter with very aggressive competition in both markets.’ Group revenue and other income totalled EUR42.2 million (USD55.6 million) in the second quarter of 2013, a decrease of 5% from EUR44.6 million in the year-ago period, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 6% year-on-year from EUR13.6 million to EUR12.8 million. In Lithuania, mobile operator Bite Lietuva reported revenue and other income of EUR30.3 million, down 10% from EUR33.7 million in Q2 2012, while adjusted EBITDA in the group’s domestic market decreased 9% from EUR11.4 million to EUR10.4 million over the same period, although the firm said it is starting to gain momentum in its targeted SME segment. On the other hand, Bite Latvia’s EBITDA climbed by around EUR700,000 to EUR2.7 million, with revenue remaining largely flat at EUR13.8 million in Q2 2013, compared to EUR14.0 million in the year-ago quarter.

Commenting on the results, Bite CEO Fred Hrenchuk said: ‘This was not an easy quarter for us with competition becoming very intense in both countries and driving prices further down. We continued to focus on our post-paid customer base and kept a promise to our customers to add more value to their rate plans. This helped us to increase our post-paid base by 1% in Lithuania and 18% in Latvia. At the end of May we introduced new rate plans in Latvia, which were positively accepted by the market and at the end of the quarter we saw an accelerated growth in our post-paid base and reduced churn rates.’

Lithuania, Bite Latvia, Bite Lithuania