Good for Business, Lithuania, Technology, Telecomunications

In 2010, TEO revenue for the first six months amounted to LTL 387 million, and net profit of the Company amounted to LTL 83.6 million. EBITDA for January-June 2010 was LTL 159.6 million, while EBITDA margin – 41.2%, writes LETA/ELTA.

"The Company maintained good profitability. By effectively reducing operating costs, EBITDA margin remained high and accounted for 40.8% – only 0.4% lower than a year ago", – Arunas Siksta, General Manager of TEO, said when commenting on the activity results.

According to him, TEO continues substantial investments into the next-generation fiber-optic Internet network, which is now available for use to every second resident of Lithuania. There was also a rapid growth in the number of its users. "Over the last year, the number of the Company's digital TV users increased by a quarter. A rapid growth in the number of customers is expected at the end of 2012, when Lithuania will switch over from analogue to digital television", – Siksta said.

The Company's share of revenue from Internet and data communications services from total amount of revenue for the first six months of 2011 amounted to 33.7%, voice telephony services – 51.7%. The share of revenue from television services from total amount of revenue for January-June 2011 amounted to 6.1%, IT services – 5.5% and other services – 3.2%.

Over the last 12 months, the number of the Company's television service users increased by almost 24.9% and at the end of June amounted to 142.5 thousand. The number of broadband Internet (excluding wireless WiFi) access users increased by 7.7% – up to 325.6 thousand. The total number of main telephone lines in service at the end of June amounted to 671.4 thousand.

According to the data of the Communications Regulatory Authority of the Republic of Lithuania for the first quarter of 2011, TEO market share of the Internet access services market in terms of revenue amounted to 38.6%, while the market share in terms of revenue from data communications services was 66.2%. TEO market share in terms of revenue from digital television services for the first quarter of 2011 was 43.6%.

During the first six months of 2011 the Company allocated LTL 63 million for investments. The majority of investments (LTL 58 million) went to the core and next-generation fiber-optic access networks. The remaining part was invested in the development IT systems and in the renovation of premises. In June, TEO opened a new customer care centre in Vilnius.

TEO Group consists of the parent company, TEO LT, AB, and its subsidiaries: Lintel, Baltic Data Center, Hostex, Interdata, Hosting, Kompetencijos Ugdymo Centras and Verslo Investicijos. TEO is the founder and sole owner of VsÁ Rysiø Istorijos Muziejus (The Communications History Museum).

TEO provides integrated telecommunication, IT and TV services to residential and business customers in Lithuania. Having the largest experience in the telecommunications business in Lithuania, the Company pays exclusive attention to high quality of services and satisfaction of customer needs. About 68% of the Company's shares are owned by TeliaSonera AB (publ), operating in more than 20 countries in Europe and Asia. TEO LT, AB shares are traded on NASDAQ OMX Vilnius Stock Exchange.