Results for the six months of 2012
On 16 July 2012, the Board of TEO LT, AB (hereinafter – “TEO” or “the Company”) approved unaudited TEO LT, AB Consolidated Interim Financial Statements, prepared according to International Financial Reporting Standards as adopted by the European Union, and Consolidated Interim Report for the six months period ended 30 June 2012.
The total revenue for the first six months of 2012 was LTL 381 million (EUR 110 million), an increase by 3 per cent over the total revenue of LTL 370 million (EUR 107 million) for the first six months of 2011.
EBITDA for the first half of 2012 increased by 2.2 per cent to LTL 154 million (EUR 45 million) over LTL 151 million (EUR 44 million) for the same period year ago. EBITDA margin remained almost on the same level and amounted to 40.5 per cent (40.8 per cent in 2011).
Profit before income tax in the first half of 2012 was up by 4.2 per cent and amounted to LTL 90 million (EUR 26 million) (LTL 86 million (EUR 25 million) a year ago).
Profit for the period in January-June 2012 amounted to LTL 78 million (EUR 23 million), an increase by 2.1 per cent over the profit of LTL 77 million (EUR 22 million) for the same period year ago. The profit margin remained almost on the level and was 20.6 per cent (20.7 per cent a year ago).
Management’s comment on financial results for the six months period of 2012:
“With economy struggling to take a clear direction for growth and the decreasing telecommunications market TEO revenue for the first half of 2012 increased by 3 per cent (y-o-y) and reached LTL 381 million (EUR 110 million). It was the third quarter in a row when the Company managed to compensate falling voice revenues with revenues from other services. The revenue increase in 2012 was driven by Internet services, which grew by 7.5 per cent, IPTV services (37 per cent growth) and IT services (60 per cent growth).
TEO continued its next-generation fiber-optic network development and further increased customer intake in this segment. The number of Internet users connected to TEO fiber-optic network increased by more than 26 per cent and exceeded 150 thousand at the end of June 2012. The number of customers of TEO flagship TV services product – “Interactive GALA” – increased by more than 17 per cent (y-o-y). Revenue from IT services was higher due to successful new international contracts.
The Company’s operating expenses were under strict control and increased by 3.7 per cent mostly due to an increase in the cost of goods sold. Capital investment stood at LTL 52 million (EUR 15 million), slightly lower than during the same period in 2011. Most of the investments TEO is making are aimed at the next-generation fiber-optic network build out.”
ENCL.:
- TEO LT, AB Consolidated Interim Financial Statements and Consolidated Interim Report for the six months period ended 30 June 2012.
- Presentation of TEO LT, AB results for the six months of 2012.
Darius Džiaugys,
Investor Relations Officer,
tel. +370 5 236 7878
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