Published: 2014-01-29 15:00:00 CET
Telia Lietuva, AB
Interim information

Results for the twelve months of 2013

On 28 January 2014, 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, for the twelve months period ended 31 December 2013.

The total consolidated TEO Group’s revenue for the fourth quarter of 2013 was LTL 179 million (EUR 51.8 million), an decrease by 1.4 per cent over the total revenue of LTL 181 million (EUR 52.5 million) for the third quarter of 2013 and by 5.7 per cent over the total revenue of LTL 190 million (EUR 54.9 million) for the fourth quarter of 2012. The total revenue for the twelve months of 2013 was LTL 721 million (EUR 208.7 million), a decrease by 5.2 per cent over the total revenue of LTL 760 million (EUR 220.2 million) for the twelve months of 2012.

EBITDA for the twelve months of 2013 decreased by 4.7 per cent to LTL 293 million (EUR 84.8 million) over LTL 307 million (EUR 88.9 million) for the same period year ago. EBITDA margin amounted to 40.6 per cent (40.4 per cent in 2012). EBITDA for October-December of 2013 went down by 8.1 per cent to LTL 65 million (EUR 18.9 million) over LTL 71 million (EUR 20.5 million) in October-December of 2012. EBITDA margin amounted to 36.4 per cent (37.4 per cent in 2012).

Profit before income tax for the twelve months of 2013 went down by 6.6 per cent and amounted to LTL 166 million (EUR 48 million) (LTL 177 million (EUR 51.4 million) a year ago). Profit before income tax for the fourth quarter of 2013 was down by 9.8 per cent and amounted to LTL 34 million (EUR 9.9 million) (LTL 38 million (EUR 11 million) a year ago).

Profit for the period in January-December 2013 amounted to LTL 149 million (EUR 43.2 million), a decrease by 6.2 per cent over the profit of LTL 159 million (EUR 43.1 million) for the same period year ago. The profit margin was 20.7 per cent (20.9 per cent a year ago). Profit for the period in October-December 2013 amounted to LTL 31 million (EUR 9 million), while a year ago it was LTL 36 million (EUR 10.3 million), an decrease by 12.9 per cent. The profit margin was 17.3 per cent (18.7 per cent a year ago).

 

Management’s comment on financial results for the twelve months period of 2013:

“TEO revenue stream during the fourth quarter of 2013 decreased by 1.4 per cent to LTL 179 million (EUR 51.8 million), compared to the third quarter of 2013 (an increase by 0.9 per cent excluding one-time projects). The decrease was mostly driven by the decrease in revenue from voice telephony services. The Company’s revenue excluding voice telephony services increased by 0.6 per cent compared to the previous quarter (an increase by 3.9 per cent, y-o-y) mostly driven by increase in revenue from Internet and TV services.

In a declining Lithuanian telecommunications market (during the third quarter of 2013 it fell by 6.6 per cent, y-o-y) TEO revenue for the twelve months of 2013 decreased by 5.2 per cent compared to 2012 due to decrease in revenue from international business. Revenue from within the country provided voice telephony services decline in absolute terms by LTL 22 million (EUR 6.4 million) (in 2012 by LTL 23 million (EUR 6.7 million)). However strong cost control allowed the Company to reach record high for the last four years EBITDA margin of 40.6 per cent. In 2013, revenue excluding voice telephony services continued to grow from quarter to quarter. Most of this increase was coming from IPTV (grew by 17.9 per cent) and Internet services (3.7 per cent).

The Company‘s free cash flow stood at LTL 144 million (EUR 41.7 million) and free cash flow to sales ratio was 20 per cent – just slightly less than that in 2012, when it amounted to 23 per cent.

During 2013 TEO reached several milestones: its Internet customers’ base exceeded 430 thousand and TV customers’ base exceeded 170 thousand. The Company continued to fulfil its commitment to the customers by further expanding its next generation fiber-optic network. Thus, in 2013 the number of customers using modern fiber-optic network exceeded the number of customers using copper technologies. At the same time TEO has increased Internet speeds by 100 per cent for most of its DSL technology customers.

During the year TEO introduced “My package” service, that allows to select only those TV channels which are relevant for the customer, possibility to purchase equipment – from TV sets to laptops and tablets, Internet security solutions for businesses and individual customers. The Company also completed Wi-Fi for Schools project providing access to Internet possibility to 450 schools in Lithuania. It also created a new generation Internet TV service for smart devices – "Internet.tv". This service marks new stage in the development of television allowing to watch TV on a PC, smartphone or tablet anywhere in Lithuania wherever Internet connection (including Wi-Fi or 3G) is available.”

 

ENCL.:

  • TEO LT, AB Consolidated Interim Financial Statements for the twelve months period ended 31 December 2013.
  • Presentation of TEO LT, AB results for the twelve months of 2013.

 

 

         Darius Džiaugys,
         Head of Investor Relations,
         tel. +370 5 236 7878


2013_12_months_results.pdf
2013_12_months_report.pdf