TEO posts 7.2% fall in Q1 revenue

24 Apr 2014

Lithuania’s incumbent fixed line operator TEO LT has reported revenue of LTL169.452 million (USD67.6 million) for the first three months of 2014, down 7.2% from LTL182.666 million in the year-ago quarter, as voice telephony service sales fell 17.3% year-on-year to LTL67.734 million. The company said that first-quarter data and network services revenue decreased 5.1% to LTL19.728 million in 1Q14, while TV service turnover dipped 1.6% to LTL15.158 million. Meanwhile, internet services sales rose 5.1% year-on-year to LTL46.355 million and IT services revenue was stable at LTL14.257 million. EBITDA for the first quarter of 2014 totalled LTL65.716 million, down 11.7% from LTL74.437 million a year earlier, while net profit dropped 17.1% year-on-year to LTL31.693 million. TEO’s results were negatively impacted by a non-recurring redundancy cost of LTL7.6 million, though it claims the reduction in employees will save up to LTL8 million annually. During the first three months of 2014 capital investments totalled LTL13 million, of which LTL6 million went towards the expansion of TEO’s fibre-to-the-home (FTTH) access network, which is present in more than 100 towns and cities across the country, passing around 67% of households (808,000) at the end of March 2014.

TEO reported a broadband internet subscriber base of 441,743 at 31 March 2014 (an increase of 13.4% from 389,457 twelve months earlier), including 183,967 FTTx customers (up 10.8% year-on-year) and 174,502 xDSL subscribers (down 3.6%). Television customers increased 2.5% over the twelve-month period to reach 173,677 at the end of March 2014 (including 110,743 IPTV users – up 14.0% year-on-year), while the total number of main telephone lines in service at the end of Q1 2014 amounted to 552,708, a decrease of 7.0% from 594,437 a year earlier.

Lithuania, TEO LT,

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