TEO revenue down 2.3% in Q2; Tele2 drops fixed telephony service

18 Jul 2014

Lithuania’s incumbent fixed line operator TEO LT has posted revenue of LTL173.809 million (USD67.9 million) for the second quarter of 2014, a decrease of 2.3% from LTL177.834 million in the year-ago quarter, as voice telephony service sales dropped 6.9% year-on-year to LTL70.976 million. Data and network services revenue fell 2.7% to LTL20.041 million in 2Q14 from LTL20.594 million a year earlier, while IT services turnover decreased 6.3% to LTL15.023 million. Meanwhile, internet services sales rose 3.3% year-on-year to LTL46.001 million and TV services revenue was up 2.9% at LTL15.561 million. EBITDA for the second quarter of 2014 totalled LTL68.081 million, down 9.4% from LTL75.113 million a year earlier, while net profit dropped 14.4% from LTL37.358 million to LTL31.985 million over the same period. Capital investments totalled LTL36 million in the first six months of 2014, of which LTL15 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 68% of households (814,000) at the end of June 2014.

TEO reported a broadband internet subscriber base of 463,548 at 30 June 2014 (an increase of 17.6% from 394,123 twelve months earlier), including 187,420 FTTx customers (up 10.9% year-on-year) and 172,731 xDSL subscribers (down 4.0%). Television customers increased 3.7% over the twelve-month period to reach 176,438 at the end of June 2014 (including 116,398 IPTV users – up 16.6% year-on-year), while the total number of main telephone lines in service at the end of Q2 2014 amounted to 542,488, a decrease of 7.2% from 584,766 a year earlier.

In other news, Tele2 Lithuania has announced that it will cease providing fixed telephony services from 1 August, due to unfavourable competitive conditions and high interconnection charges. The company said it began providing landline services as a virtual operator in 2004, but stopped signing up new customers the following year, although it continued to serve existing users of the service for almost ten years.

Lithuania, TEO LT, Tele2 (Lithuania),

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