TEO revenues grew by 10.4 per cent in the third quarter of the year 2007

The total revenue of TEO LT, AB (hereinafter – TEO), an integrated telecommunication, IT and TV services provider, for the third quarter of 2007 was LTL 204 million, an increase by 10.4 per cent over the total revenue of LTL 184 million for July – September of 2006. The total consolidated revenue for the nine months of 2007 was LTL 582 million, an increase by 6.5 per cent over the total revenue of LTL 547 million for the first nine months of 2006.

Profit before income tax for the first nine months of 2007 was up by 19 per cent and amounted to LTL 148 million (LTL 124 million a year ago). Profit for the period (including minority interest and profit from discontinued operations) amounted to LTL 123 million, an increase by 23.4 per cent over LTL 99 million a year ago.

“The Company’s results for the nine months of the year 2007 are better than planned. There was an especially big increase in revenue from the sales of services – an increase by 10.4 per cent in the third quarter compared to the same period last year. As compared to the nine months period of the previous year, the profitability of the Company’s operations grew by 23.4 per cent”, – ArÅ«nas Å ikšta, General Manager of TEO LT, AB, said when commenting on the activity results.

According to him, a temporary increase in operating expenses is related to the Company’s strategic development in new business areas, such as IP TV, DVB-T and IT, which in the nearest future will help the Company generate more revenue. “We continue actively implementing new services and quality management solutions”, – A. Å ikšta said.

TEO further increased its share of revenue from Internet and data communication services – it amounted to 26.6 per cent. Share of revenue from traditional voice telephony services from total amount of revenue for the first nine months of 2007 continued to shrink and amounted to 67.7 per cent of total revenue. Revenue from IT services amounted to 1.5 per cent, television services – 0.7 per cent and other services – 3.5 per cent of total revenue for January – September of 2007.

During January – September 2007, the total number of main telephone lines in service increased by 2.5 thousand lines up to 787.5 thousand. The number of broadband Internet access users increased by 51.5 thousand and at the end of September 2007 amounted to 232.2 thousand, while number of IP TV users amounted to almost 14 thousand.

During the first nine months of the year 2007 the Company allocated LTL 114 million for investment – LTL 77 million were invested into the network development, another LTL 20 million – into other information technologies, including investments related to DnB NORD Group IT infrastructure project. Investments into upgrading of customer care centers, transportation and construction of a new TEO building in Vilnius amounted to LTL 17 million. TEO Group intends to allocate the total amount of LTL 199 million for long-term investments during 2007.

TEO Group consists of the parent company, TEO LT, AB, and its subsidiaries: UAB Lintel, UAB Baltic Data Center, UAB Kompetencijos Ugdymo Centras and UAB Voicecom. TEO is the sole founder and owner of a non-profit organisation VšÄ® TEO Sportas. UAB Baltic Data Center also has its subsidiary in Latvia – Baltic Data Center SIA.

More: Financial Statement; Presentation