TEO revenues grew by 11.3 per cent in the first quarter of 2008

The total consolidated revenue of TEO LT, AB Group (hereinafter – TEO), an integrated telecommunication, IT and TV services provider, for the first quarter of 2008 was LTL 206.8 million, an increase by 11.3 per cent over the revenue for January-March 2007 (LTL 185.8 million).

Profit before income tax for the first three months of 2008, compared with profit before income tax for the same period in 2007 – LTL 46.3 million, was up by 15.3 per cent and amounted to LTL 53.3 million. Net profit for the period, compared with net profit for the first three months of 2007 – LTL 37.9 million, increased by 19.4 per cent and amounted to LTL 45.2 million.

“TEO Group’s financial activity results for the first quarter of the year 2008 are excellent. Revenue growth was more than 11 per cent and operating expenses were lower than planned. Profitability indicators, compared to the same period last year, increased substantially as well”, – ArÅ«nas Å ikšta, General Manager of TEO LT, AB, said when commenting on the activity results.

According to him, in future, good results are expected from the provision of the digital terrestrial television (DVB-T) service, which has been recently introduced to the market. Also, it is planned to sustain growth in the number of broadband Internet access users.

TEO further increased its share of revenue from Internet and data communication services – it amounted to 29.3 per cent. Share of revenue from traditional voice telephony services from total amount of revenue for the first three months of 2008 continued to shrink and amounted to 63.4 per cent of total revenue. Revenue from IT services amounted to 3.1 per cent, television services – 1.5 per cent and other services – 2.7 per cent.

During January-March 2008, the total number of broadband Internet access users increased by 11 thousand and at the end of March was 270.1 thousand. The total number of main telephone lines in service was 778.6 thousand, while the number of TV users – almost 25 thousand.

During the first three months of 2008 the Company allocated LTL 17.9 million for investments – LTL 13.2 million were invested into the network development, another LTL 2.1 million – into other information technologies, LTL 2.5 million − into upgrading of buildings (mostly renovation of customer care centers).

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