TEO revenues grew by 4.6 per cent in first half 2007

Thursday, July 19th, 2007 
TEO LT logo

The total consolidated revenue of TEO LT, AB Group, an integrated telecommunication, IT and TV services provider, for the first six months of 2007 was LTL 379 million, an increase by 4.6 per cent over the total revenue of LTL 362 million for the first six months of 2006. Total revenue for January – June 2007, excluding revenue from UAB Comliet construction activities that contributed LTL 1.7 million during the year 2006, grew by 5.1 per cent over the year

Profit before income tax for the first six months of 2007, compared to profit before income tax for the same period of 2006 – LTL 82 million, was up by 14.2 per cent and amounted to LTL 93 million. Profit for the period (including minority interest and profit from discontinued operations) amounted to LTL 77 million, an increase by 18.4 per cent over LTL 65 million a year ago.

“The Company’s results for the first six months of the year 2007 are good. Compared to the first half of the last year, the Company’s revenue increased by more than 5 per cent (excluding the sold construction business) and the total number of users of different service groups went up”, – ArÅ«nas Å ikšta, General Manager of TEO LT, AB, said when commenting on the activity results.

According to him, the Company successfully launched a new generation network, which it now continues to implement, offered new services to residential and business customers. “In future, this will allow to enhance the network operation quality and to increase our revenue”, – A. Å ikšta said.

TEO LT, AB further increased its share of revenue from Internet and data communication services – it amounted to 26.4 per cent. Share of revenue from traditional voice telephony services from total amount of revenue for 2007 continued to shrink and amounted to 69.2 per cent of total revenue. Revenue from IT services amounted to 1.3 per cent, television services – 0.7 per cent and other services – 2.4 per cent of total revenue for January – June 2007.

During January – June 2007 total number of main telephone lines in service increased by 2.8 thousand lines up to 788 thousand, number of broadband Internet access users increased by almost 32 thousand and at the end of June 2007 amounted to 212.6 thousand, while number of IP TV users exceeded 11 thousand.

During the first half of the year 2007 the Company allocated LTL 43 million for the network expansion. Another LTL 8.8 million were invested into other information technologies, LTL 9.2 million into premises, including investments into construction of a new TEO building in Vilnius. In 2007, TEO Group is planning to allocate LTL 164 million for capital investments and LTL 33 million – for construction of the new building.