TEO net profit grew by 24.7 per cent up to LTL 163 million over the year 2007

The total consolidated revenue of TEO LT, AB Group (hereinafter – TEO), an integrated telecommunication, IT and TV services provider, for the twelve months of 2007 was LTL 793 million, an increase by 8 per cent over the total revenue of LTL 735 million for the twelve months of 2006.

Profit before income tax for the twelve months of 2007 was up by 21 per cent and amounted to LTL 196 million (LTL 162 million a year ago). Net profit for the period amounted to LTL 163 million, an increase by 24.7 per cent over LTL 131 million a year ago.

EBITDA for the twelve months of 2007, compared with the twelve months of 2006, increased by 0.1 per cent and amounted to LTL 352 million. In 2007 EBITDA margin amounted to 44.4 per cent (47.9 per cent in 2006).

“The Company’s financial results for the year 2007 are the best over the last four years. Over the year, the Company’s revenue increased by 8 per cent showing positive trends in all services areas. Revenue for the fourth quarter of 2007 went up even by 12 per cent, year-on-year. We are indeed proud to report a 24.7 per cent net profit growth. An increase in operating expenses is just a temporary factor in order to stimulate an increase of the Company’s market share, activities in the new business areas as well as improvement of internal structure”, – ArÅ«nas Å ikšta, General Manager of TEO LT, AB, said when commenting on the activity results.

According to him, in 2008 TEO AB, LT is going to be strongly focused on increasing IPTV / DVB -T as well as data and broadband internet customer base. “We will be strongly oriented towards offering IT/Telco service packages to the business customers segment”, – A. Å ikšta said.

TEO further increased its share of revenue from Internet and data communication services – it amounted to 27 per cent. Share of revenue from traditional voice telephony services from total amount of revenue for 2007 continued to shrink and amounted to 66.6 per cent of total revenue. Revenue from IT services amounted to 1.8 per cent, television services – 1.1 per cent and other services – 3.6 per cent.

During 2007, the total number of main telephone lines in service increased by almost 4 thousand up to 788.9 thousand, the number of broadband Internet access users increased by 43 per cent and at the end of the year 2007 amounted to 258.6 thousand, while the number of IPTV users increased by 3.5 times and reached almost 17.5 thousand.

During the year 2007 the Company allocated LTL 195 million for investments – LTL 136 million were invested into the network development, another LTL 36 million – into other information technologies, including investments into the IT infrastructure project of DnB NORD finance group.

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.