TEO revenues grew by 8.3 per cent and net profit by 16 per cent in the first half of 2008

Friday, July 25th, 2008
TEO LT logo

The total consolidated revenue of TEO LT, AB Group, an integrated telecommunication, IT and TV services provider, for the first half of 2008 was LTL 410 million, an increase by 8.3 per cent over the revenue for January-June 2007 (LTL 379 million).

Profit before income tax in the first six months of 2008 was up by 11.8 per cent and amounted to LTL 104 million. Profit for the period amounted to LTL 89 million, an increase by 16 per cent.

TEO further increased its share of revenue from Internet and data communication services – it amounted to 29.8 per cent. Share of revenue from traditional voice telephony services from total amount of revenue for the first six months of 2008 continued to shrink and amounted to 63.2 per cent of total revenue. Revenue from IT services amounted to 2.8 per cent, television services – 1.7 per cent and other services – 2.5 per cent.

During January-June 2008, the total number of broadband Internet access users increased by 19.1 thousand and at the end of June was 277.7 thousand. The total number of main telephone lines in service was 776 thousand, number of IPTV users reached 28 thousand and number of digital terrestrial television (DVB-T) service, which was launched in March 2008, amounted to 6.6 thousand.

                             2008-06-30   2007-06-30   Change (%)
                             ----------   ----------   ----------
Number of IP TV customers        27,963       11,382        145.7
Number of DVB-T customers         6,554            -            -

During January-June of 2008 an amount of LTL 55.8 million was allocated for capital investments. Majority of cash – LTL 43.8 million was invested into the network and LTL 7.4 million into upgrading of buildings (mostly renovation of customer care centers).

“Results for the first half of 2008 are excellent. The Company is successfully implementing its strategic goals and actively expanding its customers’ base. In spite of increase in fixed operating costs and decline in services prices due to market regulations in the future, the Company will seek to increase its profitability by efficiently managing expenses and increasing sales volumes”, – ArÅ«nas Å ikšta, General Manager of TEO LT, AB, said when commenting on the results.

According to him, during the second half of 2008 the Company will continue to fulfil its targets for sales of DVB-T, IPTV and IT services.

In May 2008, the Company paid to its shareholders in total LTL 194 million or LTL 0.25 per share of dividends for the year 2007.

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.

More: Earnings Release