TEO revenues grew by 5.3 per cent for the nine months of 2008

The total consolidated revenue of TEO LT, AB Group (Vilnius:TEO1L), an integrated telecommunication, IT and TV services provider, for the nine months of 2008 was LTL 613 million, an increase by 5.3 per cent over the revenue for January-September 2007 (LTL 582 million).

Profit before income tax for the nine months of 2008, compared with profit before income tax for the same period in 2007 – LTL 148 million, was up by 2.4 per cent and amounted to LTL 151 million. Net profit for the period, compared with net profit for the first three months of 2007 – LTL 123 million, increased by 5.7 per cent and amounted to LTL 129 million.

“TEO Group results for the third quarter are very good. Financial results show that we successfully resist to the slowing down economy, increasing competition and market regulation pressure. I believe that during the last quarter of 2008 we will continue that way”, – ArÅ«nas Å ikšta, General Manager of TEO LT, AB, said when commenting on the activity results.

TEO further increased its share of revenue from Internet and data communication services – it amounted to 30.6 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 62.6 per cent of total revenue. Revenue from IT services amounted to 2.6 per cent, television services – 1.8 per cent and other services – 2.4 per cent.

During January-September 2008, the total number of broadband Internet access users increased by 27.8 thousand and at the end of September was 286.4 thousand. The total number of main telephone lines in service was 772.1 thousand, while the number of TV users – 47.5 thousand.

During the nine months of 2008 the Company allocated LTL 94.1 million for investments – LTL 74.1 million were invested into the network development, another LTL 6.3 million – into other information technologies, LTL 12.6 million − into upgrading of buildings (mostly renovation of customer care centers).

Internet Television

Number of IPTV service users:

             2007                       2008
-----------------------------  ----------------------
   Q1      Q2      Q3      Q4      Q1      Q2      Q3
-----  ------  ------  ------  ------  ------  ------
9,083  11,382  13,785  17,453  23,067  27,963  32,777

Digital Terrestrial Television

“¢ In March 2008, TEO Group launched digital terrestrial television (DVB-T) service Digital GALA (Skaitmeninė GALA)
“¢ It offers 38 TV channels
“¢ Service is available to 95% of Lithuanian population
“¢ TEO operates 2 networks of DVB-T transmitters
“¢ By 2012 DVB-T should completely substitute analogue terrestrial transmission in Lithuania

Number of DVB-T users:

March   April     May    June    July   August   September
-----   -----   -----   -----   -----   ------   ---------
1,612   3,755   5,101   6,554   8,780   11,465      14,692