On 16 July 2013, the Board of TEO LT, AB (hereinafter – “TEO” or “the Company”) approved unaudited TEO LT, AB Consolidated Interim Financial Statements, prepared according to International Financial Reporting Standards as adopted by the European Union, and Consolidated Interim Report for the six months period ended 30 June 2013.
The total consolidated TEO Group’s revenue for the second quarter of 2013 was LTL 178 million (EUR 52 million), which is by 6.5 per cent lower than the total revenue of LTL 190 million (EUR 55 million) for the second quarter of 2012. The total revenue for the first six months of 2013 eased by 5.3 per cent to LTL 361 million (EUR 104 million) as the total revenue for the first six months of 2012 amounted to LTL 381 million (EUR 110 million). The underlying revenue, excluding one-off sale of IT equipment during 2012, for the first half of 2013 declined by 2.7 per cent.
EBITDA for the second quarter of 2013 went down by 6 per cent to LTL 75 million (EUR 22 million) over LTL 80 million (EUR 23 million) in the second quarter of 2012. EBITDA margin amounted to 42.2 per cent (42 per cent in 2012). EBITDA for the first half of 2013 decreased by 3.1 per cent to LTL 150 million (EUR 43 million) over LTL 154 million (EUR 45 million) for the same period year ago. EBITDA margin slightly increased and amounted to 41.5 per cent (40.5 per cent in 2012).
Profit before income tax in the second quarter of 2013 went down by 10.2 per cent and amounted to LTL 42 million (EUR 12 million) (LTL 47 million (EUR 14 million) a year ago). Profit before income tax in the first half of 2013 was down by 5.9 per cent and amounted to LTL 84 million (EUR 24 million) (LTL 90 million (EUR 26 million) a year ago).
Profit for the period in April-June 2013 amounted to LTL 37 million (EUR 11 million), while a year ago it was LTL 41 million (EUR 12 million), a decrease by 9.2 per cent. The profit margin was 21 per cent (21.6 per cent a year ago). Profit for the period in January-June 2013 amounted to LTL 76 million (EUR 22 million), a decline by 3.4 per cent over the profit of LTL 78 million (EUR 23 million) for the same period year ago. The profit margin slightly increased up to 21 per cent (20.6 per cent a year ago).
Management’s comment on financial results for the six months period of 2013:
“TEO maintained its high profitability for the first half of 2013 through control of its expenses. The Company’s EBITDA margin increased up to 41.5 per cent with revenue going down by 5.3 per cent and operating expenses – down by 7 per cent compared with the first half of 2012. Although net profit for the period was by 3.4 per cent lower than a year ago, profit margin increased by 0.4 percentage points and reached 21.0 per cent.
TEO investments into its next-generation fiber-optic network in Lithuania stood at LTL 38.8 million (EUR 11.2 million) – slightly lower than for the first six months of 2012 due to late spring. Nevertheless, the number of TEO Internet customers in the highly competitive Lithuanian market from the beginning of the year increased by 2.1 per cent to 394 thousand. Transition from copper to fiber-optic technology is continuing with over 42 per cent of the Company’s Internet customers enjoying high speed next-generation Internet access.
The Company continued improving its IPTV product: additional High Definition channels were offered as well as TEO was the first among all TV service providers in Lithuania to offer a 3D channel. The Company introduced “My package” service allowing customers to create their own TV package out of a variety of channels available.
TEO is proud to be the main service provider during the events of Lithuania’s Presidency of the Council of the European Union.”
ENCL.: - TEO LT, AB Consolidated Interim Financial Statements and Consolidated Interim Report for the six months period ended 30 June 2013. - Presentation of TEO LT, AB results for the six months of 2013.
Darius Džiaugys, Investor Relations Officer, tel. +370 5 236 7878
