Telia Lietuva's Financial Highlights for Q1 2025
The Board of Telia Lietuva, AB is excited to announce the key financial results for the first quarter of 2025. The company, which has been a significant player in the telecommunications sector, has seen promising growth in its revenue and profitability.
Quarterly Performance Overview
For the first quarter of 2025, Telia Lietuva reported:
- Revenue growth of 0.6%, reaching EUR 119.8 million, compared to EUR 119 million in 2024.
- Adjusted EBITDA rose by 9.9% to EUR 48.3 million from EUR 43.9 million in the previous year.
- Overall EBITDA climbed 10.2% to EUR 47.8 million, up from EUR 43.4 million in Q1 2024.
- Net profit surged by 24.4% to EUR 22.6 million, compared to EUR 18.2 million a year earlier.
- Capital investments totaled EUR 9.5 million, significantly down from EUR 17.8 million in Q1 2024.
- Free cash flow increased by 22.6%, amounting to EUR 31.3 million compared to EUR 25.5 million last year.
CEO's Insights and Forward Strategy
Giedr? Kaminskait?-Salters, CEO of Telia Lietuva, shared her insights on the company’s performance. She attributed the successful growth to a more streamlined organization that prioritizes customer needs, making operations more efficient and responsive. There has been a significant evolution in service offerings, especially with the technological advancements marking the 30th anniversary of the first GSM call in Lithuania. Kaminskait?-Salters reminisced about the rapid transformation of mobile communications, highlighting how Telia has positioned itself at the forefront of this evolution with an impressive 5G network.
According to reports by the Communications Regulatory Authority, Telia's mobile data download speeds remain unrivaled in Lithuania, averaging 250 Mbps throughout 2024. Additionally, Telia Lietuva’s customers accounted for 38% of the total mobile data usage in the country during that time.
Service Innovations and Customer Engagement
Innovations in content delivery have marked Telia’s journey, transitioning from traditional linear and cable television to the digital sphere with Telia Play. The service now provides exclusive Netflix packages, enhancing customer experiences and offering premium international content.
Moreover, to accommodate travelers, Telia Lietuva introduced flexible and cost-effective data roaming packages, with discounts of up to 50%. However, regulatory changes requiring pre-paid SIM card registrations in early 2025 have created challenges in attracting new pre-paid subscribers, while subscriptions for post-paid services saw an increase of 19,000.
Despite equipment sales dropping by almost 10%, service revenue in the first quarter increased by 3.3%, reflecting robust growth in mobile communication, broadband internet, TV, and IT services. The adjusted EBITDA margin also exceeded 40%, demonstrating the company’s focus on profitable growth.
Corporate Responsibility and Community Initiatives
In line with its commitment to responsible corporate citizenship, Telia Lietuva engaged its clientele in a unique 30-day challenge aimed at reducing screen time, while promoting interactions among friends and family. This initiative addressed the growing concerns about excessive smartphone use in the Lithuanian population.
Moreover, Telia Lietuva has continued to offer support for Ukraine through special tariffs for communications and mobile data services. Most employees have unanimously supported channeling funds from their corporate entertainment budget to aid Ukraine, resulting in a donation of EUR 100,000 as part of a national support campaign.
Dividend Proposal
Moving forward, the Board of Telia Lietuva recommended a dividend payout of EUR 0.11 per share from the profits of the fiscal year 2024. This initiative reflects the company's commitment to delivering value to its shareholders amidst ongoing growth and profitability.
Overall, the first quarter of 2025 has established a solid foundation for Telia Lietuva as it continues to embrace innovation, prioritize customer satisfaction, and support community welfare.
Frequently Asked Questions
What were Telia Lietuva's revenue figures for Q1 2025?
Telia Lietuva reported a revenue of EUR 119.8 million in Q1 2025, showing a slight growth of 0.6% compared to the previous year.
How has adjusted EBITDA evolved for Telia Lietuva?
Adjusted EBITDA for Q1 2025 increased by 9.9%, reaching EUR 48.3 million, which marks a strong improvement over the previous year's figures.
What steps is Telia Lietuva taking to enhance customer engagement?
Telia Lietuva is advancing customer engagement through innovative services like Telia Play and flexible data roaming packages, along with initiatives to reduce screen time among users.
How does Telia Lietuva support Ukraine?
The company actively supports Ukraine by maintaining special tariffs for communication services and has raised funds through employee contributions.
What dividend has the Board proposed for shareholders?
The Board has proposed a dividend payout of EUR 0.11 per share for the fiscal year 2024, reflecting its commitment to shareholder value.
