Financial Performance Overview
The Board of Telia Lietuva, AB has shared its unaudited Interim Financial Statements for the nine-month period that ended recently. These results are prepared according to the International Financial Reporting Standards as adopted by the European Union.
Third Quarter Highlights
In the third quarter of 2024, the company observed the following:
- Revenue slightly dipped by 1%, totaling EUR 121.6 million, down from EUR 122.8 million in 2023.
- Adjusted EBITDA saw a modest increase of 0.9%, reaching EUR 46.5 million compared to EUR 46.1 million the previous year.
- Overall EBITDA rose by 0.5% for the period, amounting to EUR 45.7 million, up from EUR 45.4 million in 2023.
- However, profit for this period demonstrated a decrease of 5.3%, with figures showing EUR 17.5 million as opposed to EUR 18.5 million the year before.
- On a positive note, free cash flow surged by 32.7%, achieving EUR 32.7 million compared to EUR 24.7 million in 2023.
Nine-Month Performance Review
When considering the first nine months of 2024, Telia Lietuva noted significant progress:
- Revenue experienced a growth of 1.9%, reaching EUR 360.1 million, up from EUR 353.3 million.
- The adjusted EBITDA grew by 4.7% to EUR 135.2 million, compared to EUR 129.1 million in the previous year.
- Overall EBITDA increased by 4.8%, totaling EUR 133.0 million, up from EUR 126.9 million.
- Profit for the period has shown a promising increase of 7.2% to EUR 53.9 million, compared to last year's EUR 50.3 million.
- Free cash flow rose remarkably by 42.4%, amounting to EUR 84.4 million, compared with EUR 59.3 million in 2023.
CEO Insights
Giedr? Kaminskait?-Salters, the CEO of Telia Lietuva, provided her comments on the ongoing business strategies. The company's largest shareholder has refined its Group strategy to include an ambitious plan with defined priorities for upcoming years. This new direction will guide all Group members in areas of investment and operational excellence.
Focus on Growth
The overriding purpose of Telia remains to 'reinvent better connected living', underpinning their corporate goals. The updated strategy centers on three core areas: Simplifying operations, fostering Innovation, and promoting Growth. The company aims to enhance its market position in the Nordic and Baltic regions, ensuring excellent customer experiences through quality technology and reliable partnerships.
Operational Changes and Workforce Optimization
In light of this new strategy, a change program has been introduced to streamline operations across the regions, with plans for a workforce reduction by approximately 3,000 employees in 2024. In Lithuania, this restructuring is expected to result in a staff reduction of around 200 employees by year-end, following thorough discussions with trade unions.
Service Revenue and Customer Engagement
Despite challenges, service revenue showed a commendable increase of 2.9% in the third quarter. A significant factor contributing to this growth was a successful one-time connectivity project associated with a high-profile event. While quarterly increases were positive, equipment sales lagged behind, declining by 6.5% year-on-year.
Community and Inclusivity Initiatives
Telia Lietuva emphasizes not just on business growth but on community engagement. The company launched initiatives aiding seniors in adapting to newer technologies, enhancing digital literacy through free personalized lessons on using modern devices.
Sustainability Goals
With a strong commitment to sustainability, Telia Lietuva has received an impressive score of 9.7 out of 10 in a local sustainability index. This score reflects the company’s ambitious environmental goals and dedication to sustainable practices, showcasing its commitment to both corporate social responsibility and business excellence.
Frequently Asked Questions
What was the revenue for Telia Lietuva in the third quarter of 2024?
The revenue for the third quarter of 2024 was EUR 121.6 million, a slight decrease from EUR 122.8 million in the previous year.
How did the company's EBITDA change in the nine months of 2024?
The company's EBITDA increased by 4.8%, reaching EUR 133.0 million compared to EUR 126.9 million in the same period last year.
What strategic changes are planned for Telia Lietuva?
Telia Lietuva has introduced an updated strategy focusing on simplifying operations, fostering innovation, and enhancing growth in the Nordic and Baltic markets.
How is Telia Lietuva addressing digital literacy among seniors?
To support seniors, Telia Lietuva offers free lessons on using smartphones and tablets, ensuring they have the support needed to embrace modern technology.
What sustainability efforts has Telia Lietuva prioritized?
Telia Lietuva has set ambitious environmental goals and achieved a high score in a sustainability index, reflecting its commitment to responsible business practices.
