On 1 February 2011, 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, for the twelve months period ended 31 December 2010.
The total consolidated TEO Group’s revenue for the twelve months of 2010 was LTL 773 million (EUR 224 million), a decrease by 5.2 per cent over the total revenue of LTL 816 million (EUR 236 million) for the twelve months of 2009.
EBITDA in 2010 went down by 8.2 per cent to LTL 310 million (EUR 90 million) over LTL 338 million (EUR 98 million) in 2009. Nevertheless, EBITDA margin stood above 40 per cent and amounted to 40.1 per cent (41.5 per cent in 2009).
Profit before income tax in 2010 was down by 9 per cent and amounted to LTL 180 million (EUR 52 million) (LTL 198 million (EUR 57 million) a year ago).
Profit for the period amounted to LTL 163 million (EUR 47 million), while a year ago it was LTL 169 million (EUR 49 million), a decrease by 3.6 per cent. The profit margin reached 21.2 per cent (20.7 per cent a year ago).
Management’s comment on financial results for the twelve months of 2010:
“TEO achieved a good result in the declining telecommunications market in 2010. The Company’s revenue dropped by 5.2 per cent compared to the overall market drop of over 11 per cent. TEO experienced a significant increase in revenue from TV and Contact Centre services. New acquisitions in 2009 and 2010 allowed to bolster revenue from IT services. Good cost control (costs decreased by 4.5 per cent) allowed TEO to keep the Company’s high profitability and an EBITDA margin of over 40 percent.
2010 was the year when the Company reached 100 thousand customers for its next generation fiber Internet service and for the first time introduced bundled voice and Internet services with the mobile operator. Although revenue from Internet services declined somewhat in 2010, customer uptake, especially in Q4, was significant, prompting recovery of the economy and good prospects for TEO in 2011.”
ENCL.:
- TEO LT, AB Consolidated Interim Financial Statements for the twelve months period ended 31 December 2010.
- Presentation of TEO LT, AB results for the twelve months of 2010.
- Video comment of Arūnas Šikšta, CEO of TEO LT, AB.
Darius Džiaugys,
ead of Information Sector,
tel. +370 5 236 78 78
