Published: 2017-01-27 07:00:00 CET
Telia Lietuva, AB
Interim information

Results for the twelve months of 2016

On 26 January 2017, 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 2016.

The first year of Teo and Omnitel operating together – a year of profitable growth

Fourth quarter of 2016*:
- Total consolidated revenue amounted to EUR 92.4 million, up by 0.8 per cent over the comparable combined revenue of EUR 91.6 million in Q4 2015. This is the best quarterly result in 2016.
- Consolidated EBITDA, excluding non-recurring items, reached EUR 28.5 million, down by 2 per cent over the comparable combined EBITDA, excluding non-recurring items), of EUR 29 million in Q4 2015. 

Full year 2016*:
- Total consolidated revenue amounted to EUR 345.9 million, up by 2.5 per cent over the comparable combined revenue of EUR 337.6 million for the 12 months of 2015.
- Consolidated EBITDA, excluding non-recurring items, reached EUR 117.1 million, up by 5.9 per cent over the comparable combined EBITDA, excluding non-recurring items, of EUR 110.6 million in 2015.
- Free cash flow amounted to EUR 44.2 million and was 1.5 times higher than a year ago.

Management comment:
Today we could firmly say that our joint efforts in 2016 paid off and we are at the final stage of Teo and Omnitel integration. Our customers could already feel that they are dealing with a single company. By the year-end, we have completed the integration of Teo and Omnitel retail outlets, introduced joint phone numbers for customer care and offered new Internet solutions. In addition, our leadership in 4G development in Lithuania was officially confirmed by CRA: our network covers 99% territory of the country and offers the highest speed. 

Thanks to two companies’ integration, the total revenue in 2016 continuously grew quarter by quarter and peaked in Q4. The last quarter of 2016 was marked with increased sale of equipment, especially mobile devices and domestic appliances. During the year, growth of revenue from TV (particularly from IPTV service by 28.1%), broadband Internet and mobile services came from the continued intake of new customers.

Over the year the number of:
- IPTV (purposely substituting DVB-T) users increased by 15.8% and reached 191 thousand,
- fiber optic Internet connections grew by 9.3% and amounted to 246 thousand,
- Post-paid subscriptions increased by 3.7% and exceeded 1 million.

Consolidated operating expenses (excl. non-recurring items) were under control and combined with an increase in the total revenue resulted in an annual EBITDA margin (excl. non-recurring items) of 33.9% (32.7% for 2015). 

In Q4 2016, the Company completed Omnitel’s purchase price allocation. As a result, an additional depreciation and amortisation charge of EUR 5.1 million has been booked for 2016 and thus negatively affecting profitability.

During 2016, more than 600 new 4G base stations were installed and according to the latest data of the CRA Omnitel 4G connectivity now covers 99%, i.e. almost all populated territory of Lithuania. Over the year, capital investments into mobile network amounted to EUR 13.5 million and into fixed network – EUR 26.6 million.

Teo and Omnitel cooperation has allowed us to offer solutions for both business and residential customers that had no access to fiber-optic network – an unlimited high-speed 4G mobile Internet at fixed location for a flat monthly fee. In October, Omnitel increased the data bundle in all mobile connection payment plans for residential customers and reduced the average price of its data by up to 40%. 

With customer experience in mind, we integrated 70 Teo and Omnitel retail outlets. This has made it possible for more people all over the country to get acquainted with both mobile and broadband services as well as to test and acquire smart devices, TV sets or other IT equipment. In addition, joint short phone numbers for customer care serve residential and business customers of both companies.

In December, Teo shareholders approved merger of Omnitel and BDC into Teo and decided that the company that will carry on the activities of Teo, Omnitel and BDC after the reorganisation will be called Telia Lietuva, AB.

Note: * As on 4 January 2016, TEO LT, AB acquired a 100 per cent stake in Omnitel, financial data of Teo Group for the fourth quarter and the twelve months of 2016 presented herein is the consolidated data of TEO LT, AB and its subsidiaries including Omnitel. Comparable data of financial statements for the fourth quarter and the twelve months of 2015 is the actual reported data of Teo Group for those periods. In order to present an approximate measure of the performance of the combined group, the comparable combined data of comprehensive income statement, as it is used in the Management Report of Consolidated Financial Statements for the fourth quarter and the twelve months of 2015, is data combined by simple aggregation after elimination of intragroup transactions as if Omnitel was at the time part of the Teo Group.

 

ENCL.:
- TEO LT, AB Consolidated Interim Financial Statements and Consolidated Interim Report for the twelve period ended 31 December 2016.
- Presentation of TEO LT, AB Group results for the 12 months of 2016

 

         Darius Džiaugys,
         Head of Investor Relations,
         tel. +370 5 236 7878


2016_12_months_report.pdf
2016_12_months_results.pdf