Telia Lietuva results for the twelve months of 2017
The Board of Telia Lietuva, AB (hereinafter “Telia Lietuva” or “the Company”) approved unaudited Telia Lietuva, 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 2017.
Fourth quarter of 2017:
- Total revenue amounted to EUR 100 million, up by 8.2% over the revenue of EUR 92.4 million in Q4 2016.
- EBITDA, excluding non-recurring items, was EUR 34.1 million, an increase of 20% over the EBITDA, excluding non-recurring items, of EUR 28.4 in Q4 2016.
Twelve months of 2017:
- Total revenue amounted to EUR 370.1 million, up by 7% over the revenue of EUR 345.9 million for 2016.
- EBITDA, excluding non-recurring items, was EUR 125.3 million, an increase of 7% over EBITDA, excluding non-recurring items, of EUR 117 million for 12 months of 2016.
- Free cash flow amounted to EUR 54.3 million, an increase by 22.8% over EUR 44.3 million a year ago.
Management comment:
We started the year by merging the mobile and fixed broadband operations into a single entity and successful rebranding, continued with offers that are unique in the market and that combine various technologies, such as hybrid-type Internet. And now Telia Lietuva has finished the year with exceptional fourth quarter in terms of record revenue and profitability growth.
Successful legal merger as prerequisite for ongoing operational and structural improvements, retrieval of synergies and cost efficiency, combined with the market recovery, growing appetite for mobile data, high quality TV and video content as well as a boom in smart devices and gadgets, have resulted in both revenue and EBITDA for the last quarter of 2017 being the highest over the last eight quarters since the beginning of joint operations in January 2016.
The end of 2017 was marked with the launch of unique in the market converged offer “Telia One”. It gives more value – higher speed, more data and more TV content – to those who have both fixed and mobile services. It is convenient because customers can get fixed and mobile home offers by visiting one portal, one retail outlet, or calling one customer care number.
Successful launch of “Telia One” in October boosted the intake of new customers during the fourth quarter of 2017:
- The number of IPTV users increased by 6.5 thousand up to 211 thousand,
- The number of FTTH Internet customers grew by 5.1 thousand up to 264 thousand,
- The number of post-paid mobile service users rose by 17 thousand up to 1,075 thousand.
Growing number of customers, accelerating usage of mobile data and strong sale of smart phones, gadgets and other equipment led to the total annual revenue growth of 7 per cent, whereof:
- Revenue from equipment sales went up by 17.5 per cent,
- Revenue from TV services increased by 10.4 per cent,
- Revenue from billed mobile services was up by 8.2 per cent.
The highest quality level of services provided and standards used in the Company was confirmed by Quality Management (ISO 9001), Environmental Management (ISO 14001) and Occupational Health & Safety (OHSAS 18001) certificates obtain in October in addition to the IT Management (ISO 20000) and Information Security Management (ISO 27001) certificates we’d already held.
Quality of services could not be ensured without ongoing investments into fiber-optic and 4G networks, supporting IT systems and processes. During the twelve months of 2017, total investments amounted to EUR 63.8 million, an increase of 10.6 per cent over the year. 464 new base stations were added to the largest and fastest 4G/LTE network in the country owned by Telia Lietuva. Also, our customers are the first in Lithuania to use VoLTE technology since October.
We strive to be a leader not only in technologies, but in our approach to doing business. In November, during the National Responsible Business Awards Telia Lietuva was recognised as the Environmental Company of the Year among the international corporations, and was ranked 2nd among the most transparent, open and ethical largest companies in Lithuania according to Transparency International rating. In June, it also won the Best Employer award of Verslo Žinios, the leading business daily.
In December, Telia Lietuva jointly with other two Lithuanian operators – Tele2 and Bitė – in equal parts invested into UAB Mobilieji Mokėjimai, an entity that will create, operate and supervise the platform for the provision of instant payments. Entering into the instant payment market is in line with our strategy to explore possibilities close to the core business.
ENCL.:
- Telia Lietuva, AB Consolidated Interim Financial Statements for the twelve months’ period ended 31 December 2017.
- Presentation of Telia Lietuva Group results for the twelve months of 2017.
Darius Džiaugys,
Head of Investor Relations,
tel.: +370 5 236 7878,
e-mail: darius.dziaugys@telia.lt
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