Telia Lietuva, AB
Telia Lietuva results for the nine months of 2018
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 nine months’ period ended 30 September 2018.
Third quarter of 2018*:
- Total revenue amounted to EUR 96.4 million, up by 6.7 per cent over restated revenue of EUR 90.4 million in the third quarter of 2017.
- EBITDA, excluding non-recurring items, was EUR 33.9 million, an increase of 3.2 per cent over restated EBITDA, excluding non-recurring items, of EUR 32.9 million in the third quarter of 2017.
- Profit for the period was EUR 16 million, up by 10.9 per cent over restated profit of EUR 14.4 million a year ago.
First nine months of 2018*:
- Total revenue amounted to EUR 279.7 million, up by 3.6 per cent over restated revenue of EUR 269.9 million for the nine months of 2017.
- EBITDA, excluding non-recurring items, was EUR 95.7 million, an increase of 5.9 per cent over restated EBITDA, excluding non-recurring items, of EUR 90.4 million for the nine months of 2017.
- Profit for the period was EUR 41.2 million, up by 14.8 per cent over profit of EUR 35.9 million a year ago.
- Free cash flow amounted to EUR 32 million (EUR 31.3 million a year ago).
During the third quarter we closed one chapter of pay-TV history in Lithuania – terminated provision of digital terrestrial (DVB-T) television to our customers, and lifted it up to another level by offering award winning HBO content on our IPTV platform. Successful launch of converged IPTV over LTE service in June of 2018 was a bridge for smooth transition from outdated terrestrial TV rebroadcasting to interactive and modern IPTV experience even in remote and rural areas.
Another change that occurred in August was a facelift of our pre-paid mobile communication service brand “Ežys” and simplification of pre-paid payment plans to suit the real needs of our customers – just services that are required. And as a result, we stopped the decline in number of pre-paid service users that we had experienced during the last years.
Cooperation of three major telecommunications operators in Lithuania is finally bearing fruit – the Beta version of the instant mobile payment platform MoQ created by Bitė Lietuva, Tele2 and Telia Lietuva was successfully launched in August 2018. More than 30 thousand customers already downloaded the application and could use it for instant settlements at more than 700 locations (shops, cafés, gas stations, etc.) and at majority of the on-line shops in Lithuania.
Innovative converged solutions such as hybrid-type Internet and IPTV over LTE together with Super VDSL (S-VDSL) not only prevent the churn of customers of outdated technologies, but provide the customers with the modern experience and broader possibilities. Almost 25 thousand of our customers are already enjoying higher speed, more data and more TV content by taking an advantage of unique on the market converged offer “Telia One”.
In spite of tough competition, over the last twelve months we managed to increase the number of our customers:
- Number of IPTV users increased by 11.3 per cent up to 227 thousand,
- Number of post-paid service users grew by 5.9 per cent up to 1,120 thousand,
- Number of FTTH Internet customers rose by 5.4 per cent up to 273 thousand.
In general, the third quarter was the best in 2018 in terms of both revenue and profitability. Over the year:
- Revenue from equipment sales grew by 18 per cent,
- Revenue from mobile services was up by 12.3 per cent,
- Revenue from TV services increased by 10.1 per cent.
We continue to invest into expansion of fiber-optic and 4G networks to ensure connectivity and high speed of data transmission all over the country. During the nine months of 2018, in total EUR 33.1 million or 28.8 per cent more than a year ago was invested into mobile and fixed networks. The Company has already started preparations for the 5G era.
On 3 October 2018, Lithuania joined European Commission's initiative Diversity Charter. Following a sustainable development strategy, Telia Lietuva was one of almost 30 Lithuanian companies that signed the Charter. By signing the Charter Telia Lietuva commits to promote diversity and equal opportunities at the workplace.
* Note. Starting from 1 January 2018, the Company adopted International Financial Reporting Standard 15 “Revenue from Contracts with Customers” (IFRS 15) and to compare financial results for the year 2018 with financial results a year ago the Company restated financial data for the year 2017. An effect of restatement of financial data for the 9 months period of 2017 was as follows: total revenue was reduced by EUR 233 thousand, while total operating expenses were increased by EUR 598 thousand, having a total negative effect of EUR 831 thousand on EBITDA and EBIT.
- Telia Lietuva, AB Consolidated Interim Financial Statements for the nine months’ period ended 30 September 2018.
- Presentation of Telia Lietuva, AB Group results for the 9 months of 2018.
Head of Investor Relations,
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