OREANDA-NEWS. February 02, 2011. The total consolidated revenue of TEO LT, AB Group, the largest provider of integrated telecommunication, IT and TV services in Lithuania, during 2010 amounted to LTL 773 million, and net profit for the period amounted to LTL 163 million. EBITDA for the year 2010 was LTL 310 million, EBITDA margin - 40.1 per cent.

In 2009, TEO revenue amounted to LTL 816 million, and net profit amounted to LTL 169 million. EBITDA for the year 2009 was 338 million, while EBITDA margin - 41.5 per cent.

"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", - Arunas Shikshta, General Manager of TEO, said when commenting on the activity results.
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 operators. "Although revenue from Internet services declined somewhat in 2010, customer uptake, especially in the fourth quarter, was significant, prompting recovery of the economy and good prospects for TEO in 2011", - A. Shikshta said.

Share of revenue from Internet and data communications services from total amount of revenue amounted to 33.2 per cent, voice telephony services - 53.7 per cent, television services - 4.9 per cent, IT services - 4.7 per cent and other services - 3.5 per cent of total revenue for the year 2010.

During the year the number of fibre optical Internet access users increased 1.7 times up to almost 104 thousand and amounted to almost 30 per cent of all TEO broadband Internet access users (346 thousand). The number of the Company's television service users increased by 28.2 per cent and at the end of the year amounted to 131.2 thousand. The total number of main telephone lines in service was 689 thousand.

According to the data of the Communications Regulatory Authority of the Republic of Lithuania for the third quarter of 2010, TEO market share of the Internet access services market in terms of revenue amounted to 39.1 per cent, while TEO market share in terms of revenue from data communications services was 63.1 per cent. In the third quarter of 2010 TEO market share in terms of revenue from fixed telephony services was 93.9 per cent.

During 2010 capital investments amounted to LTL 191 million (LTL 100 million during the fourth quarter of 2010 alone). The majority of capital investments (LTL 158 million) went to expansion of the core network and development of the next generation fiber-optic access network. The remaining part was invested into IT systems, renovation of premises, transportation and other.

TEO Group consists of the parent company, TEO LT, AB, and its subsidiaries: Lintel, Baltic Data Center, Kompetencijos Ugdymo Centras and Verslo Investicijos. TEO is the founder and sole owner of The Communications History Museum. Baltic Data Center has two subsidiaries - Hostex and Interdata, and a subsidiary in Latvia - Baltic Data Center SIA.