OREANDA-NEWS. October 18, 2011. The total consolidated revenue of TEO LT, AB Group, the largest provider of integrated telecommunication, IT and TV services in Lithuania, during the three quarters of 2011 amounted to LTL 554.3 million, and net profit for the period amounted to LTL 117.3 million. The Company's EBITDA for the first nine months of 2011 was LTL 227.8 million, EBITDA margin - 41.1 per cent.

Last year, TEO revenue for the nine months amounted to LTL 580.9 million, and net profit of the Company amounted to LTL 125.2 million. EBITDA for January-September 2010 was LTL 239.6 million, while EBITDA margin - 41.3 per cent.

This year, TEO's revenue has declined by 4.6 per cent, compared with nine months of the previous year. Based on Lithuanian Communications Regulatory Authority (CRA), the country's electronic communications market shrunk by 7.1 per cent in the first half of this year, and about 10.8 per cent in 2010.

"This year, TEO revenue was declining much slower compared to the entire Lithuanian telecommunications market. Moreover, this decline was rather moderate compared to the previous year," Arunas Shikshta, General Manager of TEO, said when commenting on the activity results. According to him, this year, TEO is particularly successful in managing its operating expenses and this enabled the Company to maintain high profitability.

According to TEO General Manager, ongoing active investment in the next generation fibre-optic network allowed TEO to increase their broadband internet client base to 367 thousands. "Currently, nearly four out of ten customers use the Internet via fibre-optic access," A. Shikshta said.

Successful performance could also be attributed to the provision of TEO services in all major events held in Lithuania, in particular, the men's basketball Championship EuroBasket 2011. TEO installed and maintained a secure network of over three thousand workstations in six basketball arenas, and provided direct high-speed connection, linking more than 27 countries.

The Company's share of revenue from Internet and data communications services from total amount of revenue for the nine months of 2011 amounted to 33.8 per cent, voice telephony services - 50.4 per cent. The share of revenue from television services from total amount of revenue for January-September 2011 amounted to 6.2 per cent, IT services - 6 per cent and other services - 3.6 per cent.

Over the last 12 months, the number of the Company's television service users increased by almost 20.9 per cent and at the end of September amounted to 147.1 thousand. The number of broadband Internet access (exluding WiFi) users increased by 8 per cent - up to 333.1 thousand. The total number of main telephone lines in service at the end of September amounted to 660.8 thousand.

According to the data of the Communications Regulatory Authority of the Republic of Lithuania for the second quarter of 2011, TEO market share of the Internet access services market in terms of revenue amounted to 38.1 per cent, while TEO market share in terms of revenue from digital TV services was 44.9 per cent. In the second quarter of 2011 TEO market share in terms of revenue from fixed telephony services was 93.2 per cent.

During the nine months of 2011 the Company allocated LTL 105 million for investments. The majority of investments (LTL 95 million) went to expansion of the core network and fiber-optic access networks.

TEO Group consists of the parent company, TEO LT, AB, and its subsidiaries: Lintel, Baltic Data Center, Hostex, Interdata, Hosting, Kompetencijos Ugdymo Centras and Verslo Investicijos. TEO is the founder and sole owner of VšĮ Ryšių Istorijos Muziejus (The Communications History Museum).