OREANDA-NEWS. Considering the decision taken today by the Cabinet of Ministers regarding the future of Lattelecom and LMT, Lattelecom would like to indicate that the company is ready to achieve the goals defined by its shareholders ? the state of Latvia and TeliaSonera AB. At the same time Lattelecom forecasts significant changes in the composition of the Latvian and global IT market participants in the near future, which will make it difficult for small Latvian companies involved in the IT industry to remain competitive.

"The good news is that a decision has been taken on the necessary future steps. At the same time we hope that the company’s shareholders will be able to agree on a common future development strategy. The situation where the opinions of the company’s owners differ is confusing and does not serve for the company’s long-term development or contribute to its value," said Juris Gulbis, Chairman of the Board of Lattelecom.

"Until now we have been able to maintain our position as the leading Latvian IT company and see our profit growing every year. Last year’s successful results are proof of this – we made a profit of EUR 30.5 million, and revenues in the first quarter increased by 4% compared with the same period in 2015. Lattelecom will continue implementing its successful strategy in the development of new business lines; however, we have to consider that the IT industry is changing rapidly around the world and in the near future this will impact the competitiveness of Latvian companies as well."

"In Europe, merger and integration processes are still very much underway. Fixed and mobile communication service providers are merging and telecommunication companies are integrating with media companies. Global players are also entering the Latvian market. The European Commission is working to provide conditions for the creation of a single digital market that would create more favourable market conditions for large and global companies. In this context we have to be aware that in future, based on the global market conditions, Lattelecom and LMT by themselves will be small companies with a poor level of competitiveness; therefore, considerable effort will be necessary to achieve the goals defined by the company’s owners, including the state. However, we are ready to work to continue ensuring the company’s successful operation," said Mr J. Gulbis.