Yahoo Finance Telia Lietuva results for the three months of 2021
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 three months’ period ended 31 March 2021.
First quarter of 2021:
- Total revenue amounted to EUR 99.7 million, an increase by 8.2 per cent over the revenue of EUR 92.1 million for the first quarter of 2020.
- EBITDA was EUR 34.8 million, an increase by 6.1 per cent over EBITDA of EUR 32.8 million a year ago.
- Adjusted EBITDA (excluding non-recurring items) amounted to EUR 34 million and was 2.9 per cent higher than adjusted EBITDA of EUR 33 million during the first three months of 2020.
- Profit for the period was EUR 13.1 million, up by 4.4 per cent over the profit of EUR 12.5 million a year ago.
- Free cash flow amounted to EUR 22.4 million and was 3.8 per cent lower than for the first quarter of 2020 when it amounted to 23.3 million.
Management comment:
During the first three months of 2021 we continued to operate under second COVID-19 quarantine imposed in Lithuania since November 2020 with our retail outlets partially closed and providing only vital services that could not be offered online. Online sale and remote customer care became extremely important during the pandemic. Closed shops effected sale of mobile devises and cross-border travelling restrictions have a negative impact on revenue from roaming services.
Majority of the Company’s employees continue to work from home nevertheless we are preparing for the post-pandemic way of working by introducing the workcation – a possibility to work from any EU country up to one month per year.
The Bank of Lithuania forecasts that the country’s GDP during 2021 will increase by 2.9 per cent and during 2022 – by 5.1 per cent, while inflation in 2021 will amount to 1.6 per cent and in 2022 – to 1.9 per cent.
The pandemic revealed the importance of connectivity quality and speed. Our continuous investments into upgrade and expansion of both fixed and mobile networks reflects in growing number of customers and the highest average speed of mobile Internet in the country – 93.5 Mbps. In response to increased demand for IT services and solutions we expanded and modernised one of our data centre in Vilnius. EUR 2 million was allocated for this project.
Also we have started a strategic project to upgrade our mobile network with Ericsson equipment throughout Lithuania. About 2,000 base stations will be installed over the next three years, making Telia Lietuva network more sustainable, secure and ready for commercial 5G deployment in the future. This will be one of the biggest investment projects ever.
In February, we’ve launched eSIM services using the most advance VoLTE technology. We kicked-off with Samsung smartphones and watches, but soon eSIM service will be available with devices of other vendors.
By the end of March we already had 80 thousand of households appreciating benefits of unique on the market converged service offer, Telia1. Over the last twelve months:
- number of mobile service subscriptions increase by 2.7 per cent up to 1,385,
- number of IPTV users grew by 2.8 per cent up to 253 thousand,
- number of FTTH Internet customers was up by 1.5 per cent up to 299 thousand.
Intake of new customers in combination with the persisting demand for quality connectivity and content as well as IT solutions drives revenue up. Compared with first quarter of 2020 over the year:
- revenue from IT services surged by 26.5 per cent,
- revenue from TV services grew by 11.6 per cent,
- revenue from broadband Internet services increased by 8.7 per cent,
- revenue from billed mobile communication services went up by 5.2 per cent.
Higher revenue and control of operating expenses resulted in higher earnings in 2021 that a year ago. Also, during the first quarter of 2021 we sold our office building in Kaunas and recorded a EUR 1.2 million gain from this sale.
We remain committed to our sustainability agenda. Together with the colleagues from Estonia we are the first in Telia Company Group to reached parity of male and female employed and equal number of male and female managers. Our efforts were recognised during National Responsible Business Awards – Telia Lietuva was named as the Best Employer in 2020 among the large corporations. We are also number one operator in Lithuania according to Sustainable Brand Index rating. As a proof, in March we offered refurbished phones – used but tested smartphones for affordable price.
The Company’s Board proposed to the Annual General Meeting of Shareholders that will be held on 27 April 2021 to allocate a record amount of EUR 58.3 million for payment of dividend for the year 2020 (EUR 0.10 dividend per share).
ENCL.:
- Telia Lietuva, AB Consolidated Interim Financial Statements for the three months’ period ended 31 March 2021.
- Presentation of Telia Lietuva AB results for the 3 months of 2021.
Darius Džiaugys,
Head of Investor Relations,
tel. +370 5 236 7878,
e-mail: darius.dziaugys@telia.lt
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