Telia Lietuva AB

04/27/2022 | Press release | Distributed by Public on 04/26/2022 23:06

Telia Boosted Its Sales of Mobile and IT Services

Telia Lietuva earned EUR 104.2 million in revenue in the first three months of this year, an increase by 4.6% compared to the same period last year. The company's EBITDA, excluding non-recurring items, increased by 4.8% to EUR 35.6 million, net profit eased by 6.8% to EUR 12.3 million, while free cash flow contracted by 21.6% to EUR 17.6 million due to higher investments. The strongest growth was seen in the sales of IT and mobile communication services.

Revenue of Telia Lietuva from the sales of IT services grew by 13.6% year on year, revenue from billed mobile communication services increased by 13.2%, and of Internet services - by 9.1%. In the first three months of this year, Telia Lietuva mobile network attracted 14 thousand new customers, while the number of the broadband Internet customers increased by 1 thousand, and the number of Telia TV customers remained almost unchanged standing at 254 thousand.

"Telia Lietuva continues to maintain strong EBITDA and sales performance despite pressure from rising energy costs (which soar by 80% over the year) and inflation. Higher depreciation and amortisation charges as well as higher income tax have had a negative impact on profitability in the first quarter. However, the double-digit growth in the sales of IT and, in particular, mobile communication services continues to demonstrate high demand for quality and new generation solutions", said Dan Stromberg, CEO of Telia Lietuva.

The company increased its investments by one tenth to EUR 13.3 million in the first quarter, whereof more than EUR 4.2 million were allocated to the modernisation of the mobile network and to active preparation for commercial provision of 5G connectivity services following frequency auctions. To date, Telia Lietuva has installed more than 650 next-generation Ericsson 5G base stations across Lithuania. Since January, the company has been the first in Lithuania to provide commercial 5G connectivity in Vilnius making use of its available 2,100 MHz frequencies.

"The year 2022 started with the hope that the pandemic caused by COVID-19 was in retreat and that we would get back to our ordinary operations. However, the unimaginable has happened - late February Russia launched a military assault against Ukraine - which might fundamentally change not only the order established in Europe but also around the globe. It is the time of huge challenges to everyone, but first of all to Ukraine and its people whom we have supported and backed", said Dan Stromberg, CEO of Telia Lietuva.

Since the very first day of the war, the value of support by Telia Lietuva to Ukraine has exceeded EUR 300 thousand. Telia Lietuva has provided all Ukrainian refugees in Lithuania with an unlimited number of pre-paid Ežys SIM cards with communication services, all Telia Lietuva customers in Lithuania can call and send SMS to Ukraine with an 80% discount, and Telia Lietuva customers in Ukraine can call from there, send SMS and browse the Internet free of charge. The Ukrainian businesses moving to Lithuania can take advantage of the special offers by Telia Lietuva and free of charge IT consultations. Telia Lietuva has provided all refugee centres in Lithuania with internet connection and TV sets and has bought special phones for Ukrainians for more than EUR 50 thousand.

Telia Lietuva was titled the most environmentally-friendly company in the category of large corporations at the National Responsible Business Awards (NAVA). The company has been recognised for its sustainable business decisions and responsible supply chain design.

Mobile internet speed measurements carried out by the Communications Regulatory Authority in the eastern part of Lithuania in the first quarter of the year has set a new national record: the average speed on Telia Lietuva's network was 131.4 Mb/s and was 50% and 102% higher than the internet of other mobile operators, accordingly.

The company's Board to the Annual General Shareholders' Meeting which is to be held this week, proposed to pass the decision to pay out a dividend of EUR 0.10 per share for 2021, EUR 58.3 million in total.