The Board of Telia Lietuva, AB (hereinafter "Telia Lietuva" or "the Company") approved unaudited Telia Lietuva, AB Interim Financial Statements, prepared according to International Financial Reporting Standards as adopted by the European Union, for 9 months' period ended 30 September 2022.
Third quarter of 2022 (compared with the same period a year ago):
- Revenue increased by 6.7 per cent and amounted to EUR 113.3 million (EUR 106.2 million).
- EBITDA (excl. non-recurring items) was up by 1.5 per cent to EUR 38.6 million (EUR 38 million).
- EBITDA increased by 1.1 per cent and amounted to EUR 38.1 million (EUR 37.7 million).
- Profit for the period went down by 4.1 per cent to EUR 15.4 million (EUR 16.1 million).
9 months of 2022 (compared with the same period a year ago):
- Revenue grew 6.7 per cent and amounted to EUR 328.2 million (EUR 307.5 million).
- EBITDA (excl. non-recurring items) went up by 5.3 per cent to EUR 111.6 million (EUR 106 million).
- EBITDA increased by 4.6 per cent and amounted to EUR 111.3 million (EUR 106.5 million).
- Profit for the period was up by 0.5 per cent to EUR 41.7 million (EUR 41.5 million).
- Free cash flow decreased by 36.2 per cent and amounted to EUR 40.1 million (EUR 62.8 million).
Management comment:
In September 2022, Lithuania officially entered in a new era of 5G communication. Telia Lietuva was the first in the country to launch its 5G network immediately upon obtaining necessary permissions from Lithuanian Communication Regulatory Authorities. The Company has secured the best available frequencies by winning both 5G licenses' auctions by offering in total EUR 30 million payable over the 20 years' period. The initial payment for the licenses (EUR 9 million) is already paid to the State budget by Telia Lietuva.
We were the first in Lithuania to launch all digital technologies - 2G, 3G, 4G, and now 5G. We have been preparing for this for 4 years and have invested over EUR 100 million into upgrade of our entire network. Upon receipt of permission from CRA to provide commercial mobile networks services, 5G was immediately operational with 1,100 base stations in the 700 MHz band and 110 base stations in the 3.5 GHz band. Telia Lietuva 5G network reached more than half of the Lithuania's territory and 80 per cent of its population.
Telia Lietuva customers can use the 5G networks without any additional fees - all they need is a '5G payment' plan and a device that supports 5G in Lithuania. Among the 5G-enabled smartphones, the most popular are those from Apple, Samsung, Xiaomi, OnePlus and other smart devices. Telia Lietuva first will enable the fastest 5G network running on 3.5 GHz frequencies in densely populated areas where huge amounts of data are moving, where there is no fiber optic cable yet, where high speed is required.
After roaming service in EU countries was offered to prepaid mobile communication service subscribers, 15 thousand of new prepaid customers were attracted during the third quarter of 2022. Over the last 12 months:
- number of mobile service subscriptions grew by 10.6 per cent up to 1,602 thousand,
- number of FTTH Internet customers went up by 3 per cent up to 311 thousand,
- number of IPTV increased by 0.4 per cent and amounted to 255 thousand.
Growing customer base, higher mobile data usage, new IT contracts and demand for flagship mobile devices led to continuous revenue growth. Over the year, comparing 9 months of 2022 with the same period in 2021:
- revenue from billed mobile services surged by 16.6 per cent,
- revenue from IT services grew by 13.3 per cent,
- revenue from broadband Internet services went up by 9.1 per cent.
The main challenge that the Company along with the other businesses is facing right now is a surge in electricity prices as our activities are based on provision of electronic means of communication. Energy expenses for the third quarter and 9 months of 2022 were 2.9 and 2.4 times higher than for the same periods a year ago, respectively. This had a negative impact on profitability, especially in July-September of 2022.
Douglas Lubbe, Chair of the Board and member of Remuneration Committee, due to his departure from Telia Company Group has submitted his letter of resignation from the Board as of 14 October 2022. The Board has elected Claes Nycander as new Chair of the Board and elected Hannu-Matti Mäkinen as new Chair of the Remuneration Committee. The two-years' term of the current Board terminates on 27 April 2023.
ENCL.:
- Telia Lietuva, AB Interim Financial Statements for 9 months' period ended 30 September 2022.
- Presentation of Telia Lietuva, AB results for 9 months of 2022
Darius Džiaugys,
Head of Investor Relations,
tel. +370 5 236 7878,
e-mail: darius.dziaugys@telia.lt
Attachments
- Telia_Lietuva_2022_9 months_Financial_Statements
- Telia_Lietuva_2022_9_months_results_presentation
