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 6 months' period ended 30 June 2024.
Second quarter of 2024 (compared with the same period a year ago):
- Revenue grew by 5.7% and amounted to EUR 119.5 million (2023: EUR 113.1 million)
- Adjusted EBITDA up by 7.5% to EUR 44.7 million (2023: EUR 41.6 million)
- EBITDA increased by 7.3% and amounted to EUR 44 million (2023: EUR 41 million)
- Profit for the period went up by 17.1% to EUR 18.3 million (2023: EUR 15.6 million)
First half of 2024 (compared with the same period a year ago):
- Revenue grew by 3.5% and amounted to EUR 238.5 million (2023: EUR 230.5 million)
- Adjusted EBITDA up by 6.8% to EUR 88.7 million (2023: EUR 83 million)
- EBITDA increased by 7.2% and amounted to EUR 87.4 million (2023: EUR 81.5 million)
- Profit for the period went up by 14.4% to EUR 36.4 million (2023: EUR 31.8 million)
- Free cash flow went up by 63.4% and amounted to EUR 51.6 million (2023: EUR 31.6 million)
Comment by Giedre Kaminskaite-Salters, CEO of Telia Lietuva:
The second quarter of 2024 was marked with the completion of one of the largest B2B projects - modernization of data transmission network (WAN) of Lithuanian Railways (LTG). The project which was implemented over two years together with our partners reached the value of EUR 12 million and covered all aspects of technology levels - starting from replacement of network nodes, implementation of security and network management systems and finishing with cable installation and transfer of the existing services to the upgraded network.
The Company's resilience to cybersecurity threats was rated 9.7 out of 10 by globally recognized RiskRecon cybersecurity rating. Over the past years, we have invested in advanced threat detection and response systems that have significantly reduced the risk of network intrusions. This ensures that our customers can confidently operate their private data on the Internet and not be afraid that an unexpected disconnection will prevent them from making important purchases or disrupt their daily agenda.
All in all, it proves that Telia Lietuva is well positioned to be the first choice for business customers regardless of their size when it comes to not only connectivity but integrated IT and cybersecurity solutions.
Revenue generated from IT and billed mobile communication services fueled total revenue growth during the first half of 2024. Compared with the first half of 2023, total mobile data usage during January-June 2024 increased by 38 per cent, while using 5G network alone has grown 2.8 times. During the second quarter of 2024, the number of mobile communication service subscribers increased by 29 thousand and over the last 12 months - by 44 thousand.
Despite the fact that total number of broadband Internet connection over the last 12 months went down by 4 thousand (solely DSL connections), revenue from Internet services went up. Revenue from TV services increased in line with higher number of Telia Play services users notwithstanding shrinking pay TV market and tough competition.
The higher total revenue in combination with the costs saving initiatives resulted in an adjusted EBITDA margin increase by 1.2 percentage points to 37.2 per cent, as compared with the previous year.
During the second quarter an important milestone was achieved in implementing mobility business transformation program - 90 per cent of residential customers has been migrated into SAP customer relationship management (CRM) system streamlining the legacy systems shut-down.
In June, the first part of the full mobile gadgets buy-back service came to life and online tool for evaluation of old devices was launched, confirming Telia's commitment to circular economy solutions as part of our sustainability agenda.
Continuing its support to Ukraine Telia Lietuva will continue to provide calls from Lithuania to Ukraine and from Ukraine to Lithuania as well as mobile data services in Ukraine at special tariffs applied from the start to the war and we intend to do this at least until the end of 2024.
ENCL.:
- Telia Lietuva, AB Interim Report for January-June of 2024.
- Presentation of Telia Lietuva, AB results for the 6 months of 2024.
Darius Džiaugys,
Head of Investor Relations,
tel. +370 5 236 7878,
e-mail: darius.dziaugys@telia.lt
