Telia Lietuva results for the half of 2021
The Board of Directors of Telia Lietuva, AB (hereinafter “Telia Lietuva” or “the Company”) has approved the unaudited interim consolidated financial statements of Telia Lietuva, AB, prepared in accordance with International Financial Reporting Standards such as ‘adopted by the European Union, and the consolidated interim report for the six-month period ended June 30, 2021.
Second quarter 2021:
– Total sales amounted to 101.6 million euros, up 4.6% compared to sales of 97.1 million euros in the second quarter of 2020.
– EBITDA amounted to 34 million euros, an increase of 2.6% compared to EBITDA of 33.1 million euros a year ago.
– Adjusted EBITDA (excluding non-recurring items) amounted to € 34.1 million and was 2.2 percent higher than adjusted EBITDA of € 33.3 million for the second quarter of 2020.
– Profit for the quarter was 12.3 million euros, up 8.2 percent from profit of 11.4 million euros a year ago.
First semester 2021:
– Total turnover amounted to 201.3 million euros, an increase of 6.3% compared to the turnover of 189.3 million euros in the first half of 2020.
– EBITDA reached 68.8 million euros and was 4.4 percent higher than EBITDA of 65.9 million euros a year ago.
– Adjusted EBITDA (excluding non-recurring items) amounted to € 68 million, an increase of 2.6% compared to adjusted EBITDA of € 66.3 million for the first six months from 2020.
– Profit for the period was 25.4 million euros, up 6.2 percent from profit of 23.9 million euros a year ago.
– Free cash flow amounted to 34.8 million euros, a decrease of 23.3% compared to free cash flow of 45.3 million euros a year ago.
The importance of high-quality connectivity remained high in the first half of 2021 as lockdowns related to COVID-19 continued. The second quarantine officially ended on July 1, 2021. As a result, the demand for solutions that support flexible working as well as entertainment was high. In response to increased customer preference for video on demand, our already popular content library has been further enhanced. To be at the forefront of innovation, we have launched new eSIM solutions for smartwatches and are currently the only operator in Lithuania to offer eSIM for Apple watches.
In order to improve focus and achieve greater clarity on goals and expectations, the organization of customer channels has been restructured into the Dare – Care model. Involving a Dare organization focused on sales results and a Care organization focused on improving efficiency and providing superior customer service.
For the first time, we have launched a TV campaign dedicated to new offers adapted to VSE and SME customers. This, combined with an increased focus on sales targeting newly established companies, has helped attract new clients to the VSE / SME segment. During the pandemic, demand for cloud solutions increased by 40% and more business customers are choosing equipment rental and workplace management services.
Our convergent offer, Telia1, is appreciated in 82,000 households. During the last twelve months:
– the number of mobile service subscriptions increases by 4 percent to 1,409,
– the number of FTTH Internet customers increased by 2.7% to 300,000,
– the number of IPTV users increased by 2 percent to 254,000.
Growing customer base, demand for IT solutions, and increased use of mobile data drove up revenues. Over the year, comparing the six-month period of 2021 with the same period of 2020:
– IT services revenue jumped 21.4%,
– turnover from the sale of equipment increased by 14.5%,
– revenues from TV revenue services increased by 12%,
– revenue from broadband Internet services increased by 10.6%,
– revenue from invoiced mobile services is up 8.9%.
To ensure network leadership in terms of speed and quality, we are constantly investing in upgrading the mobile network. Total capital investments in the first half of 2021 increased by almost a third compared to a year ago and exceeded 31 million euros. As a result, Telia Lietuva is leading the race for mobile internet speed in Lithuania with an average speed of 93.6 Mbps and already has 32 base stations offering non-commercial 5G connectivity up to 1.8 Gbps.
In May, the Company paid a record dividend of 58.3 million euros (0.10 euros per share) following the decision of the Annual General Meeting of Shareholders. The shareholders for a new two-year term elected the Board of the Company: five members of the previous Board were re-elected (including one independent) and another new independent member of the Board, Dovilė Grigienė, was elected. Douglas Lubbe was re-elected Chairman of the Board of Directors.
– Telia Lietuva, AB Consolidated interim financial statements and consolidated interim report for the six-month period ended June 30, 2021.
– Presentation of the results of Telia Lietuva, AB Group for the 6 months 2021.
Head of Investor Relations,
Phone. +370 5 236 7878,
e-mail: [email protected]