The TEO Group EBITDA margin for the first nine months of 2013 was 42 per cent, and net profit amounted to LTL 118.2 million. The Company's total consolidated revenue for the first three quarters of 2013 amounted to LTL 541.8 million.
In 2012, TEO EBITDA margin for the first nine months was 41.4 per cent, and net profit amounted to LTL 123.6 million. The Company's revenue for the first three quarters of 2012 amounted to LTL 570.5 million.
"In the third quarter of this year, we devoted a great deal of attention to complex IT solutions, additional IT and Internet innovations related to security and wireless Internet (Wi-Fi). This led to the growth of the number of customers and the increase of revenue from the Internet and IT fields by up to a tenth", - Giedrius Vegys, Acting General Manager of TEO, said when commenting on the activity results.
Over the year, revenue from IT services went up by 9.1 per cent, revenue from Internet services – by 4.1 per cent. At the end of September 2013, the number of TEO Internet service users, including the wireless Internet "TEO Wi-Fi" service users, was 418 thousand.
In the third quarter of this year, TEO focused on additional Internet services and innovations. To ensure the Internet security, residential customers were offered the "Interneto apsauga" (Internet Security) service, and business customers – the standardized "Saugumo sprendimai" (Security Solutions) service. The Company upgraded its wireless Internet (Wi-Fi) service in public places and offered customers more favourable pricing. In addition, improving its broadband (DSL) Internet service, TEO increased its speed available to users to the maximum.
The number of customers using the "Interaktyvioji GALA" (Interactive GALA) IPTV service exceeded 100 thousand. Over the last 12 months, the number of the Company's IPTV service users increased by 15.2 per cent. The total number of TV service users at the end of September amounted to 171 thousand. The Company's revenue from all TV services grew by 10 per cent.
During the nine months of 2013 the Company allocated a total of LTL 82 million for investments. The majority of investments (LTL 68 million) went to the development of the next-generation fiber-optic access and core networks. At the end of September 2013, TEO fiber-optic (FTTH) Internet access services were available for use to 790 thousand or 66 per cent of the country's families.
During the nine months of 2013, the Company's share of revenue from Internet, IT and TV services continued to grow. Share of revenue from Internet services amounted to 24.6 per cent, from IT services – 9.4 per cent, and from TV services – 8.4 per cent from the Company's total revenue for the nine months of 2013. Share of revenue from voice telephony services from total amount of revenue for January-September 2013 amounted to 42.9 per cent, from data communications services and network capacity sales – 11.5 per cent, and from other services – 3.1 per cent from total amount of revenue for the nine months of 2013.
According to the data of the Communications Regulatory Authority (CRA) of the Republic of Lithuania, in the second quarter of 2013 TEO market share of the Internet access services market in terms of revenue amounted to 42.6 per cent, while in terms of revenue from digital television services – 43 per cent. TEO market share in terms of revenue from fixed telephony services was 94.2 per cent.
TEO Group consists of the parent company, TEO LT, AB, and its subsidiaries: Lintel, Baltic Data Center (BDC), Hostex, Hosting, Kompetencijos Ugdymo Centras and Verslo Investicijos. TEO is the founder and sole owner of VšĮ Ryšių Istorijos Muziejus (The Communications History Museum).
More information about the results of TEO Group for the third quarter of 2013 is available on the Company's website at http://www.teo.lt/node/4674.
About TEO LT, AB
TEO provides integrated telecommunication, IT and TV services to residential and business customers in Lithuania. Having the largest experience in the telecommunications business in Lithuania, the Company pays exclusive attention to high quality of services and satisfaction of customer needs. More than 88 per cent of the Company's shares are owned by TeliaSonera AB. TEO LT, AB shares are traded on NASDAQ OMX Vilnius Stock Exchange.
