Telia Lietuva results for the six months of 2021
The Board of Telia Lietuva, AB (hereinafter “Telia Lietuva” or “the Company”) approved unaudited Telia Lietuva, AB Consolidated Interim Financial Statements, prepared according to International Financial Reporting Standards as adopted by the European Union, and Consolidated Interim Report for the six months’ period ended 30 June 2021.
Second quarter of 2021:
- Total revenue amounted to EUR 101.6 million, up by 4.6 per cent over the revenue of EUR 97.1 million in the second quarter of 2020.
- EBITDA was EUR 34 million, an increase by 2.6 per cent over EBITDA of EUR 33.1 million a year ago.
- Adjusted EBITDA (excluding non-recurring items) amounted to EUR 34.1 million and was 2.2 per cent higher than adjusted EBITDA of EUR 33.3 million for the second quarter of 2020.
- Profit for the quarter was EUR 12.3 million, up by 8.2 per cent over the profit of EUR 11.4 million a year ago.
First half of 2021:
- Total revenue amounted to EUR 201.3 million, an increase by 6.3 per cent over the revenue of EUR 189.3 million for the first half of 2020.
- EBITDA reached EUR 68.8 million and was 4.4 per cent higher than EBITDA of EUR 65.9 million a year ago.
- Adjusted EBITDA (excluding non-recurring items) amounted to EUR 68 million, an increase by 2.6 per cent over adjusted EBITDA of EUR 66.3 million for the first six months of 2020.
- Profit for the period was EUR 25.4 million, up by 6.2 per cent over the profit of EUR 23.9 million a year ago.
- Free cash flow amounted to EUR 34.8 million, a decrease by 23.3 per cent over the free cash flow of EUR 45.3 million a year ago.
The importance of high-quality connectivity remained high during the first half of 2021 as COVID-19 related lockdowns continued. The second quarantine is officially over as of 1 July 2021. As a result, demand for solutions supporting flexible working as well as for entertainment was strong. To respond to the increased customer preference for video-on-demand, our already appreciated content library was further strengthened. To be in the forefront of innovation we launched new eSIM solutions for smart watches and currently are the only operator in Lithuania to offer eSIM for Apple watches.
In order to enhance focus as well as achieve increased clarity on goals and expectations the customer channels organization was restructured into the Dare – Care model. Implying a Dare organization with focus on driving sales results and a Care organization focused on improving efficiency and providing superior customer care.
We have launched, for the first time a TV campaign dedicated to new and tailored offerings for SOHO and SME customers. This in combination with an increased sales focus targeting newly established businesses resulted in new customers intake in the SOHO/SME segment. During the pandemic demand for Cloud solutions surged by 40 per cent and more business customers choose equipment rent and work place management services.
Our converged offer, Telia1, is enjoyed in 82 thousand of households. Over the last twelve months:
- number of mobile service subscriptions increase by 4 per cent up to 1,409,
- number of FTTH Internet customers was up by 2.7 per cent up to 300 thousand,
- number of IPTV users grew by 2 per cent up to 254 thousand.
Increased customer base, demand for IT solutions and higher usage of mobile data were pushing revenue up. Over the year, comparing the six months’ period of 2021 with the same period in 2020:
- revenue from IT services surged by 21.4 per cent,
- revenue from equipment sale grew by 14.5 per cent,
- revenue from TV revenue services increased by 12 per cent,
- revenue from broadband Internet services went up by 10.6 per cent,
- revenue from billed mobile services was up by 8.9 per cent.
To ensure network leadership in terms of speed and quality, we persistently invest into upgrade of mobile network. Total capital investments during the first half of 2021 were by almost one third higher than a year ago and exceeded EUR 31 million. As a result, Telia Lietuva leads mobile Internet speed race in Lithuania with average speed of 93.6 Mbps and already has 32 base stations providing non-commercial 5G connectivity of up to 1.8 Gbps speed.
In May, the Company paid-out a record high EUR 58.3 million (0.10 euro per share) dividends following the decision of the Annual General Meeting of shareholders. Shareholders for a new two-years term elected the Board of the Company: five members of the previous Board were re-elected (including one independent) and another independent new member of the Board, Dovilė Grigienė, was elected. Douglas Lubbe was re-elected as the Chair of the Board.
- Telia Lietuva, AB Consolidated Interim Financial Statements and Consolidated Interim Report for the six months’ period ended 30 June 2021.
- Presentation of Telia Lietuva, AB Group results for the 6 months of 2021.
Head of Investor Relations,
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