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, for the twelve months' period ended 31 December 2018.
Fourth quarter of 2018*:
- Total revenue amounted to EUR 96.8 million, down by 2 per cent over restated revenue of EUR 98.7 million in the fourth quarter of 2017.
- EBITDA, excluding non-recurring items, was EUR 33.1 million, an increase of 0.7 per cent over restated EBITDA, excluding non-recurring items, of EUR 32.8 million in the fourth quarter of 2017.
- Profit for the period was EUR 13.5 million, down by 4.9 per cent over restated profit of EUR 14.2 million a year ago.
Twelve months of 2018*:
- Total revenue amounted to EUR 376.5 million, up by 2.1 per cent over restated revenue of EUR 368.6 million for the twelve months of 2017.
- EBITDA, excluding non-recurring items, was EUR 128.7 million, an increase of 4.5 per cent over restated EBITDA, excluding non-recurring items, of EUR 123.2 million for the twelve months of 2017.
- Profit for the period was EUR 54.7 million, up by 9.2 per cent over profit of EUR 50.1 million a year ago.
- Operating free cash flow amounted to EUR 46.7 million (EUR 53.9 a year ago).
Management comment:
Year 2018 culminated with an entry into a 5G era in Lithuania. We were the first in the country to launch the next generation 5G mobile network, demonstrating a new mobile speed record - data was transmitted in an active network at the speed of 1.8 Gb/s. We reconfirmed our technological leadership in Lithuania and set the platform for digital future.
For better customers experience by the year end we have completed migration of residential customers that are using fixed communication service to a new customer care system based on SAP. Migration of residential mobile service users and all business customers is anticipated in 2019.
Digitalisation of the customers' experience was also prioritised while drafting the new organisation structure of the Company. From the beginning of 2019 a new Direct and Digital Channels unit rallied all employees involved in direct customer care, creation of digital channels, sale support and service implementation under one umbrella. Growing importance of communication and IT services integration led to the creation of a separate IT sales unit for business customers.
As it was promised two years ago during the merger of fixed and mobile activities, our customers are offered innovative converged solutions such as hybrid-type Internet combining 4G mobile and DSL Internet, and IPTV over 4G LTE mobile network service, while more than 33 thousand customers using both fixed and mobile services are enjoying higher speed, more data and more TV content by taking an advantage of the converged "Telia One" offer which is unique in the market.
During January-December of 2018 the intake of new customers continued despite tough competition on the market:
- Number of IPTV users increased by 9 per cent up to 230 thousand,
- Number of FTTH Internet customers rose by 4.9 per cent up to 277 thousand,
- Number of post-paid service users grew by 4.7 per cent up to 1,126 thousand.
The fourth quarter was the best in 2018 in terms of revenue and strongly contributed to the full year revenue growth. Over the year:
- Revenue from mobile services grew by 13.2 per cent,
- Revenue from equipment sale increased by 12.5 per cent,
- Revenue from TV and IT services was up by 9.5 and 6.6 per cent, respectively.
By the end of 2018, we completed a major IP network upgrade project and our network is now ready for the data volume growth in forthcoming five years. During January-December of 2018, capital investments into fixed network amounted to EUR 32.9 million and accounted for more than a half of total capital investments. According to the data of the CRA, Telia Lietuva remains the heaviest investor into telecommunications infrastructure in Lithuania with a 50 per cent stake.
* Note. Starting from 1 January 2018, the Company adopted International Financial Reporting Standard 15 "Revenue from Contracts with Customers" (IFRS 15) and to compare financial results for the year 2018 with financial results a year ago the Company restated financial data for the year 2017. An effect of restatement of financial data for the 12 months period of 2017 was as follows: total revenue was reduced by EUR 1,487 thousand, while total operating expenses were increased by EUR 545 thousand, having a total negative effect of EUR 2,032 thousand on EBITDA and EBIT.
ENCL.:
- Telia Lietuva, AB Consolidated Interim Financial Statements for the twelve months' period ended 31 December 2018.
- Presentation of Telia Lietuva, AB Group results for the twelve months of 2018
Darius Džiaugys,
Head of Investor Relations,
tel. +370 5 236 7878,
e-mail: darius.dziaugys@telia.lt.
Attachments
- 2018_12_months_financial_statements (https://ml-eu.globenewswire.com/Resource/Download/a6924c52-fa95-4894-91c2-abfe1a716658)
- 2018_12_months_results_presentation (https://ml-eu.globenewswire.com/Resource/Download/20d0a8f8-e65d-4b39-9b86-d4e22516d710)
