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 9 months' period ended 30 September 2023.
Third quarter of 2023 (compared with the same period a year ago):
- Revenue grew by 8.4% and amounted to EUR 122.8 million (EUR 113.3 million)
- Adjusted EBITDA up by 19.6% to EUR 46.1 million (EUR 38.6 million)
- EBITDA increased by 19.3% and amounted to EUR 45.4 million (EUR 38.1 million)
- Profit for the period went up by 19.9% to EUR 18.5 million (EUR 15.4 million)
- Free cash flow amounted to EUR 21.8 million (EUR 1.4 million)
9 months of 2023 (compared with the same period a year ago):
- Revenue grew by 7.6% and amounted to EUR 353.3 million (EUR 328.2 million)
- Adjusted EBITDA up by 15.7% to EUR 129.1 million (EUR 111.6 million)
- EBITDA increased by 14% and amounted to EUR 126.9 million (EUR 111.3 million)
- Profit for the period went up by 20.7% to EUR 50.3 million (EUR 41.7 million)
- Free cash flow went up by 3.8% and amounted to EUR 41.6 million (EUR 40.1 million)
Comment by Giedre Kaminskaite-Salters, CEO of Telia Lietuva:
Telia Lietuva has delivered an exceptional quarter in terms of revenue growth and earnings' margins. Total revenue for the third quarter and nine months of 2023 increased by 8.4 and 7.6 per cent, respectively, compared with the same periods a year ago. Earnings were growing by double digits and adjusted EBITDA margin for January-September of 2023 reached 36.6 per cent (34 per cent in 2022).
Surge in revenue was boosted by intake of new mobile subscriptions (40 thousand over the last 12 months) and continuously growing usage of mobile data thanks to our 5G network, already covering almost the entire country.
Since September 2022, when Telia Lietuva launched its 5G network, the number of 5G devices in the Company's network has doubled. Currently every fourth device operating in our network supports 5G connectivity and each such device on average uses around 50 GB per month. This proves that rapid deployment of Telia's 5G network facilitated the creation of new customer habits in Lithuania.
According to the latest Communication Regulation Authorities' report, customers of Telia Lietuva consumed the most of mobile data compared to competitors during the second quarter of 2023.
From September, with release of new iOS 17 operating system, Voice over Wi-Fi service became exclusively available to iPhone holders in Telia Lietuva network. Voice over Wi-Fi service introduced to our customer in June provides the possibility to make voice calls where the mobile network signal is weak or is not available.
It was an honour and at the same time a professional challenge for us to ensure perfect connectivity during the historic NATO summit in Vilnius in July 2023. More than 2.000 workstations were installed with fixed internet and power connections, furthermore fixed and mobile telephony and printing services were provided, and even a satellite connection was prepared, in case of any crisis situations. In addition, specialists of Telia Lietuva were entrusted to provide connectivity to the US President and his team in Lithuania.
The NATO summit project was an additional contribution to the already double-digit growth of revenue from IT services. The number of DDoS attacks on state and private institutions during the NATO summit reiterated the importance of cyber security solutions provided by Telia Lietuva.
During the third quarter of 2023 the Company secured several large contracts with business customers. For another 5 years we will provide IT systems supervision and security solutions to more than 1,300 computerized workplaces to Lithuanian Insurance and PZU Life Insurance. Telia Lietuva will send up to 3 million SMS every month to the customers of the energy distribution operator ESO in the forthcoming 3 years for EUR 2.35 million value contract.
Till the year end Telia Lietuva will continue to provide calls to and from Ukraine at reduced tariffs and our customers in Ukraine could use mobile data at lower than set by EU price.
As part of Telia Company's Group, we are proud that the Group's targets set with the overall aim of achieving net-zero greenhouse gas (GHG) emissions across its value chain by 2040 have been approved by the Science Based Targets initiative (SBTi). In addition to the overall target, the SBTi also validated Telia's updated near-term and new long-term targets.
ENCL.:
- Telia Lietuva, AB Interim Report for January-September 2023.
- Presentation of Telia Lietuva results for 9 months of 2023.
Darius Džiaugys,
Head of Investor Relations,
tel. +370 5 236 7878,
e-mail: darius.dziaugys@telia.lt
