Profitability is growing with the popularity of equipment, IPTV and mobile services
2017 10 18
During the third quarter of this year, compared with the same quarter of 2016, the revenue of Telia Lietuva, a provider of telecommunications, IT and TV services, increased by 3.9 per cent and amounted to EUR 90.2 million. The Company’s EBITDA, excluding non-recurring items, amounted EUR 32.8 million, i.e. 8.2 per cent higher than a year ago, while EBITDA margin, excluding non-recurring items, was 36.4 per cent.
During the first nine months of 2017, the revenue of Telia Lietuva increased by 6.6 per cent – up to EUR 270.1 million. EBITDA, excluding non-recurring items, amounted to EUR 91.2 million and increased by 2.9 per cent over the year, while EBITDA margin, excluding non-recurring items, stood at 33.8 per cent.
“The activities of Telia Lietuva, as a next-generation telecommunications company offering all communications, television and IT services from a single point, are accelerating. By combining different technologies, investing in innovation and network development we offer our customers much more than conventional telecommunication companies do, and this leads to an increase in our revenue and profitability indicators,” says Kęstutis Šliužas, CEO of Telia Lietuva.
According to him, today on the market the choice and value of the services offered, rather than the price, become a competitive advantage. “Customers’ demand is changing: more important becomes synergy of services, therefore players offering it could grow faster. Already today we offer our customers a one-stop-shop for all communication services and equipment, TV sets they need as well as television services that are customizable according to their individual needs, as well as IT services and even cyber-security training for businesses. We are moving further by offering service plans for business and for private customers – special “Telia One” offer. New services provision model provides added value to those who choose Telia Lietuva as their primary provider of communication and content services,” says K. Šliužas.
The growth of Telia Lietuva revenue during the first nine months of this year was driven by an increase in revenue from almost all services offered. This year, the Company continued to rapidly increase equipment sales: comparing the first nine months of the last year with the same period this year, revenue from equipment sale increased by nearly a fifth (17.1 per cent). According to the latest data from research company Gfk, with the main four categories of equipment sale – TVs, mobile phones, computers and tablets – taken together, Telia Lietuva is today the leader in Lithuania.
The Company’s second segment in terms of growth is smart television (IPTV). Its customer base grew by 11 per cent over the year and by the end of September already exceeded the limit of 200 thousand. In total, revenue from TV services grew by one tenth. According to the data of the Communications Regulatory Authority, despite the decrease in the total number of pay-TV subscribers, the number of IP (Internet Protocol) technology-based TV subscribers in Lithuania continues to grow, while Telia Lietuva has a market share that accounts for one-third of the total pay-TV market.
This year, the number of customers of other Company’s services grew. Compared with the data for the period from January to September 2016, the number of fiber-optic Internet users increased by 7.4 per cent, the number of active users of post-paid mobile telecommunications services – by 5.4 per cent.
As a result of the net increase in the number of active mobile subscriptions, as well as the elimination of roaming charges in the European Union and the reduction of the price for mobile Internet access beyond the EU by up to 98 per cent (Telia Lietuva improved the terms in August), mobile data traffic increased at double-digit rates.
From July to September alone, both in Lithuania and abroad, Telia Lietuva mobile customers used 1.8 times more mobile data than during the same period last year: 11,132 TB (terabytes) in total. While traveling abroad, customers used 2.4 times more mobile data in the last quarter alone than during the period from July to September last year – 165 TB.
During the last quarter, Telia Lietuva introduced a number of innovations to the market. In cooperation with CyberGym, a private Israeli company developing cyber defence solutions, the Company opened the first remote cyber security training centre in Lithuania and Northern Europe. Its goal is to improve the readiness of the country’s business companies, state enterprises and organisations to counter potential cyber threats.
In order to strengthen IT competences, Telia Lietuva has launched a special training programme “Telia IT Akademija” intended for young specialists who would like to work in the areas of IT services management or business applications. This year, the first 30 selected candidates will start a half-a-year-long training programme. The best will be invited to work for Telia Lietuva permanently. Over a period of three weeks, the programme attracted more than a hundred participants.
This year, Telia Lietuva has received the highest ratings and was recognized as one of the most open and transparent companies in Lithuania in the corporate transparency research conducted by transparent business-labelling initiative “Clear Wave” and Transparency International Lithuania.