Presentation on theme: "Financial Results for the 3rd Quarter of 2004. 2004.10.26 2 Table of Contents Business Overview – Third Quarter of 2004 Shareholders of AB Lietuvos."— Presentation transcript:
2004.10.26 2 Table of Contents Business Overview – Third Quarter of 2004 Shareholders of AB Lietuvos Telekomas Structure of Lietuvos Telekomas’ Group Telecommunications Market in Lithuania Fixed-line Telephony Services of Lietuvos Telekomas Internet Service Providers’ Market in Lithuania Internet-related Services of Lietuvos Telekomas Key Financial Figures – 9 months of 2004 Profit (Loss) Statement (in million of litas) Breakdown of Revenue (in million of litas) Employees, EBITDA and EBITDA Margin Cash Flow and Net Debt (in million of litas) Investments
2004.10.26 3 Business Overview – Third Quarter of 2004 In July, Lietuvos Telekomas launch new internet plan, Takas id3, targeting residential customers. UAB Comliet disposed its 75 per cent shareholding in Latvian company Datu Tikli SIA. UAB Baltijos Informaciniu Duomenu Valdymo Centras was renamed UAB Baltic Data Center and UAB Sonex Komunikacijos was renamed UAB Comliet Sprendimai. In August, the Company increased its international internet access capacity from 930 Mbit/s to 1,400 Mbit/s. In September, Lietuvos Telekomas became a sole owner of UAB Voicecom after acquiring 40 per cent stake from Nexcom Telecommunications LLC. During July – September of 2004 the number of main lines in services decreased by 2.5 thousand. During January – September of 2004 increased usage of services: local calls’ traffic is up by 15.3%, long-distance calls’ – up by 25.4%, calls from fixed to mobile networks – up by 29.2% and international calls – up by 14.6%.
2004.10.26 4 Shareholders of AB Lietuvos Telekomas Amber Teleholding A/S is a wholly-owned subsidiary of TeliaSonera AB, Sweden. UAB Lintel, a member of Lietuvos Telekomas’ Group, holds the treasury stocks. During July–September 2004 State of Lithuania reduced its shareholding from 7.93% to 4.56% by giving shares of the Company to the citizens of Lithuania as a compensation for realty redeemable by the State of Lithuania. The remaining 4.56% stake is offered by the State in the fourth stage of compensation started in October 2004. Structure of shareholders as on 30 September 2004
2004.10.26 5 AB Lietuvos Telekomas (fixed-line telephony, data communication, fixed-line network, wholesales and Internet-related services, Internet portal Takas) UAB Voicecom (VoIP services) UAB Lintel (directory inquiry, telemarketing and contact center services, treasury stocks) UAB Lietuvos Telekomo Verslo Sprendimai (‘business solutions’ to largest customers) UAB Comliet (NMT-450 network, telecommunications and low voltage network’s construction services) UAB TietoEnator Consulting (IT-related consultancy services) UAB Verslo Portalas* UAB Baltic Data Center (IT infrastructure services) 100 % Baltic Data Center SIA (Latvia) 55% Telegrupp AS (Estonia) 95 % Comliet- Kaliningrad (Russian Federation) 100 % UAB Comliet Sprendimai VsI Lietuvos Telekomo Sporto Klubas (sports club) 100% 60% 100% 30% 26% * company under liquidation 5 % Structure of Lietuvos Telekomas’ Group (as on 30 September 2004)
2004.10.26 6 Telecommunication Market in Lithuania Total Lithuanian telecommunication market revenue for the 1st Half of 2004 amounted to 1,035 million litas. 21 companies at the end of the 1st Half of 2004 were providing fixed line telephony services: all of them were providing international calls and 8 national (local and/or long distance) calls services. Number of customers of alternative fixed-line telephony operators was 26.4 thousand. Lietuvos Telekomas’ share of fixed-line telephony in terms of revenue amounted for 95% (data for 2nd Quarter of 2004) Breakdown of total revenue by segments in 1st Half of 2004 Source: Report of CRA for 2nd Quarter of 2004.
2004.10.26 7 Fixed-line telephony services of Lietuvos Telekomas During January – September of 2004 number of main lines in service went down by 7 thousand, while during January – September 2003 by more than 100 thousand. Penetration of main lines per 100 residents of Lithuania is 23.9 (30 September 2004). Number of subscribed payment plans reached 409 thousand. Number of main lines in service (in thousands)
2004.10.26 8 Internet Service Providers’ Market in Lithuania Total revenue from internet- related services for the 1st Half of 2004 in Lithuania amounted to 71.5 million litas. 78 internet service providers at the end of the 1st Half of 2004 were providing internet access services to 272.8 thousand internet users. In terms of number of customers Lietuvos Telekomas’ share of internet access market was 26.5%, Omnitel’s – 25.6%, Bite GSM – 26.5% (June 2004). Breakdown of revenue from internet- related services for 2nd Quarter of 2004 Source: Report of CRA for 2nd Quarter of 2004.
2004.10.26 9 Internet-related Services of Lietuvos Telekomas Lietuvos Telekomas has 94% of ADSL internet access points. In July, a new internet plan, Takas iD3, was introduced. It offers unlimited internet access during off-peak time, weekends and holidays for just 26 litas a months (data download speed up to 256 kbit/s, upload – up to 128 kbit/s). Number of internet dial-up access service users is more than 36 thousand and more than 17 thousand customers are subscribers to dial-up internet payment plan, Internet. Number of ADSL access points
2004.10.26 10 Key Financial Figures – 9 Months of 2004 Group, according to IFRS, unaudited Revenue amounted to 544 million litas, a decrease by 10.2%, year–on-year. Operating expenses, including additional employee redundancy costs of 10.7 million litas, were cut down by 7% to 286 million litas, y-o-y. EBITDA amounted to 257 million litas and EBITDA margin was 47.3%. Profit before profit tax was 31 million litas and net profit was 24.5 million litas. During nine months net cash flow from operating activities was 146 million litas. Due to repayment of loans and payout of dividends cash and cash equivalents decreased by 72 million litas. Investments amounted to 45 million litas.
2004.10.26 11 Profit (Loss) Statement (in million of litas) Group, according to IFRS, unaudited 1 € = 3.4528 litas, 1 US dollar = 2.8029 (30 Sept. 2004)
2004.10.26 12 Breakdown of Revenue (in million of litas) Group, according to IFRS, unaudited Revenue by quarters In the 4th Quarter of 2003, Lietuvos Telekomas has adjusted its revenue grouping following the latest standards used by TeliaSonera AB. Major changes in the grouping of revenue were made in the 1st Quarter of 2003.
2004.10.26 13 Employees, EBITDA and EBITDA Margin Group, according to IFRS, unaudited EBITDA (in million of litas) and EBITDA Margin by Quarters Employees and number of main lines per employee by Quarters During January – September additional employee redundancy costs amounted to 10.7 million litas.
2004.10.26 14 Cash Flow and Net Debt (in million of litas) Group, according to IFRS, unaudited Net Debt and Gearing Ratio In March 2004, the Company redeemed its 150 million litas Eurobond issue. During the second quarter of 2004 the Company paid out dividends for the year 2003, in total 46.6 million litas. Cash Flow
2004.10.26 15 Investments and Network Digitalisation Group’s Investments in million of litas Investment for the nine months of 2004 amounted to 45 million litas (40 million litas in 2003). Network digitalisation rate was 92.1% (30 September 2004). Total number of ADSL access points was 39,464; total number of ISDN channels in services was 43 thousand; number of MPLS VPN access points was 898 (30 September 2004). In August, Lietuvos Telekomas increased its international internet access capacity from 930 Mbit/s to 1,400 Mbit/s.
2004.10.26 16 Thank you! More information about Lietuvos Telekomas’ Group is available on the web page www.telecom.lt